RES 18-01ECONOMIC DEVELOPMENT AUTHORITY
OF THE CITY OF ELK RIVER
COUNTY OF SHERBURNE
STATE OF MINNESOTA
RESOLUTION NO. 2018-01
RESOLUTION APPROVING LOAN AGREEMENT AND RELATED DOCUMENTS
(ORLUCK INDUSTRIES PROJECT)
WHEREAS, the Board of Commissioners (the `Board'D of the Economic Development
Authority of the City of Elk River (the "EDA'D has received a proposal from Orluck Industries,
Inc., a Minnesota corporation (the `Borrower") that the EDA assist in financing operating costs and
investments associated with an expansion of the Borrower's existing aerospace manufacturing
business located on certain real property in the City of Elk River, Minnesota (the "City") in
anticipation of new long term contracts received by the Borrower by providing a loan to the
Borrower in the amount of $200,000 (the "Loan'D pursuant to the EDA's Microloan Program (the
"Program'D.
WHEREAS, the EDA has caused to be prepared a 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.
NOW THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Economic
Development Authority 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"), and the Loan Agreement
includes a "business subsidy agreement" as required 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. Approval of Documents.
2.01. 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 Borrower
evidencing the Loan, a Security Agreement providing a security interest in certain equipment, and a
personal guaranty from Mark Orluck, (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.
2.02. The approval hereby given to the Loan Documents 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.
529644v11SB ELI 85-56
Approved by the Board of Commissioners of the Economic Development Authority of the
City of Elk River this 16th day of July, 2018.
President
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