DISCLAIMER

 

PLANNING AND ECONOMIC DEVELOPMENT COMMITTEE


08-0282R                                                          REPLACEMENT


RESOLUTION AUTHORIZING APPLICATION FOR A DEED CONTAMINATION CLEAN-UP GRANT IN THE AMOUNT OF $614,216 RELATED TO THE IKONICS EXPANSION PROJECT AND COMMITTING LOCAL MATCH SUBJECT TO SUBSEQUENT COUNCIL ACCEPTANCE OF THE GRANT.

CITY PROPOSAL:

     RESOLVED, that the city of Duluth (the city) hereby authorizes the submission of a contamination cleanup grant program application to the department of employment and economic development (DEED) on May 1, 2008, for the IKONICS expansion project (the application).

     BE IT FURTHER RESOLVED, that the city act as the legal sponsor for the project described in the application and that the mayor of the city is hereby authorized to apply to DEED for $614,216 in funding for this project on behalf of the city.

     BE IT FURTHER RESOLVED, that the city 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 a local match in the amount of up to $204,739 is committed to the project from DEDA operating Fund 860 and from the IKONICS Corporation, all subject to acceptance of the grant.

     BE IT FURTHER RESOLVED, that the city has not violated any federal, state or local laws pertaining to fraud, bribery, graft, kick-backs, collusion, conflicts of interest, or other unlawful or corporate practice.

     BE IT FURTHER RESOLVED, that upon approval of this application by the state, the acceptance thereof shall be subject to further resolution of the council authorizing such acceptance and designating the sources of the matching funds and the amount to be committed from each such fund.

     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.


BUSINESS DEVELOPMENT DIVISION


STATEMENT OF PURPOSE: Pursuant to Duluth economic development authority (DEDA) resolution 08D-17, DEDA has authorized a development agreement with the IKONICS Corporation for the sale of property at the former Atlas Cement Plant site for an expansion of their operation. Under that development agreement, DEDA is responsible for the contamination clean-up to Minnesota pollution control agency standards. That scope of work is estimated at $752,955. Additional project costs on site may be eligible for funding under the grant program; those costs are estimated at $66,000. The overall budget then totals $818,955.


This resolution authorizes staff to submit a grant application to the Minnesota department of employment and economic development for 75 percent of the overall estimated total, or, $614,216. DEDA will be responsible for the 25 percent match of the MPCA-required clean-up up to an amount of $188,239, which will be paid from proceeds of the land sale to IKONICS (DEDA Operating Fund 860). If the additional project costs are funded, IKONICS has agreed to contribute its 25 percent match estimated at $16,500. If the grant request is approved, subsequent council acceptance of the grant award will be required.