RES 16-01 HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF ELK RIVER
COUNTY OF SHERBURNE
STATE OF MINNESOTA
RESOLUTION NO.16-01
RESOLUTION APPROVING LOAN AGREEMENT AND RELATED DOCUMENTS
(DIE CONCEPTS PROJECT)
WHEREAS, the Board of Commissioners (the "Board") of the Housing and
Redevelopment Authority in and for the City of Elk River (the "HRA") has received a proposal
from F & M Properties, LLC (the `Borrower") that the HRA assist in financing the Borrower's
acquisition of certain real property and renovation of an existing building located on that certain real
property in the City of Elk River, Minnesota (the "City") for use by Die Concepts, Inc. ("Die
Concepts") as its manufacturing facility by providing a loan to the Borrower in the amount of up to
$75,000 (the "Loan") pursuant to the HRA's Blighted Properties Forgivable Commercial/Industrial
Loan Program (the"Program").
WHEREAS, the HRA has caused to be prepared a Loan Agreement (the "Loan
Agreement") with the Borrower setting forth, among other things, the terms and conditions under
which the HRA will make the loan,a copy of which is on file with the Executive Director.
NOW THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Housing
and Redevelopment Authority in and for the City of Elk River as follows:
1.01. Subject to approval by the City Council after a public hearing, the Loan Agreement as
presented to the HRA,together with all related documents necessary in connection therewith,including
without limitation, a Promissory Note from the Borrower evidencing the Loan, a Mortgage, an entity
guaranty from Die Concepts, Inc., and personal guaranties from Michael Tracey and Fred Trapp (all as
defined in and described in the Loan Agreement) (collectively,the"Loan Documents") are hereby in all
respects approved, in substantially the form on file with the City's Economic Development Director;
and the President and Executive Director are hereby authorized and directed to execute the Loan
Agreement and any Loan Documents to which the HRA is a party on behalf of the HRA and to carry
out,on behalf of the HRA,the HRA's obligations thereunder.
1.02. The approval hereby given to the Loan Documents includes approval of such
additional details therein as may be necessary and appropriate and such modifications thereof, deletions
therefrom and additions thereto as may be necessary and appropriate and approved by legal counsel to
the HRA and by the President and Executive Director prior to executing said documents; and said
officers are hereby authorized to approve said changes on behalf of the HRA. 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. In the event of absence or disability of said
officers, any of the documents authorized by this Resolution to be executed may be executed without
further act or authorization of the Board by any duly designated acting official, or by such other officer
or officers of the Board as,in the opinion of the City Attorney,may act in their behalf.
477382v3 MJM EL185-40
Approved by the Board of Commissioners of the Housing and Redevelopment Authority in
and for the City of Elk River this 4th day of April,2016.
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President
AI 1'EST:
Nt4
Ei ecutive Director
477382v3 MJM EL185-40