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RESOLUTION AUTHORIZING INTERFUND LOAN FROM THE GENERAL FUND TO THE CAPITAL IMPROVEMENT FUND IN AN AMOUNT OF $1,963,768 TO PROVIDE FINANCING FOR LAKE FRONT RESTORATION PROJECTS.
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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 received approval from the U.S. Department of Commerce, Economic Development Administration, for a grant in the amount of $4,938,067 for the reconstruction of the seawall adjacent to the Duluth Entertainment Convention Center (the "EDA Grant").
1.02 The City has also been awarded a grant in the amount of $13,500,000 from the State of Minnesota pursuant to Minnesota Laws 2020, 5th Special Session, Chapter 3, Article 1, Section 21, Subdivision 16 for seawall and lakewalk infrastructure with related surface improvements, along the shore of Lake Superior (the "State Grant").
1.03 The City has appropriated $700,000 of the 2023 Budgeted Street Preservation Projects in the Street Improvement Fund (the "Street Improvement Fund") to fund improvements to Harbor Drive which is a portion of the Project, as hereinafter defined.
1.04 The estimated cost to finance the City's Lake Front restoration project, which includes (i) the seawall restoration adjacent to the Duluth Entertainment and Convention Center and the Great Lakes Aquarium and related adjacent surface improvements; (ii) Brighton Beach restoration and related adjacent improvements and (iii) additional lakewalk restoration (collectively, the "Project"), is $21,101,835 to be funded with the proceeds of the EDA Grant, the State Grant, the Street Improvement Fund, and additional City funds in the amount of $1,963,768 (the "Additional City Funds").
1.05 The City's plan of finance for its share of the costs of the Project represented by the Additional City Funds is (i) to provide construction financing through an interfund loan as set...
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