City Council Resolution 2022-114CITY OF MONTICELLO, MINNESOTA
RESOLUTION NO. 2022-114
RESOLUTION APPROVING THE LOAN OF A MINNESOTA
INVESTMENT FUND GRANT TO WILLI HAHN CORPORATION AND
THE EXECUTION OF RELATED DOCUMENTS
WHEREAS, Willi Hahn Corporation, a Minnesota corporation, or an affiliate thereof or an
entity related thereto (the "Borrower"), plans to construct an approximately 156,800 square
foot building to provide a facility for manufacturing (the "Facility") on certain property in the
City of Monticello, Minnesota (the "City"); and
WHEREAS, the Borrower has requested financial assistance to help purchase machinery
and equipment needed for the construction of an expansion of the Facility (the "Project"); and
WHEREAS, the City submitted application for a grant from the Minnesota Investment Fund
Program administered by the Minnesota Department of Employment and Economic Development
("DEED"); and
WHEREAS, on September 12, 2022, the City Council of the City (the "City Council")
approved the execution of a Grant Agreement with DEED (the "Grant Agreement") to obtain grant
funds in the amount of $220,000 and loan such grant funds to the Borrower for the Project; and
WHEREAS, there has been presented before the City Council a Loan Agreement —
Minnesota Investment Fund (the "Loan Agreement"), proposed to be entered into between the
City and the Borrower, providing for the loan of the grant funds in the amount of $220,000 to the
Borrower (the "Loan"), which constitutes a "business subsidy" exceeding $150,000 within the
meaning of Minnesota Statutes, Section 116-1.993 to 116J.995, as amended (the "Business Subsidy
Act"); and
WHEREAS, a "business subsidy agreement" as required under the Business Subsidy Act is
included as one section of the Loan Agreement, and on June 27, 2022, the City conducted a duly
noticed public hearing regarding the Loan and the business subsidy agreement; and
WHEREAS, it is proposed that the Loan be considered forgivable provided that the
Borrower complies with certain requirements of the business subsidy agreement contained in the
Loan Agreement and the Grant Contract Agreement; and
WHEREAS, in the event the Borrower does not meet the job and wage goals set forth in
the Loan Agreement, the Borrower will execute and deliver to the City a Promissory Note (the
"Note") providing a security interest in certain equipment for the benefit of the City, and such
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 guaranties, a security agreement or a
mortgage (the "Additional Security Documents").
NOW, THEREFORE, BE IT RESOLVED by the City Council (the "Council") of the City of
Monticello, Minnesota, that:
1. The Borrower has represented that with assistance it will locate the Project in the
City and create new jobs in the City in connection therewith. The City hereby finds, determines
and declares that the Project is in the public interest because it will encourage the growth of
commerce and industry, further the objectives of the Project, will facilitate the expansion of a
business in the City, prevent the movement of current or future operations to locations outside
Minnesota, result in increased employment in Minnesota and the City, and preserve or enhance
the state and local tax base.
2. The Loan Agreement, including the business subsidy agreement provided therein
are hereby in all respects approved, in substantially the forms prepared by DEED, 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.
3. 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.
4 City staff and consultants are authorized to undertake all necessary steps to
implement this resolution.
Adopted by the City Council of the City of Monticello, Minnesota this 24th day of October, 2022.
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