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.
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Approved this 25th day of August, 2021, by the Board of Commissioners of the City of
Monticello Economic Development Authority.
President
,LD
ATTEST:
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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
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