RES 17-01 ECONOMIC DEVELOPMENT AUTHORITY
OF THE CITY OF ELK RIVER
COUNTY OF SHERBURNE
STATE OF MINNESOTA
RESOLUTION NO. 17-01
RESOLUTION APPROVING FIRST AMENDMENT TO MORTGAGE
WHEREAS, the Board of Commissioners (the "Board") of the Economic Development
Authority of the City of Elk River (the "EDA") has heretofore provided a Microloan in the amount
of$74,999 to Alan Arnold Corporation, a Minnesota corporation (referred to as "Debtor") which
was secured by a corporate guarantee of Yankee Doodle Enterprises, LLC, a Minnesota limited
liability company (the "Mortgagor"), secured by a Mortgage and Assignment of Rents and Security
Agreement and Fixture Financing Statement (the "Mortgage") on certain property on a subordinate
basis to a contract for deed from Farmer's State Bank of Hartland in the original principal amount
of$465,000. The Mortgage was subsequently subordinated to a loan from the Bank of Elk River in
the amount of$515,000 which was used to satisfy the contract for deed.
WHEREAS, the Mortgagor has now requested that a First Amendment to Mortgage (the
"First Amendment to Mortgage") be executed in order to: (i) amend the legal description to reflect
that a portion of the original mortgaged property will be sold to a new developer and that additional
property will be subject to the Mortgage; and (ii) allow certain easements over the mortgaged
property as permitted encumbrances.
NOW THEREFORE, BE IT RESOLVED by the Board of Commissioners (the `Board") of the
Economic Development Authority of the City of Elk River (the"EDA")as follows:
1. The First Amendment to Mortgage is hereby in all respects approved together with any related
documents necessary in connection therewith, and the President and Executive Director are
hereby authorized and directed to execute the First Amendment to Mortgage 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 First Amendment to Mortgage 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 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.
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Approved by the Board of Commissioners of the Economic Development Authority of the
City of Elk River this 16th day of January,2017.
LD OP a. _ Q
President
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ecutive Director
493259v1 JSB EL185-13