BY COUNCILOR GILBERT:
RESOLVED, that the city of Duluth does hereby authorize acceptance of reimbursement from the Duluth economic development authority (DEDA) for certain baywalk construction expenses related to a baywalk over property owned by Marine Iron and Shipbuilding Company (Marine Iron) in the amount of $225,000, said funds to be deposited into Fund 255.
FURTHER RESOLVED, that the proper city officials are hereby authorized to enter into a baywalk easement agreement substantially in the form of that on file in the office of the city clerk as Public Document No. ___________, with Marine Iron, in the amount of $65,000, payable from Fund 255, reimbursement by Marine Iron for certain construction costs in the amount of $65,000, payable into Fund 255.
FURTHER RESOLVED, that the proper city officials are hereby authorized to enter into a license agreement substantially in the form of that on file in the office of the city clerk as Public Document No. ___________, with Marine Iron.
STATEMENT OF PURPOSE: The purpose of this resolution is to authorize acceptance of reimbursement from DEDA for baywalk construction costs related to the Marine Iron segment of the baywalk (the Meierhoff property) in the total amount of $225,000. The construction of public improvements will be at a cost of approximately $160,000.
The resolution also authorizes a baywalk easement agreement with Marine Iron, pursuant to which the property owner will grant an easement to the city. Under the easement agreement, the city will pay Marine Iron $65,000 for the easement. Additionally, Marine Iron will reimburse the city in the amount of $65,000 for the costs related to removal of a portion of the wooden boardwalk, construction of a three to five-foot wide concrete area, and installation of fish cleaning stations and light poles. The easement will be for a term of approximately 50 years, until October 1, 2056. The easement agreement provides that in the event the city initiates a condemnation action for the Minnesota Slip prior to October 1, 2056, the city will include the approximately 12 feet slip adjacent to the Minnesota Slip, less the value of the improvements constructed thereon, in the condemned property.
The construction of this segment of the baywalk will add approximately 490 additional feet, see attached. When this segment is completed, the baywalk will connect the pedestrian lift bridge to the north side of the Minnesota Slip. The city will be responsible for maintaining the baywalk.
The resolution also authorizes a license agreement which allows Mr. Meierhoff to store the docks used by the charter fishing boats on City-owned property at the end of the Minnesota Slip. The docks may be stored there from October 1 through April 30 for an approximately 50-year period, until October 1, 2056.