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EDC Minutes March 18, 2005 Page 3 Henk from Paster Enterprises. Backman presented correspondence regarding the Hardee’s Restaurant building. The conversion to Caribou Coffee (western end of the building) represents a sizeable investment on Paster’s part. Backman also distributed to the members building schematics showing the renovated building. Paster was able to get a settlement with Hardee’s for $150,000 (Hardee’s had a ground lease until 2011). Henk asked for financial assistance from the City as part of this project. Backman inquired about building valuations—the old value was estimated to be $50 a sq. ft., and the new value $130 a sq. ft. Henk indicated that from the 1/18/05 letter to the 2/25/06 project costs increased from $376,000 to $517,000. Entsminger asked about the higher costs. Henk indicated that while they would be able to save the slab, utilities, mechanical systems, curb and paving, the renovation costs were coming in higher. Field asked about the payback calculations. Henk responded saying it was based upon the difference in rent. Backman asked about other potential users of the building, and noted that in other projects the City has participated in site clearance activities or in stormwater management activities. Henk provided some cost estimates for demolition, excavation, landscaping. Ericson indicated that the City could contact RCWD about potential ponding changes and if there could be overflow to the road right-of-way. Backman asked about the financial gap needed. Henk indicated that the gap was at least $125,000. Backman will discuss the numbers with Field and other EDC members and come back to the next EDC meeting with more information. 7. ADJOURNMENT There being no further business before the Commission, Johnson adjourned the March 18th meeting of the Economic Development Commission at 9:03 a.m. Respectfully submitted, Aaron A. Backman Economic Development Coordinator