EDA Minutes 03-19-2021 (Special Meeting)MINUTES
SPECIAL MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, March 19th, 2021— 7:45 a.m.
Mississippi Room, Monticello Community Center
Participants attended in -person or remotely.
Commissioners Present: Steve Johnson, Bill Tapper, Tracy Hinz, 011ie Koropchak-White,
Lloyd Hilgart, and Jim Davidson
Commissioners Absent: Jon Morphew
Staff Present: Jim Thares
1. Call to Order
Steve Johnson called the Special Meeting of the EDA to order at 7:45 a.m.
2. Roll Call
3. Consideration of Resolution #2021-02 Approving Loan Subordination Agreement with
Associated Bank, National Association and UMC Real Estate, LLC
Jim Thares explained that staff received a request asking the EDA to consider
subordinating its $300,000 mortgage loan to Associated Bank, the primary lender for the
UMC expansion project. Thares reminded the EDA members of the land sale transaction
with UMC in April 2020 wherein $300,000 of the price was structured as an Advance
Funding loan. The loan allowed UMC to acquire the 7.39-acre development site
property with no funding exchanged at that time. The remainder of the purchase value
in the amount of $731,000 will be recaptured by the EDA through the Tax Increments
that flow from the new development over a 9 year collection period. The EDA wrote
down the sale amount through the TIF process. Thares stated that the $300,000
Advance Funding loan was secured through a first real estate mortgage. The EDA
Attorney reviewed and provided markups to the loan subordination agreement.
Steve Johnson asked if was appropriate to have a UCC filing on the equipment for which
the MIF (Minnesota Investment Fund) loan, also in the amount of $300,000, would be
used for. Thares explained that there would be a UCC filing when the equipment is
purchased.
OLLIE KOROPCHAK-WHITE MOVED TO APPROVE RESOLUTION #2021-02 ENTERING INTO
A LOAN SUBORDINATION AGREEMENT WITH ASSOCIATED BANK, NATIONAL
ASSOCIATION AND UMC REAL ESTATE, LLC RELATED TO THE EDA'S $300,000 ADVANCE
FUNDING LAND PURCHASE MORTGAGE SECURED LOAN. BILL TAPPER SECONDED THE
MOTION. MOTION CARRIED, 6-0.
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4. Adjourn
TRACY HINZ MOVED TO ADJOURN THE MEETING AT 7:55 A.M. OLLIE KOROPCHAK-
WHITE SECONDED THE MOTION. MOTION CARRIED, 6-0.
Recorder: Jacob Thunander
Approved: April 14, 2021
Attest:
ares, Economic Development Director
Economic Development Authority Minutes (Special Meeting) — March 19', 2021 Page 2 1 2