EDA Resolution 2019-03 Approving GMEF Loan DSN (Monticello RV Center Expansion)EDA RESOLUTION NO. 2019-03
RESOLUTION APPROVING A LOAN AGREEMENT
BETWEEN THE CITY OF MONTICELLO ECONOMIC
DEVELOPMENT AUTHORITY AND DSN INVESTMENTS
LLC, INCLUDING A BUSINESS SUBSIDY
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 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.
1.02. The Authority and DSN Investments LLC (the "Borrower") desire to enter into a
loan agreement (the "Loan Agreement") for a Greater Monticello Enterprise Fund ("GMEF") Loan
to be used to finance a portion of the costs of acquisition (the "Acquisition Costs") of certain real
property in the City of Monticello (the "Property"), in order to relocate the Borrower's existing
facility for the sale and service of recreational vehicles.
1.03. Pursuant to the Loan Agreement, the Authority will loan to the Borrower the sum of
$118,500 (the "Loan"), evidenced by a promissory note (the "Note"), a personal guaranty of the
owners of the Borrower (the "Guaranty"), and a mortgage (the "Mortgage"), to be executed and
delivered to the Authority by the Borrower.
1.04. Pursuant to Section 116J.993, Subdivision 3(1) of the Business Subsidy Act, the
Authority is not required to hold a public hearing on the Loan because the Loan is in an amount
less than $150,000. However, the terms of the Loan Agreement and Note shall conform to the
Authority's written Business Subsidy Policy, including a five-year operational requirement and the
inclusion of job and wage requirements; all as described in the business subsidy agreement
provisions contained in the Loan Agreement.
Section 2. Loan Agreement and Note Approved.
2.01. The Authority hereby approves the Loan Agreement, the Note, the Guaranty, and
the Mortgage in substantially the form presented to the Board. The Authority further authorizes
execution of the Loan Agreement and all documents prepared in connection therewith, subject to
modifications that do not alter the substance of the transaction and that are approved by the
President and Executive Director, provided that execution of the Loan Agreement by such
officials shall be conclusive evidence of approval.
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Approved this 10th day of April, 2019, by the Board of Commissioners of the City of Monticello
Economic Development Authority.
President
ATTEST:
Director
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