RES 16-07 City of
Elk -....-�
River
ECONOMIC DEVELOPMENT AUTHORITY
OF THE CITY OF ELK RIVER
COUNTY OF SHERBURNE
STATE OF MINNESOTA
RESOLUTION NO. 16-07
RESOLUTION APPROVING LOAN AGREEMENT
AND RELATED DOCUMENTS
HERITAGE MILLWORK INC. PROJECT
WHEREAS, the Board of Commissioners (the"Board") of the Economic Development
Authority of the City of Elk River (the"EDA") has received a proposal from Heritage
Millwork, Inc. and Tradition Furnishing, Inc.,or affiliates thereof(collectively, the
"Borrowers"), that the EDA assist the Borrowers the purchase,renovation and equipping of
an existing building (the"Project") located on certain real property in the City of Elk River,
Minnesota (the"City") by providing a loan to the Borrowers in the amount of$100,000 (the
"Loan")pursuant to the EDA's Microloan Program (the"Program"). Proceeds of the Loan
will be used by the Borrowers to provide gap financing for equipment to be used at the
Project;and
WHEREAS, the EDA has caused to be prepared a Loan Agreement (the"Loan
Agreement")with the Borrowers setting forth,among other things, the terms and conditions
under which the EDA 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
Economic Development Authority of the City of Elk River,Minnesota,as follows:
1. The Loan Agreement as presented to the EDA,together with all related documents
necessary in connection therewith,including without limitation, a Promissory Note
from the Borrowers evidencing the Loan, a Security Agreement evidencing a third
position security interest in certain equipment,and a personal guaranty from Patrick
Menth, (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 EDA is a party on behalf of the
EDA and to carry out, on behalf of the EDA,the EDA's obligations thereunder.
2. The approval hereby given to the Loan Documents includes deviation from the
Program requirements as set forth in the Loan Documents and includes approval of
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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 EDA 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 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. 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.
Approved by the Board of Commissioners of the Economic Development Authority of the
City of Elk River this 19th day of December,2016.
Dan Tveite,President
ATTEST: +,-
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Amanda Othoudt, Executive Director
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