EDA Resolution No. 2025-08 (Approval of a Loan Grant for Stellar Prop Investments LLC 124 W Broadway)EDA RESOLUTION NO. 2025-08
RESOLUTION APPROVING A LOAN AGREEMENT BETWEEN
THE CITY OF MONTICELLO ECONOMIC DEVELOPMENT
AUTHORITY AND STELLAR PROPERTY INVESTMENTS, LLC
BE IT RESOLVED BY the Board of Commissioners ("Board") of the City of Monticello Economic
Development Authority (the "Authority") as follows:
Section 1. Recitals.
1.01. The Authority recognizes the need to encourage investment in commercial and retail
buildings in the downtown area of the City of Monticello, Minnesota (the "City") in order to maintain the
economic viability of the City and its Downtown/Central Community District and as such, has established
a program to provide forgivable loans to eligible properties in the City's downtown to improve the fagades
of existing commercial and retail buildings (the "Fagade Program"). On November 9, 2022 and January
10, 2024, the Authority adopted revised policies for the Fagade Program (the "Policies").
1.02. The Authority and Stellar Property Investments, LLC, a Minnesota limited liability company
(the `Borrower"), desire to enter into a loan agreement (the "Loan Agreement") for a Fagade Program
forgivable loan in the amount of $100,000 (the "Loan") to be used to pay a portion of the costs of exterior
improvements to the building located on that certain real property at 124 West Broadway in the City (the
"Property").
1.03. The Policies require that the maximum loan amount be no greater than $50,000 (the
"Maximum Amount Requirement").
1.04. The Authority is a grantor as defined in Minnesota Statutes, Sections 116J.993 to 116J.995,
as amended (the "Business Subsidy Act"), is authorized to grant financial assistance ("Business Subsidy")
for private development and has previously adopted criteria for awarding Business Subsidies that complies
with the Business Subsidy Act.
1.05. On the date hereof, the Authority held a duly noticed public hearing regarding the provision
of a Business Subsidy to the Borrower and a proposed business subsidy agreement (the "Business Subsidy
Agreement") and determined that the creation and/or retention of jobs is not a goal of this Business Subsidy
and instead the goal of the business subsidy is to help encourage investment in commercial and retail
buildings in the City's business district and prevent blight and blighting factors therein. Therefore,
notwithstanding the requirements of Section 116J.994, Subd. 2 of the Business Subsidy Act, the Authority
determines that the terms of the Loan may deviate from the Authority's written business subsidy criteria,
and hereby sets the job and wage goals of the Loan at zero.
Section 2. Loan Agreement Approved.
2.01. The Authority hereby approves the Loan and the waiver of the Maximum Amount
Requirement. The Authority hereby approves the Loan Agreement in substantially the form presented to
the Board, including the business subsidy and the Escrow Agreement attached thereto, together with any
related documents necessary in connection therewith, including without limitation the Promissory Note, the
Draw Request, and all documents, exhibits, certifications, or consents referenced in or attached to the Loan
Agreement (the "Loan Documents").
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2.02. The Board hereby authorizes the President and Executive Director, in their discretion and
at such time, if any, as they may deem appropriate, to execute the Loan Documents on behalf of the
Authority, and to carry out, on behalf of the Authority, the Authority's obligations thereunder when all
conditions precedent thereto have been satisfied. The Loan Documents shall be in substantially the form
on file with the Authority and the approval hereby given to the Loan 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 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 herein authorized shall be conclusive evidence of
the approval of such document in accordance with the terms hereof. This resolution shall not constitute an
offer and the Loan Documents shall not be effective until the date of execution thereof as provided herein.
2.03. In the event of absence or disability of the officers, any of the documents authorized by
this resolution to be executed 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. Upon execution and delivery of the Loan Documents, the officers and
employees of the Board are hereby authorized and directed to take or cause to be taken such actions as may
be necessary on behalf of the Board to implement the Loan Documents.
Approved this 8th day of October, 2025, by the Board of Commissioners of the City of Monticello
Economic Development Authority.
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