RES 18-51CITY OF ELK RIVER
COUNTY OF SHERBURNE
STATE OF MINNESOTA
RESOLUTION NO. 18- 51
RESOLUTION APPROVING LOAN AGREEMENT
(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") 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") 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; (ii) 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 the 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. The Loan Agreement amends and
restates the Original Loan Agreement to provide for the issuance of the New Loan.
WHEREAS, the EDA 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:
2.01 The City hereby approves 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
534205J2 JSB ELI 85-57
the corporate guarantor to the EDA, personal guaranties from Allen Meyer, Brian Brehmer, Nancy
Brehmer, and an entity guaranty from Yankee Doodle Enterprises, LLC. The City hereby consents to
the EDA entering into the Loan 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
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 further; 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 20ffi day of August, 2018.
J ietz, May
ATTEST:
Tina Allard, City Clerk
534205v2 JSB ELI 85-57