DISCLAIMER

 

07-0683R


RESOLUTION AUTHORIZING APPLICATION FOR A MINNESOTA DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT CONTAMINATION INVESTIGATION AND RAP GRANT IN THE AMOUNT OF $45,500.

BY COUNCILOR STAUBER:

     RESOLVED, that the city of Duluth hereby approves the contamination investigation and RAP development grant application to be submitted to the department of employment and economic development (DEED) on November 1, 2007, by the city of Duluth for the Atlas Cement plant site–IKONICS site.

     BE IT FURTHER RESOLVED, that the city of Duluth act as the legal sponsor for the project contained in the Atlas Cement plant site–IKONICS site contamination investigation and RAP development grant application submitted on November 1, 2007, and that the mayor is hereby authorized to apply to the department of employment and economic development for funding of this project on behalf of the city of Duluth.

     BE IT FURTHER RESOLVED, that the city of Duluth 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 the city hereby commits to provide up to $15,300 in matching funds for the project if said grant is awarded by the state and accepted by the city, which funds are anticipated to be provided by IKONICS Corporation and by the Duluth economic development authority (DEDA)—whose source of funds will be the proceeds of the sale of land to IKONICS Corporation pursuant to Resolution 07D-36 approved by DEDA on September 6, 2007.

     BE IT FURTHER RESOLVED, that the city of Duluth has not violated any federal, state or local laws pertaining to fraud, bribery, graft, kickbacks, collusion, conflict of interest or other unlawful or corrupt practice.

     BE IT FURTHER RESOLVED, that upon approval of its application by the state, acceptance thereof shall be subject to further resolution of the council authorizing such acceptance which acceptance is contingent on DEDA and IKONICS Corporation entering into a development agreement for the site.

     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 $45,500 contamination investigation and RAP development grant on behalf of the Atlas Cement plant site–IKONICS site. Estimated investigation and RAP development costs on this site are $60,800; DEED is being requested 75 percent of that amount. If IKONICS Corporation exercises the option given in an agreement approved by DEDA on September 6, 2007, the local match will be comprised of investigation expenses that IKONICS Corporation and DEDA agreed to split in said agreement. DEDA’s share of the local match would come from the proceeds of its sale of this property to IKONICS Corporation.

 

This grant will provide for the Phase II contamination investigation and RAP development that will determine the scope and costs associated with the clean-up of approximately 15 acres of the former Universal Atlas Cement plant site to accommodate the desired purchase by IKONICS Corporation of the site for their anticipated business expansion.