DISCLAIMER

 

07-0226R


RESOLUTION APPROVING AN AMENDMENT TO DULUTH SEAWAY PORT AUTHORITY DULUTH HARBOR SUBZONE NUMBER 104.

BY COUNCILOR STAUBER:

     The city council of the city of Duluth hereby finds the following:

     (a)  The Duluth City Council adopted Resolution No. 03-0731 which authorized the arrowhead regional development commission to act as job opportunity building zone (JOBZ) zone sponsor and administrator and to make program commitments on behalf of the city of Duluth;

     (b)  The Minnesota department of employment and economic development (DEED) approved the northeast Minnesota regional JOBZ application for 4,031 acres, including 351.12 acres within the city of Duluth;

     (c)  The Duluth City Council adopted Resolution No. 04-0236 designating those 351.12 acres within the city of Duluth into 11 subzones, including 70 acres in the Duluth Seaway port authority Duluth Harbor Subzone Number 104;

     (d)  The Duluth Seaway port authority wishes to reallocate 20,000 square feet from Block 110, Rice’s Point (PID #010-3910-7360-110) to a 4.41 acre project site located at 1108 Port Terminal Drive legally described below (PID #010-9080-00110) and further wishes to provide JOBZ benefits to a business whose expansion shall occur on the 4.41 acre project site;

     (e)  The JOBZ program created in Minnesota Session Laws 2003, First Special Session, Chapter 21, Article 1, allows for the formation of tax free zones and for subzone boundaries to be amended with the approval of all taxing authorities.

     NOW, THEREFORE, BE IT RESOLVED, that the city of Duluth approves an amendment to Duluth Seaway port authority Duluth Harbor Subzone Number 104 as follows:

     (a)  Remove a total of 20,000 square feet from Block 110, Rice’s Point, St. Louis County, Minnesota (PID #010-3910-7360-110);

     (b)  Add 20,000 square feet to a 4.41 acre site located at 1108 Port Terminal Drive (PID #010-9080-00110) which property is legally described as follows:

           That part of the original plat of Rice’s Point on file and of record in the pffice of the St. Louis County recorder, state of Minnesota, described as follows:

                 Commencing at the intersection of the platted centerline of Culpepper Street with the platted center line of Pine Avenue in said plat of Rice’s Point, thence north 27◦-34'-11" west, along said centerline of Culpepper Street, a distance of 207.34 feet; thence north 62◦-25'-49" east a distance of 159.72 feet to the point of beginning of the land to be described; thence north 62◦-27'-15" east a distance of 428.70 feet; thence south 27◦-44'-11" east, along a line 8.50 feet distant and parallel with the centerline of a railroad spur, a distance of 475.03 feet; thence south 62◦-15'-49" west a distance of 390.45 feet; thence north 27◦-35'-01" west, along a line 8.50 feet distant and parallel with the centerline of a railroad track, a distance of 174.08 feet; thence northerly and westerly, along said line 8.50 feet distant and parallel with the centerline of a railroad track, being a tangential curve concave to the south, having a radius of 532.60 feet and a central angle of 22◦-07'-39", a distance of 205.69 feet and the chord of said curve bears north 38◦-38'-50" west; thence north 27◦-44'-47" west, along the edge of an existing road, a distance of 101.66 feet to the point of beginning, containing 4.41 acres and subject to easements of record.


STATEMENT OF PURPOSE:  The Seaway Port authority, which owns the Duluth Harbor subzone property, has requested amending the Duluth Harbor subzone by reallocating 20,000 square feet from Block 110, Rice’s Point to a 4.41 acre site located at 1108 Port Terminal Drive, which site is currently leased by Como Lube & Supplies. Como has constructed a distillation building and a used oil tank farm. Como recycles the used oil product and is also a bulk distributor of lube oils and filters.


Como is now working on a $4,000,000 project consisting of a new 17,000 square foot building and equipment that will allow the company to expand its current operations. The company currently employs 15 people at the Duluth location. The new project will add six new jobs paying an average of $18.74 per hour including benefits. The project is ready for spring 2007 construction, and the Como will be entering into a business subsidy agreement with the Seaway Port authority. The JOBZ statute allows for subzone boundaries to be amended with the approval of all taxing authorities. This resolution provides the necessary approval of the city.