BY COUNCILOR GILBERT:
RESOLVED, that the proper city officials are hereby authorized to enter into a program agreement with heritage substantially in the form of that on file in the office of the city clerk as Public Document No. ___________ that defines the use of the DHSC facility upon its completion by the city for its parks and recreation programming from the city’s provision of a program fee from the Heritage Program Account payable as follows: $500,000 from the proceeds of any insurance policy paid for by the city covering the Peterson Hockey Arena for its loss by the fire and explosion, payable from Fund 450; up to $100,000 from the capital improvement program general fund which had been dedicated to heat, ventilation and air conditioning improvements at Peterson Hockey Arena, payable from Fund 450; up to $1,200,000 from the community investment trust fund, currently in Fund 256, to be transferred to Fund 450 upon proof of project financing, for a total of up to $1,800,000 less monies previously expended and currently encumbered and less monies paid pursuant to the terms of the development agreement.
BE IT FURTHER RESOLVED, that the proper city Officials are hereby authorized to enter into a development agreement with Clyde and Heritage substantially in the form of that on file in the office of the city clerk as Public Document No. _____________that defines the responsible parties for each portion of the project, time lines and conditions necessary for the release of both the state DEED grant monies secured by the city on behalf of the project and of the city’s Heritage Program Account, as defined above.
BE IT FURTHER RESOLVED, that this resolution supersedes and replaces Resolution 05-0088.
STATEMENT OF PURPOSE: This resolution requires the affirmative vote of seven councilors because the funding plan includes money from the Community Investment Trust Fund.
This resolution establishes the source of funds for the Heritage Program Account, formerly referred to as the Peterson Replacement Fund. This account will be capped at $1,800,000,including project pre-development expenditures and encumbrances to-date.
This resolution also authorizes the execution of two agreements--a Development Agreement with Clyde Industrial Park, Inc. and Duluth Heritage Sports Center and a Program Agreement with DHSC. These agreements spell out project detail to include: scope of work to be completed by each entity; required evidence of project financing; conditions for the release of the state grant monies for site contamination cleanup and public infrastructure; source of local match for the state grants; and conditions for the release of funds from the Heritage Program Account to the DHSC for a prepaid programming fee.
Under these agreements the city does not release monies in the Heritage Program Account until the physical facility required for the public program is operational. The city will then receive, in exchange for its payment of the programming fee contribution, use of the facility that will fulfill the city’s Parks and Recs programs’ anticipated need for the next 55 years. Both ice hockey and other indoor sports can be accommodated.
Further, the city does not release state grant monies until the site cleanup and public infrastructure (streets, utilities, streetscape) is completed to our satisfaction.
Finally, under the Development Agreement, the developer assumes financial responsibility for the construction of a private parking lot - including all liability for costs associated with contamination cleanup thereby eliminating any contamination exposure to the city.