PLANNING AND ECONOMIC DEVELOPMENT COMMITTEE
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 40.0 acres in the Canadian National Subzone #100;
(d) A portion of the Subzone #100 site is not desirable for industrial or other JOBZ-related development;
(e) The city of Duluth wishes to reallocate 12.35 acres from Subzone #100 and form a new subzone of 12.35 acres which will be called the Duluth Technology Park Subzone #100.1 and further wishes to provide for the possibility of providing JOBZ benefits to businesses whose expansion or relocation may occur on the 12.35 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 Canadian National Subzone #100 by removing a total of 12.35 acres from said subzone having the following parcel identification number: 010-2746-1380.
BE IT FURTHER RESOLVED, that the city of Duluth does hereby approve the creation of a new subzone of 12.35 acres called the Duluth Technology Park Subzone #100.1 (Parcel Identification #010-1356-00010, -00020 and -00030), 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 40.00 acres in the Canadian National Subzone #100. Portions of this subzone are not appropriate for JOBZ-related development, for reasons such as: a) surrounding the western entrance into Morgan Park, and b) proximity to MPCA’s Steelton Pond pH project. The city wishes to swap 12.35 acres from Subzone #100 to form a new subzone of 12.35 acres which will be referred to as the Duluth Technology Park Subzone #100.1.
The designation of the Duluth technology park area as a JOBZ designation is a critical component of the ongoing efforts to establish a data center project with VISI Incorporated. 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.