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ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY <br /> S <br /> MEMORANDUM <br /> TO: EDA Finance Committee. <br /> FROM: William Rubi <br /> EDA Executiv $ 14, a tor <br /> DATE: July 18, 1995 <br /> SUBJECT: Request for Microloan. <br /> Custom Cutter Grinding Corporation. <br /> Introduction <br /> Carpe Kairos, LLC (Limited Liability Company), a group comprised of <br /> officers of Custom Cutter Grinding Corporation, 9423 West Hwy 10, Ramsey, <br /> Minnesota, requests a loan from the EDA Microloan Fund in the amount of <br /> $50,000. This loan would be used by Carpe Kairos, LLC to leverage primary <br /> financing and owner equity for the construction of a 10,000 square foot multi- <br /> • tenant industrial building on Lot 3, Block 1, Rail 10 Industrial Park. <br /> Custom Cutter Grinding would occupy 4,000 square feet within the building, <br /> and the remaining 6,000 square feet would be made available for lease in <br /> spaces of 1,500 square feet or more. <br /> Background <br /> Custom Cutter Grinding was organized in November, 1985, with Mr. Kermit <br /> Bode as its sole proprietor. In 1991, the company was incorporated and Mr. <br /> Bode became CEO/President, with a 51% ownership position. Mr. Curt <br /> Jacobson started with the company in 1985 as a machine operator; he is <br /> currently-Vice-President/Purchasing Agent and owns 45% of the company. <br /> Mr. Jacobson's stake in the company will increase to 49% in January of 1996. <br /> Custom Cutter is a tool and cutter grinding machine shop. The company <br /> manufactures precision cutting tools for industrial use, modifies standard <br /> tools to fit special needs, sharpens modified tools, and sharpens standard <br /> over-the-counter tooling. In 1987, Custom Cutter began manufacturing <br /> carbide thread mills for one of its customers. It was later refined and <br /> developed into a product line that is sold under the trademark Custom Cut. <br /> This year, thread mill sales will top $100,000 and represents over 20% of <br /> . Custom Cutter's overall sales. Company growth with this product line is <br /> hampered due to limited space availability for machinery and employees. <br /> P.O. Box 490 • 13065 Orono Parkway • Elk River, MN 55330-1743 • (612) 441-7420 • Fax: (612) 441-7425 <br /> S:EDA/uourinct, <br /> Equal Opportunity Housing and Equal Opportunity Employment <br />