01-0398R

RESOLUTION AUTHORIZING AN APPLICATION TO THE STATE OF MINNESOTA FOR A MINNESOTA INVESTMENT FUND GRANT IN THE AMOUNT OF $500,000 (CIRRUS DESIGN CORPORATION).

BY COUNCILOR STENBERG:

        BE IT RESOLVED, that the city of Duluth (city) act as the legal sponsor for the project contained in the business and community development application to be submitted on or about May 18, 2001, and that the mayor of the city is hereby authorized to apply to the Minnesota department of trade and economic development for funding of this project on behalf of the city.

        FURTHER RESOLVED, that the city has the legal authority to apply for financial assistance, and the institutional, managerial and financial capability to ensure adequate construction, operation, maintenance and replacement of the proposed project for its design life.

        FURTHER RESOLVED, that the city has not incurred any costs and has not entered into any written agreements to purchase property.

        FURTHER RESOLVED, that the city has not violated any federal, state or local laws pertaining to fraud, bribery, graft, kickbacks, collusion, conflict of interest or other unlawful or corrupt practice.

        FURTHER RESOLVED, that upon approval of its application by the state, the city may enter into an agreement with the state of Minnesota for the above-referenced project and that the city certifies that it will comply with all applicable laws and regulations as stated in all contract agreements and described on the project compliance section (FP-17) of the business and community development application.

        FURTHER RESOLVED, that the city will obtain credit reports and credit information from Cirrus Design Corporation. The city and its city attorney will review the reports and information to ensure that no adverse findings or concerns regarding, but not limited to, tax liens, judgments, court actions, and filings with state, federal and other regulatory agencies are identified. Failure to disclose any such adverse information could result in revocation or other legal action.

        FURTHER RESOLVED, that the proper city officials are hereby authorized to execute such agreements, and amendments, as are necessary to implement the project on behalf of the city.



STATEMENT OF PURPOSE:  Approval of this resolution allows for the application by the city of Duluth to the state department of trade and economic development (DTED) for a $500,000 Minnesota investment fund (MIF) grant. This grant would provide for a forgivable loan to Cirrus Design Corporation of $400,000 with the remaining $100,000 to be repaid. Terms and conditions of the loan agreement for such a loan have yet to be negotiated and would be presented pursuant to Duluth's business subsidy criteria. The resolution also authorizes the city to enter into necessary agreements with the state if the funding is offered.