RES 19-41City of
Elk k--,
River
City of Elk River
City Council
Resolution 19- 41
A Resolution of the City Council of the City of Elk River Approving an
Amended and Restated Loan Agreement (Distinctive Iron Project)
WHEREAS, on February 17, 2015, the Economic Development Authority of the City of
Elk River (the "EDA") provided a loan to Hemmer Companies L.L.C., a Minnesota limited
liability company (the `Borrower"), pursuant to the EDA's N icroloan Program (the
"Program") in the amount of $126,000.00 (the "Original Loan") in accordance with a Loan
Agreement, dated February 17, 2015 (the "Original Loan Agreement"), between the Borrower
and the EDA.
WHEREAS, the current outstanding principal balance of the Original Loan is $89,338.20.
WHEREAS, , the City Council (the "Council") of the City has received a request from the
Borrower that the EDA provide an additional loan to the Borrower in the amount of
$100,000.00 (the "New Loan") pursuant to the Program in order to assist in financing the
acquisition, renovation and equipping of a new facility in the City in connection with the expansion
of its current business in the City.
WHEREAS, the Borrower has proposed that the Borrower and the EDA enter into an
Amended and Restated Loan Agreement (the "Amended and Restated Loan Agreement")
and related documents in connection with the New Loan. In total, the outstanding principal
of the Original Loan and the New Loan (together, the "Loan") will be $189,338.20.
WHEREAS, the EDA has caused to be prepared the Amended and Restated Loan
Agreement with the Borrower setting forth, among other things, the terms and conditions
under which the EDA will make the Loan. The Amended and Restated Loan Agreement
amends and restates the Original Loan Agreement to provide for the issuance of the New
Loan.
WHEREAS, the EDA has approved the Loan and the Amended and Restated Loan
Agreement on this same date and a copy of the Amended and Restated Loan Agreement is
on file with the City Clerk.
r
JATURE
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk
River, Minnesota, 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 (the "Business Subsidy Act"), and the Amended and
Restated 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.
Section 2. Consent.
2.01 In accordance with Section 116J.994, Subd. 3(d) of the Business Subsidy Act,
the City hereby approves the Amended and Restated Loan Agreement and consents to the
EDA entering into the Amended and Restated Loan Agreement and related documents with
the Borrower.
2.02 The City hereby approves the provision of the Loan to the Borrower in
accordance with the terms of the Amended and Restated Loan Agreement in substantially the
form submitted to the City Council 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 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.
Passed and adopted this 16th day of September, 2019.
W,
J� , J. I ietz, n ' yor
ATTEST:
Tina Allard, City Clerk