DISCLAIMER

 

08-0161R


RESOLUTION ACCEPTING A DEED GRANT IN THE TOTAL AMOUNT OF $45,500 FOR THE IKONICS EXPANSION PROJECT AND COMMITTING LOCAL MATCH.

CITY PROPOSAL:

     RESOLVED, that the proper city officials are hereby authorized to accept a contamination investigation and RAP development grant from the Minnesota department of employment and economic development (DEED) in the amount of $45,500 and to execute Grant Agreement No. CCGP-07-0023-Z-FY08 on file with the clerk as Public Document No. __________ in connection therewith. Such funds shall be deposited into City Fund 255.

     FURTHER RESOLVED, that the required local match to the granted funds, having a value of no less than 25 percent of investigation and RAP development costs and estimated at a total value of $15,300, shall be provided in equal share by the Duluth economic development authority (DEDA) from its operating Fund 860 and by the IKONICS Corporation, contingent upon DEDA and IKONICS Corporation entering into a development agreement for the site. If such a development agreement is not executed, the required local match to the granted funds shall be provided in its entirety by the IKONICS Corporation.

     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.


BD HTB/JC/cm 2/19/2008


STATEMENT OF PURPOSE:  Approval of this resolution allows for the acceptance of a grant award from DEED in the amount of $45,500 for contamination investigation and RAP development for the IKONICS site within the DEDA-owned former Atlas Cement Plant. Estimated investigation and RAP development costs on this site are $60,800; DEED awarded 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. If the IKONICS corporation does not exercise its option, IKONICS will be responsible for all of the local match.

 

This grant pays for the Phase II contamination investigation and RAP development conducted by Environmental Troubleshooters, Inc. Upon MPCA approval of the RAP, DEDA will then know 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.