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-9- <br /> The second option, which is relevant, As ,that Hennepin County might <br /> provide the immediate purchase price through using the unexpended balance <br /> from the 'discretionary account as related to the Comity Developn" <br /> Block Grant Funds. <br /> UNFUNDED OPTIONS: These apply only to the acquisition of the building or <br /> facility as such. The first of these has already been explored with one <br /> corporation; it involves the corporation turning over the building for a <br /> nominal sum and taking the tax write-off. A second option is the <br /> outright gift of a building by an individual or corporation. A third <br /> option is that HERO takes possession of a building for a five year period <br /> at nominal cost, with an option to buy in the future. Obviously, an <br /> unfunded option has relevance for this iniative since it allows focus on <br /> the much more modest budgets related to modification and/or renovation, <br /> and critically the operating budget. It is intended to preservere with <br /> these options. However, the unfunded options represent, in combination, <br /> only about d ten percent possibility. <br /> MONEY TO MODIFY A FACILITY: The first option is that the money will come <br /> from a start-up grant from the Minnesota Department of Energy and <br /> Develonment. This is difficult to reference except in relationship to a <br /> • specific building, but it is estimated not to exceed one hundred thousand <br /> dollars. The second option is that this money will come from a grant <br /> from the Federal Economic Development Administration. This second <br /> approach requires the active support of both the Minnesota Department of <br /> fneW and Development and the Minnesota Department of Jobs and Training. <br /> MONEY TO START-DP THE FACILITY: The first option is to seek start-up <br /> monies in the amount of one hundred thousand dollars from again the <br /> Minnesota Department of Energy and Develop=nt and/or the Federal <br /> Economic Development Administration. The attached pro forma budget <br /> assumes that almost twenty-five thousand dollars will be lost in the <br /> first year of operation, but in subsequent years the operation will show <br /> a positive deviation in excess of thirty thousand dollars in 1881, 189 and <br /> 190 and be self-supporting thereafter. The money sought is therefore <br /> seed money only. <br /> In terms of start-up monies, it' is important that contingencies be <br /> covered by the seed money granted to HERO since it is planned as set <br /> fourth in the budget pro forma for the initiative,to be self-supporting <br /> after the second year. <br /> Business Plan: Hero 1/15/87:RSA:05 <br />