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CITY OF ELK RIVER, MINNESOTA
<br />RESOLUTION #2020- 99
<br />RESOLUTION APPROVING AMENDMENT OF LOAN TERMS FOR SCOTT MORRELL,
<br />LLC AND AUTHORIZING EXECUTION OF AMENDED LOAN DOCUMENTS
<br />(MORRELL PROJECT)
<br />WHEREAS, the Board of Commissioners (the "Board") of the Economic Development
<br />Authority of the City of Elk River (the "EDA") previously approved a Microloan Program (the
<br />"Program"), which is administered by the EDA.
<br />WHEREAS, the EDA provided a loan to Scott Morrell, LLC ("Borrower") in the amount of
<br />$200,000 (the "Loan") pursuant to a Loan Agreement, dated August 6, 2015 (the "Original Loan
<br />Agreement"), to help the Borrower's acquire certain real property located within the City of Elk
<br />River, Minnesota (the "City") pursuant to the Program. The terms of the Loan were approved by
<br />the City Council of the City.
<br />WHEREAS, the Loan was evidenced by a Promissory Note, dated August 6, 2015 (the
<br />"Original Promissory Note"), from the Borrower to the EDA. In order to secure the Loan, the
<br />Borrower delivered to the EDA a Mortgage and Assignment of Rents and Security Agreement and
<br />Fixture Financing Statement, dated August 6, 2015 (the "Original Mortgage"), dated August 6, 2015
<br />(the "Original Mortgage"), an Environmental Indemnification Agreement (the "Original
<br />Environmental Indemnification"), dated August 6, 2015, a Personal Guaranty of Terry Morrell and
<br />Renee Morrell, dated August 6, 2015 (the "Original Personal Guaranties"), a Security Agreement,
<br />dated August 6, 2015 (the "Original Security Agreement"), from Morrell Oversize, Inc., and an
<br />Entity Guaranty, dated August 6, 2015 (the "Original Entity Guaranty"), from Morrell Oversize,
<br />Inc. (collectively with the Original Promissory Note, the "Security Documents").
<br />WHEREAS, the original Loan bears interest at a rate of 2% and was due and payable in full
<br />with a balloon payment on August 1, 2020. The Borrower has continued to make loan repayments
<br />and is now requesting that the maturity date be extended until August 2022.
<br />WHEREAS, there was presented to the Board forms of the following documents: (i) a First
<br />Amendment to Loan Agreement, which amends and supplements the terms of the Original Loan
<br />Agreement; (ii) an Amended and Restated Promissory Note (the "Note") which amends and
<br />restated the Original Promissory Note; (iii) a First Amendment to Security Agreement, which
<br />amends and supplements the terms of the Original Security Agreement; (iv) an Amended and
<br />Restated Personal Guaranty, which amends and restates the terms of the Original Personal
<br />Guaranties; (v) an Amended and Restated Entity Guaranty, which amends and restates the terms of
<br />the Original Entity Guaranty; (vi) a First Amendment to Environmental Indemnification
<br />Agreement, which amends and supplements the terms of the Original Environmental
<br />Indemnification; and (vii) a First Amendment to Mortgage and Assignment of Rents and Security
<br />Agreement and Fixture Financing Statement, which amends and supplements the Original Mortgage
<br />(collectively, the "Amendment Documents").
<br />WHEREAS, at a meeting on December 21, 2020, the Board of Commissioners of the EDA
<br />adopting a resolution (the "EDA Resolution") approving the amendment to the terms of the Loan
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