EDA Resolution 2020-08CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. #2020-08
AUTHORIZING INTERFUND LOAN FOR
ADVANCE OF CERTAIN COSTS
IN CONNECTION WITH SMALL BUSINESS EMERGENCY GRANT
ASSISTANCE PROGRAM
BE IT RESOLVED By the Board of Commissioners of the City of Monticello
Economic Development Authority (the "Authority") as follows:
Section 1. Background.
1.01. On May 27, 2020, the Authority established its Small Business
Emergency Grant Assistance Program (the "Program") to assist small businesses located
in the City of Monticello (the "City") which have experienced economic hardship as a
result of the COVID-19 pandemic.
1.02. In establishing the Program, the Authority designated up to $100,000 in its
Greater Monticello Enterprise Fund ("GMEF") loan fund as the source of funding for its
emergency grants.
1.03. As of the date hereof, the Authority has approved and expended $85,000
in Program grant funding.
1.04. Subsequent to creation of the Program by the Authority, Governor Tim
Walz authorized the allocation by the State of Minnesota (the "State"), to local
governments including the City, of funds established by Congress through passage of the
Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to provide funding to
states and local governments to cover costs associated with the COVID-19 pandemic.
1.05. The Program assistance provided by the Authority consists of emergency
grants to local businesses for expenditures that qualify for CARES Act funding under
federal guidelines for such funds.
1.06. The Authority has determined that it is in the best interest of the City and
Authority that the Authority preserve its GMEF loan fund for the economic development
uses designated under GMEF policies and guidelines, and that it reimburse the GMEF
loan fund from CARES Act funding to the extent approved by the City for such use.
1.06. The Authority intends to designate the Program grants previously
approved and expended, as well as any additional Program grants up to the full $100,000
in GMEF funds authorized by the Authority, as an interfund loan in accordance with the
terms of this resolution.
663501v1 MNI MN190-101 1
Section 2. Repayment of Interfund Loan.
2.01. Subject to approval of CARES Act funding for Program purposes by the
City, the Authority hereby ratifies and approves the expenditure of up to $100,000 in
GMEF loan funds for Program purposes (the "Interfund Loan"). No interest shall accrue
on the principal amount of the Interfund Loan.
2.02. Principal ("Payments") on the Interfund Loan shall be paid on the first
date on which the Authority receives CARES Act funding from the City, or on any other
dates determined by the City Administrator.
2.03. Payments on the Interfund Loan will be made solely from CARES Act
funding, defined as CARES Act funds received by the City from the State pursuant to the
processes and procedures established by the State for reimbursement of qualified
expenditures, and designated by the City for administration by the Authority for Program
purposes.
2.04. The principal sum payable under this resolution is pre -payable in whole or
in part at any time by the Authority without premium or penalty.
2.05. This resolution is evidence of an internal borrowing by the Authority, and
is a limited obligation payable solely from CARES Act funding pledged to the payment
hereof under this resolution. The Interfund Loan shall not be deemed to constitute a
general obligation of the State or any political subdivision thereof, including, without
limitation, the Authority and the City. Neither the State nor any political subdivision
thereof shall be obligated to pay the principal of the Interfund Loan or other costs
incident hereto except out of CARES Act funding. The Authority shall have no
obligation to pay any principal amount of the Interfund Loan if CARES Act funding is
not allocated by the City for such purpose.
2.06. The Authority may at any time make a determination to forgive the
outstanding principal amount of the Interfund Loan to the extent permissible under law.
2.07. The Authority may from time to time amend the terms of this Resolution
to the extent permitted by law, including without limitation amendment to the payment
schedule.
Section 3. Effective Date. This resolution is effective upon approval by the
City of CARES Act funding by the Authority for Program uses.
663501v1 MNI MN190-101 2
Approved by the Board of Commissioners of the City of Monticello Economic
Development Authority this 22nd day of July, 2020.
President
�I
r.�
ATTEST -
663501vl MNI MN190-101 3