EDA RES 21-01 ECONOMIC DEVELOPMENT AUTHORITY
OF THE CITY OF ELK RIVER
COUNTY OF SHERBURNE
STATE OF MINNESOTA
RESOLUTION NO.21-01
REOLUTION APPROVING FORGIVENESS FOR COVID-19 SMALL BUSINESS
EMERGENCY MICROLOAN PROGRAM BORROWER
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
WHEREAS,many businesses within 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
WHERERAS,in order to retain small businesses in the City,on May 18,2020, the Economic
Development Authority of the City of Elk River(the"EDA") created the COVID-19 Small Business
Emergency Microloan Program (the "Loan Program'D 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 to small businesses in the City in an amount of up to$20,000,including a
forgivable portion in an amount not to exceed$5,000; and
WHEREAS, the EDA approved and expended a Loan Program loan in the amount of
$16,000.00 to Mystery Chambers (the`Borrower');and
WHEREAS, the Borrower entered into a Loan Agreement with the EDA (the "Loan
Agreement'D;and
WHEREAS,since the creation of the Loan Program,additional Emergency Executive Orders
have been issued by the Governor that impact local businesses and the costs of current and prior
business interruptions due to the pandemic are likely to prevent many businesses from continuing to
operate; and
WHEREAS,preservation of existing businesses with a physical location in the City is essential
to stabilizing the City's economy and the City therefore desires to provide economic assistance to
businesses within the City that have been impacted by the economic pressures caused by COVID-19;
and
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WHEREAS, due to the continued economic hardship 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 the outstanding balance in the amount of$16,000.00 of the loan provided to
the Borrower pursuant to the Program including the portion of the outstanding loan not used for
property tax relief and not intended to be forgiven under the Loan Agreement executed by the
Borrower and the EDA.
NOW THEREFORE BE IT RESOLVED By the Board of Commissioners (the "Board's of
the Economic Development Authority of the City of Elk River(the"EDA' as follows:
1.01. The EDA hereby authorizes forgiveness of the loan made to the Borrower, and
authorizes and directs the President and the Executive Director to execute a certificate or letter of
forgiveness on behalf of the EDA to the Borrower,together with all related documents in connection
therewith (the "Forgiveness Documents'); and the President and Executive Director are hereby
authorized and directed to carry out,on behalf of the EDA,the EDA's obligations thereunder and deliver
the cancelled Personal Guaranty(as defined in the Loan Agreement) to the Borrower.
1.02. The approval hereby given to the Forgiveness Documents includes approval of such
details therein 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 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.
Approved by the Board of Commissioners of the Economic Development Authority of the City
of M, River this 15'day of March,2021.
President
ATTEST:
,��l ( -
Secretary
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