Title
RESOLUTION APPROVING A PROFESSIONAL SERVICES AGREEMENT BETWEEN THE DULUTH ECONOMIC DEVELOPMENT AUTHORITY AND THE HOUSING AND REDEVELOPMENT AUTHORITY OF DULUTH, MINNESOTA.
Body
CITY PROPOSAL:
RESOLVED, that the city council of the city of Duluth does hereby approve, pursuant to the provisions of resolution no. 10-0229, the professional services agreement between the Duluth economic development authority (DEDA) and the Housing and Redevelopment Authority of Duluth, Minnesota (“HRA”), substantially in the form of that attached as Exhibit A, to implement and administer the Irving Exterior Housing Renovation Forgivable Loan Program in an amount not to exceed $180,000: $24,000 of which is to compensate the HRA for its services and $156,000 of which will be provided to owners pursuant to the Guidelines, payable from DEDA Fund 865, Org. 8607, Object 5319.
Statement of Purpose
STATEMENT OF PURPOSE: The purpose of this resolution is to obtain the City Council’s approval of the professional services agreement between DEDA and the HRA as is required pursuant to Paragraph 19 of the amended DEDA enabling Legislation Resolution 10-0229. DEDA approved the agreement at its October 28, 2015, meeting.
District 7 was implemented as a Scattered Site Redevelopment district with a focus on housing and stemming neighborhood blight through rehabilitation and demolition in select target areas. This agreement will promote the additional investment in to the Irving neighborhood housing stock through 13 targeted property rehabilitations funded through forgivable loans that will be matched dollar for dollar by the property owners. The program will focus on the property exterior including flood proof landscaping. The maximum loan amount would be up to $12,000 for a term of four years. After four years, if the property is still in good repair and under the same ownership the loan would be forgiven. If the property is sold within the four year term then all of the loan funds would be repaid. This agreement is for a total of eight years, but funds will not be revolved after the sixth year.