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EDA Resolution 2021-11EDA RESOLUTION NO.2021-11 RESOLUTION APPROVING A GMEF LOAN AGREEMENT BETWEEN THE CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY, RRG HOLDINGS LLC, AND SOTA CAR WASH LLC 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 administers its Greater Monticello Enterprise Fund ("GMEF") revolving loan program pursuant to its authority under Minnesota Statutes, Sections 469.090 to 469.1081, as amended (the "EDA Act"), in order to assist Monticello businesses in financing certain economic development activities that result in the creation of jobs. 1.02. RRG Holdings LLC and Sota Car Wash LLC (together, the "Borrower") has requested financial assistance from multiple lenders, including the Authority, in connection with the acquisition of certain real property located in the City of Monticello, Minnesota (the "City") and legally described at Exhibit A hereto (the "Property"), demolition of an existing structure, and construction of a new car wash facility to be located on the Property (the "Project"). 1.03. The Authority and the Borrower desire to enter into a loan agreement (the "Loan Agreement") wherein the Authority agrees to make a loan to the Borrower of GMEF funds in the maximum amount of $140,000 (the "Loan") to pay a portion of the costs of acquisition of the Property (the "Project Costs") in connection with the Project. 1.04. The loan will be evidenced by a promissory note (the "Note") and secured by a personal guaranty of Cory Kampschroer, Jessica Kampschroer, Ellen Halvorson, and Jason Halvorson (the "Guaranty"), and a Mortgage (the "Mortgage" and together with the Loan Agreement, the Note, and the Guaranty, the "Loan Documents"), to be executed and delivered to the Authority by the Borrower. 1.05. The terms of the Loan Agreement and Note shall conform to the Amended GMEF Guidelines approved by the Authority on July 24, 2017, including wages at a level equal to at least 160% of the federal minimum wage, a term of the loan of ten years, and a fixed interest rate of 1.25%. Section 2. Loan Documents Authorized. 2.01. The Authority hereby approves the Loan Documents in the form presented to the Board, and authorizes execution of the Loan Agreement, 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. 1 MN325\46\741912.v2 Approved this 25th day of August, 2021, by the Board of Commissioners of the City of Monticello Economic Development Authority. President ,LD ATTEST: MN325\46\741912.v2 EXHIBIT A LEGAL DESCRIPTION That property located in the City of Monticello, Wright County, Minnesota and legally described as follows: Lot 1, Block 1, Kampschroer Addition. A-1 MN325\46\741912.v2