01-0494R

RESOLUTION REQUIRING COMPLIANCE WITH LAWCON REQUIREMENTS PRIOR TO APPROVAL OF WORK PERMIT FOR SPIRIT RIDGE HOTEL AND GOLF COURSE PROJECT.

BY COUNCILORS GILBERT, STEWART AND STOVER:

        WHEREAS, the Federal Land and Water Conservation Fund Act of 1965 (Lawcon) governs development of the Spirit Mountain recreation area (the area), including the development of the proposed golf course, because the city of Duluth and the Spirit Mountain recreation area authority (SMRAA) accepted Lawcon funds and promised to develop the area in accordance with the terms of the Lawcon grant agreements; and

        WHEREAS, the Minnesota department of natural resources (DNR) has informed the city in a letter dated June 6, 2001, that the current lease (the lease) between the SMRAA and Spirit Ridge LLC (the developer) for the development of a hotel and golf course at the area (the development) violates the Lawcon grant agreements that the city signed with the state and federal government; and

        WHEREAS, the city is waiting for an opinion from the national park service (NPS) on current compliance of the lease with Lawcon requirements, but it is expected that the NPS will confirm the opinion of the DNR; and

        WHEREAS, proceeding with the golf course project without resolving Lawcon issues would not be in the best interest of the city or the Spirit Mountain recreation area because, among other things, it would end the city's eligibility to receive future Lawcon and other grants for developing outdoor recreation areas in the city.

        NOW, THEREFORE, BE IT RESOLVED, by the Duluth City Council that:
                (a)     SMRAA and the developer shall be required to amend the lease to comply with Lawcon requirements and that the amended lease be approved by the city council before the council considers a work permit for the development;
                (b)     Any future amendments to the lease be approved by the council;
                (c)     The NPS and DNR approve the lease and the project generally as complying with Lawcon requirements before the council considers a work permit for the development; and
                (d)     The council not approve a work permit contingent upon the developer and SMRAA complying with Lawcon requirements.



STATEMENT OF PURPOSE:  This resolution is to set forth conditions for consideration by the city council of the application for a work permit by Spirit Ridge L.L.C. for the proposed hotel and golf course development at Spirit Mountain.