Title
RESOLUTION AUTHORIZING A JOINT POWERS AGREEMENT WITH SPIRIT MOUNTAIN RECREATION AREA AUTHORITY FOR CAPITAL IMPROVEMENTS
Body
CITY PROPOSAL:
WHEREAS, Spirit Mountain Recreation Area (SMRA) Authority was awarded a grant of $1,678,696 from the Greater Minnesota Regional Parks and Trails Commission (GMRPTC) for capital improvements; and
WHEREAS, resolution 21-0531R authorized the use of Half and Half Tax in the amount of $60,000 for matching funds from the City of Duluth for the GMRPTC grant; and
WHEREAS, City of Duluth staff are working collaboratively with the SMRA Authority to coordinate and execute the planned capital improvements at SMRA; and
NOW, THEREFORE, BE IT RESOLVED, that the proper City officials are hereby authorized to execute a Joint Powers Agreement, substantially in the form attached hereto as Exhibit A, with SMRA Authority for the purpose of implementing capital improvements and transferring the role of fiscal agent for the GMRPTC grant to the City of Duluth.
FURTHER RESOLVED, the City of Duluth has the legal authority to accept these funds and the financial, technical, and managerial capacity to ensure proper planning and maintenance of the project.
FURTHER RESOLVED, the Duluth City Council names the fiscal agent for this project as Jen Carlson, City of Duluth Finance Director, 411 West 1st Street, Duluth, Minnesota, 55802.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes a Joint Powers Agreement, substantially in the form of Exhibit A, between the City of Duluth and Spirit Mountain Recreation Area (SMRA) Authority to guide how the partners will work together to implement capital improvements supported by a $1,678,696 grant from the Greater Minnesota Regional Parks and Trails Commission (GMRPTC). The City will be the fiscal agent for the grant, oversee project design and construction, and hold and manage construction contracts. Spirit Mountain will be responsible to support and advise the City in all of this work.
The GMRPTC grant was awarded to the Authority in 2022 to improve destination trail systems for mountain biking, cross country skiing, and snowmobiling so as to strengthen Duluth’s status as a national outdoor recreation destination, improve Spirit Mountain business performance, better connect the City-of-Duluth-managed snowmobile trail system to Spirit facilities and services, and address deferred maintenance. Specific improvements include completion of Grand Avenue Nordic Center trail construction, enhancement and repair of some Spirit downhill mountain biking trails, and replacement of the City-managed and -maintained Knowlton Creek snowmobile trail bridge.
As previously established by resolution 21-0531R, the City will contribute $60,000 to the project sourced from the St. Louis River Corridor Initiative half and half tourism tax - a one-half of one percent increment in tourism taxes that, per state law, may only be used to pay for capital improvements to publicly owned facilities in western Duluth that support outdoor recreation and tourism. The $60,000 City contribution is the remaining portion of those funds that were put aside for improvements to cross-country ski trails at Grand Avenue Nordic Center at Spirit Mountain.
City partners have committed an additional $424,900 of non-state matching funds to this phase of the project including $114,000 from the Duluth Cross Country Ski Club, $224,900 from the federal government, and $86,000 from Spirit Mountain.