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 13.02 acres in the Clyde-Oneota Subzone #101;
(d) A portion of the Subzone #101 site is being developed for non-JOBZ related activities including the Duluth Heritage Sports Center;
(e) The city of Duluth wishes to reallocate 10.17 acres from Subzone #101 and form a new subzone of 10.12 acres (resulting in a net reduction of JOBZ acreage of .05 acres) which will be called the Airport North Business Development Subzone #96.1 and further wishes to provide for the possibility of providing JOBZ benefits to businesses whose expansion or relocation may occur on the 10.12 acre project site;
(f) 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 a modification to the Clyde-Oneota Subzone #101 by removing a total of 10.17 acres from said subzone having the following PID numbers:
BE IT FURTHER RESOLVED, that the city of Duluth does hereby approve the creation of a new subzone of 10.12 acres called the Airport North Business Development Subzone #96.1(PID #010-9080-00110), approves the use of tax exemptions and tax credits within said subzone (subject to proper review and approval by the Minnesota department of employment and economic development(DEED) and the other appropriate taxing authorities with the zones) and agrees to provide all of the local tax exemptions and credits required and provided for under the JOBZ legislation and agrees to forego the tax benefits resulting from the same.
STATEMENT OF PURPOSE: The city of Duluth has 351.12 acres of dedicated JOBZ zones including 13.02 acres in the Clyde-Oneota Subzone #101. Portions of this subzone are being developed for non-JOBZ related activities including the Duluth Heritage Sports Center. The city wishes to swap 10.17 acres from Subzone #101 to form a new subzone of 10.12 acres which will be referred to as the Airport North Business Development Subzone #96.1. The swap will result in a net reduction of land within the city’s JOBZ allocation of .05 acres.
The designation of the Airport North Business Development area as a JOBZ designation is a critical component of the ongoing efforts to establish a development site along the north side of the Duluth International Airport’s 9-27 runway. The city, in partnership with the Duluth Airport Authority, has been actively soliciting grant funding to redevelop this former runway site with site preparation, the extension and upgrade of the existing access road, and the construction of a new taxiway access to the main runway. Recently, the EDA has extended an invitation to submit a grant request in the amount of $1.4 million for this project. With this immediate funding opportunity at hand, it is important to work concurrently towards securing JOBZ designation of the site. 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.