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Home My WebLink AboutIV.B.2 HEDRA Resolution No. 2022-27 - Approving Revolving Loan to RH Holdings, LLCCITY OF HASTINGS DAKOTA COUNTY, MINNESOTA HEDRA RESOLUTION NO. 2022-27 A RESOLUTION OF THE HASTINGS ECONOMIC DEVELOPMENT AND REDEVELOPMENT AUTHORITY (HEDRA) APPROVING REVOLVING LOAN TO RH HOLDINGS, LLC WHEREAS, the Hastings Economic Development and Redevelopment Authority (HEDRA) has established an Economic Development Revolving Loan Fund and Guidelines pursuant to Minnesota State Statutes 469.01 on April 13, 2017; and WHEREAS, RH Holdings, LLC (Applicant) owns the property located at 1250 South Frontage Road which is identified as PID 19-83010-01-010; and WHEREAS, The Applicant submitted a revolving loan application for $20,000 to support various building and property improvements at a total cost of $189,900; and WHEREAS, the Applicant has secured private financing totaling more than 60% of the total project cost as well as improvements that include fire suppression systems which based on the HEDRA loan guidelines qualifies the Applicant for a reduction in their fixed interest rate from 4.0% to 3.5%; and WHEREAS, HEDRA finds that the loan is not a business subsidy under Minnesota State Statues 116J.993 and that the loan meets Economic Development Revolving Loan Fund program guidelines; and WHEREAS, Staff has outlined a loan in the amount of $20,000 which would have terms of 1 year payment and interest free and then a term of 5 years at a fixed interest rate of 3.5%; and NOW THEREFORE BE IT RESOLVED, that HEDRA authorizes signature of loan agreements as outlined above contingent upon the following: 1) Securing the loan through a mortgage recorded against the Property 2) Securing the loan through a guarantee from RH Holdings, LLC 3) Execution of a Loan Agreement between HEDRA and RH Holdings, LLC ADOPTED BY THE HASTINGS ECONOMIC DEVELOPMENT AND REDEVELOPMENT AUTHORITY THIS 7th DAY OF June, 2022. AYES: NAYS: Bruce Goblirsch, President Eric Maass, Secretary This instrument drafted by: City of Hastings 101 East 4th Street Hastings, MN 55033