01-784��� � �h1���_ �,\��da� Council File # a�����
Resolution #
Green sheet # 111302
Presented By
Referred To
n
Committee: Date
�
2 WHEREAS, on July 13, 1994, the City Council of the City of Saint Paul established the Cultural Capital
3 Investment (Cultural STAR) Program, C.F. 94-1005; and
4
5 WHEREAS, the Cultural STAR Program is funded with ten percent of an additional one-half of one percent
6 sales taY on sales transactions that occur within the city, pursuant to Minnesota Statutes, Chapter 297A,
7 authorized by the State of Minnesota, Chapter No. 375, Sec. 46; and
9 WHEREAS, the purpose of the Cultural STAR Program is to fund capital projects to fiirther cultural and
10 visitor service activities; and
11
12 WHEREAS, the Cultural STAR Boazd and the PED Credit Committee recommend approval of a$1,000,000
13 loan to Music Tech to complete improvements to the Arts & Science Center; and
14
15 WHEREAS, this amount will be structured as two (2) equal loans, the second of which will be forgivable if
16 Music Tech meets certain criteria in order to benefit the Great American History Theatre as outlined in
17 attachment B; and
18
19 WIIEREAS, the Cultural STAR Boazd and PED staff also recommend approval of one (1) grant to Music
20
21
22
23
24
25
26
27
28
29
30
31
32
33
Tech to complete improvements to the ea�terior of the Arts & Science Center; and
WHEREAS, this project will result in the net addition of 35 full-time jobs, 95 part-time jobs and 260 college
students in downtown Saint Paul as well as 50,000 annual Crreat American History Theatre patrons and 500
weekly students of the Saint Paul Conservatory of Music; and
WHEREAS, Pursuant to Resolution 99-742 this loan and grant aze not subject to1999 Business Subsidy Law
due to the fact that this assistance will be used for the sole purpose of renovating old or decaying building
stock and that the total project cost exceeds $3.5 million of which at least $2.1 million will be used for base-
building and/or improvements required by code per Attachment C; and
WHEREAS, this resolution will not exempt Music Tech from Business Subsidy Law for the purchase of the
property; and
34 WHEREAS, the Mayor, Pursuant to section 10.071 of the City Charter, recommends changes to the 2001
35 budget as listed per Attachment A.
36
37 NOW, THEREFORE BE IT RESOLVED, the City Council approves the funding the two (2) Cultural STAR
38 projects and the budget amendments per Attachment A.
39
40
41
42 Budget Director
43
��
Office of Financial Services
o�-�ry
Requested by Department of:
Plannin & fiCOnomic Develo ment
� `
Hy'
By:
Form Approved
By:
by Ci Attorne
�z �� �+--
� Approved by Mayor
for Submission to Council
_ �. _ - �
/
'��� ' ^ ���� / ��
— _- �
Adopted by Council: Date �� �
Adoption Certified by Council 5ecretary
V \��x�Dt �� V eC's ��� — � _ � , �a \ Q � ��� :
o �-�r�
Attachment B: Proposed Terms of Music Tech Cultural STAR Loans
Cultural STAR Loan A: $500,000 amortized over 20 years at 5.5%. Full defenal of principal
and interest for 2 years (to facilitate private and SBA lending).
Cultural STAR Loan S: $500,000 with a 20 yeaz term. Interest will not accnze prior to
forgiveness. This loan is designed to assist the Great American History Theatre and wiil be
forgiven if any one of the foilowing goals are met:
� End of the term of Loan A or when Loan A is paid off:
� Music Tech's private lenders provide the Crreat American History Theatre a
Subordination / Non-IYistuzbance Agreement of 3 yeazs or more from the time of default.
� The History Theatre raises $500,000 or more as part of a capital campaign for
improvements to the facility.
� At 5 years, if the History Theatre is still occupying the space.
� At 5 yeazs, if the History Theatre is not occupying the space, but Music Tech has signed a
lease with a term of 10 years or more with a non-profit culhual institution on terms
similaz to the History Theatre.
In return for this fixnding, the Great American History Theatre will be ineligible for Cultural
STAR Capital funds for the next 5 yeazs. The City of Saint Paul will also be acknowiedged for
its lead gift to the History Theatre's Capital campaign.
Both Cultural STAR Loans will be subordinate to the private lending and SBA debt.
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DEPARTMENT/OFFICFJCOUNCII,: DATE INPPIATED GREEN SHEET No.: 111302
Planniug and Economic Dev. 06-26-2001 0 y—� _'�{
CONTACT PERSON & PHONE: ��ATE
Jeff Nelson x66560 � 1 nEPn�z�rt�Mr Dux. s ctrY couricn,
MUST BE ON COUNCII, AGENDA BY (DATE) �IGN 3 CIT'Y AITORNEY CITY CLERK
m i o �nn+ ?�NANCIAL SERV DIlL 6 FAIANCIAL SERV/ACCTG
.e...ae.�.sr R � e � gpg B � 4 MAYOR (OR ASST.) _ CIVIL SERVICE CONIIvIISSION
ROU'11NG
ORDER
TOTAL # OF SIGNATURE PAGES _i_(CL1P ALL LOCATiONS FOR SIGNA'NRE)
ncnox �QUES�n: Approval of Cultural STAR Boazd recommendarions and changes to the 2001 Cultural STAR
Spending Plan.
RECOMIvfENDA1'fONS: Approve (A) or Rejec[ (R) PERSONAI, SERVICE CONTRACCS MUST ANSWER TfIE FOLLOWING
QUESITONS:
PLANNING COMNIISSION 1. Has this person/fimi ever worked u¢der a wntract for ikus depamnent?
CIB COMNIITTEE Yes No
CIVIL SERVICE COMbIISSION 2. Has this person/finn ever been a ciTy employee?
A_ Ci7LTCJRAL STAR BOARD Yes No '
3. Does this persoNfirm possess a skill not no:maliy possessed by any cmrent ciTy employee?
Yes No
Explain all yes answers ou separate sheet and attach to green Sheet •
INITIATING PROBLEM, ISSUE, OPPORTONI'CY (Who, What, When, Where, Why):
Cultural STAR Board recommendation for the 2001 Cultural Capital Investrnent (STAR} Program loan and grant
to Music Tech for the redevelopment of the Arts & Science Center.
ADVANTAGES ]F APPROVED.
Project will result in the net addition of 35 full-time and 95 part-time jobs and 260 college students in downtown
Saint Paul as welI as 50,000 Great American History Theatre patrons and 500 students of the Saint Paul
Conseroatory of Music.
DISAbVANTAGES IF APPROVED:
None
DISADVANI'AGES IF NOT APPROVED: '
Project will not take place and the City of Saint Paul will continue to operate the Arts & Science Center at an
annual cost in excess of $450,000.
TOTAL AMOUNI' OF'tRANSACTION: $ 1,097,250 COST/REVENIJE BUDGETED: YES
FUNDING SOTIRCE: Sales Tax Revenue ACTIVI'TY NUMBER: P7-930-90399-0547-77999
FINANCIAI, INFORMATION: (EXPLAIN) CO�G�Fi R95�`c�rC�i CAI���
.. � 26 7
G.GSha*ed�Ped�NdwnTCWtu�al STAA\Cycle b Ras\Greeu SheaU6262001.wpd
ATTACHMENT A
Financing Plan - Cultural STAR Tau Revenue
transfer from HRA Debt Services Fund
Grant Program - Transfer from HRA Debt Servic
P7-930-90304-7304-00000
ENDING PLAN: Cultural STAR
STAR PROJECT NAME
unoesiynacea r�uopieu ouuyei - i
P7-930-90399-0547-77999
Direcf Project Costs:
P7-930-90309-0558-77000
P7-930-90310-0558-77000
Loan and Grant Closing Fees:
P7-930-90309-0547-77000
P7-930-90310-0547-77000
Musicians Technical Training Cer
P7-930-90309-0547-77475 (loan}
P7-930-90310-0547-77475(aranl
Y�
O) n ' 1� •
CHANGE PROPOSED
BUDGET
1
CHANGE (PROPOSED
1.48 (338,311.48� 0.00
0.00 30,000.00 30,000.00
0.00 1,500.00 1,500.Q0
0.00 15, 000.00 15, 000.00
0.00 750.00 750.00
0.00 1,00�,000.00 1,000,000.00
��� � �h1���_ �,\��da� Council File # a�����
Resolution #
Green sheet # 111302
Presented By
Referred To
n
Committee: Date
�
2 WHEREAS, on July 13, 1994, the City Council of the City of Saint Paul established the Cultural Capital
3 Investment (Cultural STAR) Program, C.F. 94-1005; and
4
5 WHEREAS, the Cultural STAR Program is funded with ten percent of an additional one-half of one percent
6 sales taY on sales transactions that occur within the city, pursuant to Minnesota Statutes, Chapter 297A,
7 authorized by the State of Minnesota, Chapter No. 375, Sec. 46; and
9 WHEREAS, the purpose of the Cultural STAR Program is to fund capital projects to fiirther cultural and
10 visitor service activities; and
11
12 WHEREAS, the Cultural STAR Boazd and the PED Credit Committee recommend approval of a$1,000,000
13 loan to Music Tech to complete improvements to the Arts & Science Center; and
14
15 WHEREAS, this amount will be structured as two (2) equal loans, the second of which will be forgivable if
16 Music Tech meets certain criteria in order to benefit the Great American History Theatre as outlined in
17 attachment B; and
18
19 WIIEREAS, the Cultural STAR Boazd and PED staff also recommend approval of one (1) grant to Music
20
21
22
23
24
25
26
27
28
29
30
31
32
33
Tech to complete improvements to the ea�terior of the Arts & Science Center; and
WHEREAS, this project will result in the net addition of 35 full-time jobs, 95 part-time jobs and 260 college
students in downtown Saint Paul as well as 50,000 annual Crreat American History Theatre patrons and 500
weekly students of the Saint Paul Conservatory of Music; and
WHEREAS, Pursuant to Resolution 99-742 this loan and grant aze not subject to1999 Business Subsidy Law
due to the fact that this assistance will be used for the sole purpose of renovating old or decaying building
stock and that the total project cost exceeds $3.5 million of which at least $2.1 million will be used for base-
building and/or improvements required by code per Attachment C; and
WHEREAS, this resolution will not exempt Music Tech from Business Subsidy Law for the purchase of the
property; and
34 WHEREAS, the Mayor, Pursuant to section 10.071 of the City Charter, recommends changes to the 2001
35 budget as listed per Attachment A.
36
37 NOW, THEREFORE BE IT RESOLVED, the City Council approves the funding the two (2) Cultural STAR
38 projects and the budget amendments per Attachment A.
39
40
41
42 Budget Director
43
��
Office of Financial Services
o�-�ry
Requested by Department of:
Plannin & fiCOnomic Develo ment
� `
Hy'
By:
Form Approved
By:
by Ci Attorne
�z �� �+--
� Approved by Mayor
for Submission to Council
_ �. _ - �
/
'��� ' ^ ���� / ��
— _- �
Adopted by Council: Date �� �
Adoption Certified by Council 5ecretary
V \��x�Dt �� V eC's ��� — � _ � , �a \ Q � ��� :
o �-�r�
Attachment B: Proposed Terms of Music Tech Cultural STAR Loans
Cultural STAR Loan A: $500,000 amortized over 20 years at 5.5%. Full defenal of principal
and interest for 2 years (to facilitate private and SBA lending).
Cultural STAR Loan S: $500,000 with a 20 yeaz term. Interest will not accnze prior to
forgiveness. This loan is designed to assist the Great American History Theatre and wiil be
forgiven if any one of the foilowing goals are met:
� End of the term of Loan A or when Loan A is paid off:
� Music Tech's private lenders provide the Crreat American History Theatre a
Subordination / Non-IYistuzbance Agreement of 3 yeazs or more from the time of default.
� The History Theatre raises $500,000 or more as part of a capital campaign for
improvements to the facility.
� At 5 years, if the History Theatre is still occupying the space.
� At 5 yeazs, if the History Theatre is not occupying the space, but Music Tech has signed a
lease with a term of 10 years or more with a non-profit culhual institution on terms
similaz to the History Theatre.
In return for this fixnding, the Great American History Theatre will be ineligible for Cultural
STAR Capital funds for the next 5 yeazs. The City of Saint Paul will also be acknowiedged for
its lead gift to the History Theatre's Capital campaign.
Both Cultural STAR Loans will be subordinate to the private lending and SBA debt.
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DEPARTMENT/OFFICFJCOUNCII,: DATE INPPIATED GREEN SHEET No.: 111302
Planniug and Economic Dev. 06-26-2001 0 y—� _'�{
CONTACT PERSON & PHONE: ��ATE
Jeff Nelson x66560 � 1 nEPn�z�rt�Mr Dux. s ctrY couricn,
MUST BE ON COUNCII, AGENDA BY (DATE) �IGN 3 CIT'Y AITORNEY CITY CLERK
m i o �nn+ ?�NANCIAL SERV DIlL 6 FAIANCIAL SERV/ACCTG
.e...ae.�.sr R � e � gpg B � 4 MAYOR (OR ASST.) _ CIVIL SERVICE CONIIvIISSION
ROU'11NG
ORDER
TOTAL # OF SIGNATURE PAGES _i_(CL1P ALL LOCATiONS FOR SIGNA'NRE)
ncnox �QUES�n: Approval of Cultural STAR Boazd recommendarions and changes to the 2001 Cultural STAR
Spending Plan.
RECOMIvfENDA1'fONS: Approve (A) or Rejec[ (R) PERSONAI, SERVICE CONTRACCS MUST ANSWER TfIE FOLLOWING
QUESITONS:
PLANNING COMNIISSION 1. Has this person/fimi ever worked u¢der a wntract for ikus depamnent?
CIB COMNIITTEE Yes No
CIVIL SERVICE COMbIISSION 2. Has this person/finn ever been a ciTy employee?
A_ Ci7LTCJRAL STAR BOARD Yes No '
3. Does this persoNfirm possess a skill not no:maliy possessed by any cmrent ciTy employee?
Yes No
Explain all yes answers ou separate sheet and attach to green Sheet •
INITIATING PROBLEM, ISSUE, OPPORTONI'CY (Who, What, When, Where, Why):
Cultural STAR Board recommendation for the 2001 Cultural Capital Investrnent (STAR} Program loan and grant
to Music Tech for the redevelopment of the Arts & Science Center.
ADVANTAGES ]F APPROVED.
Project will result in the net addition of 35 full-time and 95 part-time jobs and 260 college students in downtown
Saint Paul as welI as 50,000 Great American History Theatre patrons and 500 students of the Saint Paul
Conseroatory of Music.
DISAbVANTAGES IF APPROVED:
None
DISADVANI'AGES IF NOT APPROVED: '
Project will not take place and the City of Saint Paul will continue to operate the Arts & Science Center at an
annual cost in excess of $450,000.
TOTAL AMOUNI' OF'tRANSACTION: $ 1,097,250 COST/REVENIJE BUDGETED: YES
FUNDING SOTIRCE: Sales Tax Revenue ACTIVI'TY NUMBER: P7-930-90399-0547-77999
FINANCIAI, INFORMATION: (EXPLAIN) CO�G�Fi R95�`c�rC�i CAI���
.. � 26 7
G.GSha*ed�Ped�NdwnTCWtu�al STAA\Cycle b Ras\Greeu SheaU6262001.wpd
ATTACHMENT A
Financing Plan - Cultural STAR Tau Revenue
transfer from HRA Debt Services Fund
Grant Program - Transfer from HRA Debt Servic
P7-930-90304-7304-00000
ENDING PLAN: Cultural STAR
STAR PROJECT NAME
unoesiynacea r�uopieu ouuyei - i
P7-930-90399-0547-77999
Direcf Project Costs:
P7-930-90309-0558-77000
P7-930-90310-0558-77000
Loan and Grant Closing Fees:
P7-930-90309-0547-77000
P7-930-90310-0547-77000
Musicians Technical Training Cer
P7-930-90309-0547-77475 (loan}
P7-930-90310-0547-77475(aranl
Y�
O) n ' 1� •
CHANGE PROPOSED
BUDGET
1
CHANGE (PROPOSED
1.48 (338,311.48� 0.00
0.00 30,000.00 30,000.00
0.00 1,500.00 1,500.Q0
0.00 15, 000.00 15, 000.00
0.00 750.00 750.00
0.00 1,00�,000.00 1,000,000.00
��� � �h1���_ �,\��da� Council File # a�����
Resolution #
Green sheet # 111302
Presented By
Referred To
n
Committee: Date
�
2 WHEREAS, on July 13, 1994, the City Council of the City of Saint Paul established the Cultural Capital
3 Investment (Cultural STAR) Program, C.F. 94-1005; and
4
5 WHEREAS, the Cultural STAR Program is funded with ten percent of an additional one-half of one percent
6 sales taY on sales transactions that occur within the city, pursuant to Minnesota Statutes, Chapter 297A,
7 authorized by the State of Minnesota, Chapter No. 375, Sec. 46; and
9 WHEREAS, the purpose of the Cultural STAR Program is to fund capital projects to fiirther cultural and
10 visitor service activities; and
11
12 WHEREAS, the Cultural STAR Boazd and the PED Credit Committee recommend approval of a$1,000,000
13 loan to Music Tech to complete improvements to the Arts & Science Center; and
14
15 WHEREAS, this amount will be structured as two (2) equal loans, the second of which will be forgivable if
16 Music Tech meets certain criteria in order to benefit the Great American History Theatre as outlined in
17 attachment B; and
18
19 WIIEREAS, the Cultural STAR Boazd and PED staff also recommend approval of one (1) grant to Music
20
21
22
23
24
25
26
27
28
29
30
31
32
33
Tech to complete improvements to the ea�terior of the Arts & Science Center; and
WHEREAS, this project will result in the net addition of 35 full-time jobs, 95 part-time jobs and 260 college
students in downtown Saint Paul as well as 50,000 annual Crreat American History Theatre patrons and 500
weekly students of the Saint Paul Conservatory of Music; and
WHEREAS, Pursuant to Resolution 99-742 this loan and grant aze not subject to1999 Business Subsidy Law
due to the fact that this assistance will be used for the sole purpose of renovating old or decaying building
stock and that the total project cost exceeds $3.5 million of which at least $2.1 million will be used for base-
building and/or improvements required by code per Attachment C; and
WHEREAS, this resolution will not exempt Music Tech from Business Subsidy Law for the purchase of the
property; and
34 WHEREAS, the Mayor, Pursuant to section 10.071 of the City Charter, recommends changes to the 2001
35 budget as listed per Attachment A.
36
37 NOW, THEREFORE BE IT RESOLVED, the City Council approves the funding the two (2) Cultural STAR
38 projects and the budget amendments per Attachment A.
39
40
41
42 Budget Director
43
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Office of Financial Services
o�-�ry
Requested by Department of:
Plannin & fiCOnomic Develo ment
� `
Hy'
By:
Form Approved
By:
by Ci Attorne
�z �� �+--
� Approved by Mayor
for Submission to Council
_ �. _ - �
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— _- �
Adopted by Council: Date �� �
Adoption Certified by Council 5ecretary
V \��x�Dt �� V eC's ��� — � _ � , �a \ Q � ��� :
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Attachment B: Proposed Terms of Music Tech Cultural STAR Loans
Cultural STAR Loan A: $500,000 amortized over 20 years at 5.5%. Full defenal of principal
and interest for 2 years (to facilitate private and SBA lending).
Cultural STAR Loan S: $500,000 with a 20 yeaz term. Interest will not accnze prior to
forgiveness. This loan is designed to assist the Great American History Theatre and wiil be
forgiven if any one of the foilowing goals are met:
� End of the term of Loan A or when Loan A is paid off:
� Music Tech's private lenders provide the Crreat American History Theatre a
Subordination / Non-IYistuzbance Agreement of 3 yeazs or more from the time of default.
� The History Theatre raises $500,000 or more as part of a capital campaign for
improvements to the facility.
� At 5 years, if the History Theatre is still occupying the space.
� At 5 yeazs, if the History Theatre is not occupying the space, but Music Tech has signed a
lease with a term of 10 years or more with a non-profit culhual institution on terms
similaz to the History Theatre.
In return for this fixnding, the Great American History Theatre will be ineligible for Cultural
STAR Capital funds for the next 5 yeazs. The City of Saint Paul will also be acknowiedged for
its lead gift to the History Theatre's Capital campaign.
Both Cultural STAR Loans will be subordinate to the private lending and SBA debt.
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DEPARTMENT/OFFICFJCOUNCII,: DATE INPPIATED GREEN SHEET No.: 111302
Planniug and Economic Dev. 06-26-2001 0 y—� _'�{
CONTACT PERSON & PHONE: ��ATE
Jeff Nelson x66560 � 1 nEPn�z�rt�Mr Dux. s ctrY couricn,
MUST BE ON COUNCII, AGENDA BY (DATE) �IGN 3 CIT'Y AITORNEY CITY CLERK
m i o �nn+ ?�NANCIAL SERV DIlL 6 FAIANCIAL SERV/ACCTG
.e...ae.�.sr R � e � gpg B � 4 MAYOR (OR ASST.) _ CIVIL SERVICE CONIIvIISSION
ROU'11NG
ORDER
TOTAL # OF SIGNATURE PAGES _i_(CL1P ALL LOCATiONS FOR SIGNA'NRE)
ncnox �QUES�n: Approval of Cultural STAR Boazd recommendarions and changes to the 2001 Cultural STAR
Spending Plan.
RECOMIvfENDA1'fONS: Approve (A) or Rejec[ (R) PERSONAI, SERVICE CONTRACCS MUST ANSWER TfIE FOLLOWING
QUESITONS:
PLANNING COMNIISSION 1. Has this person/fimi ever worked u¢der a wntract for ikus depamnent?
CIB COMNIITTEE Yes No
CIVIL SERVICE COMbIISSION 2. Has this person/finn ever been a ciTy employee?
A_ Ci7LTCJRAL STAR BOARD Yes No '
3. Does this persoNfirm possess a skill not no:maliy possessed by any cmrent ciTy employee?
Yes No
Explain all yes answers ou separate sheet and attach to green Sheet •
INITIATING PROBLEM, ISSUE, OPPORTONI'CY (Who, What, When, Where, Why):
Cultural STAR Board recommendation for the 2001 Cultural Capital Investrnent (STAR} Program loan and grant
to Music Tech for the redevelopment of the Arts & Science Center.
ADVANTAGES ]F APPROVED.
Project will result in the net addition of 35 full-time and 95 part-time jobs and 260 college students in downtown
Saint Paul as welI as 50,000 Great American History Theatre patrons and 500 students of the Saint Paul
Conseroatory of Music.
DISAbVANTAGES IF APPROVED:
None
DISADVANI'AGES IF NOT APPROVED: '
Project will not take place and the City of Saint Paul will continue to operate the Arts & Science Center at an
annual cost in excess of $450,000.
TOTAL AMOUNI' OF'tRANSACTION: $ 1,097,250 COST/REVENIJE BUDGETED: YES
FUNDING SOTIRCE: Sales Tax Revenue ACTIVI'TY NUMBER: P7-930-90399-0547-77999
FINANCIAI, INFORMATION: (EXPLAIN) CO�G�Fi R95�`c�rC�i CAI���
.. � 26 7
G.GSha*ed�Ped�NdwnTCWtu�al STAA\Cycle b Ras\Greeu SheaU6262001.wpd
ATTACHMENT A
Financing Plan - Cultural STAR Tau Revenue
transfer from HRA Debt Services Fund
Grant Program - Transfer from HRA Debt Servic
P7-930-90304-7304-00000
ENDING PLAN: Cultural STAR
STAR PROJECT NAME
unoesiynacea r�uopieu ouuyei - i
P7-930-90399-0547-77999
Direcf Project Costs:
P7-930-90309-0558-77000
P7-930-90310-0558-77000
Loan and Grant Closing Fees:
P7-930-90309-0547-77000
P7-930-90310-0547-77000
Musicians Technical Training Cer
P7-930-90309-0547-77475 (loan}
P7-930-90310-0547-77475(aranl
Y�
O) n ' 1� •
CHANGE PROPOSED
BUDGET
1
CHANGE (PROPOSED
1.48 (338,311.48� 0.00
0.00 30,000.00 30,000.00
0.00 1,500.00 1,500.Q0
0.00 15, 000.00 15, 000.00
0.00 750.00 750.00
0.00 1,00�,000.00 1,000,000.00