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Council approves changing collateral on state award to Northstar Lime LLC
Summary
The Crookston City Council approved a resolution to amend the city’s security agreement related to a state-awarded intermediary loan to Northstar Lime LLC, allowing the company to sell a malfunctioning pyrolyzer and substitute a flake breaker and compactor as collateral; the award amount discussed was $430,000.
The Crookston City Council voted to approve a resolution amending the city’s security agreement with Northstar Lime LLC so the company can sell a malfunctioning piece of equipment and substitute other machinery as collateral, staff said.
Ashley, speaking for city staff, introduced Item 7.01 as “a resolution regarding the proposed change in collateral for ______ loan with the Northstar Lime LLC.” She said the funding originated from a state-awarded intermediary program and that the company is seeking to release the city’s claim on a pyrolyzer so it may be sold. “One of their machines is not working properly. So they’re hoping to sell that,” Ashley said. She added the city’s intermediary position follows a prior-lien holder, Unity Bank, and that DEED had approved the requested change in security.
According to the staff presentation, the award involved roughly $430,000. Staff told the council the requested technical change would amend the security agreement to release the pyrolyzer and list a flake breaker and a compactor as replacement collateral; Unity Bank would remain ahead of the city in lien priority.
A councilmember moved to adopt the resolution and a second was recorded. After no discussion, the council took a roll call vote and the chair announced the motion carried, approving the amendment as described by staff. The transcript records the motion and the chair’s announcement that the motion carried; individual roll call votes were recorded in the meeting but portions of the roll call in the transcript are not fully legible.
Why it matters: the change frees Northstar Lime LLC to sell a nonworking machine that staff said is hampering operations and replaces it with other equipment as security for the city’s intermediary interest in the state-awarded funds. City staff noted the change had been approved by the state-level entity referenced in the meeting and that time was of the essence for the company.
What’s next: the council’s action amends the city’s security agreement per the staff request. The resolution as presented did not include additional terms in the transcript; staff will follow up on any paperwork required to complete the release and substitution of collateral.
