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ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY <br /> MEMORANDUM <br /> TO: EDA Finance Committee <br /> FROM: William Rubin, EDA Executive Direct yi <br /> ��V <br /> DATE: November 8, 1995 <br /> SUBJECT: Request for Micro Loan <br /> Frank and Jody Galli <br /> (The Vault Hearth-style Bread) <br /> Introduction <br /> Frank and Jody Galli request a loan from the EDA Micro Loan Fund in the <br /> amount of$50,000 to launch a gourmet bread bakery and coffee shop venture <br /> in the lowest level of the building referred to as the Elk River Travel <br /> • building, 315 Jackson Avenue, Elk River, Minnesota. This loan would be <br /> used by the Gallis to leverage primary financing and owner equity for the <br /> acquisition of the building, the renovation of the lowest level space within <br /> said building, and miscellaneous equipment and fixtures associated with the <br /> production of hearth-style gourmet bread and related specialty coffee shop <br /> uses and activities. Elk River Travel would continue to occupy its space on <br /> the main level of the building. Monthly rental income from this space as well <br /> as the monthly income from a two bedroom apartment on the upper level <br /> would help provide supplemental income for the Gallis. <br /> Background <br /> Just as high end coffees such as espresso and cappuccino have increased in <br /> popularity in recent years, so too has the hearth-style gourmet breads. These <br /> breads are advertised as "fresh baked" and fat free with no additives or <br /> preservatives. Three very successful hearth bakery endeavors can be found <br /> in the Twin Cities area. They are Great Harvest Bread Company, <br /> Breadsmith, and Turtle Bread Company. The Vault Hearth Bakery will <br /> attempt to duplicate the success of the more urban-based endeavors. <br /> Original formulas, quality ingredients, labor-intensive production, <br /> specialized equipment, freshness and original product ' displays will <br /> • differentiate the Galli's venture from other bakery concepts within the <br /> surrounding trade area. The premium nature of the Galli's product will be <br /> P.O. Box 490 • 13065 Orono Parkway • Elk River, MN 55330-1743 • (612) 441-7420 • Fax: (612) 441-7425 <br /> Equal Opportunity Housing and Equal Opportunity Employment <br />