EDA RES 20-14\-.
ECONOMIC DEYELOPMENT AUTHORITY
OF THE CITY OF ELK RIVER
COUNTY OF SHERBURNE
STATE OF MINNESOTA
RESOLUTION NO. 20-14
RESOLUTION APPROVING FORGTVENESS FOR COVID.l9 SMALL BUSINESS
EMERGENCY MICROLOAN PROGRAM BORROWERS
TJ7HEREAS, the spread of COVID-19 in the United States and Minnesota has raised serious
public health concems; and
I07HEREAS, on March 73, 2020, Govemot Tim Walz issued Emergency Execudve
Order 20-01 declafug ^ state of peacetime emergeflcy to address the COVID-19 pandemic in
Minnesota; and
WHEREAS, the Governor subsequently issued additional Execudve Otders to combat the
impacts of COVID-19 within the State of Minnesota, which include closutes of schools, bars,
restaurants, and other places of public accommodation; and
'S7HEREAS, many businesses urithin the City of Elk River, Minnesota (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, on May 78,2020, the Economic
Development Authodty of the City of Elk fuvet (the "EDA") created the COVID-19 Small Business
Emergency Microloan Program (the "Loan Progtam") to assist area businesses with the expenses
incotred and specifically caused by the impact of the Govemot's Emetgency Execudve Orders by
providing no-interest loans to small business in the City in an amount of up to $20,000, including a
forgivable portion in an amount not to exceed $5,000; and
!7HEREAS, the EDA approved and expended $102,374.00 in Progtam loans to eight
recipients each of whom is listed in Exhibit A (collectively the "Borrowers") in the amounts listed in
Exhibit A; and
I07HEREAS, Borrowers each entered into a Loan Agreement with the EDA (the "Loarr
Agreement"); and
WHEREAS, since the creation of the Loan Program, additional Emergency Executive Otders
have been issued by the Govemor that impact local businesses and the costs of current and priot
business interruptions due to the pandemic are likely to preverit many businesses ftom continuing to
operate; afld
WHEREAS, preservation of existing businesses with a physical location in the City is essential
16 56filizlng the City's economy and the City therefore desites to provide economic assistance to
businesses withifl the City that have been impacted by the economic Pressues caused by the COVID-\-.
19; and
S7HEREAS, due to the continued economic hatdship for local businesses resulting from
COVID-19 and the EDA's continued desire to retain existing businesses in the City, the EDA has
determined to forgive all outstanding loans ptovided to the Borrowets Pursuant to the Ptogtam
including the portion of the outstanding loans not used for property tax relief and not intended to be
fotgiven under the Loan Agreements executed by the Borrowers and the EDA.
NOW THEREFORE BE IT RESOLVED By the Board of Commissionets (the'tsoard") of
the Economic Development Authority of the City of Elk River (the "EDA") as follows:
1.01. The EDA hereby authodzes forgiveness of the loans made to the Borrowers, and
authodzes and dfuects the President and the Executive Director to execute a certificate or lettet of
forgiveness on behalf of the EDA to each Borrowet, together with all related documents in connecdon
therewith (the "Forgiveness Documents"); and the President and Executive Director are heteby
authodzed and directed to cany ouq on behatf of the EDA, the EDA's obligations thetetrnder and deliver
the cancelled Personal Guaranty (as defined in the Loan Agteement) to the Borowet.
1.02. The approval hereby given to the Forgiveness Documents includes approval of such
details therein as firay be necessary and appropdate and approved by legal counsel to the EDA and by
the President and Executive Director prior to executing said documents; and said officers ate hereby
authodzed 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 ^ct or
authodzation of the Board by any duly desrgnated acting official, or by such othet officer ot officers
of the Board as, in the opinion of the City Attorney, m^y act in their behalf.
Approved by the Board of Commissioners of the Economic Development Authodty of the City
of ElkRiverthis 27" dzy of Decembe42020.
ATTEST:
4/ //--'
Secretary
1
1
President
EXHIBIT A
\- BoRRowERS
o Pytamid Fitness Gtoup, LLC DBA Anytime Fitness
$20,000 loan and $5,000 fotgivable loan fot property tax relief
o Daddy-O's Caf6
$5,000 forgivable loan for property tax relief
o Pinnacle Foods, LP
$5,000 forgivable loan for property tax relief
o Elk River Aerie No. 3264, Ftaternal Ordet of Eagles
ff2,374 forgivable loan for property tax relief
o Elk River Country Club, Inc.
$5,000 fotgivable ioan fot property tax relief
o InSPIRE Studio, a,LLC
\- $20,0001oan
. CHOW Mixed Grill and BBQ, LLC
$20,000loan
o Momentum Fitness Endeavo4aLLC DBA Snap Fitness
$20,000loan