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RESOLUTION AUTHORIZING A DEVELOPMENT AGREEMENT WITH THE DULUTH ECONOMIC DEVELOPMENT AUTHORITY AND CIRRUS DESIGN CORPORATION.
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CITY PROPOSAL:
WHEREAS, on March 13th, 2023, the city council authorized the sale of certain property located at the Duluth International Airport by purchase agreement to the Duluth Economic Development Authority (“DEDA”) for nominal consideration pursuant to Section 2-176(a) of the Duluth City Code, 1959, as amended, so that DEDA could convey the property to Cirrus Design Corporation (“Cirrus”) for economic development purposes, 23-008-O, which property is legally described as follows:
The building and other improvements located on the real property located in St. Louis County, Minnesota described as follows (the “Building”):
The South 120.00 feet of Lot 17, Block 4, Airport Division and the South 152.13 feet of the West 65.00 feet of said Lot 17, Block 4, EXCEPT the vacated westerly adjacent spur street; Lot 1, Block 5, Airport Division; and the vacated Taylor Circle, as dedicated in said Airport Division, EXCEPT that part of said Taylor Circle lying easterly of the northerly extended centerline of the easterly portion of said Taylor Circle.
WHEREAS, on April 26th, 2023, DEDA approved the purchase agreement to purchase the Building for nominal consideration, 23D-17, and, after holding a public hearing, also approved a development agreement (the “Development Agreement”) to convey the Building to Cirrus on that date, 23D-18.
WHEREAS, the city of Duluth retains both an ownership and leasehold interest in the land on which the Building is located and, consequently, has ongoing rights and interests associated with said land and the operations thereon; and
WHEREAS, Cirrus requires, as a contractual term of the Development Agreement, that it be granted a leasehold interest in the land on which the Building is located and, since the city of Duluth-as owner and current leaseholder-is the party which can grant such a leasehold, its inclusion as a party to the development agreement is the most practical means to accomplish this outcome; and
WHEREAS, in order to best protect its ongoing interests and facilitate the necessary lease provisions within the development agreement the city of Duluth wishes also to be party to the development agreement.
NOW, THEREFORE, BE IT RESOLVED, that the proper city officials are hereby authorized to execute a Development Agreement substantially in the form of the copy attached as Exhibit A.
Statement of Purpose
STATEMENT OF PURPOSE: The purpose of this resolution is to approve a development agreement between the city of Duluth as landowner, DEDA as seller, and Cirrus as purchaser of the improvements and personal property located at the Duluth International Airport, specifically a building which has been used and lease by Cirrus since 2002, thereby giving effect to 23-008-O, the ordinance by which city council approved the sale of the building to Cirrus.