City Council Resolution 2023-43CITY OF MONTICELLO
RESOLUTION NO. 2023-43
RESOLUTION APPROVING A SECOND AMENDMENT TO MINNESOTA
INVESTMENT FUND GRANT AND LOAN AGREEMENTS IN CONNECTION
WITH UMC REAL ESTATE, LLC AND A COMPLIANCE DATE EXTENSION
TO A BUSINESS SUBSIDY PROVIDED THEREIN
Section 1. Recitals.
1.01. To assist UMC Real Estate, LLC, a Minnesota limited liability company (the
"Borrower"), in financing the purchase of machinery and equipment (the "Equipment") in
connection with an expansion of its existing manufacturing facility (the "Facility') on real
property located in the City of Monticello, Minnesota (the "City"), the City previously applied
for and received a Minnesota Investment Fund ("MIF") grant and entered into a Grant
Agreement (the "Original 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 (the "MIF Grant"), which the City loaned to the Borrower to finance a portion of
the Equipment pursuant to a Minnesota Investment Fund Loan Agreement (the "Original Loan
Agreement") between the City and the Borrower, which provided the MIF Grant to the
Borrower as a forgivable loan.
1.02. The Borrower previously requested an extension of the required time to
construct the Facility and to purchase the Equipment, and DEED and the City entered into a
First Amendment to the Grant Agreement, dated as of September 28, 2020 (the "First Grant
Agreement Amendment" and with the Original Grant Agreement, the "Grant Agreement") and
the City and the Borrower entered into a corresponding First Amendment to the Loan
Agreement, dated as of September 28, 2020 (the "First Loan Agreement Amendment" and with
the Original Loan Agreement, the "Loan Agreement").
1.03. The Grant Agreement and the Loan Agreement include business subsidy
agreements under Minnesota Statutes, Sections 116J.993 to 116J.995, as amended (the
"Business Subsidy Act"), which set forth certain job and wage goals to be satisfied by the
Borrower prior to the compliance date as set forth in the Grant Agreement and the Loan
Agreement (the "Compliance Date").
1.04. The Borrower has requested an extension of the Compliance Date for up to one
year and the City Council of the City (the "Council") held a duly noticed public hearing on this
date hereof as required by Section 116J.994, subdivision 5 of the Business Subsidy Act regarding
the extension of the Compliance Date.
1.05. DEED has agreed to the extension of the Compliance Date and is preparing a
Second Amendment to the Grant Agreement (the "Second Grant Agreement Amendment"),
and there has been prepared a corresponding Second Amendment to the Loan Agreement (the
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"Second Loan Agreement Amendment") to extend the Compliance Date for Council
consideration and approval.
Section 2. Approval of Second Grant Agreement Amendment and Second Loan Agreement
Amendment.
2.01. The City hereby finds, determines and declares that the extension of the
Compliance Date requested by Borrower is in the public interest of the City.
2.02. The Second Loan Agreement Amendment, as presented to the Council in
substantially the form submitted, and the Second Grant Agreement Amendment, to be prepared
by DEED in a form consistent with the intent of this resolution and approved by the attorney to the
City of Monticello Economic Development Authority, together with any related documents
necessary in connection therewith (collectively, "Amendment Documents"), are hereby in all
respects approved and the Mayor and City Administrator are hereby authorized and directed to
execute the Amendment Documents to which the City is a party, on behalf of the City and to carry
out, on behalf of the City, the City's obligations thereunder when all conditions precedent thereto
have been satisfied.
2.03. The approval hereby given to the Amendment 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 officers authorized herein or by the City to
execute said documents prior to their execution; and said officers are hereby authorized to
approve said changes on behalf of the City. The execution of any instrument by the appropriate
officers of the City shall be conclusive evidence of the approval of such document in accordance
with the terms hereof. In the event of absence or disability of the officers, any of the documents
authorized to be executed by this Resolution 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.
2.04. Upon execution and delivery of the Amendment Documents, the officers and
employees of the City are hereby authorized and directed to take or cause to be taken such
actions as may be necessary on behalf of the City to implement the Amendment Documents,
when all conditions precedent thereto have been satisfied.
Approved by the City Council of the City of Monticello this 22nd of Ma 2023.
Ma v
ATTEST:
OY
,itClerk
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