File #: 18-0615R    Name:
Type: Resolution Status: Passed
File created: 8/17/2018 In control: Planning and Economic Development
On agenda: 8/27/2018 Final action: 8/27/2018
Title: RESOLUTION AUTHORIZING A FUNDING AGREEMENT WITH THE DULUTH SEAWAY PORT AUTHORITY AND THE DULUTH ECONOMIC DEVELOPMENT AUTHORITY RELATED TO THE PURCHASE OF INFORMATION TECHNOLOGY EQUIPMENT FOR US CUSTOMS & BORDER PATROL OFFICE TO PROCESS ENTRY OF PASSENGER CRUISE SHIPS IN THE PORT OF DULUTH
Title
RESOLUTION AUTHORIZING A FUNDING AGREEMENT WITH THE DULUTH SEAWAY PORT AUTHORITY AND THE DULUTH ECONOMIC DEVELOPMENT AUTHORITY RELATED TO THE PURCHASE OF INFORMATION TECHNOLOGY EQUIPMENT FOR US CUSTOMS & BORDER PATROL OFFICE TO PROCESS ENTRY OF PASSENGER CRUISE SHIPS IN THE PORT OF DULUTH

Body
CITY PROPOSAL:
RESOLVED, that the proper City officials are hereby authorized to enter into a Funding Agreement with the Duluth Seaway Port Authority (the "Port Authority") and the Duluth Economic Development Authority ("DEDA"), authorizing reimbursement to the Port Authority of up to $25,000, payable from Tourism Tax Fund 258 unappropriated fund balance, for the cost of purchasing information technology ("IT") equipment for US Customs & Border Patrol to process entry of cruise ship passengers at the waterfront of downtown Duluth.


Statement of Purpose
STATEMENT OF PURPOSE: The purpose of this resolution is to authorize reimbursement of the Port Authority of up to $25,000 for the cost of purchasing US Customs & Border Patrol (CBP)-required IT equipment needed to establish a passenger cruise ship customs clearance office at the Duluth downtown waterfront for economic development growth purposes in our community.

In 2017, Duluth was named one of the four destinations for CBP passenger clearance by the Great Lakes US Governors & Canadian Premiers, strategically placing Duluth in the position of maximizing this economic development growth opportunity. Great Lakes cruising is enjoying an upward growth trend in the maritime and tourism industry and has the potential to bring hundreds, if not thousands, of new visitors to our community in the next few years. Victory Cruise Lines has confirmed the arrival of the M/V Victory II in Duluth on two dates in August of 2019. Initial estimations are that there will be a minimum of eight vessel visits to Duluth in 2020 of which at least four will be inbound from a foreign port. Each vessel has the potential to bring a combi...

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