EDA Resolution 2018-09EDA RESOLUTION NO. 2018-09
RESOLUTION APPROVING A LOAN AGREEMENT
BETWEEN THE CITY OF MONTICELLO ECONOMIC
DEVELOPMENT AUTHORITY AND BONDHUS
CORPORATION, INCLUDING A BUSINESS SUBSIDY
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 is a grantor as defined in Minnesota Statutes, Sections 116J.993 to
116J.995, as amended (the "Business Subsidy Act"), and is authorized to grant financial
assistance to private development, including loans.
1.02. The Authority and Bondhus Corporation (the "Borrower") desire to enter into a loan
agreement (the "Loan Agreement") for a Small Cities Development Program Loan to be used for
the acquisition of certain equipment to be used in connection with the construction and equipping of
an expansion to the Borrower's existing hand tool manufacturing facility in the City of Monticello
(the "Equipment").
1.03. Pursuant to the Loan Agreement, the Authority will loan to the Borrower the sum of
$200,000 (the "Loan"), evidenced by a promissory note (the "Note"), a corporate guaranty of
Bondhus Corporation (the "Guaranty"), and a Security Agreement (the "Security Agreement"), to
be executed and delivered to the Authority by the Borrower.
1.04. The terms of the Loan Agreement and Note shall conform to the Authority's written
Business Subsidy Policy, including a five-year operational requirement and the inclusion of job and
wage requirements.
1.04. On the date hereof, the Authority held a duly noticed public hearing on the Loan
Agreement, including the business subsidy agreement contained therein, at which all interested
persons were given an opportunity to be heard.
Section 2. Loan Agreement and Note Approved.
2.01. The Authority hereby approves the Loan Agreement, the Note, the Guaranty, and
the Security Agreement in substantially the form presented to the Board, subject to approval of
the business subsidy contained in the Loan Agreement by the City Council of the City. The
Authority further authorizes execution of the Loan Agreement and all documents prepared in
connection therewith, 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
Amendment by such officials shall be conclusive evidence of approval.
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Approved this 9th day of May, 2018, by the Board of Commissioners of the City of Monticello
Economic Development Authority.
President
ATTF,ST-
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