RES 18-45City of Elk River
City Council
Resolution 18-45
A Resolution of the City Council of the City of Elk River Approving Loan
Agreement for Orluck Industries Project
WHEREAS, the City Council (the "Council") of the City of Elk River (the "City")
has received a proposal from Orluck Industries, Inc., a Minnesota corporation (the
"Borrower") that the Economic Development Authority of the City of Elk River (the
"EDA") enter into Loan Agreement (the "Loan Agreement") and related documents in
connection with a loan to the Borrower in the amount of $200,000 (the "Loan") pursuant to
the EDA's Microloan Program (the "Program").
WHEREAS, the EDA after a duly noticed public hearing, approved the Loan and
the Loan Agreement on this same date and a copy of the Loan Agreement is on file with the
City Clerk.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Elk
River as follows:
Section 1. Business Subsidy.
1.01. The Loan constitutes a business subsidy within the meaning of Minnesota
Statutes, Section 116J.993 to 116J.995, as amended (the `Business Subsidy Act'D, and the Loan
Agreement includes a "business subsidy agreement" as requited 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 EDA, all as required under the
Business Subsidy Act.
1.03. On the date hereof, the EDA held a public hearing on the Loan in accordance
with the Business Subsidy Act.
Section 2. Consent.
2.01 In accordance with Section 116J.994, Subd. 3(d) of the Business Subsidy Act,
the City hereby approves the Loan Agreement and the business subsidy agreement provided
therein and consents to the EDA entering into the Loan Agreement and related documents
with the Borrower.
2.02 The City hereby approves the Loan in accordance with the Loan Agreement in
substantially the form on file with the City's Economic Development Director together such
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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 of the EDA prior to executing said documents and the City farther; 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.
Approved by the City Council of the City of Elk River this 16th day of July, 2018.
Passed and adopted this 16th day of July 2018,
1
A
ATTEST,
v/
Tina Allard, City Clerk
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