EDA RES 20-05ECONOMIC DEVELOPMENT AUTHORITY
OF THE CITY OF ELK RIVER
COUNTY OF SHERBURNE
STATE OF MINNESOTA
RESOLUTION NO. 2020- 05
RESOLUTION APPROVING LOAN AGREEMENT AND RELATED DOCUMENTS
PURSUANT TO COVID-19 SMALL BUSINESS EMERGENCY MICROLOAN PROGRAM
(Chow Mixed Grill and BBQ, LLC)
WHEREAS, the Board of Commissioners (the `Board") of the Economic Development
Authority of the City of Elk River (the "EDA") has received an application from Chow Mixed
Grill and BBQ a Limited Liability Company (the "Borrower") requesting a loan from the EDA
in the amount of $20,000 (the "Loan") to provide emergency financing for business expenses
pursuant to the EDA's COVID-19 Small Business Emergency Microloan Program (the "Loan
Program").
WHEREAS, the spread of COVID-19 in the United States and Minnesota has raised serious
public health concerns; and
WHEREAS, on March 13, 2020, Governor Tim Walz issued Emergency Executive
Order 20-01 declaring a state of peacetime emergency to address the COVID-19 pandemic in
Minnesota; and
WHEREAS, the Governor subsequently issued additional Executive Orders to combat the
impacts of COVID-19 within the State of Minnesota, which include closures of schools, bars,
restaurants, and other places of public accommodation, and directing Minnesotans to stay at home
(with exceptions for obtaining necessary supplies, healthcare and similar needs) unless they are
engaged in critical sector work; and
WHEREAS, on April 3, 2020, the Mayor of the City issued a proclamation declaring a local
emergency, which proclamation was extended by a resolution approved by the City Council of the
City on April 6, 2020; and
WHEREAS, many businesses within the City have been economically impacted by the
Governor's Emergency Executive Orders in response. to the COVID-19 pandemic; and
WHEREAS, in order to retain small businesses in the City, the Authority created the Loan
Program to assist area businesses with the expenses incurred and specifically caused by the impact of
the Governor's Emergency Executive Orders by providing no -interest loans in the amount of up to
$25,000 to small businesses in the City; and
WHEREAS, the Borrower has applied for the Loan pursuant to the Program, and 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; and
WHEREAS, pursuant to the Loan Agreement, a portion of the Loan in the amount of
$5,000 for property taxes will be forgiven upon the satisfaction of certain conditions; and
WHEREAS, the Authority finds that the Loan Agreement is in the best interest of the City
and will further the objectives of the Loan Program.
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. Approval of Documents.
1.01. The Loan to the Borrower is hereby approved.
1.02. The Loan Agreement as presented to the EDA, together with all related documents
necessary in connection therewith, including without limitation, a personal guaranty from [Marco
Sorrenol, (as defined in and described in the Loan Agreement) (together, 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.
1.03. 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 approval hereby
given to the Loan Documents includes the forgiveness of a portion of the Loan in accordance with the
terms of the Loan Agreement upon a subsequent determination by the Executive Director that the
conditions for such forgiveness set forth in the Loan Agreement have been met. 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.
1.04. Authority staff and officials are authorized to take all actions necessary to give effect to
the Loan Agreement and to disburse the loan to the Borrower.
Approved by the Board of C mmissioners of the Economic Development Authority of the
City of Elk River this 74 day of 20dO
1-0 T
President