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