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Description of the business and growth plan <br /> Chuck Soderho|rnSr and a good business friend founded Soderho|rn &Associates inl959. The <br /> CoDnpany, a Manufacturers' Representative (Rep) agency specialized inthe sales Vfleading brands of <br /> water heaters and water softeners. Over time,this line card grew to incorporate a larger number of <br /> plumbing and HVAC manufacturers from around USA and Canada. |n297I, Chuck Sr decided to invest in <br /> manufacturing his Vvvn brand of water softeners, and thus VVCC (Water Control Corporation)was born. <br /> |n the late 197[Ys/ Chuck purchased land across the street from the local airport in Ramsey, MN; and in <br /> l98O,construction began on the facility that the companies continue t0 call home. The project GCvvas <br /> Sharp Construction, with Chuck Senior and Denny Sharp becoming good friends in the process. But a <br /> great deal has changed over nearly 45years. What started asa2 person business expanded to a |arger, <br /> family enterprise with 1O+employees. By the year 2OO[\ more than I5 |ndividUa!s depended Onthe <br /> business for their livelihoods. Soderho|nm &Associates had developed a solid reputation nationally as a <br /> model Rep agency. WCC had a nice book of water softening customers(residential and commercial <br /> plumbers) in the Upper Midwest. <br /> Starting in 2003,the company began investing a great deal more in its VVCCdivision. New products for <br /> water recycling, high-purity water, and the removal of difficult contaminants were added to the product <br /> mix. Fabricators were hired to build pre-packaged water treatment systems,with all plumbing and <br /> electrical connections completed prior toshipmnent/insta||adon. Sales revenues increased from around <br /> $1.S million annually to nearly$1S million annually. Opportunities around the USA, Canada,and <br /> Caribbean began io increase exponentially. The company brought on more fabricators, engineers, <br /> service technicians,salespeople, and customer service. <br /> Today,the company employs nearly 60 individuals, most from Ramsey and nearby communities. Most <br /> of the jobs pay$GO,0O0-$16O,0OOannually. |n2D15,the company owners, Chris and Brian Soderho|nm, <br /> sold their shares and formed a 1OO96 Employee Owned (ESC)P) company. They continue to offer z <br /> CoDMp|ete4O1K and profit sharing plan. But these ESOP shares, which every employee qualifies for after <br /> 12 months of service, offer a true wealth building opportunity for EVERYONE in the company: aChanco <br /> to retire with a large nest egg. This program has created a culture oftrue ownership, care, and <br /> growth. Most employees stay for many many years, if not for their entire careers. <br /> Over the last 4 years,success and growth has led 10 serious space constraints Ynthe current <br /> facility. Employees are now scattered over several buildings,with production split between 2 facilities <br /> and warehousing over3. This has become quite inefficient and also does not make it easy toshowcase <br /> the company to potential clients, many who make the trip from around USA and Canada,to Ramsey, to <br /> come for product training. For this reason,the company, now called The SA Group (the umbrella <br /> company for 5oderh0|n0 &Associates,VVCC,and our new/growing service company called Equip) has <br /> decided to embark ons46,OOO square foot building expansion. The project vvi||onceaga|nbecarr|ed <br /> out by Sharp Construction and will include a complete fire sprinkling+ remodel of the existing facility, <br /> hook upinto city water and sewer, expanded parking lot with landscaping/ponding, and new road <br /> access via Limonite Street. <br /> The 46,000 extra square feet will a||ovv VVCCto triple its production capacity. 33 additional employees <br /> are anticipated tobe needed between now and 2O27. This will be for positions in customer service, <br /> production, purchasing,engineering, sales, and field service. These will be good paying jobs,with lots of <br />