WHEREAS, a fire has destroyed the Peterson Hockey Arena; and

     WHEREAS, the destruction of the hockey arena deprives the citizens of a necessary and heavily used recreational facility; and

     WHEREAS, a replacement facility should be promptly constructed.

     NOW, THEREFORE, BE IT RESOLVED, that city of Duluth and the city council shall do the acts necessary to pay for a replacement facility for Peterson Hockey Arena in the following manner:

     (a)  For each dollar contributed by gift by the Duluth Amateur Hockey Association (DAHA) to the city of Duluth for the public purpose of constructing a replacement hockey arena, up to a maximum limit of $1.8 million, the city shall contribute one dollar for the same public purpose. The source of the city’s matching contribution shall be the following funds in the order shown and the amount shown:

           First, up to $500,000 from the proceeds of any insurance policy paid for by the city covering Peterson Arena for its loss by the fire and explosion that occurred;

           Next, up to $100,000 from the capital improvement program general fund which had been dedicated to heat, ventilation and air conditioning improvements at Peterson Arena;

           Next, up to $1.2 million from the Community Investment Trust Fund 256;

     (b)  The city will contribute the gift matching amounts set out above for money gifts actually received by the city before midnight, December 31, 2005;

     (c)  If the city of Duluth receives less than $500,000 in insurance proceeds under (a) above, then the maximum amount of matching contribution available shall be reduced from $1.8 million by the difference between the amount of insurance proceeds received and $500,000.

     BE IT FURTHER RESOLVED, that the funding system set out above is subject to the following conditions:

     (a)  The gifts and the matching contributions combined constitute an amount sufficient to construct a suitable replacement for Peterson Arena;

     (b)  To be enacted, this resolution requires the affirmative vote of seven councilors because the funding plan includes money from the community investment trust fund;

     (c)  The replacement arena will be owned by city of Duluth. Upon the city’s request, DAHA will operate the arena for public recreational purposes;

     (d)  Duluth public schools may use the replacement arena for a fee that is proportional to operating costs;

     (e)  City of Duluth has the right to include the replacement arena, or the replacement arena project, into the city’s Kroc Foundation project, and the funding therefore, without consent or participation of DAHA or any other party;

     (f)  Any amount paid to city of Duluth by an insurer of DAHA is not a gift that qualifies for a matching contribution from the city;

     (g)  All contracts, acts, or fund transfers are authorized by law;

     (h)  Construction on the project shall not commence until there exists an approved building design, a realistic construction budget and sufficient funds are collected, approved and in hand to satisfy the revenue requirements for the entire construction budget;

     (i)  Should state funding be secured, local match will be comprised of 50 percent city of Duluth funds and 50 percent privately raised and donated funds.

     BE IT FURTHER RESOLVED, that the city of Duluth requests the state legislature to bond up to $1.7 million to replace Peterson Arena and thanks Representative Mike Jaros for his efforts in this regard.

STATEMENT OF PURPOSE:  This resolution sets out a mechanism for funding a replacement hockey arena.