2006 Official Proceedings

CITY OF DULUTH proceedings of the CITY COUNCIL 2006 OFFICIAL PROCEEDINGS Special meeting of the Duluth City Council held on Tuesday, January 3, 2006, 5:00 p.m. in the Council Chamber, City Hall, Duluth, Minnesota. Roll call: Present: Councilors Gilbert, Krause, Little, Reinert , Stauber, Stewart, Stover and President Ness -- 8 Absent: Councilor Johnson -- 1 - - - RESOLUTION TABLED Councilor Reinert moved to remove Resolution 05-0887, of intent to transfer land to the Salvation Army, from the table, which motion was seconded and unanimously carried. The rules were suspended upon a unanimous vote to hear from speakers on the resolution. Major Mark Welsh and Denise Overstake, representing the Salvation Army, and Doug Franzen, attorney for the Salvation Army, reviewed: an approximate time table with regard to the submission of the application for the Kroc Center to the appropriate authorities within the Salvation Army for approval of the project; what the center will provide to the community in terms of programs and activities; what the construction period will be and the funding that will need to be raised if the project is approved. Responding to Councilor Gilbert, Mr. Franzen stated that approval of this resolution is necessary so that it can be included with the application when it is submitted to the appropriate authorities and that without it, the application will not be approved. Responding to Councilor Gilbert, Ms. Overstake stated that because the results of a final study done by a recreational consultant have not been received, it cannot be determined yet exactly what recreational facilities will be provided at the facility or what type of aquatic facility should be planned. -1- PROCEEDINGS OF THE DULUTH CITY COUNCIL FOR 2006 Councilor Gilbert stated that his issue with this project is that his expectations were that this facility would be recreational and that it would include a hockey rink and aquatic facility. He said his understanding now is that the hockey facility is no longer included in the facility being planned, the council does not know what type of aquatic facility there will be yet and his concern is that a lot of money will be wasted on a facility that the community really does not want. Responding to Councilor Gilbert, Mr. Franzen stated that while he does not believe that amending the resolution to incorporate conditions as to what the facility should include will not be detrimental to the approval process, he feels that it would be more appropriate to include the suggested conditions in the development agreement if the project is approved. He stated that the paramount issue is to raise additional endowment pledges because without them the property will not be purchased and the project will not be approved. Responding to Councilor Reinert, City Attorney Brown explained that the reason this resolution is being put before the council so hurriedly is because of a February deadline that the Salvation Army has to submit the application. He further stated that the administration has known for some time that this action needed to be taken but because of problems with obtaining the dimensions of the site that will be required from the firm doing the needs assessment and getting the figure for what the fair market value for the property is took additional time. Mr. Brown emphasized that this is a resolution of intent to sell the property and that before the sale of the property will take place the council will have to vote on a development agreement and authorize purchase of the property by ordinance. Responding to Councilor Krause, Ms. Overstake stated that rooms for groups to hold program activities and meetings will be available to the public on a negotiated sliding fee basis regardless of whether they are an ethnic group or not. Councilor Gilbert stated he will not support this resolution because the final draft showing what recreation activities will actually be allowed at this facility has not been made known and he feels that without that knowledge, the city is signing a blank check for activities that may already be provided by other facilities within the city, which is bad policy. He further stated that the plans include activities for spiritual and religious activities which may not be permissible in a governmental facility. Councilors noted that this is just a resolution of intent to transfer property necessary for the project to move forward and that there will be plenty of time in the future to discuss what activities will be provided in the facility. Resolution 05-0887 was adopted as follows: BY COUNCILOR REINERT (introduced by President Ness): The city council makes the following findings: (a) It is in the public interest to have adequate multi-use meeting, community center and recreational facilities that are conveniently located within the city; (b) Assisting in the development of such multi-use and recreational facility is a public purpose which purpose is consistent with the Laws of Minnesota and the City Charter; (c) After a needs assessment, the city has determined that there is a need for expanded multi-use and recreational facilities in the area of town served by the city park known as Wheeler Field; (d) City officials, community leaders and officials of the Salvation Army have engaged in extensive discussion and planning about a multi-use and recreational facility that would meet the public need. City of Duluth, through its employees and city council, has identified the preferred -2- PROCEEDINGS OF THE DULUTH CITY COUNCIL FOR 2006 site location, although the exact boundaries will depend upon the final facility design, which is currently in progress; (e) The council’s primary interest in completion of the facility, which will be part of a program operated under the legacy gift of Joan Kroc, donor, is the furnishing of multi-use and recreational opportunities to the citizens. NOW, THEREFORE, BE IT RESOLVED, that the city of Duluth intends to, as soon as possible, as part of the development of the project known as the Kroc Center, transfer to the Salvation Army, an Illinois not for profit corporation, a suitable tract of land at the site in Duluth, Minnesota, known as Wheeler Field, of approximately four to five acres, the approximate boundaries of which are shown on the diagram on file with the clerk as Public Document No. 06-0103-01, for use as the location of the planned Kroc Center development, which is a multi- use meeting, recreation and community center, privately managed by Salvation Army, for fair market value, and at no loss of value to the city, and that the city now declares the land to be available for sale and to be sold without bids, and to be sold for an alternative price, as required by Duluth City Code sections 2-176 and 2-177, subject to conditions below. BE IT FURTHER RESOLVED, that the transfer is conditioned upon the following: (a) All legal requirements for such a transfer are met, including any required affirmative vote of the city council and planning commission, and declaration that the land is available for transfer; (b) The city has fee ownership, or other estate acceptable to Salvation Army, that it can transfer to the buyer; (c) The parties have duly entered into a purchase agreement and a development agreement for the construction and operation of the Kroc Center in accordance with all applicable laws, ordinances and regulations, including the Constitutions of Minnesota and of the United States of America; (d) Any financing, subsidy, contribution or payment to be made by the city in relation to the project has been duly approved by the city council, or any other body from which approval is required, upon or after the date that this resolution is approved. Resolution 05-0887 was adopted upon the following vote: Yeas: Councilors Krause, Little, Reinert, Stauber, Stewart, Stover and President Ness -- 7 Nays: Councilor Gilbert -- 1 Absent: Councilor Johnson -- 1 Approved January 3, 2006 HERB W. BERGSON, Mayor - - - MOTIONS AND RESOLUTIONS BY PRESIDENT NESS: The council makes the following findings: (a) The Duluth Entertainment Convention Center is very important to the cultural and economic life of the city; (b) The University of Minnesota Duluth would benefit from, and actively seeks, an improved facility for its hockey program and other events; (c) The city’s tourism industry and cultural growth will significantly benefit from new additions to the DECC facility, which will be suitable for use for concerts, exhibitions, hockey games, sporting events, public gatherings and other uses; -3- PROCEEDINGS OF THE DULUTH CITY COUNCIL FOR 2006 (d) At this time, the city, the University of Minnesota and the DECC board have developed a feasible plan to construct the needed improvements and it is for the best of public purposes that this be accomplished. THEREFORE, BE IT RESOLVED: Section 1. That the council declares, under Section 51 of the Charter, that there shall be a special election on February 28, 2006, for the purpose of submitting to the electors of the city, by way of referendum, a resolution requesting the legislature to authorize the financing of the needed improvements to the DECC facility, in part, by allowing a .75 percent increase in the city food and beverage sales tax, under certain conditions. The clerk is authorized and directed to prepare and mail or publish any and all notices of such referendum question as are required by the City Charter. Section 2. That the question presented to the electors on the ballot of the said special election shall read

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