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ECONOMIC DEVELOPMENT AUTHORITY
<br /> OF THE CITY OF ELK RIVER
<br /> COUNTY OF SHERBURNE
<br /> STATE OF MINNESOTA
<br /> RESOLUTION NO. 20-12
<br /> RESOLUTION APPROVING SUBORDINATION AGREEMENT
<br /> Section 1. Recitals.
<br /> 1.01 On September 13, 2013, the Board of Commissioners (the "Board") of the
<br /> Economic Development Authority of the City of Elk River (the "EDA") heretofore provided a
<br /> microloan in the amount of $74,999 (the "Original Loan") to Alan Arnold Corporation, a
<br /> Minnesota corporation (referred to as `Borrower") which was secured by a corporate guarantee
<br /> of Yankee Doodle Enterprises, LLC, a Minnesota limited liability company (the "Mortgagor"),
<br /> pursuant to the EDA Energy Efficiency Improvement Program (the "Program"), pursuant to an
<br /> Energy Efficiency Improvement Program Loan Agreement, dated September 10, 2013 (the
<br /> "2013 Loan Agreement"), between the Borrower and the EDA.
<br /> 1.02. On August 28, 2018, the EDA provided an additional loan in the amount of
<br /> $19,175.00 (the "New Loan" and together with the Original Loan, the "Loan") pursuant to the
<br /> Program to the Borrower for a total loan amount of$59,657.91 in accordance with an Amended
<br /> and Restated Energy Efficiency Improvement Program Loan Agreement, dated August 28, 2018
<br /> (the "Series 2018 Loan Agreement and together with the Series 2013 Loan Agreement, the
<br /> "Loan Agreement"), between the Borrower and the EDA, which amended and restated the Series
<br /> 2013 Loan Agreement.
<br /> 1.03. The Loan is secured by (i) an Amended and Restated Mortgage and Assignment
<br /> of Rents and Security Agreement and Fixture Financing Statement (the "Mortgage"), dated
<br /> August 28, 2018, provided by the Mortgagor in favor of the EDA; (ii) an Amended and Restated
<br /> Promissory Note, dated August 28, 2018, from the Borrower to the EDA; (iii) a Security
<br /> Agreement, dated September 10, 2013, from Borrower to the Lender providing a security interest
<br /> in certain equipment purchased with the proceeds of the Original Loan; (iv) a Personal Guaranty,
<br /> dated August 28, 2018, from Brian Brehmer to the EDA; (v) a Personal Guaranty, dated August
<br /> 28, 2018, from Nancy Brehmer to the EDA; and (vi) a Personal Guaranty, dated August 28,
<br /> 2018, from Allen Meyer; and (vii) a Corporate Guaranty, dated August 28, 2018, from the
<br /> Mortgagor to the EDA.
<br /> 1.04. The Borrower and the Mortgagor requested a loan from Byline Bank(the "Bank")
<br /> in the amount of$474,000.00 and the Bank has required, as a condition to making the loan, that
<br /> the Borrower and Mortgagor obtain from the EDA a Mortgage Subordination Agreement (the
<br /> "Subordination Agreement") in favor of the Bank providing for the subordination of the
<br /> Mortgage to the Bank's mortgage with respect to the additional financing, copies of which are on
<br /> file with the Executive Director.
<br /> NOW THEREFORE, BE IT RESOLVED by the Board of Commissioners (the "Board") of
<br /> the Economic Development Authority of the City of Elk River(the"EDA") as follows:
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