Title
RESOLUTION AUTHORIZING A TARIFF REVENUE SHARING AGREEMENT BETWEEN THE DULUTH ECONOMIC DEVELOPMENT AUTHORITY AND THE DULUTH ENTERTAINMENT AND CONVENTION CENTER AUTHORITY
Body
RESOLVED, by the Duluth Economic Development Authority ("DEDA") that the proper DEDA officials are hereby authorized to enter into a tariff revenue sharing agreement with the Duluth Entertainment and Convention Center Authority (“DECC”) substantially in the form of that attached hereto as Exhibit A. In consideration of DEDA’s part in funding the dredging project, the DECC allocates to DEDA the amount of $9 per cruise passenger from the DECC’s revenues of tariff charges assessed to cruise lines (the “Tariff Revenue Share”). The payment of the Tariff Revenue Share shall be computed and paid to DEDA Fund 860 on a monthly basis.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes a tariff revenue sharing agreement between the Duluth Economic Development Authority (“DEDA”) and the Duluth Entertainment and Convention Center Authority (“DECC”). To cover a portion of the cost of the necessary seawall dredging project, the DECC will add a $9 per passenger “infrastructure tariff” on cruise passengers for each port call. This tariff will be added to the existing list of tariffs imposed by the DECC.
This agreement is the final, crucial step in our goal to provide a solution for the dredging along the seawall adjacent to the DECC, which will allow for greater growth and expansion of Duluth’s Great Lakes Cruising market. Currently, no ships are able to dock directly alongside the DECC-limiting cruise lines and local availability. According to the 2021 BBER Cruising Study, full realization of Duluth as a cruising destination could see between $3.1 million and $8.1 million in economic benefit.