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RESOLUTION AUTHORIZING INTERFUND LOAN FROM THE GENERAL FUND TO THE CAPITAL IMPROVEMENT FUND FOR THE SPIRIT MOUNTAIN RESTORATION PROJECT IN AN AMOUNT OF $13,000,000 TO PROVIDE FINANCING FOR THE SPIRIT MOUNTAIN RESTORATION PROJECT.
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CITY PROPOSAL:
BE IT RESOLVED, by the city council (the "Council") of the city of Duluth, St. Louis County, Minnesota (the "City"), as follows:
Section 1. Purpose.
1.01 The City has been awarded a grant in the amount of $13,000,000 from the State of Minnesota pursuant to Minnesota Laws of 2023, 93rd Legislature Regular Session, Chapter 71, Section 14 and Subd. 16 (the "Grant").
1.02 The City is proposing to design and construct new facilities and to renew, replace, and repair existing facilities at the Spirit Mountain Recreation Area (the "Project").
1.03 The estimated cost of the Project is $26,000,000 which is proposed to be funded with (i) the proceeds of the Grant; and (ii) funds from the City in the amount of $13,000,000.
1.04 The City's plan of finance for its share of the costs of the Project represented by the City funds is (i) to provide construction financing through an interfund loan as set forth in Section 2 hereof, and (ii) to provide long term financing through the City's issuance of general obligation bonds issued pursuant to Minnesota Laws 1974, Chapter 130 to be issued prior to December 31, 2025.
Section 2. Authorization of Interfund Loan.
2.01 The Council hereby authorizes and directs an interfund loan from the General Fund, undesignated fund balance, to the Spirit Mountain project account in the capital improvement fund (the "Project Fund") in the amount of $13,000,000. Funds in the Project Fund may only be used for costs of the Project. The General Fund shall be repaid with proceeds of the general obligation bonds described in Section 1.04.
2.02 This resolution and the interfund loan shall be effective as of the date of approval of this resolution.
STATEMENT OF PURPOSE:...
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