CITY OF DULUTH proceedings of the CITY COUNCIL 2002 OFFICIAL PROCEEDINGS Special meeting of the Duluth City Council held on Monday, January 7, 2002, 4:15 p.m. in Room 202, Harborside, Duluth Entertainment Convention Center, Duluth, Minnesota. Roll call: Present: Councilors Eckenberg, Fena, Gilbert, Hogg, Ness, Stenberg, Stewart, Stover and President Edwards -- 9 Absent: None -- 0 - - - PRESENTATION OF PETITIONS AND OTHER COMMUNICATIONS 02-0107-02a The following submitting communications regarding Resolution 01-0676 denying work permit applications of Spirit Ridge, LLC, related to the Spirit Ridge Project: (a) Jim Gearns; (b) H. Erickson; (c) Dean Korach; (d) Greg Price; (e) Spirit Ridge, LLC, by William M. Burns, attorney. -- Received - - - REPORTS OF OFFICERS 02-0107-01a Mayor Doty submitting veto of Resolution 01-0676 denying work permit applications of Spirit Ridge, LLC, related to the Spirit Ridge Project. -- Received - - - RESOLUTION FOR RECONSIDERATION Resolution 01-0676, denying work permit application of Spirit Ridge, LLC, related to Spirit Ridge project, was introduced for discussion. The rules were suspended upon a unanimous vote to hear from speakers on the resolution. Warren Wirta; Peggy Marrin; Greg Price; Sharon Stevens, legal counsel for the Sierra Club; Kay L. Lewis; Elijah; Karin Dushane and Doug Happy supported the resolution for the reasons of: the land is sacred Indian burial grounds and a ceremonial site; the work permits do not fit the -1- PROCEEDINGS OF THE DULUTH CITY COUNCIL FOR 2002 project at this point; when the project meets the requirements the correct process would be for the developer to apply; if there is no proof that a golf course would benefit Duluth, the old US Steel site should be considered; if the council does not approve this at this time, the developer would be granted permits from the state; the existing outdoor recreation of hiking, snowshoeing, bicycling , etc., create a good revenue for retailers; the topography does not show that it would be ideal for a golf course; legal issues have not been settled; economic development should be devoted to the technology sector, not tourism; a study has not been done to show that this would be good for that area; only a few people who will profit from this, other than the developer; there will be pollution and runoff from this development and that all the existing outdoor activities are unique to have in a city. Mike Goldsmith opposed the resolution for the reason that this city is becoming known as an anti-development city that will not allow progress and create jobs. William Burns, legal counsel representing the applicant, stated that: building a golf course at the old US Steel site would not benefit Spirit Mountain and the community economically; the permitting process of the Corps of Engineers, which has already been started, will address the Indian community’s cultural significance of this area; the planning commission and the courts have ruled that there are no significant environmental issues and the city attorney has opined as to the views that may or may not be used in the legal process. Councilors supporting the resolution felt that: earlier this year, the council passed a resolution that it would not consider any work permits until the Land and Water Conservation Act (LAWCON) and other issues were resolved; when the project comes back, it will have integrity; four years ago, when new councilors were sworn in, the council had just approved the master plan and the lease; if a permit cannot be reviewed in the amount of time that this has been going on, there are serious problems and if the LAWCON issues are not resolved, it will adversely affect other projects. Councilors opposing the resolution cited reasons of: the developers know that if the LAWCON issue is not cleared up, there are no permits; that the LAWCON issues are the city’s problem, not the developers; that the city should be working with the developers to insure that this is a competent project; it sends a poor message to the legislature, in that private investment dollars area being used for economic development and jobs, which is what the city is fighting for and the application for the permits was filed prior to the city council resolution regarding when the council would consider work permits. Councilor Hogg moved to call the question, which motion was seconded and unanimously carried. The resolution failed upon the following vote [six votes needed to override Mayor Doty’s veto]: Yeas: Councilors Fena, Gilbert, Ness, Stewart and Stover -- 5 Nays: Councilors Eckenberg, Hogg, Stenberg and President Edwards -- 4 - - - The meeting was adjourned at 5:15 p.m. JEFFREY J. COX, City Clerk -2- PROCEEDINGS OF THE DULUTH CITY COUNCIL FOR 2002 OFFICIAL PROCEEDINGS Special meeting of the Duluth City Council held on Monday, January 7, 2002, 6:00 p.m. in the Harborside Ballroom, Duluth Entertainment Convention Center, Duluth, Minnesota. Roll call: Present: Councilors Atkins, Bergson, Gilbert, Hogg, Stauber, Stenberg, Stewart, Stover and President Ness -- 9 Absent: None -- 0 - - - ELECTION OF OFFICERS Councilor Ness was elected president upon a unanimous vote. Councilor Hogg was elected vice president upon a unanimous vote. - - - REPORTS OF OFFICERS 02-0107-01b Finance department director submitting communication appointing Genie Stark to the position of city auditor. – Received - - - UNFINISHED BUSINESS Resolution 01-0871, by Councilor Stenberg, authorizing an agreement with Sinex Aviation Technologies in an amount not to exceed $250,000 and authorizing acceptance of reimbursement from the Duluth economic development authority in the amount of $50,000, was introduced for discussion. Resolution 01-0871 was adopted as follows: BY COUNCILOR STENBERG: RESOLVED, that the proper city officials are hereby authorized to enter into an agreement, substantially in the form of that on file in the office of the city clerk as Public Document No. 02-0107-03, with Sinex Aviation Technologies (Silex) in a total amount not to exceed $250,000, payable from Fund 0255, contingent upon receipt by the city of a Soft Center workforce development fund grant from the Minnesota Legislature. FURTHER RESOLVED, that the Duluth City Council hereby accepts reimbursement from the Duluth economic development authority (DEDA) relating to the Silex project in the amount of $50,000, said amount to be deposited into Fund 0255. Resolution 01-0871 was unanimously adopted. Approved January 7, 2002 GARY L. DOTY, Mayor - - - Resolution 01-0872, by Councilor Stenberg, authorizing an agreement with Connecting Point in an amount not to exceed $48,306 and authorizing acceptance of reimbursement from the Duluth economic development authority in the amount of $24,000, was introduced for discussion. Councilor Stenberg moved to table the resolution, which motion was seconded and unanimously carried. - - - MOTIONS AND RESOLUTIONS CONSENT AGENDA (All matters listed under the consent agenda were considered routine and/or noncontro- versial and enacted by one unanimous motion.) -3- PROCEEDINGS OF THE DULUTH CITY COUNCIL FOR 2002 President Ness moved passage of the consent agenda, which motion was seconded and unanimously carried. BY COUNCILOR BERGSON: RESOLVED, that the proper city officers are hereby authorized to execute a maintenance agreement with International Business Machines Corporation covering maintenance of various M.I.S. equipment beginning January 1, 2002, through December 31, 2002, at an estimated annual cost of approximately $25,650, payable out of General Fund 0100, Dept./Agency 015, Organization 1513, Object 5404. Resolution 02-0018 was unanimously adopted. Approved January 7, 2002 GARY L. DOTY, Mayor - - - BY COUNCILOR BERGSON: RESOLVED, that the proper city officers are hereby authorized to execute an extension of the existing software license rental agreement with International Business Machines Corporation covering operating software for the IBM 9221 mainframe for a one year period beginning January 1, 2002, through December 31, 2002, at an estimated annual cost of $55,250, payable out of General Fund 0100, Dept./Agency 015, Organization 1513, Object 5319. Resolution 02-0019 was unanimously adopted. Approved January 7, 2002 GARY L. DOTY, Mayor - - - BY COUNCILOR STENBERG: WHEREAS, a sufficient petition was filed with the city clerk requesting the vacation of Taylor Circle and the spur street to the northwest of Taylor Circle, legally described as Taylor Circle to the northerly line of Airport Road and that street easement located between Lots 17 and 19, Block 4, all in Airport Division; and WHEREAS, pursuant to Section 100 of the City Charter and Article IV of Chapter 45 of the Duluth City Code, 1959, as amended, such petition was duly referred to the city planning commission, and such commission gave due notice of public hearing and did consider same in public hearing; and WHEREAS, the city planning commission approved, unanimously, the street vacation petition at its December 8, 2001, meeting. NOW, THEREFORE, BE IT RESOLVED, that the city council of the city of Duluth approves the vacation of Taylor Circle and that street easement located between Lots 17 and 19, Block 4, all in Airport Division, as described above, and as more particularly shown on Public Document No. 02-0107-04, subject to the reservation of easements as described below. BE IT FURTHER RESOLVED, that easements for utilities be retained within said vacated street easements as described below and as shown on Public Document No. 02-0107-04: (a)