Title
RESOLUTION AUTHORIZING A TWELFTH AMENDMENT TO THE MINNESOTA INVESTMENT FUND LOAN AGREEMENT AND A TWELFTH PROMISSORY NOTE MODIFICATION AGREEMENT WITH NORTHSTAR MACHINE & TOOL CO., INC., D/B/A NORTHSTAR AEROSPACE, AND A FIRST AMENDMENT TO THE INTERCREDITOR AGREEMENT WITH REPUBLIC BANK, DULUTH 1200 FUND, INC. AND NORTHLAND FOUNDATION.
Body
CITY PROPOSAL:
RESOLVED, that the proper city officials are hereby authorized to enter into a twelfth amendment to the Minnesota Investment Fund (MIF) loan agreement, substantially in the form of the attached Exhibit A and a twelfth promissory note modification agreement, substantially in the form of the attached Exhibit B, with Northstar Machine and Tool Co., Inc., d/b/a Northstar Aerospace.
FURTHER RESOLVED, that the proper city officials are hereby authorized to enter into a first amendment to the intercreditor agreement, substantially in the form of the attached Exhibit C, with Republic Bank, Duluth 1200 Fund, Inc., and Northland Foundation.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes a Twelfth Amendment to the 2007 Minnesota Investment Fund ("MIF") Loan Agreement and a Twelfth Note Modification Agreement, both with Northstar Aerospace ("Northstar"), and a First Amendment to the Intercreditor Agreement between Republic Bank ("Bank"), City of Duluth ("City"), Duluth 1200 Fund, Inc. ("1200 Fund") and Northland Foundation ("Northland").
The City secured a $500,000 MIF grant from the Minnesota Department of Employment and Economic Development ("DEED") in 2007 on behalf of Northstar. The City used those funds to make a $500,000 loan to Northstar to assist with its expansion and the creation of 50 new jobs. In addition to the City's loan, both the Bank and 1200 Fund made loans to Northstar in the same amount; the City, Bank and 1200 Fund entered into an Intercreditor Agreement at that time.
The City's Loan Agreement and Note were first amended in January 2009 in response to the impact of t...
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