DISCLAIMER

PLANNING AND ECONOMIC DEVELOPMENT COMMITTEE


08-0481R


RESOLUTION AUTHORIZING REIMBURSEMENT TO THE DULUTH ECONOMIC DEVELOPMENT AUTHORITY (DEDA) FOR CONTAMINATION INVESTIGATION AND CLEAN UP COSTS RELATED TO THE IKONICS EXPANSION PROJECT IN AN AMOUNT NOT TO EXCEED $624,653.

CITY PROPOSAL:

     RESOLVED, that the Duluth City Council authorizes the city auditor to reimburse DEDA for contamination investigation and clean up costs related to the Ikonics expansion project in an amount not to exceed $624,653, payable from Fund 255.


DEDA/ATTY


STATEMENT OF PURPOSE:  DEDA Resolution 07D-36, approved on September 6, 2007, authorized a conditional option agreement with IKONICS. The conditional option agreement provided for DEDA's payment of 1/2 of the contamination investigation costs associated with the Ikonics expansion site.


DEDA Resolution 08D-17, approved on April 7, 2008, authorized the execution by DEDA of a development agreement with IKONICS. The development agreement laid out DEDA's financial liability for the contamination cleanup costs associated with the site.


The city has been awarded, and has accepted, two contamination-related grants from the state of Minnesota on behalf of the IKONICS expansion project: Investigation Grant Number CCGP-07-0023-Z-FY08 in the amount of $45,500 (Resolution 08-0161 adopted February 26, 2008) and Cleanup Grant Number CCGP-08-0003-Z-FY08 in the amount of $579,153 (Resolution 08-0432 adopted July 21, 2008).


This resolution authorizes the city to reimburse DEDA for investigation and clean up costs related to the IKONICS expansion project so that DEDA can fulfill its obligations under both the conditional option agreement and the development agreement.