BY PRESIDENT GILBERT:00-0510R
RESOLUTION SUPPORTING APPLICATION BY SUNRAMP SOLUTIONS, INC., FOR STATE CHALLENGE GRANT.
WHEREAS, pursuant to the Rural Development Act, local governing units are required to issue a sponsoring resolution on behalf of the business requesting financing through the Northland Foundation; and
WHEREAS, the city of Duluth has received a request to issue a resolution on behalf of SunRamp Solutions, Inc.; and
WHEREAS, it is consistent with the purpose of this governing unit to encourage employment and increase the tax base.
NOW, THEREFORE, BE IT RESOLVED,
that the city of Duluth supports this application for funding on behalf
of SunRamp Solutions, Inc.
The applicant is a start-up company which manufactures jumping ramps for skateboarders, in-line skaters and BMX bicyclists. It has developed its product line based on wood products material using an innovative glueing process, a coating process resistant to the effects of skateboard and bicycle wheels in a jump-type application and an edge treatment providing protection to indoor flooring. The company believes that these advantages will position it advantageously to sell their products to parks and recreation departments, community organizations, youth organizations, military organizations, home users and to any other users who will want to have such facilities but cannot devote extensive space to this use on a permanent basis.
The company currently has one ramp design on the market and has two additional designs which are ready to be marketed. This project will provide funding to market the two additional existing designs and fund development of two additional designs for a total of five designs.
The project cost will total $112,600; the funds will be used to finance inventory and for working capital. In addition to the $35,000 to be provided by the Northland Foundation, the project would include $20,000 from the Arrowhead Technology Fund, $10,000 from an NRRI development grant, $45,000 in lender financing and $2,600 in owner equity.
Presently, Mr. Gerald Sobel, the president and CEO of SunRamp, is the only full time employee of the company. This project is anticipated to initially create three additional part-time jobs paying from $9/hour to $15/hour with the expectation that, as sales are generated, these jobs will become full time jobs.