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The Economic Development Authority for the City of Elk River, Minnesota Resolution 24-03 A Resolution Approving Loan Agreement and Related Documents (Heritage Millwork, Inc., Project) WHEREAS, the Board of Commissioners (the "Board") of the Economic Development Authority of the City of Elk River, Minnesota (the "EDA") has received a proposal from Heritage Millwork, Inc., a Minnesota corporation, or an entity related thereto or affiliated therewith (the `Borrower', that the EDA assist the Borrower with the acquisition, construction and equipping of an approximately 110,000 square foot industrial warehouse facility (the "Project' located on certain real property in the City of Elk River, Minnesota (the "City") by providing a loan to the Borrower in the amount of $200,000 (the "Loan") pursuant to the EDA's Microloan Program (the "Program"); and WHEREAS, proceeds of the Loan will be used by the Borrower to provide gap financing for equipment to be used at the Project; and WHEREAS, the EDA has caused to be prepared a Loan Agreement (the "Loan Agreement's with the Borrower setting forth, among other things, the terms and conditions under which the EDA will make the loan, a copy of which is on file with the Executive Director; and WHEREAS, the Loan constitutes a business subsidy within the meaning of Minnesota Statutes, Sections 116J.993 to 116J.995, as amended (the "Business Subsidy Act', and on this date hereof the Board held a duly noticed public hearing on the Loan; and WHEREAS, the Loan Agreement includes a business subsidy agreement whereby the Borrower shall agree to meet certain job and wage goals in connection with the Loan as required by the Business Subsidy Act. NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Economic Development Authority of the City of Elk River as follows: 1.01. The EDA hereby approves the Loan Agreement substantially in accordance with the terms set forth in the form presented to the Board including the provisions granting a business subsidy to the Borrower, pending approval of the business subsidy by the City Council of the City, together with all related documents necessary in connection therewith, including without limitation, a promissory note from the Borrower evidencing the Loan, a security agreement evidencing a third position security interest in certain equipment, and personal guaranties from Patrick Menth, Joseph Menth, David Menth and Anna Pulde INATUREI Page 14 of 82