BY COUNCILOR STOVER:
RESOLVED, that the proper city officials are hereby authorized to enter into an amendment substantially in the form of that on file in the office of the city clerk as Public Document No. __________, with Granite Works, Inc., pursuant to which Granite Works, Inc., will be paid an amount not to exceed $20,000, for installation of a public sewer main in Morgan Park adjacent to the Granite Works site, payable from Fund 255, Agency 020, Organization 5530.
STATEMENT OF PURPOSE: In the spring of 2005, the city of Duluth authorized conveyance to Granite Works, Inc., of city-owned property in Morgan Park located adjacent to the former USX Plant “Atlas Cement” site. This will be the first new industrial park using both the city-owned property and the former cement plant property owned by DEDA.
The owner of Granite Works was initially told that there was sewer service to the property. After the conveyance of the property to Granite Works, it was discovered that the sewer main had been abandoned, and a new public sewer main would be required. The lack of a public sewer has caused a delay in construction of the project, and the owner of Granite Works intends to commence construction of both the public sewer main and his project as soon as possible.
John Carlson of RLK Kuusisto has estimated the cost of the public improvement not to exceed $20,000. City staff recommends paying for the cost of installation of the new public sewer main out of the costs of proceeds of the sale of the property to Granite Works in order to facilitate not only the Granite Works project but also future adjacent development. This resolution authorizes an amendment which allows the developer to install to install the public sewer main at the city’s cost.