Title
RESOLUTION AUTHORIZING A LEASE AGREEMENT WITH CIRRUS DESIGN CORPORATION.
Body
CITY PROPOSAL:
WHEREAS, on March 13th, 2023, the city council authorized the sale of certain property located at the Duluth International Airport by purchase agreement to the Duluth Economic Development Authority ("DEDA") for nominal consideration pursuant to Section 2-176(a) of the Duluth City Code, 1959, as amended, so that DEDA could convey the property to Cirrus Design Corporation ("Cirrus") for economic development purposes, 23-008-O, which property is legally described as follows:
The building and other improvements located on the real property located in St. Louis County, Minnesota described as follows (the "Building"):
The South 120.00 feet of Lot 17, Block 4, Airport Division and the South 152.13 feet of the West 65.00 feet of said Lot 17, Block 4, EXCEPT the vacated westerly adjacent spur street; Lot 1, Block 5, Airport Division; and the vacated Taylor Circle, as dedicated in said Airport Division, EXCEPT that part of said Taylor Circle lying easterly of the northerly extended centerline of the easterly portion of said Taylor Circle.
WHEREAS, the city of Duluth is both the owner of the land on which the building is located and is also under possession of the land through an assignment of a ground lease, originally entered into between the Duluth Airport Authority and DEDA in 1993; and
WHEREAS, Cirrus has been subleasing both the Building and the land on which the building is located from the city of Duluth since 2002, paying separate rent amounts for each; and
WHEREAS, the current term of the 1993 lease runs until December 31, 2043 and is renewable by the city of Duluth for an additional term which would end on December 31, 2068; and
WHEREAS, both the city of Duluth and Cirrus wish to terminate the 2002 sublease agreement, which is currently on a month-to-month basis, and enter into a new sublease agreement under the 1993 ground lease which recognizes...
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