Title
A RESOLUTION AUTHORIZING AN APPLICATION TO THE UNITED STATES ECONOMIC DEVELOPMENT ADMINISTRATION FOR $3,500,000 FOR THE CITY OF DULUTH COASTAL INFRASTRUCTURE REHABILITATION PROJECT AND TO PROVIDE MATCHING FUNDS UP TO $875,000.
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CITY PROPOSAL:
WHEREAS, the City of Duluth, Minnesota is an eligible applicant for Economic Development Administration (EDA) funding per Section 3 of the Public Works and Economic Development Act (42. U.S.C. § 3122) and 13. C.F.R. § 300.3; and
WHEREAS, the City of Duluth is eligible to receive funding under the CARES Act to recover the economic harm the coronavirus pandemic has caused the city, including dramatically impacting the second largest sector, leisure & hospitality, along with significant job losses to other key industries such as manufacturing, aviation, and healthcare; and
WHEREAS, the City of Duluth is eligible to receive funding under the FY19 EDA Disaster Supplemental to recover from the harm from Federal Disaster 4414 (2018). Federal Disaster 4414 occurred on the heels of two state disaster declarations (2017 & 2018) associated with super storms that battered the Lakewalk and St. Louis River shorelines and port seawalls and buildings; and
WHEREAS, three successive weather related disasters crippled Duluth’s coastal waterfront reliant industries and the corona virus pandemic delivered tremendous consecutive economic harm to those same industries among others; and
WHEREAS, the City of Duluth desires to rehabilitate the coastal infrastructure to recover from both economic shocks and diversify and make the economy more resilient.
NOW, THEREFORE, BE IT RESOLVED
1. The Duluth City Council authorizes the City to apply for and accept the funding from the US Economic Development Administration under both or either the CARES Act Notice of Funding Opportunity and/or the FY19 EDA Disaster Supplemental to support the Coastal Infrastructure Rehabilitation Project.
2. The City Council names Emily Larson, Mayor as authorized representative for said EDA grant upon award.
3. The City Council confirms all non-EDA funds are committed to the project, available as needed, not derived from federal sources, and not conditioned or encumbered in any way that would preclude their use consistent with the purpose of the project
STATEMENT OF PURPOSE:
This resolution authorizes application to the Economic Development Administration of the United States Department of Commerce for $3,500,000 to help pay for and augment the City of Duluth’s state bonding project to restore coastal infrastructure. If awarded, the grant funds would help to pay for reconstruction of the seawall and walkway behind the DECC to a standard that would permit the mooring of large vessels including cruise ships.
The required non-federal matching contribution for this grant is $875,000. The City remains cautiously optimistic that the State of Minnesota will pass a bonding bill in September or October of 2020 that will include DECC seawall restoration. In the event that the state bonding project and the federal Economic Development Administration grant are both funded, the state and federal grants would match each other and, in so doing, reduce the City’s required cash contribution to the overall coastal infrastructure project by $1.5 million.
In the event that the City is awarded an Economic Development Administration grant but does not receive state bonding support, the City’s current intention is to proceed with DECC seawall restoration without state support and use its Municipal General Obligation bonding authority to finance the $875,000 match required by the federal grant.
The Economic Development Administration is expected to notify the City about a potential grant award late in 2020. Council will then have the opportunity to vote on a resolution authorizing acceptance of the Economic Development Administration grant with full knowledge of the outcome of the state bonding request.