Title
RESOLUTION AUTHORIZING A GRANT TO THE ARROWHEAD ZOOLOGICAL SOCIETY, INC. IN THE AMOUNT OF $200,000 AND AUTHORIZING A ONE YEAR EXTENSION OF A LINE OF CREDIT PROMISSORY NOTE.
Body
CITY PROPOSAL:
WHEREAS, the Lake Superior Zoological Society ("Society") is experiencing financial difficulty and cannot continue to operate the Lake Superior Zoo ("Zoo") through the end of 2016 without additional financial assistance; and
WHEREAS, it is necessary for the city to ensure that the Society is able to continue to operate the Zoo through the end of 2016; and
WHEREAS, beginning January 1, 2017, the Society will be able to draw upon the customary city of Duluth subsidy to help sustain Zoo operations.
RESOLVED, that the proper city officials are hereby authorized to grant to the Arrowhead Zoological Society, Inc. a total amount not to exceed $200,000 to fund continued uninterrupted operation of the Lake Superior Zoo through January 1, 2017, said amount to be payable from Tourism Tax Fund 258 unappropriated fund balance.
FURTHER RESOLVED, that the proper city officials are hereby authorized to extend the term of the line of credit authorized by Resolution 13-0481 on September 23, 2013, from October 1, 2016, to October 1, 2017.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes the city to grant to the Arrowhead Zoological Society, Inc.("Society") $200,000 for necessary operating expenses of the Lake Superior Zoo. The grant will allow the Society to continue operating the zoo without interruption through January 1, 2017, when the customary city of Duluth annual subsidy for the zoo becomes available. The resolution also authorizes the city to extend the term of a line of credit authorized by Resolution 13-0481 from October 1, 2016, to October 1, 2017. The Society will present a business plan and capital campaign plan to the city council by the end of February 2017 that will outline a Society plan to restore break-even operations by 2019...
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