BY COUNCILOR STAUBER:
The council finds:
(a) The city and Seaway Port authority of Duluth (SPAD) have enjoyed a long and beneficial relationship;
(b) The parties have disagreed upon the application of M.S.A. Section 469.053 regarding levy of taxes;
(c) SPAD has acted in accordance with the city’s position, but wishes a review;
(d) Neither party wants to incur the delay, expense, ill-will and damage to their relationship which would result from litigation of the issue.
NOW, THEREFORE, BE IT RESOLVED, that the proper city officials are authorized to resolve the issue of the application of M.S.A. Section 469.053 to the budget and levy process by way of binding arbitration, at a cost to the city for arbitrator fees and expenses not to exceed $1,500, payable from Fund 100-010-1104-5319, and to execute and implement contracts necessary to complete the arbitration.
STATEMENT OF PURPOSE: M.S.A. Section 469.053 sets out the process by which taxes are levied for the benefit of a port authority. The city has always issued the levy requested by SPAD. The law provides “a city shall, at the request of a port authority, levy a tax in any year . . . The tax must not exceed 0.01813 percent of taxable market value.” This is labeled the “mandatory city levy.” Last year, the city levied slightly less than the requested amount. SPAD adjusted its budget, but wants to review the law, believing the previous practice was the correct one. The parties met and decided that arbitration offered a quick, fair and affordable method of review. An city will find an experienced arbitrator and submit the matter expeditiously. An arbitration agreement and fee agreement will be utilized.