DISCLAIMER

 

06-0319R


RESOLUTION AUTHORIZING APPLICATION FOR A DEED CONTAMINATION CLEAN-UP GRANT IN THE AMOUNT OF $1,930,391 RELATED TO THE CLYDE PARK PROJECT AND COMMITTING LOCAL MATCH SUBJECT TO SUBSEQUENT COUNCIL ACCEPTANCE OF THE GRANT.

BY COUNCILOR GILBERT:

     RESOLVED, that the city of Duluth (the city) hereby ratifies the submission of the contamination cleanup grant program application that was submitted by the city to the department of employment and economic development (DEED) on May 1, 2006, for the Clyde Park site (the application).

     BE IT FURTHER RESOLVED, that the city act as the legal sponsor for the project described in the application and that the mayor of the city is hereby authorized to apply to DEED for $1,930,391 in funding for this project on behalf of the city.

     BE IT FURTHER RESOLVED, that the city has the legal authority to apply for financial assistance and the institutional, managerial and financial capability to ensure adequate project administration.

     BE IT FURTHER RESOLVED, that a local match in the amount of up to $643,464 is committed to the project from the insurance proceeds received due to the Peterson Arena fire and, if necessary, the capital improvement program general fund, all subject to acceptance of the grant.

     BE IT FURTHER RESOLVED, that the city has not violated any federal, state or local laws pertaining to fraud, bribery, graft, kick-backs, collusion, conflicts of interest or other unlawful or corporate practice.

     BE IT FURTHER RESOLVED, that upon approval of this application by the state, the acceptance thereof shall be subject to further resolution of the council authorizing such acceptance and designating the sources of the matching funds and the amount to be committed from each such fund.

     BE IT FURTHER RESOLVED, that the city certifies that it will comply with all applicable laws and regulations as stated in all contract agreements it accepts.


STATEMENT OF PURPOSE: Approval of this resolution allows for the application by the city of Duluth to DEED for a $1,930,391 contamination cleanup program grant. This grant will provide for contamination clean-up of the Clyde Park site, which is the proposed site for the Duluth Heritage Sports Center complex, private mixed-use development and public parking infrastructure. The local match of 25 percent will be provided by the Duluth Heritage Sports Center, Inc. (DHSC), Clyde Industrial Park, Inc. (Clyde), and the city. The allocation of the match will be defined in the city’s development agreement with DHSC and Clyde. It is anticipated at this time that the prorata share of match will be four percent DHSC ($96,930), seven percent Clyde ($174,833) and 14 percent city ($371,700). The city’s match will come out of the funds committed to the replacement of Peterson Arena–specifically, insurance proceeds from the fire. Provision of city funds for this project is contingent upon the successful fund-raising by the Duluth Amateur Hockey Association and the Duluth Heritage Sports Center, Inc., pursuant to 05-0088R and as amended December 2005. The project will not commence until grant funds have been awarded and the development agreement executed.