WHEREAS, on February 28, 2006, there was held in the city of Duluth, pursuant to the provisions of Section 51 of the Duluth City Charter, a special municipal election for the purpose of submitting to the voters the following referendum question:

     “If the state of Minnesota allocates enough funds for the project to go forward and to pay for up to one-half of the cost of a new arena for concerts, conventions, hockey and other events at the Duluth Entertainment Convention Center (DECC), then should the city of Duluth seek permission from the legislature to pay for part of the remaining cost by increasing the existing sales tax on food and beverages purchased in Duluth bars and restaurants by .75 percent (7.5 cents per ten dollars spent), subject to the following conditions:

     (a)  The tax increase would only take effect if the state allocates money for the project to go forward and to pay up to one-half of the project costs; and

     (b)  The state approves the new tax; and

     (c)  The tax is only in effect for the period of time needed for it to raise enough money to pay off the city’s portion of the project cost?”; and

     WHEREAS, the judges of the election precincts of the city have made their returns of said election; the city council, acting as a canvassing board, has duly canvassed said returns (Public Document No. _________________) and ascertained the number of ballots cast at said election and thereby declared that at said election there were a total of 13,330 votes, said votes having been cast in the following manner:

           That there were 8,182 “yes” votes and 5,148 “no” votes;

     NOW, THEREFORE, BE IT RESOLVED, that the referendum question requesting the legislature to authorize the financing of the needed improvements to the DECC facility, in part, by allowing a .75 percent increase in the city food and beverage sales tax, under certain conditions, received a majority of positive responses and is hereby declared to be approved by the electors voting upon such question and is hereby declared to be operative and in full force immediately, pursuant to the provisions of Section 51 of the Duluth City Charter.