RES 21-36CITY OF ELK RIVER, MINNESOTA
RESOLUTION #2021-36
RESOLUTION APPROVING AMENDMENT OF LOAN
TERMS FOR F & M PROPERTIES AND AUTHORIZING
EXECUTION OF AMENDED LOAN DOCUMENTS
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, pursuant the EDA provided a loan to F & M Properties, LLC (`Borrower") in
the amount of $185,200 (the "Loan") pursuant to a Loan Agreement, dated May 23, 2016 (the
"Original Loan Agreement"), to help the Borrower relocate to and purchase and renovate an
existing building on real property located at 18489 Twin Lakes Road 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 May 23, 2016 (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 May 23, 2016 (the "Original Mortgage"), an Environmental
Indemnification Agreement (the "Original Environmental Indemnification"), dated May 23, 2016, a
Personal Guaranty of Michael Tracey and Personal Guaranty of Fred Trapp, each dated May 23,
2016 (collectively the "Original Personal Guaranties"), a Security Agreement, dated May 23, 2016
(the "Original Security Agreement"), from Die Concepts, Inc., and an Entity Guaranty, dated May
23, 2016 (the "Original Entity Guaranty"), from Die Concepts, Inc. (collectively, with the Original
Promissory Note, the "Security Documents").
WHEREAS, the original Loan bears interest at a rate of 2% and is due and payable in full
with a balloon payment on June 1, 2021. The Borrower has continued to make loan repayments and
is now requesting that the maturity date be extended by two years.
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 which amends and restates 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 and Assignment of Rents and Security Agreement and
Fixture Financing Statement (collectively, the "Amendment Documents").
WHEREAS, at a meeting on May 17, 2021, 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 17th day of May, 2021.
J n J. ie , M or
ATTEST:
Tina Allard, City Clerk
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