City Council Resolution 2018-37RESOLUTION NO. 2018-37
CITY OF MONTICELLO
RESOLUTION APPROVING BUSINESS SUBSIDY
IN CONNECTION WITH SCDP LOAN TO BONDHUS CORPORATION
BE IT RESOLVED by the City Council of the City of Monticello, Minnesota (the "City")
as follows:
Section 1. Background.
1.01. The City of Monticello Economic Development Authority ("Authority") has been
designated as the City's Local Development Organization for purposes of administering the City's
Small Cities Development Program loan funds, pursuant to the City's Resolution No. 2005-125.
1.02. The Authority is a grantor as defined in Minnesota Statutes, Sections 116J.993 to
116J.995, as amended (the "Business Subsidy Act"), and is authorized to grant financial assistance
to private development, including loans.
1.03. The Authority and Bondhus Corporation (the `Borrower") desire to enter into a loan
agreement (the "Loan Agreement") for a Small Cities Development Program Loan (the "Loan") to
be used for the acquisition of certain equipment to be used in connection with the construction and
equipping of an expansion to the Borrower's existing hand tool manufacturing facility in the City
(the "Project").
1.04. The assistance provided to the Borrower through the Loan exceeds $150,000, and
therefore qualifies as a business subsidy (the "Subsidy") under Minnesota Statutes, Sections
116J.993 to 116J.995, as amended (the "Business Subsidy Act"). On May 9, 2018, the Authority
held a duly noticed public hearing pursuant to the Business Subsidy Act and approved the Loan
Agreement, which Loan Agreement includes a business subsidy agreement (the "Business Subsidy
Agreement") memorializing the Subsidy.
1.05. Pursuant to Section 116J.994, subd. 3(d) of the Business Subsidy Act, if the grantor
of a subsidy is not the local elected governing body, the Subsidy must also be approved by such
governing body.
Section 2. Subsidy Approved.
2.01. The City approves the Subsidy granted by the Authority to the Borrower as provided
pursuant to the Business Subsidy Agreement within the Loan Agreement, in the form presented to
the City.
Section 3. Further Acts.
3.01. City staff and officials are authorized and directed to take any and all additional
steps and actions necessary or convenient in order to accomplish the intent of this resolution.
5226741 MNI MN325-39
Approved by the City Council of the City of Monticello this 14th day of May, 2018.
ayor
ATTEST:
Ci Clerk
522674v1 MNI MN325-39