Agenda - Economic Development Authority - 08/10/2023

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upward mobility potential — and with true wealth building opportunities for everyone, via the ESOP program. The entire project, which includes a buyout of the current facility by the investment firm that owns it, plus the addition and remodel will run about $7million. Additionally there will be around $5,000 - $500,000 worth of capital equipment, furniture, etc. needed to fit out the new spaces. The original estimate for the project was about $1.5 million lower, but materials price increases, as well as higher - than -anticipated sewer and water connection fees have driven up costs. While the company can survive this, it will require a significant amount of financing and good cash flow management. Current property taxes paid are around $30,000 annually. This is anticipated to nearly quadruple with the new expansion. The SA Group values our partnership with our colleagues at the City of Ramsey. We've been here for many years, are growing rapidly, and have every intention of doing that growing right here where it all started. We are interested in exploring any options for help in offsetting these very high growth/development costs that the city might have to offer: in particular any options for temporary tax abatement and/ or low interest loans. We are grateful to the city for your guidance and help. We believe that, in coming years, our little company is going to become a national leader in the water treatment world. That will mean many more job and development opportunities; and Ramsey is where we would like to be. Thank you from everyone at the SA Group.