Title
RESOLUTION AUTHORIZING A REVOLVING LINE OF CREDIT IN THE AMOUNT OF $10,000,000 FOR THE DULUTH AIRPORT AUTHORITY.
Body
CITY PROPOSAL:
RESOLVED, that the city council hereby authorizes a line of credit in the amount of $10,000,000 for the Duluth Airport Authority subject to a fully executed Promissory Note , requiring loan repayment , plus interest, with the entire outstanding principal amount, and accrued interest, due and payable by December 31, 2029, funds to be paid from 110-1330 (General Fund, Loans Receivable)
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes a line of credit in the amount of $10,000,000 for the Duluth Airport Authority (DAA) subject to a fully executed Promissory Note with all outstanding principal amounts and accrued interest to be due and payable by December 31, 2029. The DAA is undertaking a $72M air traffic control tower project. This line of credit provides short-term cash flow financing and will be repaid upon reimbursement of state and federal funds to the DAA.