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RESOLUTION AUTHORIZING AN AMENDMENT TO AN AGREEMENT WITH UNITED STATES STEEL CORPORATION FOR A LICENSE TO USE CERTAIN REAL PROPERTY BETWEEN MORGAN PARK AND GARY-NEW DULUTH FOR RECREATIONAL PURPOSES, AT NO COST TO THE CITY.
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CITY PROPOSAL:
RESOLVED, that the proper city officials are hereby authorized to execute an amendment to an agreement, substantially the same as the agreement attached as Exhibit 1, with United States Steel Corporation, a Delaware corporation, for a license to use certain real property near and adjacent to the old U.S. Steel plant site in the Morgan Park and Gary-New Duluth neighborhoods for recreational purposes, at no cost to the City.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes the city to enter into an amendment to an agreement with United States Steel Corporation ("USS") for a license to use certain real property near and adjacent to the old USS plant site in the Morgan Park and Gary-New Duluth neighborhoods for recreational purposes, at no cost to the City. The specific areas authorized under the original agreement are depicted on the attached Exhibit 2.
The City entered into a non-binding Letter of Intent with U.S. Steel on August 19, 2020 setting forth several goals for remediation of the former USS plant site, which included development by USS of trails and other recreational amenities (the "Recreational Amenities") and an eventual transfer of certain real estate to the City. The Recreational Amenities have now been constructed and can be opened for public use; however, the City does not yet own the property. USS is willing to grant a license for use of the Recreational Amenities until the City acquires ownership of the property.
The parties intended to close on the transaction in 2024; however, due to several complexities, the closing will now not occur until 2025. The parties are still negotiating the terms of the transaction and there should be a purchase agreement presente...
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