City Council Resolution 2020-29CITY OF MONTICELLO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO. 2020-29
RESOLUTION APPROVING A MINNESOTA INVESTMENT FUND GRANT,
THE LOAN OF MINNESOTA INVESTMENT FUND GRANT FUNDS TO
UMC REAL ESTATE, LLC, AND RELATED DOUMENTS
Section 1. Recitals.
1.01. UMC Real Estate, LLC, a Minnesota limited liability company (the "Borrower"),
desires to finance the purchase of machinery and equipment (the "Equipment") to be installed in
connection with an expansion of its existing manufacturing facility (the "Facility") on real
property located in the City of Monticello, Minnesota (the "City"), and the Borrower has
requested financial assistance from the City to purchase the Equipment.
1.02. The City applied for and received a Minnesota Investment Fund ("MIF") grant,
and has received and reviewed a Grant Agreement (the "Grant Agreement") with the Minnesota
Department of Employment and Economic Development ("DEED") in connection with the grant
of MIF funds in the amount of $300,000, which will be loaned to the Borrower to finance a
portion of the Equipment.
1.03. The City has further received and reviewed the Minnesota Investment Fund Loan
Agreement (the "Loan Agreement") between the City and the Borrower providing for the
forgivable loan of the MIF grant funds in the amount of $300,000 to the Borrower (the "Loan"),
which agreement includes a "business subsidy agreement" as defined in Minnesota Statutes,
Sections 166J.993 to 116J.995, as amended (the "Business Subsidy Act").
1.04. To evidence the repayment obligations of the Borrower under the Loan
Agreement, the Borrower will execute and deliver to the City a Promissory Note (the "Note"), a
Personal Guaranty of Donald J. Tomann (the "Guaranty") for the benefit of the City, and any
additional documents if required and deemed necessary by the City Administrator or the
Minnesota Department of Employment and Economic Development to provide additional
security for the Loan, including but not limited to, one or more security agreements or a
mortgage (the "Additional Security Documents").
1.05. On the date hereof, the City has conducted a duly noticed public hearing as
required by Section 116J.994, subdivision 5 of the Business Subsidy Act on the proposed Loan
to be made to the Borrower pursuant to the Loan Agreement.
Section 2. Approval of Grant Agreement, Loan Agreement, and Related Documents.
2.01. The City hereby finds, determines and declares that it is in the public interest of
the residents of the City that the project as described in the Grant Agreement and Loan
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Agreement be undertaken in the City.
2.02. The Loan Agreement, including the business subsidy agreement provided therein,
the Grant Agreement, the Guaranty and the Note as presented to the City are hereby in all respects
approved, in substantially the forms submitted, together with any related documents necessary in
connection therewith (collectively, the "Loan Documents"), and the Mayor and City Administrator
are hereby authorized and directed to execute the Loan Documents on behalf of the City and to
carry out, on behalf of the City, the City's obligations thereunder. The Mayor and City
Administrator are hereby authorized and directed to execute any such Additional Security
Documents as may be deemed necessary and appropriate and approved by legal counsel to the City
and by the City Administrator.
2.03. The approval hereby given to the Loan Documents and the Additional Security
Documents includes approval of such additional details therein as may be necessary and appropriate
and such modifications thereof, deletions therefrom and additions thereto as may be necessary and
appropriate and approved by legal counsel to the City and by the Mayor and City Administrator
prior to executing said documents; and said officers are hereby authorized to approve said changes
on behalf of the City. The execution of any instrument by the Mayor and City Administrator shall
be conclusive evidence of the approval of such document in accordance with the terms hereof. In
the event of absence or disability of said officers, any of the documents authorized by this
Resolution to be executed may be executed without further act or authorization of the Council by
any duly designated acting official, or by such other officer or officers of the Council as, in the
opinion of the City Attorney, may act in their behalf.
Approved by the City Council of the City of Monticello this 9th day of March, 2020.
Oa�yor
ATTEST:
Clerk
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