RESOLVED, that the proper city officers are hereby authorized to enter into an agreement, substantially in the form of that on file in the office of the city clerk as Public document No. __________, with Duluth Grand LLC for the extension of the Downtown Skywalk System through the Sheraton Duluth Hotel Property.

STATEMENT OF PURPOSE: The purpose of this resolution is to authorize execution of an agreement with Duluth Grand LLC for the extension of the Downtown Skywalk System through the soon-to-be-constructed Sheraton Duluth Hotel, to be located at the southwest corner or Third Avenue East and Superior Street. Duluth Grand LLC (the Developer) is a company owned and created by George Sherman of Sherman Associates Inc. for the purpose of constructing and operating the hotel.

Pursuant to the agreement and as provided for in the Amended and Restated Development Agreement between DEDA and Sherman Associates, the Developer will construct a skywalk bridge connecting the Medical Facilities Parking Ramp to the new hotel, entering the hotel on the fifth floor. It will then provide access, through access to the hotel’s elevators and stairway, to the hotel lobby and to Superior Street. The costs of construction are addressed under the Development Agreement.

The Skywalk will not only serve the public in general but are key to the development of the new hotel and to the revitalization proposed for the Greysolon Plaza property across Third Avenue East by the Developer. The Developer will be acquiring the Greysolon property and using the Skywalk System to provide access to its ballroom and banquet facilities which will fulfill the need for facilities of this type for the hotel and result in a significant infusion of capital in the historic Greysolon (the old Hotel Duluth) to renovate both the Moorish Room (in a historically sensitive manner) and the ballroom facilities.

The Skywalk will also provide access to the Ramp which will provide the parking for the hotel and to the new SMDC Clinic facility which was another element necessary to the hotel development.

Because of the use of the Skywalk System to address access issues necessary to the hotel, this agreement and the companion Skywalk Agreement pertaining to the Greysolon Plaza Building have provisions to guaranty the properties access in the event that the Skywalk System is ever abandoned.