Existing Facility # 8

The property is fenced and contains about 3 acres.  It has 3 buildings,

an office with ~1,500 SF, a newer metal building with ~30,000 SF & 2

truck docks, and an older wood building with ~20,000 SF.

The property is privately owned and is not on the market, however

the owner has indicated a willingness to sell the entire property

for approximately $650,000.

If the property would meet your needs, the City may be able to acquire

it and then lease it to you for ~$2,700 per month.  This would require a

successful application to the Texas Capital Fund by the City and your

company.  If successful in such an application, this is what would

happen-

The City would purchase the property for approximately $650,000.

The City would lease your company the property for $2,708.33 per month for 3 years.  This is the same as a 20 year interest free loan.  You would have the guaranteed right to renew the lease in 3 year increments for up to a total of 20 years, all at the same $2,708.33 triple net monthly rate.   At the end of 20 years you could purchase the property for $1.00.

This is true off-balance sheet financing.  Since you only obligate yourself for 3 years of a lease at a time, with no requirement on your part to renew the lease, you do not have to show the $650,000 debt on your balance sheet.

Additionally, if the property is owned by the City, but used by a private entity, the taxes are based upon the lease-hold value rather than the appraised value.  This should save you 20% to 40% on property taxes on the land and improvements for as long as you lease the property.