Title
RESOLUTION AUTHORIZING THE AMENDMENT TO THE DEVELOPMENT AGREEMENT WITH ST PAPER 1, LLC TO SUPPORT THE SALE OF THE PAPER MILL LOCATED AT 110 NORTH CENTRAL AVENUE TO SOFIDEL AMERICA, CORP.
Body
CITY PROPOSAL:
WHEREAS, on October 5, 2022, the city and ST Paper 1, LLC ("ST Paper") entered into a development agreement (City Contract Number 24414) attached as Exhibit A, authorizing ST Paper to convert the paper mill at 110 North Central Ave, Duluth, Minnesota, to the production of tissue paper products. Converting the paper mill to tissue paper production ("project") is complete, however other obligations of the development agreement, such as the requirement to maintain 80 jobs, continue to apply; and
WHEREAS, on December 22, 2023, ST Paper gave written notice to the city of its intent to sell the paper mill to Sofidel America, Corp. ("Sofidel") and requested amendment of the development agreement to substitute Sofidel for ST Paper as the paper mill owner; and
WHEREAS, the city reviewed the financial capacity of Sofidel to effectuate the sale and continue operation of the paper mill.
BE IT RESOLVED, that the proper city officials are authorized to enter into an amendment to the development agreement, substantially in the form of the attached Exhibit B, authorizing the transfer of the development agreement from ST Paper to Sofidel, and to enter into a related estoppel certificate substantially in the form of the attached Exhibit C, stating that ST Paper is not in default, no monies are owed, and that the project is complete.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes city officials to enter into an amendment to the development agreement which transfers the development agreement from ST Paper to Sofidel, and to enter into a related estoppel certificate stating that ST Paper is not in default, no monies are owed, and that the project is complete. This resolution is part of a package of resolutions facilitating the transfer of t...
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