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RESOLUTION AUTHORIZING A DEVELOPMENT AGREEMENT WITH CHESTER CREEK VIEW LLC AND INCLINE PLAZA DEVELOPMENT LLC FOR CONSTRUCTION OF THE INCLINE PLAZA PROJECT
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CITY PROPOSAL:
RESOLVED, that the proper city officials are hereby authorized to enter into a development agreement that is contingent on final approval of environmental review, substantially in the form of Exhibit A (“Development Agreement”) attached hereto, with Chester Creek View LLC and Incline Plaza Development LLC (the “Developer”) for the development of the Incline Plaza Project located on Lots 2 and 3, Block 1 and Lot 1, Block 2, Central Overlook in the City of Duluth pursuant to which Developer will receive tax increment financing (TIF) assistance for the construction of approximately 1200 units of housing, 80,000 square feet of retail space, and related infrastructure enhancements to the site, payable from TIF District 17, Fund __, Agency ___, Org __; subject to the approval by the Duluth City Council of the Development Agreement and of the Tax Increment Financing Plan for Tax Increment Financing District No. 17.
FURTHER RESOLVED, that contingent on final approval of environmental review and approval by the Duluth City Council of the Development Agreement and of the Tax Increment Financing Plan for Tax Increment Financing District No. 17, the proper DEDA officials are hereby authorized to enter into one or more promissory notes, each promissory note associated with a Project, as that term is defined in the Development Agreement, substantially in the form of Exhibit A to the Development Agreement with Chester Creek View LLC and Incline Plaza Development LLC in amounts equal to ninety-percent (90%) of TIF Eligible Project Costs, as that term is defined in the Development Agreement, payable from Fund 860 to support construction of the Incline Plaza Development, subject to the City transferring to DEDA the amount necessary to fund said obligation.
Statement of Purpose
STATEMENT OF PURPOSE: The purpose of this resolution is to authorize a development agreement with Chester Creek View LLC and Incline Development LLC and the Duluth Economic Development Authority to support construction of the Incline Plaza Development located on Lots 2 and 3, Block 1 and Lot 1, Block 2, Central Overlook, on the site of the former Duluth Central High School. To support the proposed construction of approximately 1200 units of housing, 80,000 square feet of retail space, infrastructure, and public amenities including but not limited to a trailhead, pavilion, and connections to surrounding neighborhoods, tax increment financing (TIF) will be utilized. The development agreement establishes the overarching framework for the utilization of TIF to support this project. Up to three (3) TIF districts are permissible for use on this site. A future resolution certifying the first TIF district is anticipated to be brought before Council in May to coincide with the completion of the Alternative Urban Areawide Review (AUAR).
The public purpose of the tax increment assistance to be provided pursuant to this Agreement is the construction of housing that will result in expanding workforce housing in the City, the redevelopment of underutilized, blighted or obsolete land uses including demolition of substandard structures, the development on sites which would not be developed without assistance, and the increase in tax base within the City of Duluth.
The first project within the first TIF district is anticipated to include sixty (60) units of market rate housing. The final funding support through TIF in support of the first project will be set forth in the future resolution certifying the first TIF district. Additional projects are anticipated within the first TIF district, and those projects are likely to necessitate further evaluation of total TIF support to the development to provide funding for infrastructure and other eligible project elements.