EDA RES 24-03The Economic Development Authority for the
City of Elk River, Minnesota
Resolution 24-03
A Resolution Approving Loan Agreement and Related Documents
(Heritage Millwork, Inc., Project)
WHEREAS, the Board of Commissioners (the "Board") of the Economic Development
Authority of the City of Elk River, Minnesota (the "EDA") has received a proposal from
Heritage Millwork, Inc., a Minnesota corporation, or an entity related thereto or affiliated
therewith (the `Borrower', that the EDA assist the Borrower with the acquisition,
construction and equipping of an approximately 110,000 square foot industrial warehouse
facility (the "Project' located on certain real property in the City of Elk River, Minnesota
(the "City") by providing a loan to the Borrower in the amount of $200,000 (the "Loan")
pursuant to the EDA's Microloan Program (the "Program"); and
WHEREAS, proceeds of the Loan will be used by the Borrower to provide gap financing
for equipment to be used at the Project; and
WHEREAS, the EDA has caused to be prepared a Loan Agreement (the "Loan
Agreement's with the Borrower setting forth, among other things, the terms and conditions
under which the EDA will make the loan, a copy of which is on file with the Executive
Director; and
WHEREAS, the Loan constitutes a business subsidy within the meaning of Minnesota
Statutes, Sections 116J.993 to 116J.995, as amended (the "Business Subsidy Act', and on
this date hereof the Board held a duly noticed public hearing on the Loan; and
WHEREAS, the Loan Agreement includes a business subsidy agreement whereby the
Borrower shall agree to meet certain job and wage goals in connection with the Loan as
required by the Business Subsidy Act.
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 EDA hereby approves the Loan Agreement substantially in accordance
with the terms set forth in the form presented to the Board including the provisions granting
a business subsidy to the Borrower, pending approval of the business subsidy by the City
Council of the City, together with all related documents necessary in connection therewith,
including without limitation, a promissory note from the Borrower evidencing the Loan, a
security agreement evidencing a third position security interest in certain equipment, and
personal guaranties from Patrick Menth, Joseph Menth, David Menth and Anna Pulde
INATUREI
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(collectively, the "Loan Documents', and the President and Executive Director are hereby
authorized and directed to negotiated the final terms thereof and, in their discretion and at
such time as they may deem appropriate, to execute the Loan Documents to which the EDA
is a parry on behalf of the EDA and to carry out, on behalf of the EDA, the EDA's
obligations thereunder.
1.02. The approval hereby given to the Loan 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. This Resolution shall not constitute an offer and the Loan Documents
shall not be effective until the date of execution thereof as provided herein. 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.
1.03. Upon execution and delivery of the Loan Documents, the officers and
employees of the EDA are hereby authorized and directed to take or cause to be taken such
actions as may be necessary on behalf of the City to implement the Loan Documents.
Approved by the Board of Commissioners of the Economic
Development Authority of the City of Elk River this 171b day of June, 2024.
President
ATTEST:
dX4
Executive Director
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IIEIEI IT
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