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RESOLUTION APPROVING A GREATER MINNESOTA LEGACY GRANT APPLICATION TO THE GREATER MINNESOTA REGIONAL PARKS AND TRAILS COMMISSION AND MINNESOTA DEPARTMENT OF NATURAL RESOURCES FOR THE SPIRIT MOUNTAIN NORDIC CENTER.
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CITY PROPOSAL:
WHEREAS, Duluth City Council resolution 23-0745R accepted the special law extending the one-half-of-one-percent increment in the City of Duluth food and beverage tax and the City of Duluth lodging tax, and authorized the revenues to be spent on capital improvements to parks-based public athletic facilities; and
WHEREAS, Duluth City Council resolution 23-0748R supported moving forward with a preliminary slate of projects for the parks-based athletic facilities capital improvements, including contribution of $1,200,000 for the Spirit Mountain Nordic Center; and
WHEREAS, the $1,200,000 project funds for the Spirit Mountain Nordic Center has supported trail construction and infrastructure installation and there are $350,000 funds remaining for Nordic Center development; and
WHEREAS, the development of the Spirit Mountain Nordic Center is a shared vision between the City of Duluth, Spirit Mountain Recreation Authority, and Duluth Cross Country Ski Club with all three entities contributing towards its realization; and
WHEREAS, the City of Duluth has the right and authority to sponsor a grant funding request to the Greater Minnesota Regional parks and Trails Commission (GMRPTC); and
WHEREAS, the City of Duluth (the “Applicant”) has a right and authority to act as Legal Sponsor for the State Grant Application (“Application”) and will work with the Minnesota Department of Natural Resources (“DNR”), in developing a Grant Agreement relating to the funding which may be awarded by the GMRPTC; and
NOW, THEREFORE, BE IT RESOLVED, that the City of Duluth authorizes a Greater Minnesota Legacy Grant application requesting up to $2,050,373 in grant funding for the Spirit Mountain Nordic Center.
FURTHER RESOLVED, the City of Duluth commits matching funds in an amount of $350,000, with said funds payable from 452-030-5530-HANDHTAX-1506 (tourism & recreational projects, Finance, improvements other than buildings, half & half tax projects, Nordic - lower Spirit).
FURTHER RESOLVED, that the Applicant certifies it has read and understands the Office of Grants Management Conflict of Interest Policy 08-01, will maintain an adequate Conflict of Interest Policy and monitor and report any actual, potential, or perceived conflicts of interest to the GMRPTC and DNR.
FURTHER RESOLVED, that the Applicant confirms all of the information in its Application and further confirms that it has no expectation of, or entitlement to, reimbursement of costs incurred prior to grant agreement execution date and, if applicable, it has not entered into a written purchase agreement to acquire property described in its Application if grant funds are to be used for the purchase.
FURTHER RESOLVED, that the Applicant has or will acquire a fee interest ownership or permanent easement over the land described in the Application for regional parks and regional special feature parks as applicable. The applicant has or will acquire a fee interest, permanent or perpetual easement or minimum twenty (20) year lease over the land described in the Application for regional trails or regional special feature parks, as applicable and approved, before the project proceeds.
FURTHER RESOLVED, that the Applicant agrees that it will comply with all applicable laws, regulations and requirements as stated in the Grant Agreement with the DNR, including dedicating the park property for uses consistent with the grant agreement into perpetuity or for trails, committing to maintain the trails for a period of not less than twenty (20) years, and dedicating all land acquired under the project for uses consistent with the grant agreement into perpetuity.
BE IT FURTHER UNDERSTOOD, that the GMRPTC will confirm at such time that it has made the award of funds authorizing a Grant Agreement to be developed between the DNR and the Applicant.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes submission of a Greater Minnesota Legacy Grant Application requesting up to $2,050,373 in grant funding from the Greater Minnesota Regional Parks and Trails Commission (GMRPTC) and Minnesota Department of Natural Resources (DNR) for the Spirit Mountain Nordic Center. If awarded, the grant will pay for the substantial completion of a destination 3.3 km lighted, snowmaking-supported cross country skiing center that will provide dependable, high-quality, season-long skiing for recreational skiers, youth activities, and competitions. Grant funds will be used primarily to complete the installation of snowmaking and lighting on the remainder of the system.
The City and the Duluth Cross Country Ski Club will provide a total $700,000 local matching contribution in association with this grant. The Duluth Cross Country Ski Club intends to raise $350,000 in community contributions to support the completion of the project. This will be in addition to the $1 million the Club has raised for previous phases of work. The remaining $350,000 portion of the local match will be sourced from the unspent remainder of $1.2 million of City of Duluth Athletic Venue Reinvestment Initiative funds that were put aside for this specific purpose with the passage of City Council resolution 23-0748R. Athletic Venue Reinvestment Initiative funds are sourced from one-half-of-one-percent increments in Duluth’s tourism taxes that, per state law, may only be spent on public facilities that support sports tourism. Though not yet complete, the Spirit Mountain Nordic Center has already attracted multiple regional and national competitions, some of which have drawn large crowds and national media coverage.
If the grant is awarded, the City will return to City Council with a separate resolution authorizing a project agreement between the City of Duluth and Spirit Mountain. Among other functions, the project agreement will assign Spirit Mountain primary responsibility for grant administration, fiscal management, and construction management.