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RESOLUTION AUTHORIZING THE EXECUTION AND RECORDATION OF A DECLARATION OVER A LEASEHOLD INTEREST IN THE ST. LUKE’S HOSPITAL PARKING RAMP BEING CONSTRUCTED AS PART OF THE REGIONAL EXCHANGE DISTRICT.
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CITY PROPOSAL:
WHEREAS, Resolution No. 23-0258 authorized a Development Agreement and Ground Lease with St. Luke’s Hospital of Duluth, a Minnesota nonprofit corporation, for the construction of a new parking ramp, located on the real property legally described on Exhibit A to the attached Exhibit 1, (the “Parking Ramp”).
WHEREAS, the construction of the Parking Ramp was funded with State of Minnesota appropriation bond proceeds authorized under the Regional Exchange District legislation, Minnesota Laws 2019, 1st Special Session Chapter 6, Article 10, as amended by Section 1 of Laws of Minnesota 2021, 1st Special Session Chapter 9 (the “Legislation”).
WHEREAS, the City entered into a General Fund Appropriation Bond Proceeds Master Grant Agreement Construction Grant for the Duluth Regional Exchange District Project on June 24, 2019, with the Minnesota Department of Employment and Economic Development in order to receive funds authorized under the Legislation (the “Grant”).
WHEREAS, a condition of the Grant requires the execution and recordation of a Declaration against the real property improved with the Grant so that it is permanently managed and maintained consistent with the terms of the Grant.
NOW THEREFORE, BE IT RESOLVED, that the proper city officials are hereby authorized to execute a Declaration, substantially in the form attached as Exhibit 1 (the “Declaration”), affecting the real property located in St. Louis County, Minnesota legally described on Exhibit A attached to Exhibit 1.
FURTHER RESOLVED, that the proper city officials are hereby directed to record the Declaration with the St. Louis County Recorder and/or Registrar of Titles.
Statement of Purpose
STATEMENT OF PURPOSE: The purpose of this resolution is to authorize the execution and recordation of a Declaration against the City’s leasehold interest for the new St. Luke’s Hospital parking ramp being constructed as part of the Regional Exchange District. The City’s leasehold interest was created in that certain Ground Lease dated April 30, 2023 between St. Luke’s Hospital of Duluth, a Minnesota nonprofit corporation, and the City. The Declaration is required under a grant agreement between the City and the Minnesota Department of Employment and Economic Development. The real property affected by this Declaration is legally described on Exhibit A to the attached Exhibit 1.