RES 16-24I F 11, 1111 lip I I 11ITTI
WHEREAS, the City Council (the "Council") of the City of Elk River (the "City") has received a
proposal from F& M Properties, LLC (the "Borrower") that the I Iousing and Redevelopment
Authority in and for the City of Elk River (the "HRA") enter into Loan Agreement (the "Loan
Agreement") and related documents in connection with a loan to the Borrower in the amount of
$75,000 (the "Loan") pursuant to the 14RA's Blighted Properties Forgivable C0111ruercial/Industrial
Loan Program (the "Program").
WHEREAS, the HRA has approved the Loan and the Loan Agreement on this same date and a
copy of the Lc)an Agreement is on file with the City Clerk.
NOW THEREFORE, BE OT RESOLVED by the City Council of the City of Elk River as follows:
Section 1. Business Subs1dv.
I M1. The Loan constitutes a business subsidy within the meaning of Minnesota Statutes,
Section 11(�J.993 to 116J.995 (the "Business Subsidy Act"), and the ],()an 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 HRA, all as required under the Business Subsidy
A ct.
1.03. On the date hereof, tl-.ie City held a public hearing on the Loan iii accordance with the
Business Subsidy Act.
Section 2. Consent.
2.01 In accordance with Section 116:1'.994, Subd. 3(d) of the Business Subsidy Act, the City
hereby approves the Loan Agrectnent and consents to the HILA entering into the Loan Agreement and
related docutnents with the Borrower.
102 'I'he City hereby approves the 1,oan 111 accordance with, the Lo -an Agreement in
substantially the form on file with the City's Economic Development Director together such
modifications thereof, deletions therefroin and additions thereto as may be necessani and appropriate
and approved by legal counsel to the 11RA and by the President and Executive Director of the HRA
prior to executing said documents and the City further; and said officers are hereby authorized to
approve said changes on behalf of the HRA. '11 -ie execution of any instrument by the President and
E,'xecutive Director shall be conclusive evidence of the approval of such document in accordance with
the terms hereof.
Ip 0 W E R I U
NMURE'l
Passed and adopted by the City Council of the City of Elk River this 18th day of April, 2016.
n
e t z, yor
ATI'FISF:
'Fina Allard, City Clerk
5ATURE
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