8.0. EDSR 10-09-1995 ITEM 8.
SEP0fl1995
September 6, 1995
Elk River Economic Development Authority
P.O. Box 490
Elk River, Minnesota 55330
This letter is in regards to an EDA loan between the Elk River EDA
and Elk River Motel Properties, Inc. (AmericInn) . In reviewing our
loan documents, we found that the loan matures on October 1, 1995 .
Details of the loan are as follows :
Original Loan Amount $32, 500 . 00
Interest Rate 7%
Monthly Payment $377 .35
Balloon October 1, 1995 $24, 068 .30
We are currently making some improvements in the motel for which we
would like to use cash on hand. We respectfully request you
consider renewing the loan and continuing the payment and
111
amortization schedule. We appreciate the EDA' s support of our
project and will continue to operate the project in a manner which
will enhance the Elk River community.
Thank you for reviewing this request on such short notice.
Sincerely,
Elk River Mot-1 Properties, Inc.
David innenkamp
Shareholder
•
AMEI NN®
• MOTEL
AMERICINN OF ELK RIVER
Highways 10, 169, and 101
Elk River, MN 55330
Phone: (612) 441-8554
September 27, 1995
Mr. Bill Rubin
Economic Developement Authority
City of Elk River
P.O. Box 490
Elk River, MN 55330
Dear Mr. Rubin:
Thank you for considering the extension of the note regarding the sprinkler system
installation at the Americlnn of Elk River.
•
As you may already know, our tax base on the property, due to `I-1 , `?x increment
funding, is the highest of all identical Amerclnn hotels in a four (4) state area
which makes us work a little harder to make a profit. However, this past year we
have done a good job and profitability is coming around nicely.
The motel is to the point where up-keep and appearance are also important. This
year alone we have re-surfaced the parking area, added ceramic tile and new
carpet to the lobby, as well as re-carpeting eight (8) rooms and some other
general beautification.
We are also vigorously working on bringing a restaurant facility to our adjacent lot
in addition to utilizing the area behind us on the Mississippi River.
I have enclosed personal and motel business financial statements. Your extension
will help us achieve our goals and we thank you.
Sincerely,
Michael W. eary, P esident
Elk River Motel Properties, Inc.
MWLlejm
Toil Free Reservations: 1-800-634-3444
FIRST AMENDMENT TO PROMISSORY NOTE
•
THIS FIRST AMENDMENT TO PROMISSORY NOTE is made as of October 1.
1995, by and between Elk River Motel Properties, Inc., a Minnesota corporation (the
"Borrower") and the City of Elk River Economic Development Authority, a public body
corporate and politic of the State of Minnesota (the "Lender").
WHEREAS, the Borrower executed and delivered to the Lender a Promissory Note dated
April 27, 1990 (as amended hereby, the "Note"); and
WHEREAS, the maturity date of the Note stated therein is October 1. 1995; and
WHEREAS, at the specific request of the Borrower, the Lender has agreed to extend
the maturity date of the Note upon the terms and conditions set forth hereinafter.
NOW, THEREFORE, in consideration of the mutual agreements set forth herein, and
for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows:
1. Borrower and Lender acknowledge and agree that the unpaid principal balance as
of October 1, 1995, is $24,068.30.
4102. The final payment date of the Note is hereby extended from October 1, 1995, to
March 1, 1997. Payments shall be made in accordance with the amortization schedule attached
hereto and incorporated herein by reference.
3. Interest shall accrue on the unpaid principal balance of the Note at the fixed rate
of eight and three-quarters percent (8.75%) per annum commencing as of October 1, 1995.
4. This First Amendment is executed as, and shall constitute an amendment to the
Note and shall be interpreted in connection with and construed as a part of the Note. Except
to the extent the Note is amended hereby, the Note is hereby in all respects ratified and
confirmed.
5. The Borrower represents and warrants to the Lender that this First Amendment
has been executed on behalf of the Borrower by its duly authorized officers, that all necessary
corporate and board resolutions, actions and approvals have been obtained in connection
herewith, and that the Note and this First Amendment constitute the legal, valid and binding
obligations of the Borrower, enforceable in accordance with the terms thereof.
Initialled: Lender I
• ICRP 96761 1 Borrower
SO /Z00d 06L'ON SZbLTbb F S1dW RIG Lb:9T 56/V0/0T
IN WITNESS WHEREOF, the Borrower and the Lender have caused this First
Amendment to be executed as of the date first above written.
S
ELK RIVER MOTEL PROPERTIES, INC.
By
Its President
By
Its Secretary/Treasurer
CITY OF ELK RIVER ECONOMIC
DEVELOPMENT AUTHORITY
By
Its President
By
. Its Executive Director
KRP 96761 2
S00/200d OSL'ON SEN,Tbb F S1dW Sen Lb:9T S6/VO/OT
AMORTIZATION SCHEDULE
Lender: City of Elk River Economic Development Authority First Amendment to Promissory Note
Borrower: Elk River Motel Properties, Inc. Dated as of October 1, 1995
Payment Unpaid
avment Date Amount principal Interest Balance
Totals to Date 19,453.19 8,431.70 11,021.49 24,068.30
October 1, 1995 377.35 201.85 175.50 23,866.45
November 1, 1995 377.35 203.32 174.03 23,663.13
December 1, 1995 377.35 204.81 172.54 23,458.32
Total for 1995 $1,132.05 $609.98 $522.07 $23,458.32
January 1, 1996 377.35 206.30 171.05 23.252.02
February 1, 1996 377.35 207.80 169.55 23,044.22
March 1, 1996 377.35 209.32 168.03 22,834.90
April 1, 1996 377.35 210.85 166.50 22,624.05
May 1, 1996 377.35 212.38 164.97 22,411.67
June 1, 1996 377.35 213.93 163.42 22,197.74
ly 1, 1996 377.35 215.49 161.86 21,982.25
ugust 1, 1996 377.35 217.06 160.29 21,765.19
September 1, 1996 377.35 218.65 158.70 21,546.54
October 1, 1996 377.35 220.24 157.11 21,326.30
November 1, 1996 377.35 221.85 155.50 21,104.45
December 1, 1996 377.35 223.46 153.89 20,880.99
Total for 1996 $4,528.20 $2,577.33 $1,950.87 $20,880.99
January 1, 1997 377.35 225.09 152.26 20,655.90
February 1, 1997 377.35 226.73 150.62 20,429.17
March 1, 1997 20,578.78 20,429.17 148.96 -0-
Total for 1997 $21,332.83 20,880.99 $451.84
TOTAL $46,446.27 $32,500.00 $13,946.27
PAYMENTS
•
Initialled: Lender /
KRP 96761 3 Borrower /
GOO/VOOd 06L'ON SZPLTbb F S1dW SW LI 9T GG/VO/0T
CONSENT AND ACKNOWLEDGEMENT
• The undersigned guarantors, Douglas Hough and David Hinnenkamp, executed and
delivered to the City of Elk River Economic Development Authority (the "Lender"), a Personal
Guaranty dated as of May 3, 1993, as security for the repayment of that certain Promissory Note
dated April 27, 1990, made by Elk River Motel Properties, Inc., a Minnesota corporation (the
"Borrower") in favor of the Lender.
Each of the undersigned guarantors hereby consents to the execution and delivery by the
Borrower of the above First Amendment to Promissory Note of even date herewith (the "First
Amendment")and hereby agrees that, notwithstanding the First Amendment, or any other action
taken by the Borrower or Lender in connection therewith, each of the undersigned's obligations
under the Personal Guaranty as described above, and all of their respective other agreements
with Lender, remain in full force and effect, and that the obligations of each of the undersigned
under such Personal Guaranty extend to cover all of the Borrower's obligations under or with
respect to the Note, as amended by the First Amendment.
Dated:
Douglas Hough
• Dated:
David Hinnenkamp
•
• KRP 96'761 4
S00,S00d 06L'ON SZOLTbb F S1dW ENG Ltr:9T GG/VO/OT