4.8. SR 05-19-2014 - Laserfiche WebLink

Home Browse Search

�j City of Elk River Resolution No. 14- A Resolution of the City of Elk River Approving Intercreditor Agreement Section 1. Recitals. 1.01 The City Council (the "Council") of the City of Elk River (the "City") has heretofore established Tax Increment Financing District No. 23 in connection with providing assistance to Preferred Powder Coating,LLC, a Minnesota limited liability company, and Preferred Real Estate Holding,LLC, a Minnesota limited liability company (both collectively and individually referred to as "Debtor"). 1.02 The Debtor has previously obtained a loan from First National Bank of Elk River (the `Bank") in the original principal amount of$5,093,000. 1.03 The Debtor has requested an additional loan from the Bank in the amount of $386,000 and the Bank has required, as a condition to making such additional loan, that the Debtor obtain from the City an Intercreditor Agreement (the "Intercreditor Agreement") with the Debtor and Lloyd Peterson and Dan Bosshart (collectively, the "Guarantors") for the benefit of the Bank providing for the subordination of the City's rights to collect certain payments from the Guarantors to the Bank's rights with respect to the additional financing, a copy of which is on file with the City Clerk. NOW THEREFORE, BE IT RESOLVED by the City Council ("Council' of the City of Elk River ("City's as follows: Section 2. Approval of Intercreditor Agreement. 2.01. The Intercreditor Agreement as presented to the City is hereby in all respects approved, in substantially the form submitted,together with any related documents necessary in connection therewith,and the Mayor and City Clerk are hereby authorized and directed to execute the Intercreditor Agreement on behalf of the City and to carry out,on behalf of the City,the City's obligations thereunder. 2.02. The approval hereby given to the Intercreditor Agreement 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 City and by the Mayor and City Clerk prior to executing said documents;and said officers are hereby authorized to approve said changes on behalf of the City. The execution of any instrument by the Mayor and City Clerk 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 Council by any duly designated acting official,or by such other officer or officers of the Council as, in the opinion of the City Attorney,may act in their behalf 443685v1JSB EL185-22