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CITY OF ELK RIVER, MINNESOTA
<br />RESOLUTION #2021-36
<br />RESOLUTION APPROVING AMENDMENT OF LOAN
<br />TERMS FOR F & M PROPERTIES AND AUTHORIZING
<br />EXECUTION OF AMENDED LOAN DOCUMENTS
<br />WHEREAS, the Board of Commissioners (the "Board") of the Economic Development
<br />Authority of the City of Elk River (the "EDA") previously approved a Microloan Program (the
<br />"Program"), which is administered by the EDA.
<br />WHEREAS, pursuant the EDA provided a loan to F & M Properties, LLC (`Borrower") in
<br />the amount of $185,200 (the "Loan") pursuant to a Loan Agreement, dated May 23, 2016 (the
<br />"Original Loan Agreement"), to help the Borrower relocate to and purchase and renovate an
<br />existing building on real property located at 18489 Twin Lakes Road within the City of Elk River,
<br />Minnesota (the "City") pursuant to the Program. The terms of the Loan were approved by the City
<br />Council of the City.
<br />WHEREAS, the Loan was evidenced by a Promissory Note, dated May 23, 2016 (the
<br />"Original Promissory Note"), from the Borrower to the EDA. In order to secure the Loan, the
<br />Borrower delivered to the EDA a Mortgage and Assignment of Rents and Security Agreement and
<br />Fixture Financing Statement, dated May 23, 2016 (the "Original Mortgage"), an Environmental
<br />Indemnification Agreement (the "Original Environmental Indemnification"), dated May 23, 2016, a
<br />Personal Guaranty of Michael Tracey and Personal Guaranty of Fred Trapp, each dated May 23,
<br />2016 (collectively the "Original Personal Guaranties"), a Security Agreement, dated May 23, 2016
<br />(the "Original Security Agreement"), from Die Concepts, Inc., and an Entity Guaranty, dated May
<br />23, 2016 (the "Original Entity Guaranty"), from Die Concepts, Inc. (collectively, with the Original
<br />Promissory Note, the "Security Documents").
<br />WHEREAS, the original Loan bears interest at a rate of 2% and is due and payable in full
<br />with a balloon payment on June 1, 2021. The Borrower has continued to make loan repayments and
<br />is now requesting that the maturity date be extended by two years.
<br />WHEREAS, there was presented to the Board forms of the following documents: (i) a First
<br />Amendment to Loan Agreement, which amends and supplements the terms of the Original Loan
<br />Agreement; (ii) an Amended and Restated Promissory Note which amends and restates the Original
<br />Promissory Note; (iii) a First Amendment to Security Agreement, which amends and supplements
<br />the terms of the Original Security Agreement; (iv) an Amended and Restated Personal Guaranty,
<br />which amends and restates the terms of the Original Personal Guaranties; (v) an Amended and
<br />Restated Entity Guaranty, which amends and restates the terms of the Original Entity Guaranty; (vi)
<br />a First Amendment to Environmental Indemnification Agreement, which amends and supplements
<br />the terms of the Original Environmental Indemnification; and (vii) a First Amendment to Mortgage
<br />and Assignment of Rents and Security Agreement and Fixture Financing Statement, which amends
<br />and supplements the Original Mortgage and Assignment of Rents and Security Agreement and
<br />Fixture Financing Statement (collectively, the "Amendment Documents").
<br />WHEREAS, at a meeting on May 17, 2021, the Board of Commissioners of the EDA
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