6.1 EDSR 10-17-2016 - Laserfiche WebLink

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Request for Action ToItem Number Economic Development Authority6.1 Agenda Section Meeting DatePrepared by General BusinessAugust 15, 2016Amanda Othoudt, EDD Item Description Reviewed by Amendment to the Loan Documentsbetween Cal Portner, City Administrator Patriot Converting, Inc. and the Economic Reviewed by Development Authority of the City of Elk River Action Requested Approve, by motion, a request to amend the Loan Agreement and Security Agreementbetween Patriot Converting, Inc. and the Economic Development Authority of the City of Elk River. Background/Discussion At their January 19 meeting, the Economic Development Authority ,000 Jobs Incentive Microloan to Patriot Converting, Inc. to renovate an existing facility and purchase new equipment. Patriot Converting was required to securethe loan by providing the EDA witha first lien security interest in certain equipment acquired with the proceeds of the Loan, in addition, theywere required to sign a personal guarantee. Patriot Converting is in the process of purchasing new equipment will be relocating some of their existing equipment to their facility in Iowa to make room for the new equipment. Patriot has requested the EDA amend the Loan Documents to modify the equipment listed as security for the Loanand file the updated UCC document. The EDA will hold a first position security interest in the equiThe city will also keep a blanket lien on all of Patriot Convertings Minnesota assets. In the event of defaulton a first position security interest, the EDA could liquidate the equipment torecover the principal and interest due on the loan and any costs associated with enforcing the security interest on the equipment from the proceeds of the sale of the property. Financial Impact None. Patriot Converting has agreed to pay for all the legal and filing fees associated with m Loan Documents. Attachments Amendment to the Loan Agreement Amendment to the Security Agreement UCC Filing Resolution