7.2. EDSR 05-17-2021 - Laserfiche WebLink

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ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF ELK RIVER COUNTY OF SHERBURNE STATE OF MINNESOTA RESOLUTION NO. _________ RESOLUTION APPROVING AMENDMENT OF LOAN TERMS FOR F & M PROPERTIES, LLC AND AUTHORIZING EXECUTION OF AMENDED LOAN DOCUMENTS (DIE CONCEPTS 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 F & M Properties, LLC (“Borrower”) in the amount of $185,200 (the “Loan”) pursuant to a Loan Agreement, dated May 23, 2016 (the “Original Loan Agreement”), to help the Borrower relocate to and purchase and renovate an existing building on real property located at 18489 Twin Lakes Road within the City of Elk River, Minnesota pursuant to the Program. WHEREAS, the Loan was evidenced by a Promissory Note, dated May 23, 2016 (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 May 23, 2016 (the “Original Mortgage”), an Environmental Indemnification Agreement, dated May 23, 2016 (the “Original Environmental Indemnification”) a Personal Guaranty of Michael Tracey and Personal Guaranty of Fred Trapp, each dated May 23, 2016 (collectively the “Original Personal Guaranties”), a Security Agreement, dated May 23, 2016 (the “Original Security Agreement”), from Die Concepts, Inc.., and an Entity Guaranty, dated May 23, 2016 (the “Original Entity Guaranty”), from Die Concepts, Inc. (collectively, with the Original Promissory Note, the “Security Documents”). WHEREAS, the original Loan bears interest at a rate of 2% and is due and payable in full with a balloon payment on June 1, 2021. The Borrower has continued to make loan repayments and is now requesting that the maturity date be extended 2 years. WHEREAS, there was presented to the 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 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 and Assignment of Rents and Security Agreement and Fixture Financing Statement (collectively, the “Amendment Documents”).