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ADVANCE <br />Consulting Group, Inc. <br />Memo <br />To: Ramsey EDA <br />From: Mike Mulrooney, Economic Development Consultant <br />CC: Patrick Brama, Kurt Ulrich <br />Date: October 8, 2012 <br />Re: Koru Fitness Loan Request <br />As we discussed at our last meeting, Koru Fitness wishes to proceed ahead with the <br />development of a new fitness center in the City of Ramsey. A copy of the business plan is <br />attached for your review. The business is a start up work out facility designed in an art <br />studio format. The studio will feature a large stage for instructors offering optimum viewing <br />for every participant. The business will be located at the intersection of Bunker Lake Blvd <br />and Highway47. <br />The following is the proposed financing structure for the project. <br />Uses of Funds Amount Rate Term Debt Service <br />Working Capital $ 54,000 <br />Equipment $ 54,000 <br />Leasehold Improvements $ 69,000 <br />Total Project Costs $ 177,000 <br />Sources of Funds <br />Bremer Bank $ 65,000 5.50% 10 $ 8,465 <br />City of Ramsey $ 34,500 3.25% 10 $ 4,045 <br />Landlord $ 47,500 <br />Owner Equity $ 30,000 <br />Total Sources of Funds $ 177,000 $ 12,510 <br />Ownership and Management <br />Koru Fitness will be owned equally by Nicole Kutches and Gary Nereson. They are related <br />parties (father -daughter). Nicole will comprise the onsite management. She has an <br />extensive background in the exercise industry as note by her resume contained in the <br />business plan. <br />1 <br />