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RESOLUTION AUTHORIZING CITY OFFICIALS TO EXECUTE A FUNDING AGREEMENT WITH THE DULUTH CROSS-COUNTRY SKI CLUB TO ACCEPT A DONATION OF $114,000 FOR PHASE II OF THE SPIRIT MOUNTAIN NORDIC CENTER PROJECT.
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CITY PROPOSAL:
WHEREAS, the Spirit Mountain Nordic Center, previously referred to as the Grand Avenue Nordic Center, when completed, will include 5.5 km of cross-country ski trails, 3.3 km of which will be equipped with snowmaking and lighting and a 2.2 km connector trail that will connect the Nordic Center to the cross-country ski trails located at the top of the Spirit Mountain Recreation Area, to provide a dependable, season-long venue for recreational skiing (“Project”); and
WHEREAS, the Project will be completed in multiple phases, and resolution 18-0398R authorized an agreement with the Duluth Cross-Country Ski Club (“DXC”) to accept a donation of $430,000 for Phase I of the Project, which has been completed; and
WHEREAS, Phase II of the Project will include the construction of the 2.2 km connector trail and 800 meters of Loop 3, and the purchase and installation of one water pump (“Phase II Project”); and
WHEREAS, resolution 23-0306R authorized a Joint Powers Agreement with the Spirit Mountain Recreation Area Authority to transfer the role of fiscal agent to the City of Duluth for a Greater Minnesota Regional Parks and Trails Commission grant of $1,678,696 for the implementation of capital improvements at Spirit Mountain Recreation Area (“GMRPTC Grant”), which includes completion of the Phase II Project; and
WHEREAS, DXC has committed to donate $114,000 for the Phase II Project, and the donated funds are identified as matching funds for the GMRPTC Grant.
NOW, THEREFORE, BE IT RESOLVED, that the proper City officials are hereby authorized to execute a funding agreement with DXC, substantially in the form attached hereto as Exhibit A, to accept a donation of $114,000 for the Phase II Project, with said funds to be deposited into fund 452-030-4660-HANDHTAX-1506 (Tourism & Recreational Projects - Finance - Gifts and Donations - Half & Half Tax Projects - Nordic Lower Spirit).
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes the execution of a funding agreement, substantially in the form of Exhibit A, with the Duluth Cross-Country Ski Club (“DXC”) to accept a donation of $114,000 for the implementation of Phase II of the Spirit Mountain Nordic Center capital improvements. Under the terms of this agreement, the City agrees to enter a construction contract with a contractor selected by the City for the construction of the portion of the project known as the “Phase II Project” and reach substantial completion no later than June 30, 2025. Following execution of the funding agreement and before May 31, 2023, DXC shall deliver the donation of $114,000 to support the implementation of the Phase II Project.
Going forward throughout and after the completion of the construction and financial obligations undertaken by the parties in the agreement attached as Exhibit A, the City and DXC will both use their best efforts to cooperatively operate the Spirit Mountain Nordic Center in a manner consistent with the intent of the 2015 Duluth Cross-Country Ski Trail Master Plan.