07-31-1995 EDA MIN - SPECIAL
SPECIAL MEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
JULY 31,1995
Members Present:
President Gongoll, Commissioners Duitsman, Holmgren, Farber
Members Absent:
Commissioners Bender, Scheel, Dwyer
Staff Present:
Bill Rubin, Executive Director; Michelle Dwyer, Recording Secretary
1. Call Meetinq To Order
Pursuant to due call and notice thereof, the special meeting of the Elk River
Economic Development Authority was called to order at 4:50 by President
Gongoll.
Consider July 31, 1995 Aqenda
COMMISSIONER FARBER MOVED TO APPROVE THE JULY 31, 1995 AGENDA.
COMMISSIONER HOLMGREN SECONDED THE MOTION. MOTION CARRIED 4-0.
2. Consider Loan Request From Custom Cutter Grinding Corporation
rCarpe Kairos Limited Liability Company - LLCl
Executive Director, Bill Rubin, informed the EDA Commissioners, the EDA micro-
loan would be used by Carpe Kairos to leverage primary financing and owner
equity for the construction of a 10,000 square food multi-tenant industrial
building on Lot 3, Block 1, Rail 10 Industrial Park. Carpe Kairos is a group
comprised of officers of Custom Cutter Grinding. Custom Cutter Grinding would
occupy 4,000 square feet within the building, and the remaining 6,000 square
feet would be made available for lease in spaces of 1,500 square feet or more.
The EDA is asked to approve a micro-loan in the amount of $50,000 to Carpe
Kairos, LLC. The loan will be secured by:
· A second real estate mortgage on Lot 3, Block 1, Rail 10 Industrial Park;
. A Promissory Note; and,
. A Guaranty of Mortgage.
The loan will be repaid over 15 years with an initial interest rate of 9.0 percent
(the current prime rate). The rate will be adjusted at 6 rnonth intervals - floating
with prime.
Initial rate of 9 percent; tied to the lowest prime rate as published in the Wall
Street Journal; adjusted semi-annually (at 6 month intervals); 15 year term.
Economic Development Authority Meeting
July 31, 1995
Page 2
Custom Cutter is a tool and cutter grinding machine shop. The company
manufactures precision cutting tools for industrial use, modifies standard tools to
fit special needs, sharpens modified tools, and sharpens standard over-the-
counter tooling. In 1987, Custom Cutter began manufacturing carbide thread
mills for one of its customers. It was later refined and developed into a product
line that is sold under the trademark Custom Cut. This year, thread mill sales will
top $100,000 and represents over 20% of Custom Cutter's overall sales.
Company growth with this product line is hampered due to limited space
availability for machinery and employees.
COMMISSIONER FARBER MOVED TO RECOMMEND APPROVAL. COMMISSIONER
HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 4-0
3. Adiournment
There being no further business, COMMISSIONER HOLMGREN MOVED TO
ADJOURN THE MEETING. COMMISSIONER FARBER SECONDED THE MOTION. THE
MOTION CARRIED 4-0.
The special meeting of the Elk River Economic Development Authority adjourned at
4:56.
Respectfully submitted,
)lifiJu~~ '&t\J~i(L
Michelle Dwyer,
Recording Secretary