6.1. EDSR 04-20-2020 - Laserfiche WebLink

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EL185-56-648271.v1 THIS FIRST AMENDMENT TO LOAN AGREEMENT (the “First Amendment”) is made and entered into this ____ day of April, 2020, between the ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF ELK RIVER, MINNESOTA a public body corporate and politic of the State of Minnesota (the “Lender”),and ORLUCK INDUSTRIES, INC., a Minnesota corporation (the “Borrower”), and their permitted assigns. RECITALS WHEREAS, on July 17, 2018, the Lender and the Borrower entered into that certain Loan Agreement (the “Original Agreement” and, together with this First Amendment to Loan Agreement, the “Loan Agreement”) whereby the Lender agreed to provide the Borrower with a loan in the amount of $200,000 (the “Loan”) to assist with financing operating costs and investments associated with an expansion of the Borrower’s existing aerospace manufacturing business located at 13422 Business Center Drive, Elk River, Minnesota in anticipation of new long term contractss received by the Borrower; WHEREAS, capitalized terms used in this First Amendment and not otherwise defined herein have the meanings given to them in the Original Agreement; WHEREAS, the Agreement contained a Business Subsidy Agreement (the “Subsidy Agreement”) which set forth certain job and wage goals in accordance with Minnesota Statutes, Section 116J.993 to 116J.995 (the “Business Subsidy Act”). The Subsidy Agreement required the Borrower to meet certain job and wage goals within two years after the closing on the Loan (the “Compliance Date”); WHEREAS, in accordance with the Business Subsidy Act, the Lender may, after a public hearing, extend the Compliance Date by up to one year; WHEREAS, the Lender has determined, after a duly noticed public hearing held on April 20, 2020, to extend the Compliance Date; WHEREAS, the Lender and the Borrower desire to amend the Original Agreement to extend the Compliance Date; NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: 1. Amendment to 24(a) of the Agreement. Section 24(a) of the Agreement is amended to read as follows. (a) In order to satisfy the provisions of Minnesota Statutes, Sections 116J.993 to 116J.995, as amended (the “Business Subsidies Act”), the Borrower acknowledges and agrees that the amount of the “Business Subsidy” granted to the Borrower under this Agreement is the amount of the Loan which is $200,000 and that the Business Subsidy is needed because the project is not sufficiently feasible for the Borrower to undertake without the Business Subsidy. The public purpose of the Business Subsidy is to help an existing business expand in the City, increase the tax base in the City and stimulate the creation and retention of high-quality jobs. In consideration of the Business Subsidy