BY COUNCILOR REINERT:
The city council makes the following findings:
(a) The Duluth airport authority (the authority) has determined to terminate the existing lease and FBO agreement with North Country Aviation, Inc., (NCA) relating to the Duluth International Airport, and to acquire the remaining leasehold interest of NCA by the issuance and delivery to NCA of its airport facility revenue note, Series 2005A (the note), in the principal amount of $506,702.59; and
(b) On October 18, 2005, the authority adopted its resolution entitled RESOLUTION AUTHORIZING THE ISSUANCE OF $497,378.55 AIRPORT FACILITY REVENUE NOTE, SERIES 2005A; PROVIDING FOR THE EXECUTION AND DELIVERY OF RELATED DOCUMENTS; AND AUTHORIZING CERTAIN FURTHER ACTIONS (the note resolution), which resolution authorizes the issuance of the note and the pledge of certain revenues designated therein to the payment of principal of and interest on the note, subject to action by this city council approving, confirming and ratifying such issuance and pledge, as required by the provisions of the Duluth Airport Authority Act of 1969, Laws of Minnesota 1969, Chapter 577.
NOW, THEREFORE, BE IT RESOLVED, by the city council of the city of Duluth, Minnesota, that the council hereby approves, confirms and ratifies the actions of the authority providing for the issuance and sale of the note, and the pledge of revenues thereto, and all other actions of the authority as set forth in the note resolution.
STATEMENT OF PURPOSE: This resolution is required in order to complete the sale transaction of North Country Aviation, the company serving as the airport’s fixed base operator (FBO), to Monaco Air Duluth, the new FBO. The promissory note will be issued to North County Aviation for acquisition of the remaining leasehold interest. The payment will be derived from fuel flowage and landing fee revenue collected from the operation of the airport under the new operator lease. The overall transaction will enhance the financial viability and revenue stream for the Duluth airport authority. This resolution will have no impact or place any financial burden on the city of Duluth.