Agenda - Economic Development Authority - 08/13/2015

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PART A — Business Description. Describe the business and its major activities. Please include the following information: 1. Business overview and company history and ownership - include organizational structure, parent company and any affiliates Jerry and Paul Cullen are a father -son team who started Dedicated Networks, Incorporated (DNI) out of their home in Coon Rapids, Minnesota in 2005. Dedicated networks is a successful new/used IT hardware solutions provider/distribution center which sells new and used networking and computer products, with a specialization in Cisco (65% of sales) and Juniper Networks (19%) equipment. They purchase equipment from sellers across the globe that are seeking to convert IT assets into cash. They test and restore the equipment, and sell individual parts in the secondary market to resellers and end users. They carry additional manufacturer's equipment (15%) including, but not limited to: Foundry/Brocade, HP, Extreme, Dell/Forcel0, Avocent, Voltaire, Netgear, Arista and Linskys. Their solutions include distribution, asset management (recycling (1%), audit, HDD shredding), maintenance, repair and configuratin/troubleshooting. While their industry is very high-tech, they pride themselves in doing business the old- fashioned way; working hard to earn their customers' business, and working to maintain and foster long-term relationships. DNI is an S -Corp, owned 50/50 by Jerry and Paul Cullen. While this family owned business has only been in business for ten years, it has grown significantly in size and number of employees. In 2009, they moved to a 5,800 sq.ft. facility in Anoka; by March of 2012, they had 15 FTEs.ln April of 2012, they moved to their current 24,928 sq.ft. facility in Ramsey, Minnesota. In August of 2013, their employee count doubled to 33 FTEs, and today they have 62 FTEs and 7 PTE. To accommodate this growth, they are looking to nearly double their facility, by expanding their current facility by 19,456 sq. ft. Upon expansion, they anticipate hiring a minimum of additional 30 FTE, averaging $18.54/hr with an average hourly benefit rate of $1.23. Paul and Jerry also own a property management company, Dedicated Property Management, LLC (DPM). DPM owns their current property and building, leasing it to DNI. 2. Product or industry outlook for the JCF project The outlook for the computer and networking industry is exceptional, thus supporting DNI's proposed expansion. Computers have exploded throughout America and the world over the past 30 years; from 2,000 units shipped in 1960 to 900,000 in 1980 to 7 million in 1990 to over 15 million by 2003. Computer maintenance and repair is an imperative sector in the computer industry, as well as the ability for computers to be 'connected'. Networking is an essential