Title
RESOLUTION APPROVING BUSINESS SUBSIDY FINANCING AGREEMENT WITH ST. LOUIS COUNTY.
Body
CITY PROPOSAL:
WHEREAS, on March 10, 2022, the Duluth city council held a public hearing, pursuant to Minnesota Statutes §§ 469.1812 through 469.1815 and Minnesota Statutes §§116J.993 through 116J.995, and, after finding the subsidy was in the best interests of the city, approved a business subsidy in the form of tax abatement for Cirrus Design Corporation, 22-0154R, providing for tax abatement over a maximum ten-year period, the total amount of which not to exceed $60,000 annually and not to exceed $600,000 in total; and
WHEREAS, the tax abatement is specifically tied to the MRO building at the Duluth International Airport and conditions of the tax abatement agreement include the maintenance of 1206 full-time or full-time equivalent jobs and creation of an additional 80 full-time or full-time equivalent jobs within the first two years of the agreement period. Further, the abatement agreement anticipated the sale of the otherwise underutilized MRO building to Cirrus Design Corporation for aircraft manufacturing, and such sale has been completed; and
WHEREAS, the St. Louis County Board similarly held a public hearing on February 8th, 2022 and unanimously approved an additional tax abatement not to exceed $600,000; and
WHEREAS, those county tax abatement funds shall be transferred from St. Louis County to the city and then used to reimburse Cirrus Design Corporation for eligible costs pursuant to the terms of the agreement attached as Exhibit A.
RESOLVED, the council of the City of Duluth does resolve that the proper city officials are hereby authorized to enter into a tax abatement agreement, substantially in the form of that attached hereto as Exhibit A, with St. Louis County.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes the city to accept funds from St. Louis County to match the tax abatement the city granted to Cirrus Design Corporation on March 10, 2022, bringing the total subsidy up to a maximum of $1.2 million over a ten-year period for the creation and maintenance of jobs and utilization of aircraft manufacturing facilities at the Duluth International Airport.