City Council Resolution 2010-69EDA RESOLUTION NO. 2010-69
RESOLUTION APPROVING AN AMENDMENT OF THE
LOAN AGREEMENT BETWEEN THE CITY OF
MONTICELLO ECONOMIC DEVELOPMENT
AUTHORITY AND TAPPERS HOLDING, LLC AND OF
THE PROMISSORY NOTE MADE BY TAPPERS
HOLDING.
BE IT RESOLVED BY the Board of Commissioners ("Board") of the City of Monticello
Economic Development Authority (the "Authority" or "Holder") as follows:
Section 1. Recitals.
1.01. The Authority and Tappers Holdings, LLC (the "Maker") entered into a loan
agreement (the "Loan Agreement") dated as of June 13, 2005, for the acquisition of certain real
property in the City of Monticello.
1.02. Pursuant to the Loan Agreement, the Authority loaned to the Borrower the sum of
$200,000 (the "Loan"), evidenced by a promissory note (the "Note") and a Mortgage (the
"Mortgage"), both dated as of June 13, 2005, and executed and delivered to the Authority by the
Borrower. The Mortgage was recorded on October 17, 2006 in the office of the Wright County
Recorder as document no. A 1029695.
1.03. The Loan Agreement and Note provide for a sixty -month term of the Loan, which is
currently due and payable on November 1, 2010.
1.04. The Maker has requested modification of the Loan Agreement and Note to
provide for an extension of the term of the Loan for an additional 36 months.
Section 2. Amendment of Loan Agreement and Note Approved.
2.01. The Authority hereby approves amendment of the Loan Agreement in
substantially the form attached hereto as Exhibit A, and authorizes execution of the amended
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
amended Loan Agreement by those officials shall be conclusive evidence of their approval.
2.02. The Authority further authorizes delivery to the Maker of the original Note upon
receipt of a replacement Note, amended as described in this resolution, from the Maker.
Approved this 10th day of November, 2010, by the Board of Commissioners of the City of
Monticello Economic Development Authority.
resident
3489900 MNI MN325-6
EXHIBIT A
FIRST AMENDMENT TO LOAN AGREEMENT
This First Amendment to Loan Agreement (the "Amendment") is made this L�' day of
/MY&6�6; 20101 by Tappers Holdings LLC, a Minnesota corporation (the "Borrower") and the
City of Monticello Economic Development Authority, a public body corporate and politic
(the "Authority").
RECITALS
A. The Borrower and the Authority entered into a loan agreement (the "Loan
Agreement") dated as of June 13, 2005, for rehabilitation of certain real property described on
Exhibit A attached hereto (the "Property") in the City of Monticello (the "City").
B. Pursuant to the Loan Agreement, the Authority loaned to the Borrower the sum of
$20000 (the "Loan"), evidenced by a promissory note (the "Note") and a mortgage (the
"Mortgage"), both dated as of November 1, 2005 (the "Loan Closing Date"), and executed and
delivered to the Authority by the Borrower. The Mortgage was recorded on October 17, 2006 in the
office of the Wright County Recorder as document no. A1029695.
C. The Loan Agreement provides for a sixty -month term of the Loan, which is due and
payable on November 1, 2010.
D. The Loan Agreement contained a business subsidy agreement consisting of certain
job and wage goals to be met by June 13, 2007, and such job and wage goals have been duly
satisfied by the Borrower.
E. The parties desire to extend the term of the Loan beyond the term provided in the
Loan Agreement, and have agreed to modify certain terms and conditions of the Loan
Agreement as set forth below.
NOW, THEREFORE, in consideration of the premises and the mutual obligations of the
parties hereto, each of them does hereby covenant and agree with the other as follows:
1. Amendment of paragraph 2 of the Loan Agreement. Paragraph 2 of the Loan
Agreement is amended to read as follows:
Repayment of Loan. The Loan shall be repaid with interest as follows:
(a) Interest at the rate of two percent (3.5%) per annum shall accrue from the
Loan Closing Date until the Loan is repaid in full.
(b) Payments of principal and interest shall continue on the third day of each and
every month until the Loan is repaid in full. Such payments shall fully amortize any
3489900 MNI MN325-6 A-1
outstanding balance of the Loan over twenty (20) years from the Loan Closing Date;
provided, however, the entire remaining unpaid balance of principal and interest shall be due
and payable on the first day of the ninety-six (96th) month following the Initial Payment
Date of November 1, 2005.
2. Miscellaneous. Except as amended by this Amendment, the Loan Agreement
shall remain in full force and effect. Upon execution, Borrower shall reimburse the Authority for
all out -of pocket -costs incurred by the Authority in connection with negotiating, drafting and
approval of this Amendment.
348990v1 MN1 MN325-6 A-2
IN WITNESS WHEREOF, this Amendment has been duly executed and delivered by the
proper officers thereunto duly authorized on the day and year first written above.
CITY OF MONTICELLO ECONOMIC
DEVELOPMENT AUTHORITY
By- x
President
[Signature page to First Amendment to Loan Agreement -Monticello EDA, Monticello, Minnesota]
348990v MNI MN325-6 A-3
FIXITNTITIMAM
TA
By
Its
[Signature page to First Amendment to Loan Agreement -Borrower]
348990v1 MNI MN325-6 A-4
Exhibit A
Description of Property
Lot 12, Block 002, Oakwood Industrial Park, City of Monticello
348990v1 MNI MN325-6 A -J
Tapper's Holding, LLC
GMEF #024 Extension
Original Amount 162,937.80
Interest Rate 3.500%
Payments Commence 11/1/2010
Ending on Later Than 10/1/2013
Total Balance
Date
Principal
Interest
Payment
Remaining
111112010
700.53
459.39
1,159.92
161, 777.88
12/11/2010
688.07
471.85
1,159.92
161,089.81
1/1/2011
690.07
469.85
1,159.92
160, 399.74
2/1/2011
692.09
467.83
1,159.92
159, 707.65
3/1/2011
694.11
465.81
1,159.92
159,013.54
4/1/2011
696.13
463.79
1,159.92
158, 317.41
5/1/2011
698.16
461.76
1,159.92
157,619.25
6/1/2011
700.20
459.72
1,159.92
156,919.06
7/1/2011
702.24
457.68
1,159.92
156,216.82
8/1/2011
704.29
455.63
1,159.92
155, 512.53
9/1/2011
706.34
453.58
1,159.92
154,806.19
10/1/2011
708.40
451.52
1,159.92
154,097.78
11/1/2011
710.47
449.45
1,159.92
153, 387.32
121112011
712.54
447.38
1,159.92
152,674.78
1/1/2012
714.62
445.30
1,159.92
151,960.16
2/1/2012
716.70
443.22
1,159.92
151,243.45
3/1/2012
718.79
441.13
1,159.92
150, 524.66
4/1/2012
720.89
439.03
1,159.92
149,803.77
5/1/2012
722.99
436.93
1,159.92
149,080.78
6/1/2012
725.10
434.82
1,159.92
148, 355.68
7/1/2012
727.22
432.70
1,159.92
147,628.46
8/1/2012
729.34
430.58
1,159.92
146, 899.13
9/11/2012
731.46
428.46
1,159.92
146,167.66
10/11/2012
733.60
426.32
1,159.92
145,434.06
11/11/2012
735.74
424.18
1,159.92
144,698.33
12/1/2012
737.88
422.04
1,159.92
143,960.44
1/1/2013
740.04
419.88
1,159.92
143, 220.41
2/1/2013
742.19
417.73
1,159.92
142,478.21
3/1/2013
744.36
415.56
1,159.92
141, 733.86
4/1/2013
746.53
413.39
1,159.92
140,987.33
5/1/2013
748.71
411.21
1,159.92
140, 238.62
6/1/2013
750.89
409.03
1,159.92
139,487.73
7/1/2013
753.08
406.84
1,159.92
138, 734.65
8/1/2013
755.28
404.64
1,159.92
137,979.37
9/1/2013
757.48
402.44
1,159.92
137,221.89
10/1/2013
137,221.89
400.23
1,159.92
(0.00)