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RESOLUTION AUTHORIZING APPLICATION FOR AND ACCEPTANCE OF A GENERAL FUND APPROPRIATION GRANT FROM THE STATE OF MINNESOTA FOR EXPENSES DIRECTLY RELATED TO DESIGN AND CONSTRUCT NEW FACILITIES AND TO RENEW, REPLACE AND REPAIR EXISTING FACILITIES AT THE SPIRIT MOUNTAIN RECREATION AREA IN THE CITY OF DULUTH, IN THE AMOUNT OF $13,000,000.
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CITY PROPOSAL:
BE IT RESOLVED that the City of Duluth will act as the legal sponsor for the project contained in the Minnesota Laws of 2023, Chapter 71, Bill HF670, section 14, subdivision 16, entitled Spirit Mountain - Duluth
BE IT FURTHER RESOLVED that the City of Duluth has the legal authority to receive financial assistance, and the institutional, managerial, and financial capability to ensure adequate project administration.
BE IT FURTHER RESOLVED that the sources and amounts of the local match identified in the development proposal are committed to the project identified.
BE IT FURTHER RESOLVED that the City of Duluth has not violated any Federal, State or local laws pertaining to fraud, bribery, graft, kickbacks, collusion, conflict of interest or other unlawful or corrupt practice.
BE IT FURTHER RESOLVED that upon approval of its development proposal by the state, the City of Duluth may enter into an agreement with the State of Minnesota for the above-referenced project, and that the City of Duluth certifies that it will comply with all applicable laws and regulation as stated in all contract agreements.
BE IT FURTHER RESOLVED that the non-DEED source(s) of funds identified in the sources and uses outline in the application total the amount of $13,000,000 and are committed and adequate to fully fund or provide the match for the project identified in the application.
BE IT FURTHER RESOLVED that any source(s) of the Applicant’s fund(s) to fully fund the project shall be from an interfund loan from the General Fund account which has an adequate amount of funds to cover the commitment. The interfund loan will be repaid through the issuance of general obligation bonds.
NOW, THEREFORE BE IT RESOLVED that the proper city officials are authorized to execute such agreements as are necessary to implement the project on behalf of the City of Duluth.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes application for, and acceptance of, a General Fund Appropriation Grant in the amount of $13,000,000 from the State of Minnesota for expenses directly related to the design and construction of new facilities and the renewal, replacement, and repair of existing facilities at Spirit Mountain Recreation Area in the City of Duluth.
The estimated $26 million project will be paid for by $13 million from the State of Minnesota, $6.5 million from Spirit Mountain Recreation Authority paid for from operating revenues, and $6.5 million from the City of Duluth paid for from tourism tax proceeds.
It is anticipated that the funds will be used to renew and expand the newer north end of the upper Spirit Mountain chalet, demolish the older, badly deteriorated, south end, and replace the aged Gandy and Summit chairlifts with one new chairlift.