05-0524R


RESOLUTION ACCEPTING ENVIRONMENTAL RESPONSIBILITY FOR POTENTIAL CLEAN-UP OF CERTAIN AIRPORT PROPERTY TO FACILITATE CIRRUS EXPANSION.

BY COUNCILOR ATKINS:

     WHEREAS, many years ago, the City of Duluth leased land to the U.S. Department of Defense (“DoD”) for the operation of a United States Air Force (“USAF”)Base at the Duluth International Airport (“DIAP”); and

     WHEREAS, in the early 1980's, the USAF ceased to operate an air base facility at DIAP and released portions of the previously leased premises to the City for operation by the Duluth Airport Authority (“DAA”); and

     WHEREAS, other portions of the leased premises, including the subject property, were retained by the DoD and provided for use to other Federal and related agencies including the Minnesota Air National Guard; and

     WHEREAS, in 1993, Cirrus Aviation, Inc. (“Cirrus”) commenced manufacture and marketing of general aviation aircraft at the DIAP adjacent to the subject property; and

     WHEREAS, Cirrus’s manufacturing and marking operations at the DIAP have been a resounding success, requiring the company to expand its operations at the DIAP in the past and requiring that they do so again in order to meet the demand for their aircraft; and

     WHEREAS, the property upon which Cirrus needs to expand is presently part of the property remaining under lease to DoD and, in addition, has been determined to be impacted by low level environmental contaminants which are subject to a long-term DoD clean-up program as required by the Minnesota Pollution Control Agency (“MPCA”); and

     WHEREAS, DoD is desirous of cooperating with the proposed expansion of Cirrus and, to that end, is willing to grant a right of early access to the property to allow early commencement of construction of the expansion and to amending the lease to exclude the subject property but is unable to do so as long as they are required to clean up the property because their funding source for such clean-up work can only be used on property under their ownership or control; and

     WHEREAS, DoD is willing to grant a right of early access to the property to allow early commencement of construction of the expansion and to amending the lease to exclude the subject property at this time if a responsible party will take upon itself the clean-up obligations in conformance with the requirements of MPCA; and

     WHEREAS, City staff has received assurances that the level of contamination existing on the subject property is minimal, that the cost of any required clean-up should be low, that State of Minnesota Department of Trade and Economic Development grants will be available to assist the City in paying for any required clean-up and that Cirrus will assist the City in resolving any clean-up issues; and

     WHEREAS, the City has determined that it is of vital importance to the long-term development of Cirrus, of the DIAP and of the City that the City take whatever steps are necessary to facilitate the expansion of Cirrus on the subject property at this time.

     RESOLVED that the City of Duluth does hereby commit to accept all liability, including financial liability, for the costs of any environmental clean-up work required by MPCA to be performed upon the subject property, which property is generally shown on that map on file in the office of the City Clerk as Public Document No. , subject to DoD granting rights of early access to the subject property and amending the existing lease to release it therefrom in a time and manner which will allow the expansion of Cirrus to go forward during the Fall of 2005 and Cirrus entering into a lease and development agreement wherein Cirrus commits and agrees to construct an expansion of its manufacturing facility and conduct manufacturing operations in such new facility under terms and conditions acceptable to the City, the DAA and Duluth Economic Development Authority as appropriate.


STATEMENT OF PURPOSE:  This resolution is commit the City to cover any environmental costs arising on land under lease to the Department of Defense which is needed for the proposed Cirrus expansion.

 

DISCLAIMER