04-0810R


RESOLUTION AUTHORIZING THE USE OF $200,000 ANNUALLY OF THE REVENUE FROM THE FOND DU LUTH CASINO FOR THE DOWNTOWN WATERFRONT SPECIAL SERVICE DISTRICT.

BY PRESIDENT STAUBER:

     WHEREAS, the city council has by Ordinance 04-053 established the Downtown Waterfront Special Service District; and

     WHEREAS, the city council has approved Resolution 04-0596, authorizing entering into a service contract with the Greater Downtown Council to provide services to implement the Downtown special services district; and

     WHEREAS, the above-referenced service contract provides that the city will pay the Greater Downtown Council an amount of $200,000 annually in 2005, 2006, 2007, 2008 and 2009 toward the expenses of special services district; and

     WHEREAS, the Fond du Luth Casino added 144 slot machines to the original 556 machines in late 2003 and these additional machines are expected to generate approximately a minimum of five percent additional revenue, which equates to an increase of $270,000 over 2003 receipts; and

     WHEREAS, the Fond du Luth Casino is located in the area covered by the special services district.

     NOW, THEREFORE, BE IT RESOLVED, that the appropriation of $200,000 of the revenue received in 2005 from the Fond du Luth Casino to the general fund for the express purpose of funding the city of Duluth’s payment to the special services district.


STATEMENT OF PURPOSE:  This resolution authorizes the use of $200,000 of the revenue received from the Fond du Luth Casino compact to be used for funding the city’s obligation to the Downtown Waterfront Special Services District in 2005. Approval of this resolution requires a 7/9ths vote of the city council.