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RESOLUTION AUTHORIZING A SECOND AMENDMENT TO THE DEVELOPMENT AGREEMENT WITH HARTLEY NATURE CENTER CORPORATION FOR EXPANSION OF THE BUILDING LEASED BY THE CORPORATION AND IMPROVEMENTS OF PARK AMENITIES.
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CITY PROPOSAL:
WHEREAS, Hartley Nature Center Corporation (the “Corporation”) leases and manages an existing building located within Hartley Park that was recently expanded and improved to provide more and better programming and recreational opportunities to the public;
WHEREAS, the city owns and manages Hartley Park and recently completed improvements to outdoor facilities for parking, pedestrian access, and stormwater management;
WHEREAS, the city was awarded a $1,293,975 grant from the Minnesota Parks and Trails Legacy Grants Program (the “Grant”) authorized under Resolution No. 18-0567. $1,000,000 of the Grant was allocated to the building expansion (the “Building Addition”), and $293,975 was allocated to improvement of outdoor facilities in Hartley Park (“Park Improvements”). The Building Addition and Park Improvements are collectively referred to as the “Project.”
WHEREAS, the Corporation and City entered into a development agreement on December 20, 2019, which agreement was authorized under Resolution No. 19-0874 (the “Original Agreement”). The Original Agreement outlined the goals for the Project and each party’s roles and responsibilities.
WHEREAS, the Development Agreement was amended on June 24, 2021 by a first amendment, which amendment was authorized under Resolution No. 21-0440 (the “First Amendment”). The Original Agreement and First Amendment are collectively referred to as the “Development Agreement.”
WHEREAS, there were several change orders to the design firm’s contract for the Project due work product errors and omissions that led to an unanticipated increase to the Project budget, and the City negotiated a partial settlement with the design firm for the increased costs.
WHEREAS, the errors in the design and the increased costs that resulted from those errors were of no fault to the Corporation, but those costs are allocated to the Corporation under the Development Agreement.
WHEREAS, the City believes it would be unjust to financially burden the Corporation for the errors in the design of the Project and desires to amend the Development Agreement to reduce the oustanding amount owed by the Corporation toward the Project.
NOW, THEREFORE, BE IT RESOLVED, that the proper city officials are hereby authorized to execute a second amendment to the Development Agreement, substantially in the form attached as Exhibit 1, with the Corporation; funds received from the Corporation shall be deposited into Fund 205-130-1220-4220-01 (Parks Fund, Community Resources, Parks Capital, State of Minnesota Capital, Project: CM205-HARTLE-LGCY18).
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes a second amendment to the development agreement (the “Development Agreement”) with Hartley Nature Center Corporation (the “Corporation”) relating to the expansion of the building (the “Building Addition”) and improvements of outdoor facilities in Hartley Park (the “Park Improvements”) (collectively, the “Project”). This second amendment: (i) reduces the final amount owed by the Corporation toward the Project from $1,311,135.54 to $1,236,421, a decrease of $74,714.54; and (ii) extends the term of the Development Agreement through April 30, 2024.
The building at Hartley Park houses a variety of short - one hour to one week - programs for all ages, as well as a nature-based preschool. The building also serves as a de facto visitor center for Hartley Park with restrooms, rental equipment, and visitor information. Over time, dramatic sustained growth in Corporation program participation and park visitation has made it impossible to accommodate all three functions in the existing building. The Project enables the Corporation to provide more and better outdoor recreation and environmental education opportunities to the public.
The Building Addition included two new classrooms, a second set of restrooms, an updated exhibit hall, a parent/family gathering area, an expanded office, and a public meeting room for organizational partners and the broader community.
The Park Improvements included:
• Construction of approximately 1000 feet of new sidewalk from Woodland Avenue to parking, trailheads, and the building
• ADA accessibility improvements
• Roadside overflow parking along the entry road
• Amendments to inadequate stormwater management along the entry road.
• Fabrication and installation of complete wayfinding signage throughout the park.
The Project was funded with $1,293,975 from the Minnesota Parks and Trails Legacy Grants Program, $1,236,421 from the Corporation, and $537,514 from the City of Duluth Parks Fund. The City also supported the Project by overseeing all aspects of construction including design development, permitting, construction documents, and project management services.