BE IT RESOLVED, that the city of Duluth (the city) act as the legal sponsor for the project contained in the business development/infrastructure grant program application to be submitted on July ____, 2008, and that the mayor and the city clerk are hereby authorized to apply to the department of employment and economic development for a grant in the amount of $250,000 for funding of this project on behalf of the North Business Development Area at the Duluth International Airport.

     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 the city hereby commits to provide no less than $250,000 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 Mn/DOT, St. Louis County, a private developer and the federal economic development administration.

     BE IT FURTHER RESOLVED, that the city 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, the acceptance thereof shall be subject to further resolution of the council authorizing such acceptance.

     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:  The purpose of this resolution is to authorize an application for a business development/ infrastructure fund grant related to the North Business Development Area at the Duluth airport.

This grant program requires a 1:1 match by the applicant; hence, the city’s match commitment to this $250,000 request is a match of no less than $250,000. However, the matching funds available to this project will be much greater than 1:1. Project funds will be provided through funding commitments already made by the Mn/DOT ($560,000), St. Louis County ($250,000) and a private developer ($371,033). In addition, it is anticipated that the federal economic development administration will provide a grant in the amount of $1,431,033 once all the other funding commitments are in place. Altogether, a project budget of $2,862,066 will provide the site improvements and public infrastructure necessary to make this 12.38 acre site ready for development-–most likely for the aviation sector.

The acceptance of the state grant, if forthcoming, would be subject to subsequent approval by the city council. City staff will be responsible for administering the state grant. The DAA will be the overall project’s lead agent and as such, will be the entity to enter into professional and construction contracts and to administer all other project grants.