Title
RESOLUTION AUTHORIZING A REVOLVING LINE OF CREDIT IN THE AMOUNT OF $4,000,000 FOR THE DULUTH ENTERTAINMENT CONVENTION CENTER AUTHORITY.
Body
CITY PROPOSAL:
RESOLVED, that the city council hereby authorizes a line of credit in the amount of $4,000,000 for the Duluth Entertainment Convention Center 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, 2028, 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 $4,000,000 for the Duluth Entertainment Convention Center (DECC) subject to a fully executed Promissory Note with all outstanding principal amounts and accrued interest to be due and payable by December 31, 2028. The DECC received state funding in the amount of $5,000,000 for an asset and energy improvement project. This line of credit provides short-term cash flow financing and will be repaid upon reimbursement of State of Minnesota funds to the DECC.