3.10 EDSR 01-17-2017 - Laserfiche WebLink

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ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF ELK RIVER COUNTY OF SHERBURNE STATE OF MINNESOTA RESOLUTION NO. _________ RESOLUTION APPROVING FIRST AMENDMENT TO MORTGAGEAND CONSENT TO EASEMENT Section 1. Recitals. 1.01The Board of Commissioners(the “Board”) of theEconomic Development Authority of the City of Elk River(the “EDA”) has heretofore provideda Microloan in the amount of $74,999to Alan Arnold Corporation, a Minnesota corporation (referred to as “Debtor”)which wassecured bya corporate guarantee ofYankee Doodle Enterprises, LLC, a Minnesota limited liability company (the “Mortgagor”), secured by a Mortgage and Assignment of Rents and Security Agreement and Fixture FinancingStatement (the “Mortgage”) on certain property on a subordinatebasis to a contract for deedfrom Farmer’s State Bank of Hartland in the original principal amount of $465,000.The Mortgage was subsequently subordinated to a loan from the Bank of Elk River in the amount of $515,000 which was used to satisfy the contract for deed. 1.02The Mortgagor has now requested that the EDA execute and deliver a Consent to Easementto allow certain easements over the mortgaged property (the “Consent”) anda First Amendment to Mortgage(the “First Amendment to Mortgage”) in orderto: (i) amend the legal description to reflect that a portion of the original mortgaged property will be sold to a new developer and that additional property will be subject to the Mortgage;and(ii) allow certain easements over the mortgaged property as permitted encumbrances. NOW THEREFORE, BE IT RESOLVED by the Board of Commissioners (the “Board”) of the Economic Development Authority of the City of Elk River (the “EDA”)as follows: Section 2.Approval of Documents. 2.01.The First Amendment to Mortgageand the Consent are hereby in all respects approved together with any related documents necessary in connection therewith(the “Development Documents”), and the Presidentand Executive Directorare hereby authorized and directed to execute the Development Documents on behalf of the EDA and to carry out, on behalf of the EDA, the EDA’s obligations thereunder. 2.02.The approval hereby given to the Development 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 Presidentand Executive Directorpriorto executingsaid Documents; and said officers are hereby authorized to approve said changes on behalf of the EDA. The execution of any instrument by the Presidentand Executive Directorshall be conclusive evidence of the approval of such document in accordance with the terms hereof. In the event of 493259v2 JSB EL185-13