RESOLVED, that Resolution No. 05-0088, as amended by Resolution No. 05-0878, is hereby further amended to extend the time allowed to raise sufficient funds to qualify for matching funds from the city as set forth in said Resolution No. 05-0088, for development of the replacement to Peterson Arena, now referred to as the Duluth Heritage Sports Center, through September 30, 2006.

STATEMENT OF PURPOSE: The purpose of this resolution is to authorize an extension of time to allow for fund raising for the private match for the new Duluth Heritage Sports Center which will replace and improve on Peterson Arena.

When Peterson Area was essentially destroyed by fire in late 2004, DAHA and the city began considering alternatives to replace the facility. When DAHA approached the city for its assistance, the city committed up to $1.8 Million upon the condition that private sector match the city’s contribution at least dollar-for-dollar.

Initially it was thought that a replacement facility could be included in the proposed Kroc Center but, after spending a substantial amount of time and energy on this concept, it was determined that this would not work. So other alternatives needed to be explored.

Finally, a proposal was made by the owner of the old Clyde Iron property to include the facility in his redevelopment of that property. As councilors are aware this project has been proceeding with all possible speed and will soon nearing the point where development agreements can be firmed up and the actual construction of the replacement facility can be started.

Unfortunately this has all taken time, more than had originally been contemplated when the city made its initial commitment. The original Resolution 05-0088, required fund raising for the private share to be completed by December 31, 2005. This date was later extended (by Resolution 05-0878) to June 30, 2005, a date which is upon us.

Because they are so near and yet so far, the nonprofit group heading up fund-raising efforts (the Duluth Heritage Sports Center, Inc.) asked that this deadline be extended once more to September 30, 2006. They are confident that on or before September 30 they will have commitments for the entire local share of the proposed development.