Title
RESOLUTION AUTHORIZING A SIXTH AMENDMENT TO GENERAL FUND APPROPRIATION BOND MASTER GRANT AGREEMENT WITH THE MINNESOTA DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT (DEED) FOR THE DULUTH REGIONAL EXCHANGE DISTRICT PROJECT.
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CITY PROPOSAL:
RESOLVED, that the proper city officials are hereby authorized to enter into a sixth amendment to general fund appropriation bond master agreement with the Minnesota department of employment and economic development, substantially the same as the form attached as Exhibit 1, for the release of funding for the Duluth regional exchange district project no. 4, relating to demolition and restoration of the site of the former Essentia hospital, in an amount not to exceed $11,820,000.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes the execution of a sixth amendment to the general fund appropriation bond master grant agreement (Grant Agreement) with the Minnesota department of employment and economic development (DEED) for the Duluth regional exchange district (RED) to release funding for RED Project No. 4 in an amount not to exceed $11,820,000. Project 4 is described as demolition of existing hospital structure for site reuse for the public purposes described in Minn. Stat. § 469.51, the scope of which includes demolition of the former Essentia hospital and related infrastructure on the site; removal of the debris from the site and proper disposal; and seeding, grading and other work for site restoration and reuse.
The City entered into a development agreement with Essentia for this project and now needs to enter into this sixth amendment with the DEED so that the funds can be released by the State. Essentia will be reimbursed for costs of the project up to $11,820,000 (the amount allocated for in the legislation). The expected budget for the project is $14,152,225, and Essentia is responsible for any and all amounts that exceed $11,820,000.