7.1. EDSR 12-21-2020 - Laserfiche WebLink

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ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF ELK RIVER COUNTY OF SHERBURNE STATE OF MINNESOTA RESOLUTION NO. 20-13 RESOLUTION APPROVING AMENDMENT OF LOAN TERMS FOR SCOTT MORRELL, LLC AND AUTHORIZING EXECUTION OF AMENDED LOAN DOCUMENTS (MORRELL PROJECT) WHEREAS, the Board of Commissioners (the "Board") of the Economic Development Authority of the City of Elk River (the "EDA") previously approved a Microloan Program (the "Program"),which is administered by the EDA. WHEREAS, the EDA provided a loan to Scott Morrell,LLC (`Borrower") in the amount of $200,000 (the "Loan") pursuant to a Loan Agreement, dated August 6, 2015 (the "Original Loan Agreement"),to help the Borrower's acquire certain real property located within the City of Elk River, Minnesota pursuant to the Program. WHEREAS, the Loan was evidenced by a Promissory Note, dated August 6, 2015 (the "Original Promissory Note"), from the Borrower to the EDA. In order to secure the Loan, the Borrower delivered to the EDA a Mortgage and Assignment of Rents and Security Agreement and Fixture Financing Statement, dated August 6, 2015 (the "Original Mortgage"), dated August 6, 2015 (the "Original Mortgage"), an Environmental Indemnification Agreement (the "Original Environmental Indemnification"), dated August 6, 2015, a Personal Guaranty of Terry Morrell and Renee Morrell, dated August 6, 2015 (the "Original Personal Guaranties"), a Security Agreement, dated August 6,2015 (the"Original Security Agreement"),from Morrell Oversize,Inc., and an Entity Guaranty, dated August 6, 2015 (the "Original Entity Guaranty"), from Morrell Oversize, Inc. (collectively with the Original Promissory Note, the "Security Documents")- WHEREAS, the original Loan bears interest at a rate of 2% and was due and payable in full with a balloon payment on August 1, 2020. The Borrower has continued to make loan repayments and is now requesting that the maturity date be extended until August 2022. WHEREAS, there has been presented to this Board forms of the following documents: (i) a First Amendment to Loan Agreement,which amends and supplements the terms of the Original Loan Agreement; (ii) an Amended and Restated Promissory Note (the "Note") which amends and restates the Original Promissory Note; (iii) a First Amendment to Security Agreement, which amends and supplements the terms of the Original Security Agreement; (iv) an Amended and Restated Personal Guaranty,which amends and restates the terms of the Original Personal Guaranties; (v) an Amended and Restated Entity Guaranty,which amends and restates the terms of the Original Entity Guaranty; (vi) a First Amendment to Environmental Indemnification Agreement, which amends and supplements the terms of the Original Environmental Indemnification; and (vii) a First Amendment to Mortgage and Assignment of Rents and Security Agreement and Fixture Financing Statement, which amends and supplements the Original Mortgage (collectively, the "Amendment Documents")-