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<br /> July 10, 2010 <br /> RE: Financing Options <br /> We are inquiring and requesting financing from the City of Little Canada with <br /> regards to the Graba Properties building located at 3225 Country Drive. <br /> With the remodeling of the building that we did and the current economic issues <br /> we are facing an unprecedented issue. We have had to turn down and lose very <br /> good tenants due to a lack of bank funding. One such tenant was Liberty <br /> Systems who had been in Little Canada with about 15 employees in a customer <br /> service/tech support business for 5 years and is now located in Vadnais Heights <br /> with its new 5,000 sq ft office space. I have several other examples of lost <br /> tenants because banks are simply just not lending money. <br /> We have tapped out all of our known resources just to get the last set of build <br /> outs done in January of this year finished. We now have two existing tenants <br /> who want to expand and we need to come up with $45,001 to get the build outs <br /> done and we can increase our cash flow for the property by $2,900 per month. <br /> We also have a company, Neatoscan, which is a rapidly growing software <br /> company which we would love to put in the building however we would need an <br /> additional 100k-120k in order to build out the 5,000 plus feet they would need. <br /> Neatoscan is currently adding one full time employee every 3-4 months due to <br /> growth. This company had tremendous potential and again we can't get the <br /> financing due to our current economic times. <br /> With these expenses, plus our amount due for SAC, we are requesting a loan of <br /> around 200k-225k with a 15 year term. <br /> Our monthly pro forma looks like this. <br /> Rents/Income $28,463.00 <br /> Taxes/Expenses $ 7,874.00 <br /> Debt Service/Loans $19,100.00 <br /> Keep in mind that we will still have 7,000 sq ft of vacant space which will be <br /> almost all cash flow when rented. <br /> I have included a cost breakdown for the build outs for the two tenant expansions <br /> and will provide any additional information you would request. I am looking <br /> forward to working with the City of Little Canada on this issue and any assistance <br /> would be greatly appreciated. <br /> Sincerely, <br /> 5 <br /> <br />