EDA RES 20-13\-,
ECONOMIC DEVELOPMENT AUTHORITY
OF THE CITY OF ELK RTVER
COUNTY OF SHERBURNE
STATE OF MINNESOTA
RESOLUTION NO. 20.13
RESOLUTION APPROVING AMENDMENT OF LOAN TERMS FOR SCOTT MORRELL,
LLC AND AUTHORIZING EXECUTION OF AMENDED LOAN DOCUMENTS
O,TORRELL PROJECD
\U7HEREAS, the Board of Commissioners (the "Boatd') of the Economic Development
Authodty of the City of Elk fuver (the "EDA") pteviously approved a Mictoloan Program (the
"Ptogtam"), which is administered by the EDA.
\U7HEREAS, the EDA provided a loan to Scott Morrell, r J C ('Borrower") in the amount of
$200,000 (the "Loan") pursuant to a Loan Agteement, dated August 6, 2075 (the "Original Loan
Agreement"), to help the Borrower's acquire certain teal property located within the City of Elk River,
Minnesota prrsuant to the Program.
'\U7HEREAS, the Loan was evidenced by a Ptomissory Note, dated August 6, 2015 (the
"Original Promissory Note"), from the Borrower to the EDA. In order to secufe the Loan, the
Borrower delivered to the EDA a Modgage and Assignment of Rents and Security Agteement and
Fixtue Financing Statement, dated August 6,2015 (the "Original Mortgage'), dated August 6,2075
(th. "Odginal Mortgage'), an Envfuonmental Indemnification Agteement (th. "Original
Environmental Indemnificadon"), dated August 6,2075, a Petsonal Guatanty of Teny Mortell and
Renee Morrell, dated August 6,2075 (the "Original Petsonal Guarandes'), a Security Agteement,
dated August 6,2075 (the "Original Security Agreement"), ftom Morrell Oversize, Inc., and an Entity
Guaranty, dated August 6, 2015 (the "Odginal Entity Guaranty"), ftom Mortell Oversize, Inc.
(collectively with the Original Promissory Note, the "Secudty Documents').
T0THEREAS, the original Loan bears interest ^t ^
r^te of 2o/o and was due and payable in full
with a balloon payment on August 7, 2020. The Borrower has continued to make loan repayments
and is now requesting that the matutity date be extended until August2022.
T0THEREAS, there has been presented to this Board forms of the following documents: (i) a
First Amendment to Loan Agteement, which amends and supplements the terms of the Odginal Loan
Agreement; (ii) an Amended and Restated Promissory Note (the "Note") which amends and testates
the Odginal Promissory Note; (iii) a First Amendment to Security Agteement, which amends and
supplements the terms of the Original Secudty Agreement; (iv) an Amended and Restated Personal
Guaranty, which amends and restates the terms of the Original Personal Guatandes; (v) an Amended
and Restated Entity Guaranty, which amends and restates the terms of the Origtnal Entity Guaranty;
(-) a First Amendment to Envfuonmental Indemnification Agreement, which amends and
supplements the terms of the Odgrnal Environmental Indemnification; and (vii) a Fitst Amendment
to Mortgage and Assignment of Rents and Security Agreement and Fixture Financing Statemeng
which amends and supplements the Odgrnal Motgage (collectively, the "Amendment Documents").
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\fHEREAS, the EDA has determined that an extension of the maturity date of the loan will
benefit the Borrowet's economic gtowth.
NOr07 THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Economic
Development Authority of the City of Elk River as follovrs:
1.01. The Board hereby approves the amendment to the Loan. The I-,oan shall continue to be
secured by the Security Documents, as amended by the Amendment Documents.
1.02. The Amendment Documents together u/ith all telated documents necessary in
connecdon thereurith, are hereby in all respects approved, in substantially the form on file with the
Execudve Director; and the President and Executive Ditector ate heteby authodzed and directed to
execute the Loan Agreement and any Amendment Documents to which the EDA is a party on behalf of
the EDA and to caffy out, on behalf of the EDA, the EDA's 6bligations thereunder.
1.03. The approval hereby gtven to the Amendment Documents includes approval of such
additional deails therein as firay be necessary and apptopdate and such modificadons thereo( deletions
thereftom and additions thereto as fivry be necessaq, and appropriate and approved by legat counsel to
the EDA and by the President and Execudve Director pdor to executing said documents; and said
officers are hereby authorized to approve said changes on behalf of the EDA. The execudon of any
instnrment by the President and Executive Director shall be condusive evidence of the apptoval of such
document in accordance with the terms hereof. In the event of absence or disability of said officers, any
of the documents authodzed by thir Resolution to be executed *y be executed without firrther act or
atthonzaaon of the Board by *y duly designated acting official, or by such other officer or officers of
the Board as, in the opinion of the City Attomey, fi^y
^ct
in their behalf.
Approved by the Board of Commissioners of the Economic Development Authodty of the City
of Elk River this 27st day of December, 2020.
President
ATTEST:
Execudve Directot
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