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City Council Resolution 2024-72CITY OF MONTICELLO COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO. 2024-72 RESOLUTION APPROVING A GREATER MONTICELLO ENTERPRISE FUND LOAN BY THE CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY TO AIC PROPERTIES, LLC WHEREAS, the City Council (the "Council") of the City of Monticello (the "City") has received a proposal from AIC Properties, LLC, a Minnesota limited liability company (the "Borrower"), that the City of Monticello Economic Development Authority (the "EDA") enter into a Loan Agreement (the "Loan Agreement" and, together with related documents, the "Loan Documents") in connection with a loan to the Borrower in the amount of $95,000 (the "Loan"), pursuant to the EDA's Greater Monticello Enterprise Fund (the "Program"), created to assist businesses in the City with financing certain economic development activities to meet the goals set forth in the guidelines approved by the EDA for the Program (the "Guidelines"); and WHEREAS, pursuant to the Program, the Guidelines and the Loan Documents, the Borrower intends to use the Loan in connection with the acquisition, improvement and equipping of an approximately 10,075 square foot property and the approximately 4,050 square foot building thereon located at 213 Pine Street in the City (the "Property") for use by Hair Obsession Salon LLC, a Minnesota limited liability company, as a hair salon; and WHEREAS, on August 14, 2024, the Board of Commissioners of the EDA (the "Board") will consider approving the Loan and the Loan Documents, copies of which are on file with the City Clerk. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Monticello as follows: Section 1. Business Subsidy. 1.01. The Loan constitutes a business subsidy within the meaning of Minnesota Statutes, Section 116J.993 to 116-1.995, as amended (the "Business Subsidy Act"), and the Loan Agreement includes a "business subsidy agreement" as required under the Business Subsidy Act. 1.02. The City has adopted a Business Subsidy Policy (the "Subsidy Policy"), which sets the general criteria for all types of subsidies granted by the EDA, all as required under the Business Subsidy Act. 1.03. On August 14, 2024, the Board will consider approving the Loan and the Loan Documents in accordance with the Business Subsidy Act. Section 2. Consent. 2.01 In accordance with Section 116J.994, Subd. 3(d) of the Business Subsidy Act, the City hereby approves the Loan Agreement including the business subsidy agreement provided therein and consents to the EDA entering into the Loan Documents with the Borrower, all contingent on the Board approving the Loan and the Loan Documents at their meeting on August 14, 2024. 2.02 The City hereby approves the Loan in accordance with the Loan Documents in substantially the forms on file with the City's Economic Development Director together such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by legal counsel to the EDA and by the President and Executive Director of the EDA prior to executing said documents and said officers are hereby authorized to approve said changes on behalf of the EDA. The execution of any instrument by the President and Executive Director shall be conclusive evidence of the approval of such document in accordance with the terms hereof. Approved by the City Council of the City of Monticello this 12th day of August, 2024. Mayor ATTEST: MN325\54\966900.v2