Title
RESOLUTION AUTHORIZING 2022- 2023 DENVER AIR SERVICE GRANT FUNDING AGREEMENT WITH DULUTH AIRPORT AUTHORITY AND PAYMENT OF $100,000.
Body
CITY PROPOSAL:
WHEREAS, the Duluth Airport Authority has secured a federal grant award of $750,000 from the United States Department of Transportation through the Small Community Air Service Development Program to provide a minimum revenue guarantee and associated marketing program to recruit, initiate and support new air service to Denver International Airport; and
WHEREAS, the grant award and agreement requires a local financial contribution of $279,000;
RESOLVED, that the proper city officials are hereby authorized to enter into an agreement, substantially in the form of that attached as Exhibit A, with the Duluth Airport Authority in an amount not to exceed $100,000, payable from 258-030-5436-12; (tourism taxes, finance, tourism tax allocations, miscellaneous).
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes a two-year funding agreement with the Duluth Airport Authority (DAA) to promote tourism flights to Duluth from and connecting through the Denver International Airport. DAA has secured a federal grant award of $750,000 from the United States Department of Transportation through the Small Community Air Service Development Program to provide a minimum revenue guarantee (MRG) and associated marketing program to recruit, initiate and support new air service to Denver International Airport (DEN). The grant award and agreement requires a local financial contribution of $279,000. This agreement is funded by tourism tax collections, and may be reduced or terminated in the event that insufficient proceeds are derived from hotel-motel and food and beverage tourism taxes.