EDA Resolution No. 2024-09 (Approving a 2nd Amd. to Purchase and Dev. Contract for UMC)CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO.2024-09
RESOLUTION APPROVING A SECOND AMENDMENT TO
PURCHASE AND DEVELOPMENT CONTRACT WITH UMC
REAL ESTATE, LLC AND A COMPLIANCE DATE EXTENSION
TO A BUSINESS SUBSIDY PROVIDED THEREIN
WHEREAS, on February 12, 2020, the Board of Commissioners (the "Board") of the City
of Monticello Economic Development Authority (the "Authority") provided a tax increment
interfund loan to UMC Real Estate, LLC, a Minnesota limited liability company (the
"Borrower"), in the amount of $1,031,000 (the "Loan") to assist in financing the acquisition,
construction and equipping of a manufacturing facility in the City of Monticello, Minnesota (the
"City"); and
WHEREAS, on February 26, 2020, the Authority and the Borrower entered into a
Purchase and Development Contract, as amended by the First Amendment to Purchase and
Development Contract, dated as of September 9, 2020 (as amended, the "Contract"), pursuant to
which the Borrower, among other things, agreed to certain terms and conditions under which the
Authority made the Loan to the Borrower; and
WHEREAS, the Contract includes a business subsidy agreement 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
Contract (the "Compliance Date"); and
WHEREAS, the Borrower has requested an extension of the Compliance Date for up to one
year; and
WHEREAS, the Board 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; and
WHEREAS, the Authority and the Borrower desire to amend the Contract to reflect the
extension of the Compliance Date as described in a Second Amendment to the Purchase and
Development Contract (the "Amendment"); and
WHEREAS, the Authority believes that approval of the Amendment is in the best interest
of the City and its residents.
Now, therefore, be it resolved by the Board of Commissioners (the "Board") of the City of
Monticello Economic Development Authority as follows:
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1. The Board hereby approves the Amendment in substantially the form presented to
the Board, together with any related documents necessary in connection therewith (collectively,
the "Amendment Documents"), and hereby authorizes the President and Executive Director to
execute any such Amendment Documents to which the Authority is a party, on behalf of the
Authority, and to carry out, on behalf of the Authority, the obligations of the Authority
thereunder when all conditions precedent thereto have been satisfied.
2. 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 Authority and by the officers authorized herein or by the
Authority to execute said documents prior to their execution; and said officers are hereby
authorized to approve said changes on behalf of the Authority. The execution of any instrument
by the appropriate officers of the Authority 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 Board by any duly designated acting official, or by
such other officer or officers of the Board as, in the opinion of the City Attorney, may act in their
behalf.
3. Upon execution and delivery of the Amendment Documents, the officers and
employees of the Authority are hereby authorized and directed to take or cause to be taken such
actions as may be necessary on behalf of the Authority to implement the Amendment
Documents, when all conditions precedent thereto have been satisfied.
Approved by the Board of Commissioners of the City of Monticello Economic
Development Authority this 8t' day of May, 2024.
P eside
ATTEST:
�Uiv
Director
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