EDA Resolution 2021-05RESOLUTION No. 2021-05
CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION AUTHORIZING EXTENSION OF JOB AND WAGE
COMPLIANCE DATE RELATED TO A LOAN AGREEMENT BETWEEN
THE AUTHORITY AND RUSTECH BREWING COMPANY LLC
WHEREAS, the City of Monticello Economic Development Authority (the "Authority")
currently administers the Central Monticello Redevelopment Project No. 1 (the "Project") within
the City of Monticello (the "City"); and
WHEREAS, the Authority entered into a Loan Agreement with Rustech Brewing Company
LLC (the "Borrower") dated as of July 12, 2017 (the "Agreement"), providing for a Greater
Monticello Enterprise Fund loan by the Authority to the Borrower in the amount of $75,000 (the
"Loan") for the purchase of certain equipment necessary for the operation of the Borrower's
microbrewery and tap room located within the Project; and
WHEREAS, the Loan did not constitute a business subsidy as defined in Minnesota
Statutes, Sections 116J.993 to 116J.995, as amended (the "Business Subsidy Act"), because the
amount of the Loan was less than $150,000, but the parties agreed and acknowledged that because
the Loan was in the amount of at least $75,000, Section 116J.994, subd. 2 of the Business Subsidy
Act requires the Borrower to comply with the Authority's written business subsidy policy with
regard to the fulfillment of certain job and wage goals, which were to be met within two years after
the date of the Agreement (the "Compliance Date"); and
WHEREAS, the Authority has determined that the Compliance Date was July 12, 2019,
and that the Borrower has not yet satisfied the job and wage goals required under the Agreement;
and
WHEREAS, due to economic challenges caused by the COVID-19 pandemic, the
Borrower has requested an extension of the Compliance Date to July 12, 2022; and
WHEREAS, the Authority believes that approval of the extension of the Compliance Date
is in the best interest of the City and its residents.
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the City of
Monticello Economic Development Authority as follows:
The extension of the Compliance Date is hereby approved. The extended Compliance Date
is July 12, 2022.
MN3251331712006.v i
Approved by the Board of Commissioners of the City of Monticello Economic
Development Authority this 14th day of April, 2021.
President
ATTEST:
ecretary
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