HomeMy WebLinkAbout16-030CITY OF LAKEVILLE, MINNESOTA
RESOLUTION NO. 16-30
RESOLUTION APPROVING THE LOAN OF A MINNESOTA
INVESTMENT FUND GRANT TO MOM BRANDS COMPANY, LLC AND
RELATED DOCUMENTS
WHEREAS, MOM Brands Company, LLC, a Minnesota corporation (the 'Borrower")
proposes to remain located in an existing facility in the City of Lakeville and will retain existing
jobs in its current location within the City (the "Project");
WHEREAS, pursuant to a resolution adopted on August 3, 2015, the City Council (the
"City Council") of the City of Lakeville (the "City") approved the submission of an application
for a grant from the Minnesota Investment Fund Program administered by the Minnesota
Department of Employment and Economic Development ("DEED"); and
WHEREAS, the City has received a Minnesota Investment Fund Grant Contract, Grant
Contract Number CDAP-1 5-0012-H-FY1 6 (the "Grant Agreement") from DEED, to obtain grant
funds in the amount of $750,000 and loan such grant funds to the Borrower for the purpose
of assisting with the retention of employees following the purchase of the business located in
the City by MOM Brands; and
WHEREAS, the City Council has received and reviewed an Agreement for Loan of
Minnesota Investment Fund - Forgivable Loan (the "Loan Agreement"), between the City and
the Borrower, providing for the loan of the grant funds in the amount of $750,000 to the
Borrower (the "Loan"), which agreement includes a "business subsidy agreement' as defined
in Minnesota Statutes, Sections 1661993 to 116J.995, as amended (the 'Business Subsidy
Act'); and
WHEREAS, it is proposed that the Loan be considered forgivable provided that the
Borrower complies with certain requirements of the business subsidy agreement contained in
the Loan Agreement; and
WHEREAS, to evidence the repayment obligations of the Borrower under the Loan
Agreement, the Borrower will execute and deliver to the City a Promissory Note (the "Note")
and a Corporate Guaranty (the "Corporate Guaranty"); and
WHEREAS, the City Council has had the opportunity to review the Loan Agreement,
Note, and Corporate Guaranty; and
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WHEREAS, on March 7, 2016, the City conducted a duly noticed public hearing as
required by Section 1161994, subdivision 5 of the Business Subsidy Act on the proposed Loan
to be made to the Borrower pursuant to the Loan Agreement.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lakeville, as
follows:
1. The Grant Agreement, the Corporate Guaranty, Note, and the Loan Agreement,
and the business subsidy agreement contained therein, are approved (collectively, the "Loan
Documents").
2. The Mayor and the City Administrator are authorized and directed to sign the
Loan Documents and any other documents or certificates necessary to carry out the
transactions described in the Loan Documents.
3. The Loan Documents are approved in substantially the form on file in City Hall,
subject to modifications that do not alter the substance of the transaction and are approved
by the Mayor and the City Administrator; provided that execution of the document will be
conclusive evidence of their approval.
Adopted this 7th day of March, 2016
CITY OF LAKEVILLE
BY:
Matt Little, Mayor
ATTEST:
Charlene Friedges, City Cle
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