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Selled@drblaw.com
September 30, 1997
Mr. Paul Steinman
Elk River Economic Development Agency
P.O. Box 490
Elk River, MN 55330-0490
Re: West 10 Business Park
Dear Paul:
I enclose a revised Outline of Potential Elements of an Exclusive Marketing Agreement and Related
Documents. Changes appear in I.H. and I. and III.Q.7. If you have any questions or comments,
please call.
• Sinc -ly yours,
4111,
i
r avid C e lergren
DCS/- a
Enclosure
•
• OUTLINE OF POTENTIAL ELEMENTS OF AN EXCLUSIVE
MARKETING AGREEMENT AND RELATED DOCUMENTS
CONTRACT FOR INITIAL MARKETING, SALE, AND DEVELOPMENT
A. Definitions
1. Marketing Plan- strategy for marketing the sale of this property
2. Master Plan -Plan for development and marketing of this property and the
surrounding properties.
• area will be developed as industrial, commercial or office
• what party will prepare master plan
• who will approve master plan
3. Minimum Improvements -under the master plan, what is the minimum
level of development that will occur, what is the level of development
required with respect to the sale of this property
B. Representations by Owner
1. Owner is fee owner of property or will be as of date of end of redemption
period
• 2. Owner has authority to sell property
3. Owner aware of no hazardous substances
C. Representations by EDA
• 1. EDA authorized to enter into contract and to carry out terms of contract
2. Procedures EDA will use to attract buyers (i.e. TIF financing, tax
abatement, low interest loan program)
D.. Responsibilities of EDA
1. Prepare Marketing Plan and Master Plan, within X days
2. Market to find an end Buyer for the property
3. Develop and distribute marketing materials (define marketing materials)
4. Make an official announcement of the plan for development (define manner
of making announcement)
5. Payment of all costs associated with marketing property
6. Report on the status of the marketing to Owner
7. Review environmental studies/materials/reports
8. Review and approve title
9. Plan, and possibly install utilities and streets; if install, defer assessments
until X date or building permit
10. Review ordinances to determine and facilitate the development of the
property, and recommend changes to city ordinances that will facilitate the
development
11. Cooperate with City and other agencies in the development
12. Make analysis of traffic needs
13. Make improvements to streets if required
14. Review and approve all building and development plans
• 15. Facilitate City approval of building and development plans
PhillA 525135.2 Page -1-
E. Owner responsibilities
1. Authorize and pay for the following:
• Provide evidence of title (abstract or title commitment)
• Conceptual preliminary plat
• Boundary survey
• Soils tests
• Phase I environmental study
• Permit EDA to install/maintain signs for marketing purposes
• Provide any additionally required environmental investigations
• Refer potential buyers to EDA
• Cooperate with EDA
• No private broker listings
• Install streets and lateral utilities, as necessary
2. Sell property legally described and depicted on attached exhibits (See
Section II) to any cash Buyer found by EDA, or the EDA itself
3. Execute Purchase Agreement in the attached form(See Section III)
4. Sell property for price as set out in Price Schedule attached (See
Section IV)
5. Comply with terms of Purchase Agreement
F. Termination
1. Termination by X date if certain conditions/goals not met
2. Termination by X date if no infrastructure development has begun - include
provision for extension
3. If no Purchase Agreement entered into by X date
G. Effect of Termination
1. Rights of parties
2. Allocation of monies
H. Exclusivity
1. EDA has exclusive right to sell this property for 24 months. EDA must sell
one lot at the end of the 24 month period or Owner may terminate this
Agreement. One lot must be sold for each 12 month period thereafter or
Owner may terminate this Agreement. If EDA sells more than one lot in a
12 month period, EDA may carry excess sales forward to the next 12
month period(s) with no limitations.
I. Brokers' fees
1. Owner will not employ a broker
2. If an end user/buyer has a broker, Owner will pay up to 4% of that
broker's fees
J. Assignment
K. Indemnification
L. Parties not partners
M. Insurance requirements
111 II. LEGAL DESCRIPTION AND MAP
PhillA 525135.2 Page -2-
• III. PURCHASE AGREEMENT—with Buyer/User(or EDA)
A. Purchase price according to price schedule attached (See Section IV)
B. Amount of earnest money
C. Method and timing of final payment
D. Timing of delivery of possession
E. Pre-Closing Documentation
1. Survey
• party responsible to provide survey
• party with rights to review survey and object thereto
• method for objections
• procedure to answer objections
• rights and obligations of parties if objections are not satisfied
2. Title insurance commitment
• party responsible for providing commitment
• provision for Buyer to review and make objections to commitment
• provision for Seller responding to title objections
• options for parties if title objections not satisfied
F. Subdivision- party to be responsible for obtaining subdivision of the property
G. Definition of minimum improvements
H. Timing of minimum improvements, Buyer to complete
I. Timing of site improvements or public improvements, City/EDA to complete
• J. Contingencies
1. Obtain purchase and construction mortgage
2. Execution of Developer's Agreement with EDA to provide TIF/other
inducements
K. Seller's warranties
1. No parties are in possession
2. Planned development of the property will not violate any private agreement
or law
3. Property has not been used for generating, transporting, storing, treating or
disposing of hazardous substances
4. There are no leases, contracts, permits, licenses, surface agreements or
other easements other than those on title commitment
5. Seller has good and marketable title
6. There are no judgments, liens, suits, actions . . . pending or threatened
against Seller that would have a material adverse effect on Seller or the
property.
7. There are no aboveground or underground storage tanks
8. There is no sewage treatment system on the property
9. Well disclosure
10. Condition of the property that will be delivered to Buyer(will Seller
demolish/remove structures, grade . . . )
•
PhillA 525135.2 Page -3-
• L. Access/inspection of property
1. Buyer will be allowed access to inspect property but will repair any damage
resulting from inspection
2. Buyer will indemnify Seller against mechanics' liens related to inspection
3. Sale contingent upon inspection
O. Buyer's contingencies
1. Seller will have met all warranties and representations as of closing date
2. Buyer will review and approve pre-closing information
3. Buyer will review and approve title
4. Buyer will be satisfied with inspection, environmental studies
5. Condition of the property is acceptable to Buyer(subdivision, grading,
utilities, street . . . )
P. Documents delivered at closing
1. Warranty deed
2. Seller's affidavit
3. Other
Q. Cost allocations of the following
1. Closing fees
2. Deed tax
3. Real estate tax
4. Real estate assessments and special assessments
5. Recording costs
• 6. Attorney's fees
7. Broker's fees: Seller to pay Buyer's broker's fees cap to 4%
R. Governing law
IV. PRICE SCHEDULE
A. Single price per square foot for all land.
B. Price can adjust upward over time.
C. Price to include Seller payment of special assessments, if improvements are
installed by date of sale to Buyer/User.
•
PhillA 525135.2 Page -4-
ECONOMIC DEVELOPMENT MICRO LOAN FUND
ELK RIVER, MINNESOTA
APPLICATION
• APPLICANT G"(Z els W KA(z)v
ADDRESS 13S2 1 19d '1-Au Nut-)
CITY STATE MA) ZIP CODE r1�j 3c�
CONTACT PERSON(S) eReq y 012- LU et 1
BUSINESS PHONE GO-- 374- 07r6L' HOME PHONE G)0.--q'f 1'(o.1V3
AMOUNT REQUESTED ub co) coo
TERMS REQUESTED ( b yeA s
SOCIAL SECURITY NUMBER 2ki3-4-10—tiSBcI FED ID # (11-/4,97/0q
STATE ID # /its-383
1 . Type of Project:
Construction/New Building Expansion/Existing
Building
Equipment/Machinery Purchase Remodel/Commercial
Retail/Industrial
Industrial Inventory Working Capital
Other
2 . Describe Project:
up-uta FSE DIM c _a_i&L T€ST p v IA)
pct : R‘ K.
SEE R-i-c .a (p(AA) f Q �� Is ,
•
3 . Purpose of Loan:
-To g,.Q,410,A0 SOA- e,A4 (3!- -5V17‘ � 4C'44 p.e 4c-/
(d
�p
O Ac c v a -16LI�PS71 s2A,i
4 . Cost of Project: 4-31-0 6c°
A) Land $ /�
B) Buildings (attach plans & costs) $ /10
C) Equipment/Machinery/Fixtures (attach list
and estimated costs) $ 1 c) O UO -SW ide4041-
D) Remodeling $ 2 WO Jree ;,U1,164A pI4
E) Industrial Inventory/Working Capital $
F) Other (attach description) $
v
TOTAL COSTS $
1 'ed0
5 . Proposed Financing:
SOURCE NAME TERMS AMOUNT
A) Bank Loan d A) $42.1-b060
B) Bank Loan $
C) Other Private Funds $
D) Applicant Contribution $ 1/4j0)000
E) Other I $
F) Fed Grant/Loan $
G) State Grant/Loan $
110 H) This Loan E $,co, 000
TOTAL FINANCING $ 3Sv 60
-2-
6 . Collateral to be assigned (Describe and show lien position) :
A) To Bank: ,A1X 5 i a-‘
B) To Bank:
C) To Private Funding Source:
D) To Other Source:
E) To Federal Govt:
F) To State: /� T
G) To This Loan: .A.15.4 CU<` Twk. .
7 . Value of Collateral :
COST BOOK VALUE EXISTING
LIENS
A) Land
B) Buildings $ pe2 $ 7-7, 0,00 $
, J
C} Mach. & Equip. $ �QR } �QAJJ q{, $ 7d�12-80 $
D) Other pasLwO tioN 2 itc.$ $ $
E) Other $ $ $
8 . Employment* : S:QC - pQycd
Present: # of Employees Total Payroll
After Project: # of Employees 27 -36) Total Payro111390; O64/ YR,
*If Loan is for Job Retention Only, Explain in Business Plan.
9 . Attorney, Accountant (Names, addresses, phone) :
RcA) -4- 1)„,k1A-evt - EUK pCry to itu. 18/-761/0
A ceA — fvw .. 4-//0--71oo
10 . Bank and Other Credit References (Names, addresses, phone) :
Pcl i S�'ti Q 1Ankt gkJe.v u14, 1 /44), C'S) --678n `1 Ivo F.Av.ri
14,41Q, 1 FjS rNv12-ThAl4z ..CCN. y 1-72/ en..Sv.A✓
•
-3-
11Attach and include the following:
I
A) Written Business Plan:
1 . Description of Business
2 . Ownership
411 3 . Management
4 . Date established
5 . Products/Services
/ 6 . Future Plans
V B Financial Statements for past two years
��v
-Cep (P j//C) Financial Projections for o years
D) Resume of Owner/Management
v/
E) Personal Financial Statements of proprietor, partners,
guarantors
F) Letter of commitment from applicant pledging to complete
during the proposed project duration
1/"G) Letter of commitment from the other sources of financing,
stating terms and conditions of their participation in
project
H) Other
•
I) Other
J) Fee ( 1% of amount of loan request)
410
-4-
111
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 Committee.
DATE /6-02-97
Applicant Name 641E?, tu-Knm,IL
BY ' l 1" __
By
.
-5-
PUBLIC RESOURCE
GROUP INC.
Business Development&Finance Specialists
COM TY VENTURE NETWORK
Thursday, August 28, 1997
•
THE CLUBHOUSE AT EDINBURGH, USA
8700 Edinbrook Crossing
Brooklyn Park, MN •
•
•
LINKING BUSINESSES TO COMMUNITIES
4205 Lancaster Lane North• Suite 1100 • Minneapolis,Minnesota 55441 • (612)550-7979 • (612)550-9221 Fax
COMMUNITY VENTURE NETWORK
Thursday, August 28, 1997
THE CLUBHOUSE AT EDINBURGH, USA
8700 Edinbrook Crossing
Brooklyn Park, MN 55443
AGENDA
10:00 a.m. Information Providers
Frederick Peters, President
10:30 a.m. Sallese Technologies. Inc.
C.F. Rick Rothausen, General Manager
Aldo Sallese, President & CEO
11:00 a.m. MiTech Research & Development, Inc.
• Doug Kremer, Vice President
Denny Driggers, Consultant
11:30 a.m. ProtectorCare
Paul Probst, Chief Executive Officer
12:00 p.m. Lunch
1:00 p.m. OOPS Video Conferencing
Karthik Sridharan Iyer, CEO/Chairman of the Board
David Case, Corporate Secretary/Board Member
Bruce Lamp, Corporate Secretary/ Board Member
1:30 p.m. Gadgets, Inc.
Steve Johnston, General Manager
• 2:00 p.m. Adjourn
• INFORMATION PROVIDERS
• INFORMATION PROVIDERS, INC.
33 Tenth Avenue South, Suite 301
Hopkins, Minnesota 55343
(612) 938-1400
PROJECTED COMPANY LOCATION:
Information Providers is open to a background check center to be located in the Upper
Midwest. The Company needs approximately 3,000 - 5,000 square feet of office space.
Updated telecommunications is essential. There are no special electrical or water/sewer
needs.
BUSINESS DESCRIPTION:
History:
Fred Peters, owner of Information Providers, acquired this business from Policy
Management Service approximately two years ago. In late 1995, PMSC determined that
it wanted to dispose of its insurance, inspection, and verification business. The company
sold each of its regional divisions to various people throughout the country. Mr. Peters
had been the regional Vice President of the Midwest divisions and acquired the business
directly from PMSC.
The disposition of each division was based largely on PMSC's inability to generate
operating profits due to poorly priced national contracts with major insurance providers.
Mr. Peters has moderately down sized the company but has returned this operation to
profitability. He is now seeking expansion opportunities to add additional products and
services to grow the business.
Company Products:
Information Providers, Inc., within this market, provides inspections for personal and
commercial clients. A description of each of these types of services is as follows:
Personal lines - Information Providers, Inc. offers over 150 different types of surveys
and inspections for its clients. Generally, these are "short form", fixed priced inspections
priced between $10 and $30 each and $2.25 for photographs. Examples of these types
of inspections include: insurance property inspections, heating and electrical inspections,
• high value reports (for expensive homes), and loan verifications.
Information Providers, Inc.
Page 2
Commercial lines - Information Providers, Inc. also provides a series of commercial
surveys and inspections which include fire coverage, worker's compensation, liquor
liability, auto fleet verification. These reports are available on a fixed cost basis,
generally at $15 - $40 each. In addition, the company also provides qualitative
commercial inspections and reports which are billed on an hourly basis. The company
charges $48 - $69 per hour and $2.25 for photographs.
MANAGEMENT/OPERATION:
The 12 states currently being served by Information Providers, Inc. include: North
Dakota, South Dakota, Nebraska, Kansas, Missouri, Iowa, Minnesota, Wisconsin,
Illinois, Indiana, Ohio, and Michigan. The company's headquarters and processing
center will remain at its current Hopkins, Minnesota office. The headquarters represents
the local staff of approximately 20 people. The inspections are conducted by 60 full and
part time field representatives. The field representatives are managed by individual
territory managers located throughout the service territory.
•
The background of Mr. Peters and his five territory managers are as follows:
Frederick C. Peters, President
Mr. Peters has been a regional vice president for Information Providers for both the
Mount Laurel, New Jersey and Hopkins, Minnesota regional offices. He has been fully
responsible for all levels of the business operation within his region and managed up to
a 250 person workforce. Mr. Peters is a graduate of Southwest State University,
Marshall, Minnesota and has worked within this industry since 1986.
Troy J. Novicky, Inspection Manager and Regional Account Manager
Mr. Novicky has been product manager of inspections for personal and commercial lines
in Minnesota, North Dakota, and South Dakota and supervisor of 12 field representatives.
He has been responsible for inventory control, customer satisfaction, hiring and training,
loss control, departmental budgeting, and collections. Mr. Novicky is a graduate of the
Insurance Institute of Marlvern, Pennsylvania, and Normandale Community College of
Bloomington, Minnesota.
Information Providers, Inc.
• Page 3
Janice K. Caldwell, Territory, Branch, Production Manager
Ms. Caldwell is responsible for handling product/customer service and support situations.
She is directly responsible for efficient operations of commercial and personal product
lines. She also provides leadership and direction to field staff located in Iowa, Nebraska,
Kansas, and Missouri. Ms. Caldwell attended Northwest Missouri State University and
has a certified Dietetic Associate Degree.
Gale A. Kibbe, Field Representative/Branch Manager, Territory Manager
Mr. Kibbe is responsible for the 1989 development of mobile home inspection (HUD)
training course which included classroom study, slide show, in-field training for every
manager, and field representative in five states. Mr. Kibbe has been working in this field
for 28 years and has taken numerous continuing education classes throughout the years.
Dale Pettit, Regional Account Manager
Mr. Pettit has joined Information Providers after being president and owner of his own
inspection firm based in Des Moines, Iowa. He has 25+ years experience in the business
and is currently responsible for sales/service for Information Providers's southern states.
•
PROJECT EXPANSION:
The Company will achieve sales of $2,200,000 - $2,500,000 in 1997 and is profitable.
The new investigative services division is poised for major expansion which will require
significant additional capital.
Fred Peters has identified a prospective manager and/or joint venture partner for his
newly planned operating division. The two principal areas for expansion are as follows:
1. Automation/Servicing - Information Providers has developed a state-of-the-art
processing capability and has the ability to offer this service to other inspection
services located throughout the country. In essence, this new center would
become a multi-company processing center on a fee for service basis.
2. Background/Investigative Services - Fred Peters has identified the opportunity,
utilizing similar processes and personnel, to develop an automated investigative
service for major corporations. The principal target would be as background
personnel checks for major corporations prior to hiring employees.
Information Providers, Inc.
• Page 4
COMPANY NEEDS:
Personnel:
Year 1 Year 2 Year 3 Total
Employment Employees Employees Employees Employees Salary Range
Classification
Management/ 1 2 3 6 $50,000- $80,000
Project Leader
Administrative/ 1 1 2 4 $12,000- $24,000
Clerical
Database Programmers 5 3 3 11 $45,000- $60,000
Investigators/Data Entry 5 6 6 17 $20,000- $35,000
Total 12 12 14 38
Financial:
The anticipated breakout of costs for this expansion are as follows:
Equipment $450,000
Database/Software Development 75,000
Marketing and Sales 125,000
Job Development and Employment Training 50,000
Working Capital 250.000
Total Uses of Funds $ 950,000
40
• SALLESE TECHNOLOGIES, INC.
•
S
SALLESE TECHNOLOGIES, INC.
1490 94th Lane NE
Blaine, MN 55449
(612) 780-8555
PROJECTED COMPANY LOCATION:
Sallese Technologies, Inc. is located in a Blaine industrial park and occupies just
over 23,000 square feet of manufacturing and office space.
The Company is open to expanding its grinding operation at a site remote to its
present location. The ideal site will have 4,000 to 5,000 square feet (expandable)
of manufacturing space with 14'+ ceiling height and minimal office space. The
building should also have a loading dock and an overhead door for shipping and
receiving. Good transportation network is essential, as is 220 three phase
electrical service. There are no special water/sewer needs.
• THE COMPANY:
The Company was originally established as Sallese Machinery Repair in 1981 by
Giuseppe Sallese, father of Aldo Sallese, the current owner. The Company grew
rapidly over the ensuing years and now has three distinct areas of expertise:
equipment rebuilding, machine job shop and engineering and design. In 1996, the
Company acquired Space Machine & Tool, Inc. (SMT), a machine job shop.
With this acquisition, came a consolidation of operations into the Company's
current facilities. As a result of a recent event, described below, the Company
anticipates its present building will be fully utilized. This will mean expansion on
the existing site if a remote location is not found.
Company sales have grown from $500.000 in 1990 to over $1.3 million in 1996. It
anticipates 1997 revenues of over $1.6 million. The Company has recently been
named national service center for DoAll grinder spindles. This new affiliation is
expected to lead to rebuilding jobs in excess of spindles only. Setting up for this
work has necessitated dedication of space within the Company's building.
S
•
Sallese Technologies, Inc.
i
PRODUCTS:
Sallese Technologies, Inc. historically has been a machinery rebuilder. Over the
years the Company has expanded its capabilities in engineering, electrical and
other areas. With the acquisition of SMT and additional equipment acquired
throughout the years, the Company is able to service its clients most complex
needs. It has a mix of products and services which no other competitor in the
upper midwest has. There is competition in each of the areas in which it
operates, but no other one company provides all those services.
The Company currently services its clients needs with the following:
• Machine Tool Rebuilding
• Hand Scraping
• Industrial Controls
• Noise Enclosures
• Custom Machinery
• • Engineering and Design
• Preventive Maintenance Programs
• Job shop machining
COMPETITION:
There are a number of competitors in each of the markets on which the company
focuses. In Minnesota, there are numerous companies engaged in job shop
activities. In the machinery rebuilding market, there are 2 or 3 local rebuilding
shops of any size, but no regional or national players. There are numerous small
rebuilders (1-5) employees. The Company knows of only one company that has
job shop capacity and rebuilds machinery, and to the best of its knowledge, that
has neither electrical or significant engineering capacity. The Company uses this
unique combination of capabilities to enable it to obtain sales that otherwise
would be unavailable to it.
Sallese Technologies, Inc.
MANAGEMENT:
Aldo E. Sallese, President and Chief Executive Officer
Mr. Sallese is responsible for the overall management of the firm. He has 20
years of experience in the metal working industry, 15 of which have been in a
management capacity. Prior to joining the Company, Mr. Sallese was a machine
operator for Metal Matic, Inc. This experience has been invaluable in designing
equipment that is user friendly. In 1983. Mr. Sallese left Metal Matic to work full
time with the Sallese Machinery, where he learned all aspects of the rebuilding
business and participated in management, becoming general manager in 1987. In
1993, the Company purchased his father's portion of the business. Mr. Sallese is
graduate of Metropolitan University and Anoka Ramsey Community College with
an electronics engineering technician certificate.
C.F. Rick Rothausen, General Manager
Mr. Rothausen is responsible for day-to-day operations and the fiscal management
functions of the business. Mr. Rothausen started his career in public accounting
with Price Waterhouse & Co. and was a partner with Lester Witte and Company,
a national accounting firm. He then became vice president of finance and
• operations manager of a small manufacturing and marketing firm. He left there
to become an area controller and later a regional manager for ARA
Transportation Group. In 1992, he joined Sallese Machinery as its general
manger. Mr. Rothausen is a graduate of the University of Minnesota with a
major in accounting and was a licensed CPA until recently.
Jeffrey W. Bahr, Mechanical Design Engineer
Mr. Bahr has over 20 years of design and serves as project coordinator on design
and build jobs. He is a graduate of Anoka Ramsey Community College with a
certificate in mechanical design.
Roger A. Klukow
Mr. Klukow is the former owner of Space Machine & Tool, the company that
Sallese Machinery acquired in 1996. Mr. Klukow has an employment contract
through November, 1999. His responsibilities include the management of the
machine shop and quoting new jobs.
S
Sallese Technologies, Inc.
•
Peter O. Hoffoss
Mr. Hoffoss is the Sales Engineer. He has over 10 years of sales and sales
management experience. Prior to that he had a 14 year career in the United
States Navy, retiring as a Lieutenant Commander. He is a graduate of Purdue
University with a B. S. in Mechanical Engineering.
Michael F. Theisen
Mr. Theisen is a Controls Design Engineer with a background of 30 years in many
phases of the electrical field. He holds a B. S. in Industrial Technology from
Bemidji State University. He is responsible electrical and electronic operations
from design and programming through supervision of panel building and
installation. He also holds an "A" Master Electrical License in Minnesota.
COMPANY NEEDS:
Personnel:
The Company currently employs 30+ persons. It is estimated that employment at
• its grinding facility will total 7-10 persons over the next two years. The Company
will be looking for both experienced machinists as well as individuals with
mechanical aptitude and ability, but limited experience to staff the grinding
operation. As this division's sales increase, the Company projects that
employment will increase. Average salary range for the new employees will range
between $10 and $17 per hour plus a comprehensive benefits package, depending
on position and experience.
Financial:
Capital equipment and move $150,000
Computer equipment and software 20,000
Sales and Marketing 30,000
Working capital 150,000
Total Use of Funds $350,000
•
MITECH RESEARCH & DEVELOPMENT, INC.
•
MITECH RESEARCH & DEVELOPMENT, INC.
3522 Labore Road
St. Paul, MN 55110
(612) 482-9288
PROJECTED COMPANY LOCATION:
MiTech Research & Development, Inc. is open to a location for its production, research
and development facility. The Company requires approximately 20,000 square feet
(3,000 sf. office, 3,000 sf. lab, 8,000 sf. production, and 6,000 sf. warehouse)
expandable to 30,000 to 50,000 square feet. Two drive-in docks are needed. The
Company requires 440 amp electrical for its production process. The Company requires
a facility that has UPS service daily. Rail availability is a plus.
COMPANY HISTORY:
MiTech Research & Development was incorporated in 1995 with a mission to market
machines and technology for laundering floor sorbents. The company is currently split
into three divisions: industrial, remediation, and agriculture. The industrial division has
expanded to include the sale of aqueous parts washers and peripheral products that
complement this technology. This includes soaps, floor dry, odor control products, and
various additional chemicals and products. The remediation division offers consulting and
products for cleaning up certain hazardous waste problems. The Company is now
concentrating on launching its third division, agricultural bioremediation.
THE COMPANY:
MiTech is an environmental technology company with its roots in agricultural
bioremediation. Farmers are tough. cost-conscious customers who demand fast results.
In record time the MiTech bioremediation process has cleaned soils that were full of
chemicals.
MiTech has had equally impressive results with industrial bioremediation. MiTech offers
reliable bioremediation products, know-how and experience on specific project.
MiTech's natural microbes are enhanced by a combination of emulsifiers and nutrients.
MiTech aerobic and anaerobic bioremediation technology assists environmental clean-ups
• of:
MiTech Research & Development, Inc.
• Page 2
• Chemicals • Sludge
• Organic Compounds • Sewage
• PCB's • Municipal Solid Waste
• Hydrocarbons • Streams and Other
• Water Aeration Systems
Bioremediation clean-ups of industrial spills are much better accepted by the public and
by regulatory agencies because of demonstrated positive results. A major benefit of the
process is that the soils are treated in place, and will be rejuvenated back to the original
natural state.
PRODUCT(S):
The company's product line includes products with long established uses and newer
alternative technologies. The established products are fertilizers in several different
formulations, low salt and foliar, soil penetrants, and vegetable oil based crop oil.
Certain microbial formulations and biostimulants represent new technologies.
MiTech is building a proprietary position for certain key products. This will include
manufacturing and some raw materials as well as formulas.
MiTech intends to maintain a proprietary stock of the microorganisms for use in its
products. These microorganisms will be obtained through the company's own efforts in
field collections, royalty and licensing agreements for existing collections, and direct
purchase where available. A combination of the delivery, storage system with an elite
culture collection will provide the company with a significant market advantage.
MiTech's PhytoCore'" line of products is built around the growing interest and markets
for sustainable agriculture. Agricultural reliance only on chemically derived pesticides
and fertilizers has not considered the long-range impact on soil microbial health. The
company's products represent an environmentally sensible approach to growing plants.
The PhytoCore" line maintains and increases desired plant responses including
germination, stand establishment and yields while improving the soil environment. The
product line is non-toxic, non-persistent and fosters a return to the natural balance of soil.
This in turn helps to maintain the soil structure that allows a vital ecosystem to exist.
•
MiTech Research & Development, Inc.
IP Page 3
The PhytoCore"line focuses on reestablishing healthy soils. This is where vigorous plant
growth starts and yields increase. The better the tilth, the physical condition of the soil,
the better the exchange of air, water, nutrients, organic components, and minerals
between plant root and the environment. The Company's products not only maintain but
stimulate the active beneficial microbial population that is core to healthy soil.
The PhytoCore"' line of products for horticultural. aquacultural, and agricultural
applications includes:
FertilCore - 10-19-10 fertilizer plus micronutrients. A concentrated organic fertilizer
with micronutrients, comes as a liquid.
OsmoCore - Saline/alkaline/sand oil conditioner. An osmoregulator that allows plant
growth in saline or alkaline soils.
OptiCore - Concentrated liquid organic fertilizer with micronutrients and saline/alkaline
soil conditioners.
• SoilCore - Soil friability agent plus micronutrients. Soil conditioner and penetrating
agent for compacted soils.
ActiCore - Acts as a biostimulant to activate and promote existing microbial populations.
BioCore - Basic microbial mixture. A general blend of microorganisms for treatment of
soils. Remediates excessive pesticide residues, aids in treating compacted soils, and helps
restore a natural microbial balance to the rhizosphere.
AquaCore - Microbial treatment for aquatic applications. A variation of the microbial
product used to control algae blooms and in combination with other water treatment
systems for cleaning and remediating fouled waters.
GreenCore - Microbial treatment for use of golf courses and other turf.
LiquiFact - Microbial treatment for odor control and liquefaction of manure pits, tanks,
ponds, and lagoons.
NutriCore - Liquid homogenized low-salt fertilizer available in various formulations.
MiTech Research & Development, Inc.
IP Page 4
SilaCore- Specially formulated encapsulated silage inoculant. A microbial treatment that
gives superior range of consistent performance.
PeneCore - Soil treatment to make soil easier to work, help water to enter soil, and
decrease water runoff.
SoyCap - Once refined, degummed soybean oil with high grade emulsifier used as an
adjuvant in pesticide applications.
COMPANY STRATEGY:
MiTech Research and Development's strategy is as follows:
• Provide products for sustainable agriculture with an emphasis in improving soil
conditions.
• Concentrate its marketing effort initially on the farm market with a second priority
• being the retail and commercial markets.
• Establish presence in different geographic areas that reduce the impact of sales
seasonality.
• Seek to acquire exclusive marketing rights and where possible manufacturing
responsibility for products that it sells.
• Incorporate natural biological technology as a mainstay of its product offerings.
• For our customers, provide a comprehensive and complete set of product and
service solutions based upon the farmers unique experience, soil, crop and climatic
situation.
• Provide superior technical support and education to the distributors of products.
• Have an increasing selection of products and services that are best in class or
unique in the capabilities.
• Grow rapidly by developing a network of both independent and company owned
• distributors.
•
MiTech Research & Development, Inc.
Page 5
•
COMPANY MARKET(S):
MiTech's agricultural division has three main market avenues for product sales. These
are farm, non-farm commercial, and non-farm retail. The company has approached each
of these markets and the product line has been well received. MiTech has several
existing distributors of farm products representing its product line to farmers. This has
been and will remain the company's main focus for the third and fourth quarter of this
year. These distributorships cover territory in Southern Minnesota, Northern Iowa,
Eastern Nebraska, and Wisconsin. The opportunity to aggressively expand the distributor
network is a primary goal for MiTech.
MANAGEMENT:
Robert W. Heller, CEO
Mr. Heller joined the company as a director in June 1996. In September 1996, he
became MiTech's Chief Executive Officer and Chairman of the Board. From 1977 to
1996, Mr. Heller served in various management positions for Advance Circuits, Inc. a
circuit board manufacturer, ultimately becoming its CEO in 1991. Prior to joining
Advance Circuits, Mr. Heller worked as a consultant for Arthus Andersen & Company..
Mr. Heller received his Bachelor of Science degree in Industrial Engineering from North
Dakota State University in 1968 and earned a Master of Science degree in Industrial
Administration from Purdue University's Krannert School of Business in 1970.
Frederick W. Wettergren, CFO
Mr. Wettergren has served as Chief Financial Officer for MiTech since September 1996.
His current duties include directing the accounting function of the company as well as
overseeing all company financial matters. From May 1991 to September 1996, Mr.
Wettergren worked for B.O.K. & Associates, an international investment banking firm,
which focused on the development of agricultural projects in the former Soviet Union.
Bruce W. Livingood, General Manager
Mr. Livingood joined MiTech in December 1996. He has been actively involved in the
acquisition, testing, and formulation of products and technologies for the company in all
of its divisions. From 1992 till joining MiTech, Mr. Livingood has provided
formulation, testing, sales and consulting for Fortune 500 companies as well as privately
held high technology firms. Mr. Livingood was the manager and Vice President of
CEDA from 1981 to 1992. He managed 7 tech centers employing over 200 employees
with revenues in excess of 100 million dollars per year. Prior to starting North American
operations for CEDA Mr. Livingood graduated from the Duncan Research facility where
he specialized in applied chemical technology.
•
MiTech Research & Development, Inc.
• Page 6
Douglas A. Kremer, Vice President Agricultural Division
Mr. Kremer joined MiTech in April 1997. Mr. Kremer is involved in all aspects of the
Agricultural Division. Mr. Kremer attended the University of Minnesota specializing in
cell biology. Mr. Kremer was with Molecular Genetics from 1981 to 1988. While there
he was awarded the Boundary Award for Excellence in Science. He was the only non-
degree individual to be so awarded. Mr. Kremer wrote and was issued a patent on the
formulation and delivery of microorganisms to plants. From 1988 to 1990 Mr. Kremer
was the scientist for BioSeeds International where he was involved in public relations,
strategic planning, and operations of the laboratory and plant growth facility. From 1990
to 1992, Mr. Kremer opened and operated SymPol, Inc. with seven scientists and
consultants working on various aspects of microbial systems for plans. From 1992 to
1997 he worked in various consulting capacities and managed the interior landscape crew
for the Mall of America.
Kenneth A. Hibberd, Ph. D., Product Development
Dr. Hibberd joined MiTech's Agricultural Division in August 1997 as the Director of
Product Development and Field Testing. Dr. Hibberd received his Bachelor of Science
degree in Biochemistry from the University of California Riverside, his Mater of Science
• degree in Biochemistry from the University of Minnesota, and his Doctorate in Plant
Physiology from the University of Minnesota in 1979. Dr. Hibberd has spend eighteen
years in various research and product development positions for Monsanto, Molecular
Genetics and Plant Science Research. He has been an inventor on five U.S. patents and
has developed and implemented successful selection strategies for increased resistance to
herbicides in plants.
COMPANY NEEDS:
Personnel:
The Company anticipates that employment during Year 1 will 10 people. Year 2 the
employment will increase to 25 people. The Company intends to start workers at $11.50
per hour depending on qualifications.
•
MiTech Research & Development, Inc.
• Page 7
Financial:
Uses of Funds
Production Equipment 280,000
Office/Inventory Control 60,000
Laboratory 100,000
Inventory Build-Up 250,000
Technology Development 120,000
Marketing & Sales 270,000
Operating Capital 450.000
TOTAL USES OF FUNDS $1,530,000
•
•
• PROTECTORCARE
•
. PROTECTOR CARE, INC.
2630 Holly Lane
Plymouth, MN 55447
(612) 473-5663
PROJECTED COMPANY LOCATION:
Protector Care is flexible on the location for its operation, which will become its
primary production/shipping facility. The Company anticipates initial needs of 2,000 -
3,000 square feet of final assembly area. This should be expandable to 10,000 -
12,000 square feet within one year. Ceiling height should be at least 12' and access
to a loading dock is essential. The Company has no special water/sewer
requirements.
INTRODUCTION:
Protector Care, Inc. (the Company) was incorporated in December 1995, after 18
• months of business development, to manufacture and market products and services that
make it easier and safer for individuals to live independently. The company's first
product, CareStair, a patent-pending half height stair assistive device, is placed over
existing stairs providing a series of half height steps making it easier to climb and
descend stairs for millions of people having functional limitations. Multiple and
proprietary designs anticipate having second and third generation products. Notice of
patent allowance has been received.
THE COMPANY:
Protector Care is a Minnesota corporation located in Plymouth, Minnesota. Much of
the effort during 1996 was spent on product and market development. During 1996,
the Company spent approximately $25.000 on product development, packaging and
installation instructions and approximately $45,000 on market development. Since
marketing commenced in November 1996, $35,000 in CareStair sales have been
generated, largely with local staff on a self-funded basis.
•
Protector Care, Inc.
Page 2
MARKET:
The market for Protector Care's products, and initially for CareStair, consists of
individuals with physical disabilities or limitations that prevent or reduce their ability
to use stairs. This is primarily the elderly and certain disabled individuals. In the
United States there are 35 million elderly (over 65 years of age), and more than 8
million disabled persons between ages 15-64 whose specifically identified limitation is
stair climbing.
Initially the target market is the user's home. A second market is commercial and
institutional buildings.
The Company will pursue a dual approach to creating demand for CareStair.
Initially, health professionals such as physicians, nurses and physical/ occupational
therapists will be trained to identify the need for CareStair. This was started in the
Fall of 1996. The Company is now prepared to pursue an aggressive consumer
marketing approach to create pull through demand from the user level. It has
• budgeted the funds for a public relations/advertising program in the last half of 1997.
PRODUCT STRATEGY:
CareStair is designed to be strong, stable, safe and versatile, retailing from $250 to
$1,000 depending on the number of steps. It is covered by a pending United States
utility patent filed in December 1995. The US Patent Office has preliminarily
indicated that the application contains multiple inventions and allowable subject matter.
The Company has received a Notice of Allowance and Issue Fee Due and expects a
U.S. patent to be issued within the next few months. CareStair is now ready to go
into volume production.
Sales Plan
The Company's sales strategy is to build on the benefits of CareStair; preventing
injuries, improved quality of life, greater independence and reduced risk of falling. A
network of home medical equipment (HME) and durable medical equipment (DME)
dealers will be established by manufacturers representatives and direct sales
representatives. Initially, HME/DME dealers and its own sales representatives will
• sell through established health care providers. These professionals are trained in
Protector Care, Inc.
• Page 3
assessment of needs and are positioned to recommend CareStairs. After the medical
and practical credibility has been established, it will begin direct marketing and
distribution to the end user.
In preparation for establishing the dealer network and to introduce the product, the
Company attended several national trade shows in the fall of 1996 and will attend as
many as twelve trade shows in 1997. It has also developed a comprehensive in-
service educational program for home care staff and therapists.
Manufacturing
Production, packaging and shipment of CareStair is currently done by contractors.
This has allowed the Company to have minimal initial investment in tooling. Pilot
production has been completed to validate the process, determine production costs and
build a small inventory. The current production method has a capacity of 2,600 steps
per month. During the first year following permanent funding, the Company expects
final assembly, packaging and shipping can be done more efficiently in its own facility
outside the metro area.
•
An investment in special tooling is planned for 1997 to increase capacity and lower
cost. The tooling, unique for each of the aluminum parts, will allow the use of a
punch press to perform all cuts, holes, corners and notches in one operation. Tooling
acquisition may necessitate more production be done in the Company's facility in
1998. The chart below summarizes the projected manufacturing needs.
Mfg./Assembly
Warehouse/
Tooling Square Shipping
Revenue Acquisition Footage Employees
1997 $370,000* 100.000 2-3,000 1 FT, 2 PT
1998 3,700,000 125.000 10-12,000 18 FT
1999 9,000,000 - 25-35,000 30-40 FT
2000 17,000,000 - 50-60,000 70-75 FT
2001 28,000,000 -
* Assumes 1997 $1.5 million financing obtained.
•
Protector Care, Inc.
Page 4
MANAGEMENT:
The management team includes a complimentary cross section of expertise and has
actual experience in successfully starting and building companies. The Board of
Directors includes:
Paul C. Probst, co-founder, CEO and Director
Mr. Probst led the sales and marketing efforts of three medical manufacturing
companies from start-ups over the past 20 years.
William P. Kroll, Director
Mr. Kroll is the founder and CEO of a high tech manufacturing company and advises
on engineering, research and development, patents and production.
Judy M. Figge, Director
Ms. Figge has over 15 years experience in home health and was founder and CEO of
a $130 million publicly owned company. She advises on sales, marketing and
business strategy.
• David A. Dent, Director
Mr. Dent has been an investor and advisor to early stage companies for over 10 years.
These leaders are supported by experienced business advisors. Joseph Keenan, M.D.,
University of Minnesota, heads the Company's Clinical Advisory Board. Peg Maxon
is its Vice President of Sales and Marketing; Joel Skinner is its patent counsel; Eric
Madson with Robins Kaplan is corporate counsel.
FINANCIAL PLAN:
The Company has been financed to date with $198,000 of equity from investors,
primarily current management. Bridge loans totalling $70,000 were obtained from
current investors in early 1997.
Revenue of$376,000 is projected for 1997 and revenue of $3.8 million is projected
for 1998. The combined annual revenue growth rate for the four years ending 2001 is
196% when revenue exceeds $28 million.
•
Protector Care, Inc.
Page 5
The Company anticipates having a slight loss in 1997. It will achieve break even
revenue in the third quarter of 1998 and projected pre-tax profit of $29,000 in 1998.
Net income for the subsequent three years averages over 12% of revenue.
Cash Flow from operations is projected to be negative for 1997, but is projected to
become positive in the fourth quarter of 1998.
COMPANY NEEDS:
Personnel:
For 1997, the Company anticipates hiring 1-3 manufacturing/assembly persons.
Employment in 1998 should grow to 18 full time persons and subsequently rising to
70 - 75 within four years. Skill for these employees vary according to the position.
Starting pay for new assembly workers will range from $8.50 and up. The Company
anticipates that it will be providing a complete benefit plan to include health/life
insurance.
•
Financial:
The projected growth opportunities for the Company show a total capital requirement
of$1.5 million in early 1997. This investment will finance sales and marketing
activities and increase production capacity.
As a part of this location project the company is seeking $500,000 of community
development funding.
•
. ,
is OOPS VIDEO CONFERENCING
0
• OOPS VIDEOCONFERENCING, INC.
8000 West 78th Street
Bloomington, MN 55437
(612) 829-1225
PROJECTED COMPANY LOCATION:
OOPS Videoconferencing, Inc. is open to a location for its facility for an electronics
development, assembly, and testing facility in the near future. The Company needs
approximately 4,000 - 5,000 square feet of office space. The facility needs to have
modern telecommunications capability.
THE COMPANY:
OOPS was incorporated in June 1997 to acquire a license for and to develop and market
audio and video communications software and related products. The products will
comply with international standards and will be simple and easy to use.
•
PRODUCT(S):
OOPS has full function audio and video software products for sale. The products are
used as follows:
• Software is loaded from one diskette into a Pentium size, multi-media personal
computer with Microsoft Windows 95 software installed in it.
• A camera costing $200 and up is attached to a computer input jack for use in
transmitting video.
• A simple start command is entered and the software is loaded from one diskette.
• Connection is made by the computer's modem to the Internet.
• A menu appears on the computer monitor, Internet or E-mail addresses are entered
and audio and video communication can take place.
OOPS Videoconferencing, Inc.
• Page 2
The current OOPS products provide full duplex audio of cellular phone quality or better
and video which refreshes several times per second on the computer monitor. The audio
is a true second generation product. The audio and video quality is limited only by to
the bandwidth of the telephone line to which attached and to the quality of transmission
by the Internet service provider.
Other software products available soon or scheduled for future release include:
• Audio only phone capability. This product is currently available and will be test
marketed to college campuses for about $49.00. With the software, college
students can make free long distance phone calls over the Internet connection that
their colleges provides them.
• Regular telephone handset interface to replace use of computer speaker and
microphone. This product is planned for U.S. assembly.
• Corporate audio and video products which would utilize existing local area
networks, wide area net works, PBX's, and leased lines such as T1 and T3 service
that are currently in place. A product is being develop now which will generate
revenue shortly. The current software is structured to enable modification for the
higher capacity requirements inherent with corporate use.
• Broadcast products for the establishment of radio and television "stations" on the
Internet. These products would enable transmission to several or several hundred
recipients simultaneously. As with other broadcasting, transmission would be
from the sender to the receiver only and would not be interactive. Applications
would be for circumstances which require quick dissemination of information to
many recipients simultaneously.
All OOPS products are or will be standards based and can be used to communicate with
products offered by other companies which comply with International standards for audio
and video communications. OOPS products can be used to communicate with large video
conference center and similar equipment which has been in use for a number of years at
major corporations. OOPS products may also be adapted to communicate with some non-
standard products.
•
OOPS Videoconferencing, Inc.
Page 3
S
MARKET:
The markets for the OOPS family of products range from the newly emerging Internet
market to the established long-distance telephone market, all of which either are or will
be very large.
Equipment Manufacturers:
Discussions are in the process with a major U.S. computer modem manufacturer to
include the OOPS software in modems shipped to its customers. If agreement is reached,
quantities would be significant and significant royalties would be generated.
The major personal computer manufacturers are all promoting the sale of full featured
PC's, frequently loaded with popular software such as Microsoft Office and other
packages. None currently offers a standard based audio or video software package with
their computers. Contacts with several large PC manufacturers are planned to determine
their interest in the OOPS products.
Personal users:
Many of the millions of individual Internet subscribers throughout the world are potential
• customers. They will be able to purchase the audio and video software from an Internet
web site in the Fall of 1997. The web site is in place and is positioned at a site location
along with other products for use with Microsoft Windows 95.
Software will be priced at $49.00 plus shipping and handling. The audio only package
will include a head-set and two copies of the software.
COMPETITION:
Many major and start-up companies are in the process of developing Internet products
and other telecommunications products. Microsoft and Intel have announced that they
are working on a standards based audio and video Internet product. White Pines
Software currently offers a limited use non-standard video product. The White Pines
product called "Cu-SeeMe" has a very small video screen and is hard to install. OOP's
management recent attempt to down load the Cu-See Me product from the Internet took
several hours to complete versus loading the OOPS product in several minutes.
•
OOPS Videoconferencing, Inc.
Page 4
•
MANAGEMENT:
Karthik Sridharan Iyer, CEO and Chairman of the Board
Mr. Iyer is responsible for new product development and technology. He is also the
major owner and chief executive office of Object Oriented Program Services Private
Limited, Madras, India, which developed and maintains the OOPS licensed software, and
Object Oriented Program Services, LLC, a Minnesota corporation. He has served as
a computer and systems development consultant to companies such as CWC, Inc.,
Unisys, Inc., and General Mills, Inc.
David A. Case, Corporate Secretary and Board Member
Mr. Case is responsible for quality control, product testing, and product marketing. He
is the owner and chief executive officer of D.A. Case and Associates, a manufacturers'
representative company whose principals include major suppliers to the electronics and
telecommunications industries.
Bruce C. Lamp, Corporate Secretary and Board Member
Mr. Lamp is responsible for finance and administration. He is a business consultant who
specializes in technology start ups and troubled company workouts, formerly with Arthur
• Andersen&Co. and a financial officer with ADC Telecommunications, Inc. He recently
completed the funding of a start-up company and also served as manufacturing vice
president during the product development stage for another company which manufacturers
and sells video telecommunications equipment.
COMPANY NEEDS:
Personnel:
Based on its business plan, OOPS will employ 5 to 10 customer service and technical
support personnel and about 5 electronics assembly employees at the start of its second
fiscal year (mid-year 1998).
Financial:
OOPS is currently offering shares of its common stock to accredited individual investors.
The stock offering will raise $250,000 to $500,000,based upon other financing sources
employed.
OOPS is seeking community financing in the form of loans and, if available, grants for
start-up of a customer service and assembly location. Funds sought will be for employee
recruitment, training, working capital, and facilities. Such funding would be staged,
• initially for $250,000 to $350,000, with additional funding for a facility as the need is
defined.
COPS
What is iTalk?
iTalk is the simplest, most reliable Internet telephony product in the market. It allows
users to communicate with each other by using their existing LAN/WAN
lnternet/Intranet networks.
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With iTalk you can talk with your family, friends, or business associates on the
lnternet/lntranet for as long as you want. iTalk provides a reliable solution to the
problems posed by audio communication over the Network.
• Why use iTalk?
Simplicity: Once people are in your directory, talking with them is just a couple of
clicks away. iTalk is really that easy to use.
Reliability: You can run iTalk for hours, days or weeks continuously. iTalk provides a
stable medium for continual full-duplex audio communication.
Efficiency: The size of the application is a testimony to the efficiency of the code
behind it. Downloading iTalk over a 28.8 modem connection takes about
5 minutes. In just a few more minutes you and your friends could be up
and talking with iTalk.
What do I need to use iTalk?
• A Pentium' based PC.
• Microsoft Windows 952.
• Full duplex sound card.
• Microphone and Speakers.
• An Internet/Intranet connection(Minimum: 14.4 Kbps bandwidth).
How do I get iTalk?
Contact us: OOPS Videoconferencing Inc.
8000 W. 78th Street, suite 145, MN 55439
Phone: (800) 241-4898 / (612) 829-1229
http://www.00psvc.com/
I Pentium is a registered trademark of Intel Corporation.
2 Windows95 is a registered trademark of Microsoft Corporation.
• GADGETS, INC.
• GADGETS, INC.
412 South Fourth Street
Suite 1200
Minneapolis, MN 55415
(612) 337-0207
PROJECTED COMPANY LOCATION:
Gadgets, Inc. is open to a location for its light manufacturing/assembly and distribution
center. It will require approximately 10,000 square feet (expandable) of office and
warehousing space with 16' ceiling height and at least one loading dock. UPS and a good
transportation/communication network is essential.
THE COMPANY:
Gadgets, Inc. is a consumer products company specializing in bringing new and
innovative products to market in non-traditional ways. Gadgets, Inc. will be a direct
• marketer of its quality products through multi-level marketing plans that will typically
begin with an infomercial, either long- or short-form, to build up consumer awareness
and demonstrate the product use. Additional product recognition continues with direct
mail, home shopping channels, internet website, partnering opportunities, print
advertising and then ideally, with retail placement.
The Company generates its product ideas through both internal development and outside
sources. The objective of product development from outside sources is to create a
network of inventors who bring their product ideas to Gadgets, Inc. for the management
expertise and the funding to get their product to market.
INITIAL PRODUCT:
Gadgets, Inc. has developed and is introducing The Ultimate Pizza Cutter into the
consumer marketplace. The product, with its unique design, is functionally the world's
best pizza cutter. It is now being introduced through initial DRTV commercials in
selected test markets with national rollout scheduled for this fall.
•
Gadgets, Inc.
• Page 2
The Ultimate Pizza Cutter has an ergonomically designed handle and dual blade inline
cutting action which enables it to cut and separate the cheese, toppings, and crust better
than any other pizza cutter on the market today. The current family demographics, the
explosive growth within the frozen pizza industry, and the trendy appeal of The Ultimate
Pizza Cutter provide outstanding sales opportunities for this product.
A design and utility patent for the product has been researched, application made and
presently is pending. The Ultimate Pizza Cutter logo trademark registration is also
pending.
MARKETING PLAN:
Phase One (Summer: July through September)
• Direct Response Television. A short-form 60 second DRTV commercial spot
simply demonstrating a problem and providing The Ultimate Pizza Cutter as the
solution. The Company will initially test market the product price point at $14.95
• (Omaha market) and $19.95 (Des Moines market). Shipping and handling will be
at $3.95. Other initial markets include:
• Birmingham, AL • Duluth, MN
• Minneapolis, MN • Traverse City, MI
• Internet Website. A Gadgets. Inc. site will be established allowing online review
and order processing of The Ultimate Pizza Cutter using secured transactions.
• In-Store Grocery Demonstrations. The Company will test in-store grocery
display and demonstrations in coordination with the DRTV spots run in Omaha
and Des Moines. The display will advertise its products As Seen On TV.
Phase Two (Fall: October through January)
The results achieved in Phase One will be expanded upon as its moves into a larger
rollout of the product. The Company will continue creating consumer awareness through
a much larger DRTV effort, with added emphasis placed on the following:
•
Gadgets, Inc.
• Page 3
• Partnership Opportunities. Gadgets, Inc. will continue to attempt to partner
The Ultimate Pizza Cutter with national pizza chains and/or national frozen pizza
manufacturers. Gadgets, Inc. believes a partnering arrangement will provide
value-added for the product in its direct marketing efforts and further increase
consumer awareness.
• TV Shopping Channels. The Company expects to be on one of the major home
shopping channels demonstrating and selling The Ultimate Pizza Cutter. Its initial
conversations have been with Value Vision.
• Direct Mail/Catalogs. Gadgets, Inc. will produce a direct mail piece offering The
Ultimate Pizza Cutter with 4 to 5 related items for the fourth quarter holiday
season. The mailing will be approximately 250M pieces with names taken from
its consumer database and other purchased from mailing lists. In addition, the
Company will offer its product to other direct mail catalogs for this holiday
season. Initially, Williams Sonoma is being targeted but management will review
other direct marketers.
Phases Three: Retail Distribution
Once awareness and sales through various distribution channels have been generated,
Gadgets, Inc. expects to take The Ultimate Pizza Cutter to retail at a price point under
$10.00. The ideal retail placement would be on the infomercial products end shelves at
Target Stores and similar retail outlets advertising as seen on TV
MANAGEMENT:
Carl George, Founder
The Company was started by Carl George of the investment partnership of Robinson,
Blake, and George. Mr. George is the inventor of The Ultimate Pizza Cutter and holds
the patents to the product
Steve Johnston, General Manager
Mr. Johnston's work experience includes Catalog Manager of Duluth Trading Company,
a division of Portable Products, and various Management Accounting positions within
Cargill, Inc.
Gadgets, Inc.
• Page 4
COMPANY NEEDS:
Employees:
To initially staff the office and warehousing operation, the Company anticipates hiring
(1) Facility Manager, (3) Customer Service and (3) light manufacturing/distribution
personnel. The Company projects that by the end of year two, that it will employ
approximately 19 persons. The Company intends to start its employees at $8.75 per
hour, depending on experience. It also intends to provide a comprehensive benefits
package.
Financial:
USES OF FUNDS
Production/packaging equipment $200,000
Production molds 50,000
Initial inventory 100,000
Leasehold improvements 75,000
Marketing and distribution costs 150,000
Operating capital 300,000
TOTAL USES OF FUNDS $875,000
Of this amount, the Company will be providing $150,000 in equity.
•
• ROBODYNE CORPORATION
•
• ROBODYNE CORPORATION
2818 Anthony Lane South
Minneapolis, MN 55418
(612) 789-5277
PROJECTED COMPANY LOCATION:
Robodyne Corporation is open to a location for its expansion of its feeding system
production. This division represents approximately 40% of the company's current
revenues and the company requires a new location as many of these products are now
being sold to other suppliers and this division needs to be separately identified from
Robodyne. The Company needs an office warehouse facility of a minimum of 15,000
square feet with ultimate expansion capabilities to 45,000 square feet.
COMPANY:
Robodyne Corporation was incorporated in February of 1990 by Joe Alvite, with the
purpose of capitalizing on his experience in the production of robotic equipment. The
• company is growing steadily and now employs 45 people in its facilities in St. Anthony,
Minnesota and Rugby, North Dakota. Robodyne will generate approximately$4,500,000
in sales this year
PRODUCT(S):
ELIM 150 & 300
The principal product of Robodyne is an assembly and feeding robotic system, identified
as the ELIM 150 & 300. This system has applications for electronic assembly for
computer manufacturers, and others, for production of and printed circuit boards.
Robodyne has designed the equipment so that each component can be appropriately "re-
aligned" and placed to fit multiple manufacturing requirements.
Principal features/specifications of the ELIM 150 & 300
1. Board Edge Conveyor - SMEMA compatible adjustable edge belt conveyor that
handles boards up to 24" x 24". 16. 1 " x 16.6" is standard.
•
Robodyne Corporation
• Page 2
2. Active Cut and/or Clinch System - Fully programmable X, Y, and 0-350 degree
Theta rotate with rotary encoded positioning. Clinch leads in virtually any
direction.
3. Operating System - Multi-tasking real time operating system with graphical user
interface. Incorporates fault recovery/self-checking routines.
4. Cartesian Robot - Fully programmable AC Servo Z, Y, Z and Theta Axis.
Allows for high degree of accuracy and repeatability throughout the entire working
envelope.
5. Work Envelope - X Axis 39.1". Y Axis 31.5", Z Axis 5.9"
6. Talon Tool Changer - Fully automatic end-of-arm tool changer, allows unlimited
choice of tools at any workcell. Modular friction-free connections for pneumatic,
vacuum, and electric lines.
• 7. Multi-Tool Indexing Wrist - Each wrist holds up to 5 tools allowing more pick-up
tools to be on-line. The wrist also lowers the cycle time by making multiple picks
then multiple places. Incorporate mechanical, pneumatic and electric tools onto
any wrist.
8. Wide Range of Component Feeding Types & Sizes to automate odd form SMT
and through hole components as well as traditional SMD's, through hole
components and small hardware assemblies.
Continuous Reel Pin Header Feeders (RCR-PH)
Robodyne's Continuous Reel Pin Header (RCR-PH) Feeder is a revolutionary new
product. The RCR-PH creates pin headers from a continuous carrier strip by advancing
and cutting the carrier to the required pin counts, then accurately presenting them for
robotic workcell placement. Available options allow the feeder to polarize the part via
removal of required pins, kink specific pins for board retention, and allow shunt
placement onto the header prior to board placement.
•
0
Robodyne Corporation
110
Page 3
The RCR-PH feeder allows you to simplify inventory management by replacing all of
your current similar pin header part numbers with a single part number of continuous pin
header strip. You are also able to eliminate several conventional feeders which are
capable of feeding only a single part style at a time, with just one RCR series feeder.
Therefore, the RCR-PH allows you to enjoy both inventory cost reductions and reduced
equipment costs.
Principal features/specifications of the Continuous Reel Pin Header Feeders
•Fully integrated to ELIM service robots
•Large capacity: 25,000 pines per reel
•Can be reloaded while robots in running
•Low parts, error indicators on control panels
•Automatic error detection and recovery
• •Slender 3.5" feeder width
•Rugged construction
•Positive drive feed system
•Independent P.L. C. control with RS-232 communication
*Automatically cycles new part to pickup point
COMPETITION:
Robodyne is the only company that designs. builds, and markets automation equipment
specifically for odd form placement. There are only three direct competitors,
internationally.
•
Robodyne Corporation
a Page 4
MANAGEMENT:
Joseph Alvite, President and Chairman of the Board
George Hile, Executive Vice President
Walter Schuske, Vices President Manufacturing & Engineering
PROJECT DESCRIPTION:
Robodyne has developed an innovative series of"feeding" systems which it utilizes within
its equipment. Additionally, this equipment has been gaining strong acceptance from
other equipment manufacturers and this year represented approximately 40% of the
company's sales. Many of these companies are prospective competitors of Robodyne's
full robotic systems. As a result, Robodyne has a need to establish this division as a
wholly owned subsidiary, most likely with a different name.
Personnel:
•
The Company 'ects initial employment at the new facility at 15 to 20 people, growing
ProJ
to 60+ employees within 3 to 5 years. These positions will be highly technical with
average hourly wages of between $12.00 and $18.00 per hour.
Financial:
The projected funding for the project is as follows:
USES OF FUNDS
Production Equipment $650,000
Leasehold Improvements 150,000
Research and Development 175,000
Moving/Relocation Expense 60,000
Marketing/Operating Capital 450.000
TOTAL $1,485,000
The company anticipates completing the site location prior to the end of 1997 and is
• seeking to initiate operations during March 1998.
PUBLIC RESOURCE
GROUP, INC.
Business Development&Finance Specialists
COMMUNITY VENTIJRE NETWORK
Thursday, January 30, 1997
THE CLUBHOUSE AT EDINBURGH, USA
8700 Edinbrook Crossing
Brooklyn Park, MN
LINKING BUSINESSES TO COMMUNITIES
4205 Lancaster Lane North• Suite 1100 • Minneapolis,Minnesota 55441 • (612)550-7979 • (612)550-9221 Fax
r i
CO TY VENTURE NETWORK
Thursday, January 30, 1997
• THE CLUBHOUSE AT EDINBURGH, USA
8700 Edinbrook Crossing
Brooklyn Park, MN 55443
AGENDA
10:00 a.m. CONTROL RESOURCES, INC.
Randy Barcus, General Manager
John Summerfield, Vice President Research & Development
Jeff House, Shareholder
10:30 a.m. AMU CORPORATION
Bob Uhlhorn, President and Chief Executive Officer
11:00 a.m. SEQUIN HOSPITAL BED CORPORATION
• William H. Singleton, President and Treasurer
11:30 a.m. QUI% FLOSS
Robert Potter, President and Founder
Bruce Cady, Consultant
12:00 p.m. Speaker - Allen I. Olson, President, Independent
Community Bankers of Minnesota
"The Role of Community Banks in Economic Development"
1:00 p.m. MARINE INNOVATIONS, INC.
Michael Botzet, President, Founder, and Owner
Lori Botzet, Co-Owner
Keith Fritz, Sales Manager
1:30 p.m. SWEDFARM AB
Carl-Johan Torarp, Consultant
•
2:00 p.m. Adjourn
•
• CONTROL RESOURCES, INC.
•
• AMU CORPORATION
• AMU CORPORATION
14525 Highway 7
Suite 145
Minnetonka, MN 55345
(612) 939-6690
PROJECTED COMPANY LOCATION:
The Company is open to a location for its Headquarters facility. It needs 3,000 - 5,000
square feet of office/assembly space. Ceiling height should be 10 feet. There is no
environmental discharge and the water/sewer needs are minimal. Daily UPS is essential.
COMPANY DESCRIPTION:
AMU Corporation, a Minnesota based, Sub Chapter S Corporation, has completed
research, development, final design, patient testing and initial sales on wheelchair and
related positioning systems which exceed Medicare/Medicaid guidelines for
IPreimbursement and Federal Government (OBRA) guidelines on Physical Restraints.
This product line introduces a simple to use and price effective method to custom make
positioning for an individual at their location. It eliminates a costly, labor intensive,
multiple fitting process conducted by orthotic experts. It replaces the need for other
adaptive positioning products, such as, various cushions, bolsters, backs, etc. The key
element, "Impression Foam", is a resin impregnated foam which when water activated
forms a comfortable patient specific postural support.
This highly adaptable system provides maximum support for those who have difficulty
maintaining a seated position without leaning, slumping, or sliding from their chairs.
AMU's restraint free custom made products provide relief from pain and pressure sores
allowing patients to function safely and independently. This system is the least obvious
in outward appearance and is light in weight.
PRODUCT:
Custom Care with Impression Foam system is a custom made, restraint-free and
economical solution for personal positioning systems. The heart of the system is
Impression Foam (manufactured by 3M), a unique water activated resin-impregnated
. foam, which simply and safely molds directly to the patient's every contour. Easily
• _ AMU Corporation
Page 2
completed on site, the all-inclusive system is quickly fitted to any standard wheelchair.
The system's personally contoured impression foam and sculptured foam base provide
total contact support and distribute weight evenly for superior pressure relief. This
custom made system also provides comfortable restraint-free solutions for lateral leaning,
pelvic tilt or rotation, and spinal curvatures while giving stability and proper support.
Custom Care fits any standard wheelchair in minutes, eliminates sling-seat hammocking,
can be reclined, is incontinent proof, lightweight, washable and carries a two year
warranty.
MARKET:
The Seating and Positioning market is based on approximately 500,000 new wheelchairs
which are sold in the United States each year. Most wheelchair users need some type of
positioning. There will be population turnover, as well as growth, within the long-term
care market.
• "Nearly 1.8 million people were living in nursing homes in 1990." Minneapolis Star and
Tribune, 6-28-93.
"For nursing homes, the critical group is people 85 and older, which happens to be the
fastest growing part of the elderly population. By the year 2000, their numbers are
projected to swell by 40 percent and to double by 2010...most nursing home residents are
on Medicaid" Minneapolis Star and Tribune, 3-3-94.
Additional markets include In-home (larger and growing faster than Nursing Homes),
Pediatrics, Multiple Sclerosis, Muscular Dystrophy, Spinal Injuries, office workers, etc.
Proprietary Position
There is no other custom made product on the market which can be simply formed and
easily applied in large quantities for a reasonable price.
The health care industry is driven by products that are medicare/Medicaid reimbursable.
This requires that a positioning device must be custom made for an individual patient
(versus "off the shelf') before approval of payment is granted.
•
AMU Corporation
Page 3
MARKETING:
AMU Corporation's competitive advantage is in providing the only custom positioning
systems which exceed Medicare/Medicaid guidelines for reimbursement.
The Company's marketing options are:
• Traditional: Manufacturer (AMU) would sell to the Distributor, who in turn sells to the
Dealer and then to Customer. The Company has had preliminary discussions with the key
distributors in the industry. However, this method of sales would be a longer term goal
of the Company, as sales of its products usually require more product education than this
method provides.
Factory Direct: Direct Sales Advertising/Retail Sales Outlets/Informational Sales (i.e.:
Nordic Track - Select Comfort). This method will be used initially by the Company
because it allows an educational and informed decision process for the purchaser.
AMU intends to direct its initial marketing push towards the Minnesota market. There
are approximately 450 nursing homes in Minnesota (135 in the Minneapolis/St. Paul
Metropolitan Area) with approximately 50,000 residents. Once substantial sales are
generated in this market, the Company will initiate a nationwide marketing effort. The
Company's goal is to obtain sales of at least one-tenth of one percent of the nations
1,800,000 nursing home residents by the end of the second year.
The Company will target people who are wheelchair bound and those who are suffering
back pain. It's products primary benefit is the relief from pain and pressure while
improving health functions related to posture. Quality of life returns with the dignity of
proper restraint-free safe seating.
"1 out of every 2 women over the age of 60 has osteoporosis (the depletion of bone mass,
causing broken hips or spinal fractures). 1 out of every 4 women over the age of 60 will
get spinal fractures." Minneapolis Star and Tribune, 1-5-97
"50% of working-age Americans suffer a back attack each year. A good chair with back
support is essential." Modern Maturity, November-December, 1996
To reach this audience the Company will use: toll-free number, press kits, postcard
mailings, a Web site, demos/in service, brochures, video information, a referral program,
a newsletter, a schedule of classified advertisements in health/aging publications,
• advertisements in regional/local editions of national magazines and newspapers (with
AMU Corporation
• Page 4
reprints we can use in our brochure), press releases for above publications, marketing
arrangements with synergistic products, cable-tv spots in selected markets, posters for
healthcare professionals, trade shows, and free clinics conducted in major cities.
COMPETITION:
There are approximately 50 companies in seating products, 50 companies in alignment
products, and 20 companies in wheelchair accessory products. Some of the more
prominent names in the market are: Posey, Skill Care, Roho, Jay, and Otto Bock.
These competitors' products are "off the shelf" rather than custom made and therefore
not reimbursable by Medicare/Medicaid and insurance companies. Also OBRA restraint
guidelines are often an issue. Products can be used repeatedly by different patients rather
than by just one individual.
MANAGEMENT:
•
Bob Uhlhorn, President and Chief Executive Officer
Mr. Uhlhorn is directing the overall strategy for the Company. Prior to acquiring AMU
Corporation, Mr. Uhlhorn was President of Leigh Corporation, a firm consulting in
financial analysis and strategic planning for clients that included Control Data. Mr.
Uhlhorn has also been in senior management positions with Litton, Leisure Dynamics,
Electronic Industries and Green Giant. He has a B.S. in Business Administration and
English and related studies in Mankato State's M.B.A. program.
SALES PROJECTIONS:
The Company anticipates adding two marketing areas per quarter with sales ramp-up as
follows:
First Quarter 2 Marketing Areas = 50 Systems
Second Quarter 4 Marketing Areas = 150 Systems
Third Quarter 6 Marketing Areas = 300 Systems
Fourth Quarter 8 Marketing Areas = 550 Systems
First Year Total 1050 Systems
•
AMU Corporation
• Page 5
Second Year 16 Marketing Areas = 2650 Systems
Third Year 24 Marketing Areas = 4700 Systems
COMPANY NEEDS:
Personnel
The Company anticipates hiring up to 12 employees by the end of the first year with 22
planned by the end of year two. The first year includes (2) customer service/office, (1)
distribution/shipping, (6) assembly/fabrication and (3) sales positions. The Company
intends to pay its employees $8.00 + per hour. Benefits will follow as the Company's
sales/benefits increase.
Financial
Uses of Funds
• Equipment $ 25,000
Working Capital 225.000
Total Uses of Funds $250,000
Of this amount, the Company is raising $100,000. The remaining amount can be
completed in two equal phases. Currently, the Company has approximately $30,000 in
inventory.
•
• SEQUIN HOSPITAL BED CORPORATION
•
•
SEQUIN HOSPITAL BED CORPORATION
575 Union Blvd., Suite 109
Lakewood, Colorado 80228
(303) 980-1600
PROJECTED COMPANY LOCATION:
The Company is open to a location for its headquarters/manufacturing facility. The
Company desires 10,000 square feet (7,000 sq. ft. manufacturing, 3,000 sq. ft. office)
expandable to 30,000 square feet. Three phase electric is required as is a ceiling height
of at least 12'. Highway access is a necessity.
COMPANY BACKGROUND/HISTORY:
SeQuin Hospital Bed Corporation is an early stage Colorado corporation incorporated in
1992.
The Founders have researched, developed,and patented a relatively low cost, kinetic
oscillating bed. The SeQuin bed is specifically designed for the prevention and treatment
of pulmonary complications and pressure ulcers, providing positive therapeutic results for
those confined to bed because of illness, surgery, age, or disability. The SeQuin bed is
less labor intensive, performs better and costs less than many alternative beds or turning
solutions.
The specialty bed market encompasses four major manufacturers, a number of smaller
manufacturers, with over 30 beds and related products that incorporate some form of
oscillation or pressure reduction. SeQuin's founders believe, and market research
confirms, that its beds will gain rapid acceptance because of their relatively low cost and
their ability to rotate a patient 40 degrees to each side.
In addition to their significantly lower cost and therapeutic value, SeQuin beds will
substantially reduce the manpower required to rotate patients manually and reduce the risk
of back or other injuries to those actually turning the patient.
•
SeQuin Hospital Bed Corporation
Page 2
PRODUCT(S):
SeQuin has developed two rotating beds that utilize its patented oscillating cradle
technology: the SeQuin 500, a manually operated bed and the SeQuin 1000, a
programmable, micro-chip controlled bed. The attached drawings describe the SeQuin
500 and the SeQuin 1000 hospital beds from various views and describe the unique
features of each.
In addition, each of beds share the following features:
• Locking casters
• Anti-pinch precautions throughout
• Manual overrides for electronic functions
• Optional patient restraints
• CPR board and built-in storage
• Quick release and head down provisions for CPR emergencies
• Easy cleaning and maintenance
• Optional rotational position meter
• • A range of attachments such as IV poles, TV brackets, etc.
• Product help line
• Environmentally conscious, all components may be cleaned and disinfected for
reuse
MARKET:
Historically, the specialty medical bed market has been concentrated in acute care
hospitals and nursing homes. Today, cost considerations as well as concerns for patients
well-being have opened up many new options for patient care. In addition, life
expectancies are increasing dramatically and presenting new and unique problems for care
providers. The sheer numbers of patients and multiplicity of complications from which
they suffer can be overwhelming.
The major markets in health care have now expanded dramatically, including an
exploding home health care arena. Hospice and sub-acute facilities are examples of
concepts to appear on the health care scene in recent decreases. In 1991 $59.9 billion
was spent on nursing home care and $9.9 billion was expended in home health care.
These numbers represent an increase of 12 percent and 30 percent, respectively, over the
previous year.
•
SeQuin Hospital Bed Corporation
• Page 3
SeQuin will focus its efforts on three major components of the specialty bed business:
nursing homes, home health, and acute care hospitals.
Nursing Homes - In 1991 there were 33,006 nursing and related care facilities in the
U.S., representing over 1.9 million beds. Of these facilities 10,527 had 75 beds or more
and 7,173 provided 25-74 beds. This represents a 29 percent increase in the total number
of beds over 1986. Numerous published reports indicate that such dramatic increases are
destined to continue.
Home Health Care - According to the U.S. Department of Health and Human Services
in 1994 there were an estimated 1.4 million patients being cared for in the home or at
hospices on any given day, with 2.6 million patients over 65 being discharged from some
form of care facility. In is commonly recognized that these numbers are probably
understated because of the difficulty in obtaining accurate information.
Quality of life decisions and cost containment factors are causing more and more patients
to be cared for in the home. If those patients require turning, it often results in the
spouse or other caregiver being forced to awaken during the night to maintain the turning
schedule. Frequently the spouse, especially if they are elderly, cannot physically turn the
ipatient without risk of injury to themselves or the patient.
Because of these factors, SeQuin believes that home care will be a significant market for
its oscillating beds, particularly the SeQuin 1000 which can be programmed to turn the
patient without caregiver intervention for scheduled periods. Since both SeQuin products
are priced to retail at slightly more than conventional hospital beds, clients in the home
care setting will be attracted to the convenience and therapeutic results they offer.
Acute Care Hospitals - In 1994 there were 6,374 hospitals with 3,492 having more than
100 beds. This segment of the health care market is declining at two to three percent per
year as more patients are released earlier and cared for in the home and other types of
facilities. Still, these hospitals provide a large market for products that are cost-effective
and are capable of producing favorable and documentable results.
Intensive care units (ICU) constantly confront pulmonary issues with patients recovering
from surgery or major illnesses. Sub-acute care hospitals are new on the scene and will
provide additional marketing opportunities. Patients in rehabilitation centers, such as
quadriplegics and accident victims, also require oscillation. In this area, there is a
particular need for beds like SeQuin products which are designed around a stable frame
and support system, for use with patients with spinal cord injuries.
•
• 1
• SeQuin Hospital Bed Corporation
Page 4
MARKET STRATEGY:
SeQuin has surveyed over 30 nursing homes, acute care hospitals, and home care
distributors. The market research has provided the groundwork in designing a program
tailored for each of its oscillating beds.
The SeQuin 500 - Manual Oscillating Bed
This bed will be targeted primarily to nursing homes, which have indicated a preference
for this bed because it will force patient contact when the staff turns them. Per the above
survey, on the average a minimum of 20 percent of nursing home patients require
turning.
There is also a segment of the home care market that will be interested in this product.
Low cost, ease of use, and maintenance are appealing to both nursing home
administrators and non-reimbursed customers.
The SeQuin 1000 - Computerized Oscillating Bed
Acute care hospitals and home care needs will be principally addressed with the SeQuin
1000. The ability to program turning functions and the flexibility in therapy design will
appeal to medical professionals practicing in hospitals and prescribing home programs
Use in the ICU units of hospitals will free nursing personnel to perform other, more
important tasks. The ability to program the bed with little or no intervention for
prolonged periods, its light weight, and its ability of passing through small passageways
will be especially important in the home care arena.
COMPETITION:
Competition for SeQuin's oscillating beds come in the form of products ranging from
very sophisticated specialty beds to many types of mattress overlays. Overlays are
products which are used over conventional hospital beds and most commonly involve
some type of air-support system. Pressure variation and reduction occurs by increasing
and reducing air pressure in several tubes or compartments. Usually, overlays cannot
turn a patient 40 degrees.
•
- -
- . _ _ _
• SeQuin Hospital Bed Corporation
Page 5
The products that SeQuin will compete with can be categorized as follows:
Product Description Daily Retail Rental
1. Simple mattresses and gel filled pads Usually purchased
$100.00 - $1,500.00
2. Non-turning air flow mattress overlays $35.00 - $55.00
3. Lateral tubed, overlay, some turning $60.00 - $90.00
4. Fluidized silicon or glass beads, non-turning $75.00 - $150.00
5. Low air loss beds, most turn to some degree $75.00 - $165.00
6. Highly specialized beds - advanced treatment $85.00 - $175.00
Projected Retail Rates for SeQuin beds:
SeQuin 500 (A substantially improved and lower cost $36.00/day
alternative to categories 1 - 5 above
SeQuin 1000 (In direct competition to category 6 $44.00/day
• above)
The more sophisticated products are usually rented by the end user, and there is some
cross-over in the rental rates. Much of the pricing is driven by the reimbursement
policies of Medicare and Medicade. Medicare reimburses at approximately $40.00 to
$125.00 per day for a bed or sophisticated overlay, depending on the categorization of
the product within the guidelines.
None of the products in categories one through four are able to turn the patient to 40
degrees or are they stable enough to be used with patients with spinal cord injuries. Both
SeQuin beds will turn 40 degrees and are very aggressive in price and rental rates when
compared to products within categories five and six.
MANAGEMENT:
William H. Singleton, President and Treasurer
Mr. Singleton most recently functioned as founder and President of Strategic Alliance,
Inc., a firm specializing in business planning and financial consulting. The firm served
several medical companies as clients.
•
SeQuin Hospital Bed Corporation
• Page 6
Mr. Singleton received his undergraduate degree in business from the University of
Colorado. He holds a MBA from Regis University, graduating with honors. He has
taught at both the graduate and undergraduate levels in business at the University of
Phoenix and Regis University. He current serves on the Board of Directors of the
Colorado Medical Device Association (CDMA).
Jack W. Payne, Executive Vice President and Secretary
Mr. Payne has extensive experience in the medical device industry. Mr. Payne worked
19 years as a Vice President with Baxter International in sales, marketing, and operations.
This tenure also included wide-ranging experience in the areas of dealer relations,
government controls and regulatory affairs.
Mr. Payne has also held executive positions in several other medical companies and
serves on the board of two public companies. He holds an undergraduate degree from
DePaul University and completed the Executive Management program at the University
of Virginia.
COMPANY NEEDS:
Personnel:
The Company anticipates that it will be hiring an additional 7 persons during the first
year of operation. This will increase as follows:
Year l - 7
Year 2 - 20
Year 3 - 35
Year 4 - 56
Year 5 - 85
The Company anticipates paying between $8.00 - $12.00 per hour depending on local
labor conditions. It also plans to offer benefits and an employee stock plan.
•
SeQuin Hospital Bed Corporation
• Page 7
Financial:
Uses of Funds
Phase I
Final Protyping/Patenting $ 500,000
•
Phase II
Production Equipment $ 350,000
•
Working Capital 650.000
Total Uses of Funds $ 1,500,000
The Company will be providing equity towards the project.
• QUIK FLOSS
• QUIK FLOSS
916 South Goveneour Road
Wichita, Kansas 67207
(316) 682-6600
PROJECTED COMPANY LOCATION:
Quik Floss is open to a location for its manufacturing facility. The Company needs
approximately 18,000 square feet of manufacturing space and 2,000 square feet of office
space. The manufacturing area should have ceiling heights of 16 feet and electrical
capacity of three phase 460 amp.
THE PRODUCT:
Quik Floss is a combination of a small, disposable dental flossing device and toothpick
which allows the user to floss all one's teeth quickly, using only one hand. Quik Floss
is the convenient, simple way to floss. The product eliminates several of the complaints
• associated with toothpicks and string floss, ie. not enough room in the mouth for two
hands, puffy and blue fingertips, toothpicks that break and splinter, etc. Quik Floss
removes plaque, thereby reducing the risk of gum disease and possible tooth loss.
Quik Floss has several unique features and qualities which cannot be found in any other
product on the market today. The most striking feature is the revolutionary Y-shaped
design. This patented design allows the user to floss all teeth using only one hand
without bending or twisting of the product. The Y-shape design also provides a large
grip area on the product for greater control. Aside from the products functional qualities,
the gripper area is also a billboard for the product trademark and imprinted corporate
logos or messages. This enables the Company to not only enter the retail markets, but
also the specialty advertising business as another profit center.
The toothpick end was designed by a Clinical Periodontist to fit between the teeth for
maximum plaque and tarter removal. Quik Floss is made of the highest quality floss and
plastic resin to ensure customer satisfaction.
•
Quik Floss
• Page 2
PRODUCTION:
Historically, the Company has viewed itself as a sales and marketing firm, not a
manufacturer. The Company has subcontracted 100 percent of the manufacturing of
Quik Floss to various injection molding firms. However, the Company has consistently
had production quality issues in using these subcontractors. This has resulted in poor and
inconsistent quality. Quik Floss is now in discussions with Engel Injection Molding, a
$500 million producer of injection molding equipment. Engel has proposed a sale of
specific molding machines which Engel guarantees will produce the Company's product
in both the quantity and quality needed to fill the huge demand for the product.
MANAGEMENT:
Mr. Robert Potter - President and Founder
Mr. Potter is the developer of the Quik Floss Product. The idea came from his
ownership of thirteen various concept and franchise restaurants in Nebraska. Mr. Potter
has developed many real estate projects including mini-warehouses, strip centers and
• office buildings. He also has interests in a Coca-Cola distributorship and USA TODAY
newspaper distributorships in Kansas and Nebraska.
MARKET(S):
Targeting the most likely purchaser of Quik Floss is critical to the success of the
Company and extensive research has been completed. There are 94.2 million households
in the United States, which account for over 255 million people. Market research has
pinpointed 12.1 million households, as having the Company's target market
demographics. The psychographic primary market is the "occasional flosser" segment,
which make up 75 percent of the U.S. population. The secondary target market is all
adults, ages 25 - 49. This includes only the U.S. market for the product. The Company
has had distribution inquiries from Australia, United Kingdom, Mexico and Germany.
The U.S.A. has 255 million people, but there are 6.5 billion people in the world.
Warren Buffet says of his investment in Gillette, "I sleep quite comfortably knowing that
there are 3 billion males who shave tomorrow morning." Likewise, the Company feels
quite comfortable with the Quik Floss product as there are 6.5 billion people who need
to floss each day.
•
• Quik Floss
Page 3
On of the features of the Quik Floss product is the gripper space which can be imprinted
with corporate logos or messages. Hotels, airlines, cruise lines, restaurants, dentists, and
dental insurance companies have been identified as another target market for the
Company. There are 12.7 million businesses in the United States with the potential for
a sale of Quik Floss with their logos printed on them. The Company has received orders
and checks for the specialty advertising on Quik Floss. However, due to the lack of
appropriate production facilities, it has had to return the checks and reject the orders.
It has been approached by Ritz Carlton, Hyatt, United Airlines, McDonald's Corporation,
Chili's, Wendy's, Colgate, Warner Lambert (Listerine) and hundreds of smaller
companies.
MARKETING:
The Company has identified the following as markets to be entered:
1. Retail Outlets
The Company has entered into a USA only distribution agreement for five years
• with Zila, Inc., a publicly traded distributor of medical/dental supplies to retailers.
Already they have obtained contracts and distribution into Walgreen's (nationwide)
and Target Stores (on a regional basis). In addition, the Company has product in
1,300 CVS Drugstores, 45 Long's and 105 Shaw's Supermarket stores.
Walmart of Canada has expressed interest as has the Eckerd Drug Store Chain.
However, the Company has asked Zila not to pursue any expansion until the
production problem has been rectified.
2. Dentists and Dental Insurance Companies
There are 131,000 dentists in the United States. The Company has completed its
clinical analysis which were completed by the University of Missouri and have
been published in the September 1996 issue of the Journal of Clinical
Periodontology. The findings were very positive and will allow the Company the
opportunity to apply for the American Dental Association Seal of Approval. Quik
Floss has had preliminary discussions with the ADA and have been encouraged to
seek this designation prior to entering the dental market.
•
Quik Floss
. Page 4
3. Specialty Advertising
Matchbook advertising is a $200 million dollar a year business in the U.S. Quik
Floss with a company logo or message printed on it mirrors the matchbook
advertising business. Convenience and health conscious Americans will embrace
an inexpensive advertising tool that presents a healthy image. Advertising "Card
Decks" will be used to stimulate sales to this target market.
4. Informercial
The Company had completed a "product testing informercial" with two different
informercial specialists. Both tests came back on an extremely positive note. The
Company had worked with Corbin Berson, star of LA Law, who would be
spokesman for the informercial. Once the test results were returned, the Company
knew it could not supply the demand and terminated the negotiations. Corbin has
been very supportive and has expressed his desire in doing the informercial on a
commission basis when the Company has the ability to supply the product.
5. Worldwide Markets
All of the aforementioned marketing opportunities exist with this product on an
• international basis. The Company has its own website under Quik Floss and
FlossNet and has had thousand of "hits" and e-mail inquiring about distribution
rights and sales outlets in their geographic region of the world.
PRICING
Each individual market has its own pricing structure. Testing has suggested that a one
year supply of Quik Floss can be sold in an informational format at $19.95 plus $3.00
shipping and handling. This equates to a sales price of 6.5 cents per piece.
The Quik Floss would sell to the specialty advertising market in low volumes for
approximately 9 cents each ($895 per ten thousand imprinted Quik Floss) to high volume
(millions for United Airlines or Colgate) to as little as 3.5 cents. This pricing would also
include the dentists and dental insurance markets.
The Retail Outlet marketplace is broken down into the Mass Merchandiser,
Discount/Variety, Grocery, Chain Drug, Independent Drug, and the Convenience Store
accounts. Each of these has its own pricing structure. The Company estimates that it
will receive approximately 2.5 to 3 cents each for the product.
With the Engel injection molding system in place, the Company can reduce its cost of
• goods sold to less than .5 cents.
Quik Floss
_
• Page 5
COMPETITION:
Marketing research has clearly identified the Company's direct competitors in the
disposable dental flossing aid segment of the Health and Beauty Care Industry. The
competition is (top three competitors ranked by percentage share of market):
1. Dr. Du-More's (Du-More, Inc.)
2. Plackers Dental Flossers (Seneca Laboratories, Inc.)
3. Sword Floss (Caune & Caune, Inc.)
Research into the level of distribution, both in terms of number of retail outlets as well
as geography, has clearly identified the leaders in the disposable flossing device market.
They are Dr. Du-More's (Du-More, Inc.) with 35 percent of the market, Plackers
(Seneca Laboratories) with 23 percent and Sword Floss (Caune & Caune) with 19
percent.
There are five major competitive advantages that Quik Floss will enjoy over the
•
competition:
1. Superior Y-shape design is easier to use that the competition's coping saw design.
2. Superior quality of Quik Floss.
3. Quik Floss will also be sold as a specialty advertising device providing an
additional profit center.
4. Specialty advertising sales will also provide a great sampling mechanism for the
product and brand awareness.
5. Management's innovative marketing and sales concepts that will be utilized to
deeply penetrate the competitions market share.
•
Quik Floss
•
Page 6
COMPANY NEEDS:
Personnel:
The Company anticipates that it will be hiring approximately 22 persons to staff the
manufacturing plant. Compensation for these employees will be between $8.00 - $17.00
per hour. In addition to the manufacturing, the Company will need 4-6 office and
support personnel. If the Company elects to do its own in-house inbound order taking,
an additional 30-50 employees will be necessary.
Financial
Uses of Funds
*Equipment (3 Engel Molding Machines) $2,500,000
Misc. Equipment 150,000
• Working Capital 300,000
Shareholder Buyout 250.000
Total Uses of Funds $3,200,000
The Company intends to provide approximately $550,000 in new equity towards the
project.
* - This equipment can be phased-in as sales increase. Each machines has a cost of
$833,000.
•
t
•
• MARINE INNOVATIONS, INC.
•
t a
• MARINE INNOVATIONS, INC.
373 West Idaho Avenue
St. Paul, Minnesota 55117
(612) 487-6240
PROJECTED COMPANY LOCATION:
Marine Innovations is open to a location for its headquarters/assembly facility. The
Company needs approximately 3-5,000 square feet of assembly/warehousing space with
a small office area. The facility should have 12' ceilings and three phase electrical
capacity. There is no environmental discharge or special water/sewer requirements. UPS
is essential.
THE COMPANY:
• Marine Innovations is a young and growing company specializing in transport systems
used in accessing elevated shorelines and other ragged terrain as well as systems designed
for the physically challenged. For the past five years the Company has operated on a
part-time basis and has many accomplishments, including product development and
refinement, competitive product analysis, market studies, costing, materials management,
creation of strong vendor relations and establishment of a market presence. The
Company is now at the point where it is feasible to launch the business of its incline lift
manufacturing and service business on a full-time basis.
PRODUCT:
INCLINE LIFT SYSTEM - The "Bank Hoist" is a simple, electrically powered incline
lift system built with high quality, commercial grade materials. It is designed to transport
people and goods quickly and easily from deck to dock and back again. Components
include:
• UL - inspected power unit -220V
• Plated steel rails
• Powder-coated, all aluminum carriage
• Industrial-grade, push-button controls
•
Marine Innovations, Inc.
•
Page 2
The advantages of the Bank Hoist system are significant:
• It's UL - inspected - one of the few lift systems that are.
• It has a very simple design making it low maintenance and very reliable
• It's rail system is constructed of galvanized steel; the others are not, they are mostly
painted steel which will rust and oxidize and require frequent maintenance
• It has a nicely designed power unit located under the carriage. Not only does this
improve aesthetics, it creates design flexibility of the carriage and entry platform.
• Superior controls with soft starts and easy stops
• Several built-in safety features including 2 back-up brakes
• Easy installation - The power unit can be hooked up in less than an hour! -
• Currently priced lower than the competition
• It is the only commercial unit available for national market
• Overall, the best system available considering everything involved
i Three models will be available in 1997.
• The first model is the basic unit, BH101 - Basic Hoist designed for residential
applications. It features a drumdrive with a basic track rail length of 50 feet. For
longer units, the cost of additional track will be added. This unit can go up to 125
feet at almost any incline. It incorporates the basic components listed above and is
designed to carry 2 adults with a 500 lb. capacity. The carriage is a stock design with
a basic seating arrangement. Standard features include all items included in the basic
components. Accessories will be optional. This is the "no frills" model.
• The BH103 - Ultra Hoist is the step-up model designed for residential applications.
It can go almost any length but the package price will start at 50 ft. This model has
traction drive, a larger power unit and a 1000 lb. capacity. In addition, it comes with
a custom carriage with different seating options and a standard remote control. This
unit can go to 300+ feet and is ideal for more rugged environments.
• The third model is the BH201 -Commercial Hoist. This unit is designed for public
and commercial applications. It features a larger power unit, a double cable design,
and a custom carriage. It will be priced on a per project basis and will be ANSCI
code approved for most states in the U.S.
• There will also be a full line of accessories and options available to new and current
customers. Many of these will be available by Summer 1997. All will be available
110 by 1998.
Marine Innovations, Inc.
1111 Page 3
COMPETITION:
In Minnesota and Wisconsin there are three main competitors of the Bank Hoist:
• Hill Hiker - This company is based out of the Twin Cities area. It used to be known
as Cliff Climber which was owned by Access Mobility Systems. A part owner in the
company was given the rights to the Cliff Climber product as part of a payoff
settlement and the result was Hill Hiker. The product itself has changed little. It is
a heavily engineered product that features a train-like track and a wood and metal
carriage. The power unit is located off the beginning of the track. It is not
aesthetically pleasing and can obstruct views. It's also a very complex system that
can be difficult and costly to install. The controls are poorly designed, "Radio
Shack" types. On the plus side, Hill Hiker offers an attractive unit with a wood and
painted steel carriage. They enjoy a fair reputation and decent name recognition.
These units are expensive, however, and service contracts are pushed heavily, because
they require heavy maintenance. Last year they sold only four; One of their best
years was in 1994 when they sold 40. Their market is mainly in the Minnesota and
Wisconsin area and are not nationwide.
• Weberg & Rogers - This company is based in northern Minnesota and has been in
• operation approximately two years. Product features include traction drive and
painted steel tracks which have a "carnival ride" look to it. The track is not mounted
in with cement posts and is a bit unstable. Power unit is located at track level and is
exposed to the elements. Unit has poor safety features and the braking system could
use some improvement. The company went nationwide in 1996.
• Tram Industries (located in Iowa).
MARKET(S):
The primary markets in which the Company is involved are:
• The Recreational Marine Market, and
• The Public Works and/or Park & Recreation Market
The opportunity for the Bank Hoist incline lifts in the residential recreational marine
market and commercial markets looks very strong for several reasons. First, there is
very little competition for this market. Other companies such as Hill Hiker and Weberg
& Rogers have very different types of units which are inferior to the Bank Hoist.
•
_ _
a �
Marine Innovations, Inc.
• Page 4
Second, the need for this product is increasing for several reasons. Babyboomers are
coming of age where convenience and accessibility are important issues. The Bank Hoist
may start out as somewhat of a luxury, but it often becomes a necessity for them or their
aging parents. Also, there are many existing units (such as Triggs) that are badly in need
of replacement or refit. Only Marine Innovations can offer both the sales of new units
and the servicing of existing units.
Government regulations such as the Americans with Disabilities Act (ADA) are making
incline lifts necessary additions to marina and other public facilities. The Bank Hoist,
with minor commercial modifications, has great potential in this market. In 1996, a
commercial application in Wisconsin (public golf course) was installed with great success,
and the Company will be doing a large commercial job for the Hilton Corp. in Laughlin,
NV in early 1997. With the right approach and product, Marine Innovations is poised
to capture a large portion of this market within the next two - three years.
MARKETING:
In 1997 Marine Innovations will evolve to offer both the Bank Hoist and other marine
equipment such as boatlifts and docks. The Bank Hoist will be marketed on a national
• level, beginning with Minnesota and Wisconsin for the residential market and, with the
commercial market, on a project-by-project basis.
Utilizing the ShoreMaster tradename, the Company will work directly with ShoreMaster's
commercial division (a major player in the commercial marina industry) and will share
leads for projects that require incline systems (such as the Hilton job in Nevada). Since
the ADA was passed in 1996, the opportunities are going to be potentially huge for the
incline business. Building ramps is 5 - 10 times more expensive than putting in an incline
system. To penetrate this market, the Company will actively seek public parks and works
projects, attend trade shows, and advertise in national publications.
The marketing strategy in the past for the Bank Hoist has included print ads in a midwest
lake publication (Lakeshore Life and Product News which is no longer in business), very
limited involvement in regional boat shows and use its solid referral base, which has
resulted in several sales. Marketing will take a much stronger role than in the past.
Plans for 1997 will include, but may not be limited to the following:
Print Advertising - Minnesota and Wisconsin will be the primary targets for print
advertising for the Bank Hoist. For Minnesota, a 1/2 page B&W print ad has been placed
in the DNR Fishing Regulations Handbook for the Bank Hoist. While expensive, the
41 audience is targeted and it reaches 1.1 million people.
Marine Innovations, Inc.
• Page 5 _
For Wisconsin, advertising will take place in a statewide outdoor-sports type publication
such as Wisconsin Outdoor Journal, a monthly publication aimed at fishing and hunting
enthusiasts or Wisconsin Outdoor News, a weekly newspaper.
•Consumer Shows - A heavier show presence will take place in both Minnesota and
Wisconsin. The plan for 1997 is to attend at least one marine show and one home show.
The March Sport Show in Minneapolis will be attended with a 10- x 20 display that will
house a show unit, graphics, and a literature table. The Home Show takes place in the
Spring and Summer. The Company is also evaluating shared show space with other
ShoreMaster dealers.
Mailings - A database of current and potential customers is being established. With this,
the Company can add new lists of waterfront property owners that have been purchased
for use in mailings. The next step is to develop a simple, inexpensive postcard promoting
the Bank Hoist's advantages. It will also include a brief mention of other Marine
Innovation products. The mailing would be sent twice a year.
111 Internet Advertising - Marine Innovations will have an internet site: www.marine
innovations.com. Currently, there are no internet sites for incline lift systems. MI's
home page will feature color photography, possibly video and sound, and key product
information on the bank hoist and the Company's other waterfront equipment - boatlifts,
docks, etc. Interested people will be able to e-mail or call for further information and
price quotes.
MANAGEMENT:
Michael Botzet, President, Founder, and Owner
Mr. Botzet will manage manufacturing and service, and oversee general aspects of the
entire business, including managing inventory for both operations. A class-A machinist
by trade, Mike has steadily expanded his manufacturing expertise over the past 15 years.
From 1983 to 1985, Mike had his own manufacturing business, Botzet Precision Tooling
which produced marine equipment parts and performed general machining. He later
worked for Harmony Engineering and Wilson Tool. While working at Wilson, he started
up the Bank Hoist business. Most recently, he worked as the Plant Manager for Piccard
Medical Corp. in Elk River, Minnesota.
•
_ _
Marine Innovations, Inc.
Page 6
Lod Botzet, Co-Owner
Ms. Botzet will direct all advertising and marketing efforts of the Company, be involved
in short and long term strategy for the Company, and manage overall aspects of the
business in conjunction with Mr. Botzet. Lori has over 10 years of marketing and
marketing communications experience. She's operated her own communications firm for
5 years, and is currently working at Onan Corp., performing marketing communications
management for their marine and commercial generator lines. Lori's strengths are
marketing and general management. She also has a solid understanding of the marine
• industry from both a manufacturing perspective and retail (dealership) perspective.
Keith Fritz, Sales Manager
Mr. Fritz will manage sales on a nationwide level for the Bank Hoist and on a dealership
level for the retail operation. He will manage the sales staff, and work closely with Ms.
Botzet on sales and marketing strategy. Keith has over 15 years of successful sales
experience, most recently in the medical industry as the Sales Manager for Piccard
Medical, Corp.
COMPANY NEEDS:
IDPersonnel:
The Company anticipates hiring three employees during the first year, increasing to 18
employees by year 5. These positions will be office support, assembly, marketing and
personnel for its service team. It intends to offer health insurance and a retirement plan
starting year two. The Company will start its employees at the market rate in the chosen
community.
Financial:
Uses of Funds
Equipment $ 70,000
Working Capital 20.000
Total Uses of Funds $ 90,000
The Company has equipment as additional collateral for the project.
•
• SWEDFARM AB
SWEDFARM AB
S-59062
Linghem, Sweden
c/o Torarp Int'l Venture Management
(612) 830-1230
PROJECTED COMPANY LOCATION:
The Company is open to a location for its Food Processing facility. It requires
approximately 2,000 - 3,000 square feet (expandable) of manufacturing and office space.
The facility should be office type standard, have compressed air, 9+ foot ceilings, and
one loading dock. There are no special water/sewer or electrical requirements. The
Company has an offer from Jamestown, New Jersey, for a facility free of rent if they
start their U.S. operation there, but they would prefer a Minnesota location.
COMPANY
• Swedfarm AB is a Swedish Company, and it is a closely held family corporation. Their
core business is hatching chickens for egg production, representing U.S. based Shaver
Starcross and ISA. Other divisions produce farm machinery like high capacity manure
and sledge spreaders and food processing equipment. Recently the Company has created
a mineral bottling subsidiary, as well.
The Company is a market leader in the hatching business in Sweden. The Company is
based in Linghem outside Linkoping in Sweden, and has sales well in excess of fifty
million dollars.
PROJECT:
The Company desires to manufacture and market baked good products in the U.S.A.
However, before it commits extensive resources, it has decided to manufacture and test
market some of its products. It intends to start on a very small scale within the required
space. It will provide the equipment and the expertise to operate the equipment.
Depending on outcome of the test market, the Company would substantially increase its
physical space requirements and personnel.
•
I •. A
0 Swedfarm AB
Page 2
COMPANY NEEDS:
Personnel
The Company will need one to two persons upon location, with employment increasing
significantly over time if pilot test is successful. These persons will be temporary part-
time employees working approximately 36 hours per week, turning into permanent
positions if the operation is continued upon successful completion of market test. They
intend to provide vacation, sick time, and ten days of holiday time. Food processing
experience would be helpful, but the Company will train suitable candidates.
Financial
The Company does not need additional financing at this time, as it will be providing the
equipment and working capital necessary for the test market. However, the Company
II would like heated and electrified space rent free of charge for a pilot period of six
months. If there are build-out costs associated with the project, assistance would be
appreciated.
PROPOSALS:
In addition to the building, the Company is very concerned about transportation
capabilities for distribution of its goods.
If you are interested in submitting a proposal to the Company, please forward labor and
building information to Carl-Johan Torarp, Torarp Int'1 Venture Management, Southgate
Office Plaza, Suite 825, 5001 West 80th Street, Bloomington, Minnesota 55437 by March
1, 1997.
•
1
CENTRAL MINNESOTA INITIATIVE FUND
A Foundation for Today, A Vision for Tomorrow.
•
June 3071997 - -
_Patrick Klaers, Administrator - -
City of Elk River .- •
City-Hall - ,
PO Box'490 ' v - - ' -
Elk River, MN -55330-0490 - '.
Dear Administrator Klaers: - -- '
. The Central Minnesota Initiative Fund is pleased to submit this funding request to , -
the City of Elk River for a contribution of $19,929 to support the Sherburne County -
Capacity Fund Campaign. This represents a-contribution equivalent to $1 .50 per
• capita, which is the.level of support we are requesting from all cities in our service •
area. Payment of the pledge could be made over a three-year period (1998, 1999,
- - and 2000) or it could be paid-in full through a one-time contribution.
_ Contributions received for this campaign will be matched dollar-for-dollar by The
McKnight Foundation: ,
•
Created as a nonprofit, regional foundation in 1986 with the tremendous support of .
The McKnight Foundation, the Central Minnesota Initiative Fund serves the 14
counties-of Central Minnesota. Our mission is to improve the quality of life for _
residents, families and communities in Central Minnesota through comprehensive
and integrated community development. Key program areas include:
Economic Development - increasing business creation and expansion through
business loans; 'funding programs that eliminate barriers to economic - _
development such as work force and housing development.
Leadership Development - developing the leadership capacity of individual
communities to prepare and implement an integrated community development
plan. In addition, we will increase the leadership capacity of multi-community
clusters to manage change and growth. -
- , - . •
• , Innovative Programming - providing funding for innovative progfams that
address emerging needs, such as telecommunications programs, helping
• communities sustain themselves, nonviolence-initiatives, etc.
70 SE First Avenue Little Falls, MN 56345 • (320) 632-9255 Fax (320) 632-9258 -
City of Elk River ,.
June 30, 1997
Page 2 � •
t
In our eleven-year history, the Initiative Fund has had a significant, lasting impact
• on residents in the region:
• Distributing over $16.5,milliOn in grants and loans
• Creating almost 3,000 jobs •
• leveraging an additional $58 million in resources
• Training 300 community leaders -
In Sherburne County, alone, the Initiative Fund has invested $488,849, providing '
' valuable jobs and, supporting community and'economic development activities , •
'throughout the County.. '(See attached listing.) . '
As a regional foundation dedicated to strengthening the economic and community
development'of our region, the Initiative Fund must seek, charitable contributions to
ensure the perpetuity of its vital programs- Thus, we are launching a multi-year
' campaign, seeking a total of $6 million ro support our grant and loan programs,
build our endowment, and respond to emerging needs of the region. "
Of that $6 million, $2 million will be raised through local Cai acity Fund •
Camoarigns. The Sherburne County Campaign goal is to raise $200,000.over the
next five years. .Leadership support from cities throughout the county is vital to this
' effort. To date, we have received,a total of $78,750-in cash and pledges from 35
cities for this fund drive. (See attached contribution report.)
Several local leaders who support the Initiative Fund have made a commitment to .
lead this campaign. (See attached roster.)
We appreciate your consideration of this request, and would be happy to present "
our request, in person, should you wish to schedule us on an upcoming City, '
Council meeting agenda. Please feel free to contact Kathy Adams, Director of '
Development, to arrange such a presentation. '
Sincerely,
'' - ',. / i' 4';'7-k-/':4.:fC-2 • . . . .
Kathy Gaalswyk
' Executive Director _ '
Enclosures: Fact Sheet, County Project Listing, City Contribution Report,
•
Steering Committee Roster and Pledge Card _
• y,' rc� 'a .4 '. 4a'Ft. ' ; . ^ 's ' 1:`400,atm r ;ik ,•"xwl 1F.`3'*{Y^"$«7�. �F' ?' 'y x
CENTRAL MINNESOTA INITIATIVE FUND `'
rt
A Foundation for Today, A Visidn for Tomorrow. •
�' .2'.=' " x. , ,.'mow `•c,- '; ,-, ° wa: ;'` k` '
•
Mission: To improve the quality of life for residents, families, and communities
in Central Minnesota through comprehensive and integrated community
development.
Five Year Strategic Direction: To invest in well planned collaborative
community development endeavors that improve the economic vitality and •
overall health of communities while increasing the asset base of the Fund.
Service Area: The fourteen county area of: Benton, Cass, Chisago,Crow Wing,
Isanti, Kanabec, Mille Lacs, Morrison, Pine, Sherburne, Stearns, Todd, Wadena
and Wright which includes 160 communities.
Activities:
• Gap lending to assist Pew and expanding businesses.
• Grants to community and non-profit groups for community and economic
development activities.
• • Leadership training to build the capacity of communities to address change.
• Public education regarding regional needsand opportunities such as housing,
work force, planning, economic development, etc.
• Fundraising programs to support the Fund, increase the level of philanthropy
in Central Minnesota, and to educate residents about philanthropy.
History: The Initiative Fund was established in 1986 by The McKnight
Foundation to address the human and economic needs in Central Minnesota., It is
one of six Funds serving greater Minnesota. It is an independent, nonprofit
philanthropic organization organized as a 501(c)(3). In the first ten years of
operation, the Initiative Fund:
• Made 801 grants totaling nearly $8 million.
• - Made 431 loans totaling$8 million.
• Leveraged $58 million in private investment.
• Created or retained 2,800 jobs.
• Trained 270 community leaders.
If you have questions about the Initiative Fund's programs, or would like to be
placed on the mailing list to receive our newsletter and fall program
announcements, contact: '
• Central Minnesota Initiative Fund .
70 SE First Avenue •
Little Falls, MN 56345 ,
320/632-9255 (phone) 320/632-9258 (fax)
•
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CAPACITY FUND CAMPAIGN CITY CONTRIBUTION LIST
•
Benton County: $Amount Pine County: $ Amount
Foley Finlayson
Rice Hinckley
Total Benton 2778.00 Pine City
Total Pine 6376.50
Cass County:
Total Cass 0.00 Sherburne County:
Total Sherburne 0.00
Chisaqo County:
Center City Stearns County:
North Branch Cold Spring
Total Chisago 1753.00 Eden Valley
Melrose
Sauk Centre
Crow Wing County: Total Stearns 14428.50
Brainerd
Emily
Garrison Todd County:
Riverton Browerville
Total Crow Wing 12891.50 Eagle Bend
Hewitt
.411°
Long Prairie
Isanti County: Staples
BrahamTotallsanti
Total Todd10395.00
1734.00
Wadena County:
Kanabec County: Menahga
MoraSebeka
OgilvieStaples
Total Kanabec5244.00VerndaleTotal Wadena 4041.00
Mille Lacs County:
IsleWriqht County:
Total Mille Lacs883.50Cokato
Monticello
South Haven
Morrison County: Waverly
Little FallsTotal Wright5446.50
Motley
Randall
Total Morrison 12778.50 ALL COUNTIES 78750.00
p4cit2.xls
6/16/97
CENTRAL MINNESOTA INITIATIVE FUND
SHERBURNE STEERING COMMITTEE
Richard Duggan (W) 612-441-8664
Marketech, Inc. (H) 612-856-4355
18940 York St NW
Elk River, MN 55330-2197
Bob Freeh (W) 612-856-4404
Greater Zimmerman Chamber
PO Box 126
Zimmerman, MN 55398
George Wallin (W) 612-262-4169
Sherburne Tele-Systems, Inc.
440 N Eagle Lake Rd
PO Box 310
Big Lake, MN 55309-0310
III shdab.doc
07/01/97