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~'LS 'C{O $~'" VI CO~TYDEVELOPMENTDEPARTMENT August 25, 1998 Mr. John Olson Executive Director Cryogenic Laboratories Inc 1944 Lexington Avenue North Roseville, MN 55113 Dear John: I want to thank you for taking time out of your busy schedule to review your need for additional space. The City ofRoseville is very interested in working with you to accomplish your goals so that you can continue to thrive and grow in a timely efficient manner. After reviewing your space needs, I believe the most economical and viable option would be to expand at your current location, adding space for Cryogenic Labs and a storefront facing Lexington Avenue for an antique shop and medical office space. Working with your architect and the City of Roseville, I am confident that a plan can be designed, using the Cornerstone Program concepts, that meets your business needs and the desires ofRoseville. I met with representatives from Ramsey County and the St. Paul Metro East Development Partnership (SPEDCo) regarding low interest financing for the expansion and have summarized the findings below. Keep in mind that we made assumptions regarding estimated construction costs based upon previous discussions with you and your architect. The following is only an estimate to illustrate how the program can work for your business expansion needs. Assumptions: Construction costs for 4,000 SF expansion plus architect and construction fees = $500,000 Equity = investment in building with no cash down County Loan = $250,000 @ 6.5% fixed interest rate for 20 years SBA Loan = $250,000 @ 7.7% fixed interest rate for 20 years $1,860 per month $2.040 per month Total monthly payments for expansion using SBA & County Financing $3,900 per month These programs have some requirements that should be easy to meet based on your expansion plans. The loans can be approved in a timely manner (45-60 days) once you make a decision to move forward.