RES 15-06ity of
El -
River ReSOOUdGn I S- 06
A Resollu Lion of the Doty of Uk River Elk River Approving Loan Agreement
(Coon- 7aoner Project)
WHEREAS, the City Council (the "Council ") of the City of Elk River (the "City") has received a
proposal from Stonesthrow Properties, LLC (the "Borrower ") that the Economic Development
Authority of the City of Elk River (the "EDA ") enter into Loan Agreement (the "Loan Agreement ")
and related documents in connection with a loan to the Borrower in the amount of $200,000 (the
"Loan ") pursuant to the FDA's Microloan Program (the "Program ").
WHEREAS, the EDA has approved the Loan and the Loan Agreement on this same date and a
copy of the Loan Agreement is on file with the City Clerk.
NOW THEREFORE, BE 7 RESOLVED by the City Council of the City of Elk River as follows:
Section 1. Business Subsidy.
1.01. The Loan constitutes a business subsidy within the meaning of Minnesota Statutes,
Section 116J.993 to 116J.995 (the `Business Subsidy Act "), and the Loan Agreement includes a
"business subsidy agreement" as required under the Business Subsidy Act.
1.02. The City has adopted a Business Subsidy Policy (the "Subsidy Policy "), which sets the
general criteria for all types of subsidies granted by the EDA, all as required under the Business Subsidy
Act.
1.03. The City has previously held a public hearing on the Loan in accordance with the
Business Subsidy Act.
Section 2. Consent.
2.01 In accordance with Section 116J.994, Subd. 3(d) of the Business Subsidy Act, the City
hereby approves the Loan Agreement consents to the EDA entering into the Loan Agreement and
related documents with the Borrower.
2.02 The City hereby approves the Loan in accordance with the Loan Agreement in
substantially the form submitted to the Council together such modifications thereof, deletions
therefrom and additions thereto as may be necessary and appropriate and approved by legal counsel to
the EDA and by the President and Executive Director of the EDA prior to executing said documents
and the City further; and said officers are hereby authorized to approve said changes on behalf of the
EDA. The execution of any instrument by the President and Executive Director small be conclusive
evidence of the approval of such document in accordance with the terms hereof.
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Passed and adopted by the City Council of the City of Elk River this 20th day of January, 2015.
ion J. iet ayor
ATTEST:
(- - (-, P
Tina Allard, City Clerk
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