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Duluth Council Work Out Guidelines for Casino Funds

DULUTH CITY, Minnesota -- As reported by the Duluth News Tribune: "Duluth City Council members on Monday night began to figure out exactly what their spending philosophy should be for the city's multimillion-dollar trust fund from casino profits.

"The first of possibly several discussions comes on the heels of recent proposals from city officials to use the money, called the Community Investment Trust Fund, for community development projects. In the past six months, the council, with the administration's backing, has voted to divert $8.2 million from the trust fund for downtown improvements, a proposed Kroc community center and a replacement for the burned Peterson Arena.

"In addition, the city administration will propose a homeless housing initiative April 25, to be paid for through the trust.

"Interest from the trust fund has traditionally been devoted to the city's annual Street Improvement Program. And some councilors and citizens recently have called for a moratorium on spending on other projects until a firm policy is decided upon.

"…The money comes from a 1994 agreement between the city and Fond du Lac Band of Ojibwe. It trades off a share of the Fond-du-Luth Casino revenues in exchange for allowing the band to operate the casino downtown.

"The fund contains about $52 million, with most of the earnings from the principal used for Duluth's street-improvement program.

"…City councilors said they might try to hammer out a specific policy at a retreat later this month."

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