EDA Resolution 2023-02 (Approve GMEF Sperr Prop_L&L Homestyle Cafe)EDA RESOLUTION NO.2026-02
RESOLUTION APPROVING A GREATER MONTICELLO
ENTERPRISE FUND LOAN TO SPERR PROPERTIES, LLC, AND
L&L HOMESTYLE CAFE, LLC AND APPROVING CERTAIN
LOAN DOCUMENTS IN CONNECTION THEREWITH
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 administers its Greater Monticello Enterprise Fund revolving loan program
(the "Program") pursuant to its authority under Minnesota Statutes, Sections 469.090 to 469.1081, as amended
(the "EDA Act"), in order to assist businesses in the City of Monticello, Minnesota (the "City") with financing
certain economic development activities to meet the goals set forth in the guidelines approved by the Authority
for the Program (the "Guidelines").
1.02. Sperr Properties, LLC, a Minnesota limited liability company and L & L Homestyle Cafe,
LLC, a Minnesota limited liability company (collectively, the "Borrower"), have requested financial assistance
from the Authority in connection with the costs of interior building renovations and the purchase of restaurant
equipment for operations (the "Project") located at 154 Walnut Street in the City (the "Property"').
1.03. The Authority and the Borrower desire to enter into a loan agreement (the "Loan Agreement")
wherein the Authority agrees to make a loan pursuant to the Program and the Guidelines to the Borrower in the
maximum amount of $65,000 (the "Loan") to pay a portion of the costs of the Project. The Loan will be
evidenced by a promissory note from the Borrower to the Authority (the "Note") and secured by a second
position Mortgage (the "Mortgage") to be executed and delivered to the Authority by the Borrower, a Security
Agreement (the "Security Agreement") to be executed and delivered to the Authority by the Borrower, and the
Personal Guaranty of Larry Sperr, Mark Sperr and Logan Sperr (collectively, the "Personal Guaranty").
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 (a "Business Subsidy")
for private development, and has previously adopted criteria for awarding Business Subsidies that complies
with the Business Subsidy Act, following a public hearing. The Loan, together with a facade loan
previously provided to the Borrower, constitutes a Business Subsidy within the meaning of the Business
Subsidy Act and the Loan Agreement includes a "business subsidy agreement" as required under the
Business Subsidy Act.
Section 2. Loan Documents Approved.
2.01. The Authority hereby approves the Loan Agreement, the Note, the Personal Guaranty and
the Mortgage in substantially the forms presented to the Board, including the business subsidy agreement
in the Loan Agreement, together with any related documents necessary in connection therewith, including
a disbursing agreement with a title company if necessary, all documents, exhibits, certifications, or consents
referenced in or attached to the Loan Agreement, the Security Agreement, the Note, the Personal Guaranty
and the Mortgage (the "Loan Documents").
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
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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 1 lth day of March, 2026, by the Board of Commissioners of the City of Monticello
Economic Development Authority.
Aresiden
ATTEST:
Ex uti Director
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