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RESOLUTION AUTHORIZING AMENDMENT NUMBER 1 TO THE LOCAL COOPERATION AGREEMENT WITH THE UNITED STATES OF AMERICA, DEPARTMENT OF ARMY AND THE DULUTH SEAWAY PORT AUTHORITY RELATING TO THE ERIE PIER CONTAINED DISPOSAL FACILITY, TOGETHER WITH A TERMINATION OF RIGHT-OF-ENTRY AGREEMENTS.
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CITY PROPOSAL:
WHEREAS, the city conveyed certain real property located in the Oneota neighborhood (the “Erie Pier Property”) to the Duluth Seaway Port Authority (“DSPA”) in 2022. The Erie Pier Property, together with property already owned by DPSA, makes up a site more commonly known as the “Erie Pier Contained Disposal Facility.” The Erie Prier Property was conveyed to facilitate DSPA’s long-term operation of the Erie Pier Contained Disposal Facility;
WHEREAS, as part of the transaction, the city and DSPA executed an assignment and assumption of rights and obligations regarding certain agreements affecting the Erie Pier Property (the “Assignment and Assumption”); said agreements were tri-party agreements between the city, DSPA and the United States of America, Department of Army (“USACE”) from the 1970s when the Erie Pier Contained Disposal Facility was created (the “Original Agreements”);
WHEREAS, after closing on the transaction, USACE determined that they would not recognize the Assignment and Assumption between the city and DSPA and required the city participate in amending and/or terminating the Original Agreements;
WHEREAS, the city has been negotiating with USACE and DSPA for three years and the parties have finalized documents to relieve the city of its obligations under the Original Agreements.
NOW, THEREFORE, BE IT RESOLVED, that the proper city officials are hereby authorized to enter into the Amendment Number 1 to the Local Cooperation Agreement, substantially in the form attached as Exhibit 1, with the United States of America, Department of Army and the Duluth Seaway Port Authority (the “Amendment”).
FURTHER RESOLVED, that the proper city officials are hereby authorized to enter into the Termination of the Right-of Entry Agreements, substantially in the form attached as Exhibit 2, with the United States of America, Department of Army and the Duluth Seaway Port Authority (the “Termination”).
FURTHER RESOLVED, that the proper city officials are hereby authorized to execute all other documents necessary to effectuate the Amendment and Termination.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes an amendment to the Local Cooperation Agreement with the United States of America, Department of Army (“USACE”) and the Duluth Seaway Port Authority (“DSPA”) regarding the Erie Pier Contained Disposal Facility (the “Amendment”), as well as a termination of the Right-of-Entry Agreements (the “Termination”). The Amendment and Termination relieve the city of obligations from agreements enacted in the 1970s regarding the operation of the Erie Pier Contained Disposal Facility (the “Original Agreements”).
The city conveyed its interest in the Erie Pier Contained Disposal Facility to DSPA in 2022 and the parties executed an Assignment and Assumption of Rights and Obligations regarding the Original Agreements (the “Assignment and Assumption”). However, USACE determined that it would not recognize the Assignment and Assumption and required the city to participate in negotiations and documents to relieve the city of its obligations under the Original Agreements. The documents to be approved under this resolution accomplish this objective. However, as to between the city and DSPA, the Assignment and Assumption executed in 2022 controls.
The Erie Pier Contained Disposal Facility manages dredged material from the federal navigation channel, a part of the Great Lakes/St. Lawrence Seaway System deep-draft waterway. It was constructed in the late 1970s to serve both the Wisconsin and Minnesota portions of the Harbor. The Erie Pier Contained Disposal Facility has switched from operating as a confined disposal facility to a processing and reuse facility. The dredged material processed at the site is used for habitat restoration, construction projects, mine-land reclamation, and other uses.