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6.0. EDSR 04-13-1998 ITEM 6. g4i• a o ,, SCREEDP1th)CERS ADO EmBROFOERERS Jim and Wanda Stork 554 - 3rd Street Elk River, MN 55330 (612)441-1022 FAX (612) 241-8081 March 09, 1998 Subject: Application for Micro Loan To: Paul Steinman Hello Paul, Here is the information for our construction project. We have tried to provide all the information you may require so if there is anything else, let me know. This is truly an exciting time for us in the growth of our business and we thank you for your support. �I��i Ji Stone President Ink Wizards, Inc. • ECONOMIC DEVELOPMENT MICRO LOAN FUND ELK RIVER, MINNESOTA APPLICATION 110 APPLICANT I(K IA5 IZ.A. OS ...1- lic- ADDRESS 6434/ :2V,d SF CITY ELK AFX STATE I' J ZIP CODE 3S330 CONTACT PERSON(S) jIIA ©ie 13/1 kVA 57O/ L BUSINESS PHONE 44I - 103; HOME PHONE 414-74) ) AMOUNT REQUESTED 4 qo,noc .b0 TERMS REQUESTED 2O W1p d0)4'1'07 lin7 ii,d SOCIAL SECURITY NUMBER 474k-t5c2-0g04 FED ID # qi - /8(03(.6,01 STATE ID # 301 -741X0 1. Type of Project: construction/New Building Expansion/Existing Building /Equipment/Machinery Purchase Remodel/Commercial Retail/Industrial 110 Industrial Inventory VWorking Capital Other 2 . Describe Project: "biiiiii;Kil J c ()Ada° PIP gin, i id/Ilan/ 6iParV/Pel4 4, 00m .... 5,oto i ,. ' 2 ' .o ' / .r/ r , ( iii,sdik;',, itrical) ' - .4 // : , � I . .fib4rt . ii t / 4 4 b.,o/zek,L:f . . . / OW, ,/ 0 G4 i / r.L A �' "(turf, opp / - iv/ 1 Allh4 'Y/t7Edgi ./ /I I1:i 14 . ../f /1 .1IIL. ...Off Iii A. / _ ! ..(J f.411 ' / M/° l' 7 On IA 1 , 14,4 fild (ayaz) • / / ,174dittatd) wdzadil , d 11-zze, ,Intiurtjar " "di" Hiamid ari6-1 e Pie ez(m014 ,e(7,4-f 6,4 A54, kihx- / / , /// 44,4, 4e71/0 / 0•- di, / / ciza • WAC(' � , - � �r �' ��, � , ��ra • 3 . Purpose o Loan: / / / / `/ 111.A.0 11, ,La 1 II / .ALJ,. 4 p► ASJIA,.r1' I I og _ � Il �tL ..$ iL. : ! Jt i / ,iL! ,i r 1, )/`i.i. L.%l� i, i irgarMfrr, U. . t . /.- Mpg 4,230 0010 -41 A Alka i• r wrimiTAPMENTIML.tifirff • AillAWAMM / ✓. 75ii triff /' ' 1,.... 1,41 ' ACJA(..to.t., .,,, A ANAW. ‘ p 4 . Cost of Project: /�/y A) Land $ �-t 9 900.00 B) Buildings (attach plans & costs) $ / 76 000. Oct C) Equipment/Machinery/Fixtures (attach list and estimate costs) $ /3o . 0O0- OCA D) Remodeling S De-Q a � $ / � �O o� , (`�,v� E) Industrial Inventory/Working Capital $ o25,OO(.0.O0 F) Other (attach description) $ TOTAL COSTS $ 39 Ir / co .Oc 5 . Proposed Financing: SOURCE NAME TERMS AMOUNT A) Bank Loan )S4( i '-tones 0 s�), 42 $ I-1 . S0d•) B) Bank Loan ( $ C) Other Private Funds $ D) Applicant Contribution $ 37 x.00 E) Other ,(8-''' ' $ /. ono .OJ F) Fed Grant/Loan $ G) State Grant/Loan $ £ III H) This Loan (� IZ.& $ 4o, co TOTAL FINANCING $ .3q ) 19oo o -2- 6 . Collateral to be assigned (Describe and show lien position) : A) To Bank: 6 `1 L9,,,,U - /s+ B) To Bank: TX(74‘ - 1St IIIC) To Private Funding Source: D) To Other Source: E) To Federal Govt: F) To State: .-- J G) To This Loan: 6(Add,1„:4, 4. Lo-ILLI - c9A6 7 . Value of Collateral: COST BOOK VALUE EXISTING LIENS A) Land $ �f9 4'39t'i)g�� $ BF $ P QE asEb B) Buildings $ I751)MD $ )75i6M) $ To Bf gul(.f C) Mach. & Equip. $ 132-10W $ $ 13pUvu D) Other P ucMAPF$ I,0 , $ $-�PttA 4ttEt E) Other tU0 a, AL, Verb$ 39, ` $ $ 8 . Employment* : C 0q7 IIIPresent: # of Employees I Total Payroll (q-7I679 or After Project: # of Employees la -r Total Payroll *If Loan is for Job Retention Only, Explain in Business Plan. 9 . Attorney, Accountant (Names, addresses, phone) : /la / , — Rd 4-F (g67 Ota-4:4\ S4- Fileic(1-6_1.6.43 . A th. / A•.t i— . • 730 0000 A/0 7 Ae 4q/-eco 10 . Bank and Other Credit References (Names, addresses, phone) : IS+ N61),9.0 E.1( 7a) /'L 5+ F /' 1 1 aao o FA,, J+ 64-\1( / 1 a338 COin-trk AN'k)E- NlpioAAJ O -3- • I/We certify that all information provided in this application is true and correct to the best of my/our knowledge. I/We authorize the City of Elk River and the Finance Committee to check credit references and verify financial and other information. I/We agree to provide any additional information as may be requested by the City and the Finance Comm'ttee. DATE 4 0 Applicant Name Ai A ES , Siogif_ ,_ tOm.: 510- At CC By ¶TI14. /AInk'. I By A /' ! 111M,26 i • -5- • INK WIZARDS, INC. BUSINESS DESCRIPTION/PLAN February 19, 1998 1. Description of Business Ink Wizards is a contract screen printing, embroiderya d em em digitizing company. 1997 sales were just under $500,000. We currently rent abou 2,500 q ft. in Elk River. In addition to the two owners, we currently employ five full tim and even part time employees. 2. Ownership Ink Wizards is an S Corporation owned and operated by the husband and wife team of Jim and Wanda Storie, residents of Elk River. 3. Management Under the structure of the S Corporation, Jim Storie is the President and Wanda Storie is the Secretary/Treasurer. There are currently no other officers. 4. Date established • Since the business originated as a home based, part time entity, it is difficult to establish an age of the business. Wanda has been employed full time in the business for 6 years, Jim for 5 years and we have been renting space at our current location for over 4 years. 5. Products/Services Ink Wizards provides the total array of services required to produce customized screen printing and embroidery on a variety of substrates for our customers. We also provide the computerized programs needed to run embroidery equipment (digitizing) for our embroidery customers who do not digitize their own programs. We currently have 13 embroidery heads, 3 digitizing stations and 2 manual screen printing presses. We also do all artwork in house. We have just purchased a computerized cutter which will allow us to offer sign, banner and decal services. 6. Future plans Our most immediate objective is to expand our physical plant. Current growth and the evolving nature of our business has made our current space too small and totally unsuitable. Once we have a new plant designed for our needs and with adequate capacity, we intend to expand our services into areas we currently must ignore. The primary area of new revenue • would be the high volume screen printing market. The equipment required (an automatic screen printing press, air compressor and miscellaneous support equipment)will not fit into our current • plant and we are in fact turning away business. Our embroidery business continues to grow. We have increased our utilization of current embroidery equipment and plan the purchase of another one head machine in the near future and a another six head machine within the next two years. We have just recently purchased a computerized cutting machine which will allow us to expand our sales into signs, banners and decals. Once we gain proficiency in its use, vehicle decoration may also be added. We have added another sales rep to our business within the last year and will continue to target new ad specialty customers. Our new plant and the added capabilities it will provide, will help us in selling our services to a new group of customers. We will also continue to expand our business to additional reps within the national ad specialty companies we already serve. 7. Financial projection for two years If we are able to build our new facility, we see no reason not to continue a minimum growth rate of between 10 and 20 percent in sales for the next two years. While our past growth has not been spectacular, we have built what we feel is a very solid customer base. In 1997, our top ten customers comprised only 50 percent of our overall sales. This means our business is not at the mercy of a few large programs or customers. In fact, we have an ever expanding pool of smaller customers who continue to bring repeat business and tell others like them about our services. • As a result of continued growth in our existing services and new growth from areas we would be able to expand into, we would also expect to increase our number of employees as required. S INK WIZARDS, INC. OWNER/MANAGEMENT RESUMES James K. Stork Jan 1997 - present: President and co-owner of Ink Wizards, Inc., an S corporation. June 1993 -Jan 1997: Co-owner and full time employee of Ink Wizards, a sole proprietorship company 1986 -June 1993: Manufacturing Engineer with Remmele Engineering; Big Lake and Monticello 1976 -1986: Manufacturing Engineer with several firms in the US and Australia 1974 - 1976: School teacher in Australia 1968 - 1974: University of Minnesota, Bachelors Degree in Education 1964 - 1968: US Marine Corps, Vietnam vet. Attained rank of Sergeant Wanda K. Stork • Jan 1997 - present: /Treasurer and co-owner of Ink Wizards, Inc., an S corporation. P Secretary /Treasurer 1992 - Jan 1997: Co-owner and full time employee of Ink Wizards, a sole proprietorship company 1990-June 1993: Employed half-time Ink Wizards and half-time TCF Bank, Anoka 1985 - 1990: Loan Processor, Consumer Lending, TCF Banks 1982 - 1985: Part time, TCF Banks S 1V; SCRFEDPRh)CERS ADO EcnBROiOERERS Jim and Wanda Storie 554 - 3rd Street Elk River, MN 55330 (612) 441-1022 FAX (612) 241-8081 February 19, 1998 Subject: Letter of Commitment To: Administrator, Economic Development Micro Loan Fund, City of Elk River To Who It May Concern, This is to state the intention of the owners of Ink Wizards, Inc., Jim and Wanda Storie, to have the construction of the new facility we have proposed completed as soon as possible. Given the normal flow of events, we understand our move into the new facility could be • completed by summers end. Thank you for your consideration and support. Jim Storie President Ink Wizards, Inc. S