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City of <br /> Elk �-- Request for Action <br /> River <br /> To Item Number <br /> Economic Development Authority= 4.6 <br /> Agenda Section Meeting Date Prepared by <br /> Consent December 21, 2020 Colleen Eddy, Economic Development Specialist <br /> Item Description Reviewed by <br /> Subordination Agreement for Alan Arnold Cal Portner, City Administrator <br /> Corporation Yankee Doodle Enterprises,LLC dba Reviewed by <br /> Ralphies Victory Lane <br /> Action Requested <br /> Approve,by motion, a subordination agreement for Yankee Doodle Enterprises,LLC. <br /> Background/Discussion <br /> The EDA approved a$74,999 Energy Efficiency Improvement microloan on September 10, 2013, to Alan <br /> Arnold Corporation which was secured by a corporate guarantee from Yankee Doodle Enterprises,LLC as the <br /> operating entity for Ralphies Victory Lane and a mortgage on the property on a subordinate basis to a contract <br /> for deed from Farmer's State Bank of Heartland in the original principal amount of$465,000 for the property <br /> located at 13374 US Highway 10 NW. <br /> On August 28, 2018, the EDA provided an additional loan in the amount of$19,175.00 to the Borrower for a <br /> total loan amount of$59,657.91 in accordance with an Amended and Restated Energy Efficiency Improvement <br /> Program Loan Agreement, dated August 28, 2018. <br /> Yankee Doodle Enterprises is in the process of refinancing their debt and have requested a loan from Byline <br /> Bank in the amount of$474,000.00 and the Bank has required, as a condition to making the loan,that the <br /> Borrower and Mortgagor obtain from the EDA a Mortgage Subordination Agreement (the "Subordination <br /> Agreement") in favor of the Bank providing for the subordination of the Mortgage to the Bank's mortgage <br /> with respect to the additional financing. <br /> Financial Impact <br /> N/A <br /> Mission/Policy/Goal <br /> The Economic Development Authority for the city of Elk River (EDA) recognizes the need to stimulate <br /> private sector investment into manufacturing and certain commercial facilities and equipment in order to create <br /> new jobs,boost productivity and retain existing jobs for local residents. <br /> Attachments <br /> ■ Resolution <br /> The Elk River Vision <br /> A Y�elcoming community nvith revolutionary and spirited resourcefulness, exceptional P U W E H E o s r <br /> service, and community engagement that encourages and inspires prosperity ,g /` UR <br />