EDA RES 21-02ECONOMIC DEVELOPMENT AUTHORITY
OF THE CITY OF ELK RIVER
COUNTY OF SHERBURNE
STATE OF MINNESOTA
RESOLUTION NO ZI-62--
RESOLUTION APPROVING AMENDMENT OF LOAN TERMS FOR F & M PROPERTIES,
LLC AND AUTHORIZING EXECUTION OF AMENDED LOAN DOCUMENTS
(DIE CONCEPTS 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 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 pursuant to the
Program.
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, dated May 23, 2016 (the "Original Environmental Indemnification") 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 2 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, the EDA has determined that an extension of the maturity date of the loan will
benefit the Borrower's economic growth and help an existing business maintain operations in the City.
NOW THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Economic
Development Authority of the City of Elk River as follows:
1.01. The Board hereby approves the amendment to the Loan. The Loan shall continue to be
secured by the Security Documents, as amended by the Amendment Documents.
1.02. The Amendment Documents together with all related documents necessary in
connection therewith, are hereby in all respects approved, in substantially the form on file with the
Executive Director; and the President and Executive Director are hereby authorized 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 carry out, on behalf of the EDA, the EDA's obligations thereunder.
1.03. The approval hereby given to the Amendment Documents includes approval of such
additional details therein as may be necessary and appropriate and such modifications thereof, deletions
therefrom and additions thereto 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 Elk River this May 17th day of May, 2021.
" - � Q P �: � - -(Z--)
resident
ATTEST:
Executive Director
ELI 85\40\720763.vl