BY PRESIDENT NESS:
The city finds:
The city administration and council have established as the city’s first bonding priority the construction of a new arena at the Duluth Entertainment Convention Center (DECC). The city administration and council must establish a source of revenue to finance the city’s matching share for state bond proceeds, which must be allocated by action of the state legislature for the DECC arena project.
NOW, THEREFORE, BE IT RESOLVED, that the city of Duluth requests legislative authority as follows:
(a) City of Duluth be authorized to impose, in addition to any other authorized tax, an additional .75 percent food and beverage tax on sales transactions which are described in Minnesota Statutes Section 297A.01, subd. 3(c);
(b) All of the proceeds generated by this .75 percent additional food and beverage local sales tax are to be dedicated to defease bond issued by the city to provide the local match for state bond proceeds allocated to construct a new arena at the Duluth Entertainment Convention Center;
(c) This .75 percent local food and beverage sales tax shall terminate automatically, without any further action, at the time the bonds issued by the city to satisfy the local matching share of the DECC arena project have been retired.
BE IT FURTHER RESOLVED, that the city staff and elected officials will take the lead role in advancing these initiatives during the 2006 legislative session.
STATEMENT OF PURPOSE: This resolution requests the legislature to authorize the city to impose a .75 percent food and beverage tax to pay for a new hockey arena at the DECC.