EDA RES 24-07ECONOMIC DEVELOPMENT AUTHORITY
OF THE CITY OF ELK RIVER
COUNTY OF SHERBURNE
STATE OF MINNESOTA
RESOLUTION NO.2024-07
RESOLUTION APPROVING LOAN AGREEMENT AND RELATED DOCUMENTS
(TIPSY CHICKEN 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 Modern
Construction of Minnesota, Inc., a Minnesota corporation, or an entity related thereto or
affiliated therewith (the "Borrower"), that the EDA assist the Borrower with the acquisition, and
renovation (the "Project") located on certain real property in the City of Elk River, Minnesota
(the "City") for use as a restaurant by providing a loan to the Borrower in the amount of $51,499
(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 the Project; and
WHEREAS, the EDA has caused to be prepared a Loan Agreement (the "Loan
Agreement") 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 I I6J.993 to I I6J.995, as amended (the "Business Subsidy Act"); 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; and
WHEREAS, the EDA believes that the provision of the Loan to the Borrower is in the
vital and best interests of the City and the health, safety, morals, and welfare of its residents, and
in accord with the public purposes and provisions of the applicable State of Minnesota and local
laws and requirements.
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, together with all related documents necessary in connection therewith,
including without limitation, a promissory note from the Borrower evidencing the Loan, a mortgage
providing the EDA with a second position security interest in the Project, a corporate guaranty of
MFS Food, Inc., a security agreement evidencing a second position security interest in certain
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equipment, and personal guaranties from Jesse and Sarah Hartung (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 party 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.
2.03. 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 EDA to implement the Loan Documents.
Approved by the Board of Commissioners of the Economic Development Authority of the
City of Elk River this 21 st day of October, 2024.
President
ATTEST:
Executive Director
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