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City of <br /> Elk -....-� <br /> River <br /> ECONOMIC DEVELOPMENT AUTHORITY <br /> OF THE CITY OF ELK RIVER <br /> COUNTY OF SHERBURNE <br /> STATE OF MINNESOTA <br /> RESOLUTION NO. 16-07 <br /> RESOLUTION APPROVING LOAN AGREEMENT <br /> AND RELATED DOCUMENTS <br /> HERITAGE MILLWORK INC. PROJECT <br /> WHEREAS, the Board of Commissioners (the"Board") of the Economic Development <br /> Authority of the City of Elk River (the"EDA") has received a proposal from Heritage <br /> Millwork, Inc. and Tradition Furnishing, Inc.,or affiliates thereof(collectively, the <br /> "Borrowers"), that the EDA assist the Borrowers the purchase,renovation and equipping of <br /> an existing building (the"Project") located on certain real property in the City of Elk River, <br /> Minnesota (the"City") by providing a loan to the Borrowers in the amount of$100,000 (the <br /> "Loan")pursuant to the EDA's Microloan Program (the"Program"). Proceeds of the Loan <br /> will be used by the Borrowers to provide gap financing for equipment to be used at the <br /> Project;and <br /> WHEREAS, the EDA has caused to be prepared a Loan Agreement (the"Loan <br /> Agreement")with the Borrowers setting forth,among other things, the terms and conditions <br /> under which the EDA will make the loan,a copy of which is on file with the Executive <br /> Director; <br /> NOW,THEREFORE,BE IT RESOLVED by the Board of Commissioners of the <br /> Economic Development Authority of the City of Elk River,Minnesota,as follows: <br /> 1. The Loan Agreement as presented to the EDA,together with all related documents <br /> necessary in connection therewith,including without limitation, a Promissory Note <br /> from the Borrowers evidencing the Loan, a Security Agreement evidencing a third <br /> position security interest in certain equipment,and a personal guaranty from Patrick <br /> Menth, (all as defined in and described in the Loan Agreement) (collectively,the <br /> "Loan Documents") are hereby in all respects approved,in substantially the form on <br /> file with the City's Economic Development Director;and the President and <br /> Executive Director are hereby authorized and directed to execute the Loan <br /> Agreement and any Loan Documents to which the EDA is a party on behalf of the <br /> EDA and to carry out, on behalf of the EDA,the EDA's obligations thereunder. <br /> 2. The approval hereby given to the Loan Documents includes deviation from the <br /> Program requirements as set forth in the Loan Documents and includes approval of <br /> [ (limit . . <br /> NATURE <br />