03-30-1987 Council Packet - Laserfiche WebLink

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The second option, which is relevant, is that y Pepin County might provide the immediate purchase price through using t unexpended balance from the discretionary account as related to the Cemunity Develomient Block Grant Funds. DMPDIIDED OPTIONS: These apply only to the acquisition of the building or facility as such. The first of these has already been explored with one corporation; it involves the corporation turning over the building for a nominal sows and taking the tax write-off. A second option is the outright gift of a building by an individual or corporation. A third option is that HERD takes possession of a building for a five year period at nominal cost, with an option to buy in the future. Obviously, an unfunded option has relevance for this iniative since it allows focus on the much more modest budgets related to modification ardor renovation, and critically the operating budget. It is intended to preservere with these options. However, the unfunded options represent, in combination, only about a ten percent possibility. MONEY TO MODIFY A FACILITY: The first option is that the money will case from a start-up grant from the Minnesota Department of Energy and Development. This is difficult to reference except in relationship to a specific building, but it is estimated not to exceed one hundred thousand dollars. The second option is that this money will come from a grant from the Federal Economic Development Administration. This second approach requires the active support of _oth the Minnesota Detiartment of End and Developmnt and the Minnesota Demrtment of Toby a^2 Tr inn nn, MONEY TO START-UP THE FACILITY: The first option is to seek start-up monies in the amount of one hundred thousand dollars from again the Minnesota Department of Energy and Development and/or the Federal Economic Development Administration. The attached pro forma budget assumes that almost twenty-five thousand dollars will be lost in the first year of operation, but in subsequent years the operation will show a positive deviation in excess of thirty thousand dollars in 188, '89 and '90 and be self-supporting thereafter. The money sought is therefore seed money only. In terms of start-up monies, it is important that contingencies be ca,ered by the seed money granted to HERO since it is planned as set fourth in the budget pro forms for the initiative 'o be self-supporting after the second year. Business Plan: Hero 1/15/67:RSA:05