EDA RES 20-01ECONOMIC DEVELOPMENT AUTHORITY
OF THE CITY OF ELK RIVER, MINNESOTA
COUNTY OF SHERBURNE
STATE OF MINNESOTA
RESOLUTION NO. 2020-01
RESOLUTION APPROVING COMPLIANCE DATE EXTENSION
WITH RESPECT TO BUSINESS SUBSIDY PROVIDED TO
ORLUCK INDUSTRIES, INC.
WHEREAS, on July 17, 2018, the Board of Commissioners (the "Board") of the Economic
Development Authority of the City of Elk River, Minnesota (the "EDA") provided a loan to Orluck
Industries, Inc., a Minnesota corporation (the `Borrower") in the amount of $200,000 (the "Loan")
to 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") for new long term contracts received by the Borrower; and
WHEREAS, on July 17, 2018, the EDA and the Borrower entered into a Loan Agreement
(the "Loan Agreement"), pursuant to which the Borrower, among other things, agreed to certain
terms and conditions under which the EDA made the Loan to the Borrower; and
WHEREAS, the Loan Agreement included a business subsidy agreement under Minnesota
Statutes, Sections 116J.993 to 116J.995, as amended (the `Business Subsidy Act'which set forth
certain job and wage goals to be satisfied by the Borrower prior to the benefit date set forth in the Loan
Agreement (the `Benefit Date"); and
WHEREAS, the Borrower has requested an extension of the Benefit Date for up to one year;
and
WHEREAS, the Board of Commissioners of the EDA held a duly noticed public hearing as
required by Section 116J.994, subdivision 5 of the Business Subsidy Act regarding the extension of the
Benefit Date; and
WHEREAS, the EDA and the Borrower desire to amend the Loan Agreement to reflect the
extension of the Benefit Date as described in a First Amendment to the Loan Agreement (the
"Amendment"); and
WHEREAS, the EDA believes that approval of the Amendment is in the best interest of the
City and its residents.
NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF
THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF ELK RIVER,
MINNESOTA, AS FOLLOWS:
The recitals set forth in this resolution are incorporated into and made a part hereof.
EL185-56-648181 M
2. The Amendment is approved and the President and Executive Director are
authorized and directed to execute the Amendment in substantially the form on file in City Hall,
subject to modifications that do not alter the substance of the transaction and are approved by these
officers; provided that execution of the document will be conclusive evidence of their approval.
3. The President and the Executive Director are authorized and directed to execute any
documents or certificates necessary to carry out the transactions described herein.
4. EDA staff and consultants are authorized to take all further actions necessary to assist
the EDA in performing its obligations under this resolution and the Loan Agreement.
Approved by the Board of Commissioners of the Economic Development Authority of the City of Elk
River, Minnesota this 20th day of April, 2020.
resident
ATTEST:
lirec
EL185-56-648181.vi