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ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY <br /> TO: Economic Development Authority <br /> FROM: William Rubin <br /> EDA Executive Directpt <br /> DATE: July 31, 1995 <br /> (� ` <br /> SUBJECT: Request for Micro-Loan <br /> Carpe Kairos,LLC <br /> (Custom Cutter Grinding Corporation) <br /> Introduction <br /> The EDA Finance Committee met on July 27, 1995 to consider a $50,000 supplemental <br /> micro-loan request from Carpe Kairos, LLC (Limited Liability Company), a group <br /> comprised of officers of Custom Cutter Grinding Corporation, 9423 West Highway 10, <br /> Ramsey, MN. The following members of the Finance Committee were present: Lloyd <br /> Brutlag,Jim Simpson, Tom McNair, Bud Houlton, and Bill Birrenkott. <br /> Background <br /> The EDA micro-loan would be used by Carpe Kairos to leverage primary financing and <br /> • owner equity for the construction of a 10,000 square food multi-tenant industrial building <br /> on Lot 3, Block 1, Rail 10 Industrial Park. Custom Cutter Grinding would occupy 4,000 <br /> square feet within the building, and the remaining 6,000 square feet would be made <br /> available for lease in spaces of 1,500 square feet or more. <br /> The balance of the information on this loan request is outlined in greater detail in a memo <br /> that was sent to the Finance Committee on this matter: In addition, a 1-page summary of <br /> the loan request follows this memo. <br /> Finance Committee Action <br /> Following a presentation from representatives of Carpe Kairos and Custom Cutter, the <br /> Finance Committee voted unanimously to recommend to the EDA that it fund this loan <br /> request. <br /> Action Requested <br /> The EDA is asked to approve a micro-loan in the amount of$50,000 to Carpe Kairos, <br /> LLC. The loan will be secured by <br /> • A second real estate mortgage on Lot 3, Block 1,Rail 10 Industrial Park; <br /> • A Promissory Note; and, <br /> • A Guaranty of Mortgage. <br /> The loan will be repaid over 15 years with an initial interest rate of 9.0 percent(the current <br /> • prime rate). The rate will be adjusted at 6 month intervals- floating with prime. <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 />