RES 18-03ECONOMIC DEVELOPMENT AUTHORITY
OF THE CITY OF ELK RIVER
COUNTY OF SHERBURNE
STATE OF MINNESOTA
RESOLUTION NO. 2018- 03
RESOLUTION APPROVING LOAN AGREEMENT AND RELATED DOCUMENTS
(ALAN ARNOLD CORPORATION / RALPHIE'S MINNOCO ENERGY 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 Alan Arnold
Corporation (the `Borrower"), for a second loan to assist the Borrower with energy efficiency
improvements to a building (the "Property') located at 13374 U.S. Highway 10, Elk River,
Minnesota (the "City').
WHEREAS, on September 10, 2013, the EDA provided a loan to the Borrower pursuant to
the EDA Energy Efficiency Improvement Program (the "Program"), in the amount of $74,999 (the
"Original Loan'D pursuant to an Energy Efficiency Improvement Program Loan Agreement,
dated September 10, 2013 (the "Original Loan Agreement"), between the Borrower and the
EDA. The Original Loan was secured by (i) a Promissory Note, dated September 10, 2013, from the
Borrower to the EDA; (n) a Security Agreement, dated September 10, 2013, from Borrower to the
Lender providing a security interest in certain equipment purchased with the proceeds of the
Original Loan; (iii) a Personal Guaranty, dated September 10, 2013, from Brian Brehmer to the
EDA; (iv) a Personal Guaranty, dated September 10, 2013, from Nancy Brehmer to the EDA; (v) a
Personal Guaranty, dated September 10, 2013, from Allen Meyer; (iv) a Corporate Guaranty, dated
September 10, 2013, from Yankee Doodle Enterprises, LLC to the EDA; and (vii) a Mortgage and
Assignment of Rents and Security Agreement and Fixture Financing Statement, dated September
10, 2013, from the Corporate Guaranty to the EDA. The current outstanding principal balance of
the Original Loan is $40,482.91.
WHEREAS, the Borrower has requested an additional loan in the amount of $19,175.00 (the
"New Loan") pursuant to the Program. Proceeds of the New Loan will be used by the Borrower to
increase energy efficiency of the Property by purchasing new interior and exterior lights. In total, the
outstanding principal of the Original Loan and New Loan (together, the "Loan') will be
$59,657.91.
WHEREAS, the EDA has caused to be prepared an Amended and Restated Loan
Agreement (the "Loan Agreement") with the Borrower 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. The Loan Agreement amends and restates the Original Loan Agreement to
provide for the issuance of the New Loan.
NOW THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Economic
Development Authority of the City of Elk River as follows:
1.01. The Loan Agreement as presented to the EDA, together with all related documents
necessary in connection therewith, including without limitation, an Amended and Restated Promissory
Note from the Borrower evidencing the Loan, an Amended and Restated Mortgage and Assignment
of Rents and Security Agreement and Fixture Financing Statement, from the corporate guarantor
to the EDA, personal guaranties from Allen Meyer, Brian Brehmer, Nancy Brehmer, and an entity
guaranty from Yankee Doodle Enterprises, LLC (collectively, the "Loan Docurnents'� 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.
1.02. 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 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 20th day of August, 2018.
president