HomeMy WebLinkAboutHEDRA 04-09-09 IV b. Stotko's Block 29 Proposal
1303 Eddy Street Hastings, MN 55033
P: 651-480-0055 F: 651-480-0079
www.stotkospeedling.com
John Grossman
City of Hastings
th
101 4 Street East
Hastings, MN 55033
Dear John,
Stotko Speedling Construction is pleased to present a proposal to purchase Lots 1 & 2,
Block 29.
Based on the information supplied in the Request for Proposal we propose that the
purchase price be $1.00. This is due to the cost of constructing a new building of
approximately 6,500 square feet along with site improvements. The costs involved with
constructing and financing a project of this type compared to the lease rates required to
support this facility make the project extremely risky.
We are also requesting that this offer be valid for a minimum of three years from the
date of acceptance until the land closing.
The building will consist of two to four office suites depending on final layout of floor
plans. It will be a slab on grade, wood framed structure with a brick, hardie-plank siding
and shingled roof. There will also be some standing seam roofing at shed roof areas.
This is a preliminary design for your consideration and discussion.
The schedule is determined on tenant interest and financing. Once these are achieved
the project duration will be approximately six months.
As another option to this proposal would be to consider negotiating a land swap with the
property we own at the corner of Westview Drive and South Frontage Road.
Thank you for consideration of this proposal and look forward to hearing from you after
you have met to discuss with the HEDRA.
Sincerely,
Greg Stotko
RFP for Lots 1 and 2, Block 29 Hastings, MN
Project CostsPaid
Hard Costs
Shell Construction Costs (6500 sf X $125)812,500
Interior Build-out Costs (6500 X $25)162,500
Land1
SAC/WAC (2 Units @ $4,500 ea)9,000
Total Hard Costs$984,001
Soft Costs
Architect & Structural Fees30,000
Civil Engineering Fees10,000
Levied Assessment0
Sewar Intercepter Fees ???0
Park Dedication Fees ???0
Testing5,000
Marketing Costs5,000
Legal Fees10,000
Consulting Fees0
Broker Fees (6500 x $3)19,500
Appraisal5,000
Environmental (Soil Borings)5,000
Inspecting Architect ($200 Each Visit)1,000
Origination Fees 1%7,000
Title Fees 1.5%11,000
Interest Reserve15,000
Sub-Total123,500
Contingency 5% of soft costs6,175
Total Soft Costs$129,675
Total Project Costs$1,113,676
Down Payment 20%222,735
Loan Amount$890,941
Total Cost with Land for $140,400$1,259,325
Down Payment 20%$251,865
Loan Amount$1,007,460
04/07/2009
Stotko Speedling Construction, Inc.
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