5.1. EDSR 07-16-2018 - Laserfiche WebLink

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ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF ELK RIVER COUNTY OF SHERBURNE STATE OF MINNESOTA RESOLUTION NO. 2018-01 RESOLUTION APPROVING LOAN AGREEMENT AND RELATED DOCUMENTS (ORLUCK INDUSTRIES PROJECT) WHEREAS, the Board of Commissioners (the “Board”) of the Economic Development Authority of the City of Elk River (the “EDA”) has received a proposal from Orluck Industries, Inc., a Minnesota corporation (the “Borrower”) that the EDA assist in financing operating costs and investments associated with an expansion of the Borrower’s existing aerospace manufacturing business located on certain real property in the City of Elk River, Minnesota (the “City”) in anticipation of new long term contracts received by the Borrower by providing a loan to the Borrower in the amount of $200,000 (the “Loan”) pursuant to the EDA’s Microloan Program (the “Program”). 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. NOW THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Economic Development Authority of the City of Elk River as follows: Section 1. Business Subsidy. 1.01. The Loan constitutes a business subsidy within the meaning of Minnesota Statutes, Section 116J.993 to 116J.995, as amended (the “Business Subsidy Act”), and the Loan Agreement includes a “business subsidy agreement” as required under the Business Subsidy Act. 1.02. The City has adopted a Business Subsidy Policy (the “Subsidy Policy”), which sets the general criteria for all types of subsidies granted by the EDA, all as required under the Business Subsidy Act. 1.03. On the date hereof, the EDA held a public hearing on the Loan in accordance with the Business Subsidy Act. Section 2. Approval of Documents. 2.01. The Loan Agreement as presented to the EDA, together with all related documents necessary in connection therewith, including without limitation, a Promissory Note from the Borrower evidencing the Loan, a Security Agreement providing a security interest in certain equipment, and a personal guaranty from Mark Orluck, (all as defined in and described in the Loan Agreement) (collectively, the “Loan Documents”) are hereby in all respects approved, in substantially the form on file with the City’s Economic Development Director; and the President and Executive Director are hereby authorized and directed to execute the Loan Agreement and any 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 529644v1 JSB EL185-56