WHEREAS, the city, Lake Superior Center (LSC), DEDA and the Lake Superior Center authority entered into an operating and revenue participation agreement dated June 30, 1998, which bears City Contract No. 18364 for the operation of the Great Lakes Aquarium; and

        WHEREAS, Paragraph 6B of said agreement requires that LSC submit its annual budget to the city not later than October 1 of each year and for the city to approve or disapprove said budget on or before November 1st of each such year; and

        WHEREAS, LSC has requested an extension of the deadline for filing its 2002 budget because unusual circumstances in August would have an aberrational affect on said budget and it is necessary to include September figures, which will not be available by said deadline, to more accurately evaluate its proposed 2002 budget; and

        WHEREAS, the city is willing to extend the date for submission of LSC's 2002 budget to November 1, 2001, under the condition that it still has an entire month to determine whether to approve or disapprove said budget.

        NOW, THEREFORE, BE IT RESOLVED, that the city of Duluth hereby agrees to extend the date for filing of Lake Superior Center's annual budget for year 2002, as set forth in Paragraph 6B of City Contract No. 18364, from October 1, 2001, to November 1, 2001, upon the condition that the city shall have until December 1, 2001, to approve or disapprove said budget in accordance with the procedures set forth in said Paragraph 6B.

STATEMENT OF PURPOSE:  The purpose of this resolution is to authorize an extension of the date for Lake Superior Center to file the 2002 budget with the city and extending the time for the city to respond.

Under the operating and revenue participation agreement between LSC the city, DEDA and the Lake Superior Center authority, LSC is the entity responsible for the operations of the Great Lakes Aquarium and the intended pay-back of substantial portions of the city's and DEDA's investment in that facility. Consequently, Paragraph 6B of that agreement requires that LSC file its budget with the city and DEDA by October 1 of each year for the next operating year. The city and DEDA then have a month in which to approve or disapprove that budget.

The aquarium has now been open for a year and so it is possible to review its budget in light of actual operations instead of projections. However, LSC believes that the results for August of 2001 have been an aberration and that including those numbers but not those for September will skew the budgeting process. Therefore they have requested that they be allowed to delay the submission of their 2002 budget until the results of September's operations can be available to be part of the budget review process.

This resolution allows them an additional month, until November 1, to submit their 2002 budget so that September results can be considered in the process for approving or rejecting that budget. It is conditioned, however, on the city still having a full month to review and approve or disapprove the budget and so extends the city's deadline for action to December 1 also.