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ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF ELK RIVER COUNTY OF SHERBURNE STATE OF MINNESOTA RESOLUTION NO.2024-07 RESOLUTION APPROVING LOAN AGREEMENT AND RELATED DOCUMENTS (TIPSY CHICKEN 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 Modern Construction of Minnesota, Inc., a Minnesota corporation, or an entity related thereto or affiliated therewith (the "Borrower"), that the EDA assist the Borrower with the acquisition, and renovation (the "Project") located on certain real property in the City of Elk River, Minnesota (the "City") for use as a restaurant by providing a loan to the Borrower in the amount of $51,499 (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 the Project; and WHEREAS, the EDA has caused to be prepared a Loan Agreement (the "Loan Agreement") 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 I I6J.993 to I I6J.995, as amended (the "Business Subsidy Act"); 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; and WHEREAS, the EDA believes that the provision of the Loan to the Borrower is in the vital and best interests of the City and the health, safety, morals, and welfare of its residents, and in accord with the public purposes and provisions of the applicable State of Minnesota and local laws and requirements. 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, together with all related documents necessary in connection therewith, including without limitation, a promissory note from the Borrower evidencing the Loan, a mortgage providing the EDA with a second position security interest in the Project, a corporate guaranty of MFS Food, Inc., a security agreement evidencing a second position security interest in certain Page 30 of 124