RES 20-99CITY OF ELK RIVER, MINNESOTA
RESOLUTION #2020- 99
RESOLUTION APPROVING AMENDMENT OF LOAN TERMS FOR SCOTT MORRELL,
LLC AND AUTHORIZING EXECUTION OF AMENDED LOAN DOCUMENTS
(MORRELL PROJECT)
WHEREAS, the Board of Commissioners (the "Board") of the Economic Development
Authority of the City of Elk River (the "EDA") previously approved a Microloan Program (the
"Program"), which is administered by the EDA.
WHEREAS, the EDA provided a loan to Scott Morrell, LLC ("Borrower") in the amount of
$200,000 (the "Loan") pursuant to a Loan Agreement, dated August 6, 2015 (the "Original Loan
Agreement"), to help the Borrower's acquire certain real property located within the City of Elk
River, Minnesota (the "City") pursuant to the Program. The terms of the Loan were approved by
the City Council of the City.
WHEREAS, the Loan was evidenced by a Promissory Note, dated August 6, 2015 (the
"Original Promissory Note"), from the Borrower to the EDA. In order to secure the Loan, the
Borrower delivered to the EDA a Mortgage and Assignment of Rents and Security Agreement and
Fixture Financing Statement, dated August 6, 2015 (the "Original Mortgage"), dated August 6, 2015
(the "Original Mortgage"), an Environmental Indemnification Agreement (the "Original
Environmental Indemnification"), dated August 6, 2015, a Personal Guaranty of Terry Morrell and
Renee Morrell, dated August 6, 2015 (the "Original Personal Guaranties"), a Security Agreement,
dated August 6, 2015 (the "Original Security Agreement"), from Morrell Oversize, Inc., and an
Entity Guaranty, dated August 6, 2015 (the "Original Entity Guaranty"), from Morrell Oversize,
Inc. (collectively with the Original Promissory Note, the "Security Documents").
WHEREAS, the original Loan bears interest at a rate of 2% and was due and payable in full
with a balloon payment on August 1, 2020. The Borrower has continued to make loan repayments
and is now requesting that the maturity date be extended until August 2022.
WHEREAS, there was presented to the Board forms of the following documents: (i) a First
Amendment to Loan Agreement, which amends and supplements the terms of the Original Loan
Agreement; (ii) an Amended and Restated Promissory Note (the "Note") which amends and
restated the Original Promissory Note; (iii) a First Amendment to Security Agreement, which
amends and supplements the terms of the Original Security Agreement; (iv) an Amended and
Restated Personal Guaranty, which amends and restates the terms of the Original Personal
Guaranties; (v) an Amended and Restated Entity Guaranty, which amends and restates the terms of
the Original Entity Guaranty; (vi) a First Amendment to Environmental Indemnification
Agreement, which amends and supplements the terms of the Original Environmental
Indemnification; and (vii) a First Amendment to Mortgage and Assignment of Rents and Security
Agreement and Fixture Financing Statement, which amends and supplements the Original Mortgage
(collectively, the "Amendment Documents").
WHEREAS, at a meeting on December 21, 2020, the Board of Commissioners of the EDA
adopting a resolution (the "EDA Resolution") approving the amendment to the terms of the Loan
and the execution and delivery of the Amendment Documents.
BE IT RESOLVED BY the City Council (the "City Council") of the City of Elk River,
Minnesota (the "City"), as follows:
1.01. The City Council hereby approves the amendment to the Loan as approved by the
EDA Resolution.
1.02. The City Council hereby consents to the execution and delivery of the Amendment
Documents by the EDA, and any other documents and certificates deemed necessary to carry out
the intentions of this resolution and the EDA Resolution.
1.03. This resolution shall be effective as of the date hereof.
Adopted this 21st day of December, 2020.
ATTEST:
".-/ P
Tina Allard, City Clerk
*Diet�z(Neayor
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