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RESOLUTION AUTHORIZING AN APPLICATION TO THE UNITED STATES ECONOMIC DEVELOPMENT ADMINISTRATION FOR $2,625,000 FOR THE CITY OF DULUTH COASTAL INFRASTRUCTURE REHABILITATION PROJECT AND TO PROVIDE MATCHING FUNDS UP TO $1,750,000.
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CITY PROPOSAL:
WHEREAS, the City of Duluth, Minnesota is an eligible applicant for Economic Development Administration (EDA) funding per Section 3 of the Public Works and Economic Development Act (42. U.S.C. § 3122) and 13. C.F.R. § 300.3; and
WHEREAS, the City of Duluth is eligible to receive funding under the CARES Act to recover the economic harm the coronavirus pandemic has caused the city, including dramatically impacting the second largest sector, leisure & hospitality, along with significant job losses to other key industries such as manufacturing, aviation, and healthcare; and
WHEREAS, Federal Disaster 4414 occurred on the heels of two state disaster declarations (2017 & 2018) associated with super storms that battered the Lakewalk and St. Louis River shorelines and port seawalls and buildings; and
WHEREAS, three successive weather related disasters crippled Duluth’s coastal waterfront reliant industries and the corona virus pandemic delivered tremendous consecutive economic harm to those same industries among others; and
WHEREAS, the City of Duluth desires to rehabilitate the coastal infrastructure to recover from both economic shocks and diversify and make the economy more resilient.
NOW, THEREFORE, BE IT RESOLVED
1. The Duluth City Council authorizes the City to apply for and accept the funding from the US Economic Development Administration under the FY 2020 Public Works and Economic Adjustment Assistance Notice of Funding Opportunity as amended, Funding Opportunity Number PWEAA2020 to support the Coastal Infrastructure Rehabilitation Project.
2. The City Council names Emily Larson, Mayor as authorized representative for said EDA grant upon award.
3. The City Council confirms all non-EDA funds are committed to the project, available as needed, not derived from federal sources, and not conditioned or encumbered in any way that would preclude their use consistent with the purpose of the project
STATEMENT OF PURPOSE:
This resolution authorizes the application to the Economic Development Administration of the United States Department of Commerce for $2,625,000 to help pay for and augment the City of Duluth’s state bonding project to restore coastal infrastructure. If awarded, the grant funds would help to pay for reconstruction of the seawall and walkway behind the DECC to a standard that would permit the mooring of large vessels including cruise ships.
The required non-federal matching contribution for this grant is $1,750,000. The City has received the State of Minnesota bond allocation for the restoration of the DECC seawall and Lakewalk infrastructure. Because the state bonding project and the federal Economic Development Administration grant are both funded, the state and federal grants would match each other and, in so doing, reduce the City’s required cash contribution to the overall coastal infrastructure project.