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RESOLUTION AUTHORIZING AN AMENDMENT TO THE AGREEMENT FOR LOAN OF MINNESOTA INVESTMENT FUND WITH GRANDMA’S, INC.
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CITY PROPOSAL:
RESOLVED, that the proper city officials are hereby authorized to enter into an amendment, substantially in the form of that attached hereto as Exhibit A, to the agreement for loan of Minnesota Investment Fund (“MIF”) with Grandma’s, Inc. related to the damage caused by the rain event of June 21 - 22, 2012, replacing the personal guarantor of the loan.
Statement of Purpose
STATEMENT OF PURPOSE: In 2012, the City of Duluth assisted several local businesses in securing a MIF loan to help rebuild after experiencing significant damages as a result of the historic flood. Michael Paulucci, then majority shareholder, signed as the personal guarantor to secure a MIF loan on behalf of Grandma’s Corporation. Mr. Paulucci is no longer the majority shareholder; thus, Grandma’s Corporation requested that we amend the loan agreement to reflect Andy Borg Jr. (now majority shareholder) as the personal guarantor. Republic Bank, Mr.Borg’s personal banking institution, has provide a signed letter attesting to his financial capacity to act as the guarantor for this 2012 MIF loan.