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<br />ECONOMIC DEVELOPMENT AUTHORITY
<br />OF THE CITY OF ELK RTVER
<br />COUNTY OF SHERBURNE
<br />STATE OF MINNESOTA
<br />RESOLUTION NO. 20.13
<br />RESOLUTION APPROVING AMENDMENT OF LOAN TERMS FOR SCOTT MORRELL,
<br />LLC AND AUTHORIZING EXECUTION OF AMENDED LOAN DOCUMENTS
<br />O,TORRELL PROJECD
<br />\U7HEREAS, the Board of Commissioners (the "Boatd') of the Economic Development
<br />Authodty of the City of Elk fuver (the "EDA") pteviously approved a Mictoloan Program (the
<br />"Ptogtam"), which is administered by the EDA.
<br />\U7HEREAS, the EDA provided a loan to Scott Morrell, r J C ('Borrower") in the amount of
<br />$200,000 (the "Loan") pursuant to a Loan Agteement, dated August 6, 2075 (the "Original Loan
<br />Agreement"), to help the Borrower's acquire certain teal property located within the City of Elk River,
<br />Minnesota prrsuant to the Program.
<br />'\U7HEREAS, the Loan was evidenced by a Ptomissory Note, dated August 6, 2015 (the
<br />"Original Promissory Note"), from the Borrower to the EDA. In order to secufe the Loan, the
<br />Borrower delivered to the EDA a Modgage and Assignment of Rents and Security Agteement and
<br />Fixtue Financing Statement, dated August 6,2015 (the "Original Mortgage'), dated August 6,2075
<br />(th. "Odginal Mortgage'), an Envfuonmental Indemnification Agteement (th. "Original
<br />Environmental Indemnificadon"), dated August 6,2075, a Petsonal Guatanty of Teny Mortell and
<br />Renee Morrell, dated August 6,2075 (the "Original Petsonal Guarandes'), a Security Agteement,
<br />dated August 6,2075 (the "Original Security Agreement"), ftom Morrell Oversize, Inc., and an Entity
<br />Guaranty, dated August 6, 2015 (the "Odginal Entity Guaranty"), ftom Mortell Oversize, Inc.
<br />(collectively with the Original Promissory Note, the "Secudty Documents').
<br />T0THEREAS, the original Loan bears interest ^t ^
<br />r^te of 2o/o and was due and payable in full
<br />with a balloon payment on August 7, 2020. The Borrower has continued to make loan repayments
<br />and is now requesting that the matutity date be extended until August2022.
<br />T0THEREAS, there has been presented to this Board forms of the following documents: (i) a
<br />First Amendment to Loan Agteement, which amends and supplements the terms of the Odginal Loan
<br />Agreement; (ii) an Amended and Restated Promissory Note (the "Note") which amends and testates
<br />the Odginal Promissory Note; (iii) a First Amendment to Security Agteement, which amends and
<br />supplements the terms of the Original Secudty Agreement; (iv) an Amended and Restated Personal
<br />Guaranty, which amends and restates the terms of the Original Personal Guatandes; (v) an Amended
<br />and Restated Entity Guaranty, which amends and restates the terms of the Origtnal Entity Guaranty;
<br />(-) a First Amendment to Envfuonmental Indemnification Agreement, which amends and
<br />supplements the terms of the Odgrnal Environmental Indemnification; and (vii) a Fitst Amendment
<br />to Mortgage and Assignment of Rents and Security Agreement and Fixture Financing Statemeng
<br />which amends and supplements the Odgrnal Motgage (collectively, the "Amendment Documents").
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