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EDA Resolution 2026-04 (Approve Revolving Loan Fund_Kids Haven)EDA RESOLUTION NO. 2026-04 RESOLUTION APPROVING AN ECONOMIC DEVELOPMENT REVOLVING LOAN FUND TO KIDS HAVEN OF MONTICELLO HOLDINGS, LLC AND KIDS HAVEN OF MONTICELLO, 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 Economic Development 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. Kids Haven of Monticello Holdings, LLC, a Minnesota limited liability company and Kids Haven of Monticello, LLC, a Minnesota limited liability company (collectively, the "Borrower"), have requested financial assistance from the Authority in connection with the purchase of playground equipment for a new childcare facility (the "Project") to be located 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 $250,000 (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 third position or lower priority 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 Melissa Sjolin and the Personal Guaranty of Terry Peterson (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 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"). 4902-8638-2223.1 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 April, 2026, by the Board of Commissioners of the City of Monticello Economic Development Authority. President ATTEST: Executi 4902-8638-2223.1 2