RES 15-09giver
Resolution I 5-o9
A ResoluCovn of the City of Elk River Approving Loan Agreement
(Distinctive Iron Project)
WHEREAS, the City Council (the "Council ") of the City of Elk River (the "City ") has
received a proposal from Hemmer Companies L.L.C. (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 $126,000 (the "Loan ") pursuant to the EDA'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 IT RESOLVED by the City Council of the City of Elk River,
Minnesota, as follows:
Section 1. Business Subsidy.
1,01. The Loan constitutes a business subsidy within the meaning of Minnesota Statutes,
Section 1161.993 to 116J.993 (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.
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 shall be conclusive evidence of the approval of such document in accordance with the
terms hereof.
Passed and adopted this 17"' day of February, 201
h Di t , ayor
ATTEST:
L� (V
Tina Allard, City Clerk
NATUREI