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RESOLUTION AUTHORIZING A FIFTY-YEAR LEASE AGREEMENT FOR A PORTION OF THE GROUND LEVEL IN THE MEDICAL DISTRICT PARKING RAMP WITH THE LAKEVIEW AT 333 SUPERIOR PARKING, LLC FOR $38,400 IN THE FIRST YEAR OF THE LEASE AGREEMENT.
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CITY PROPOSAL:
RESOLVED, that the proper city officials are hereby authorized to enter into a lease agreement, substantially the same as that on file with the office of the City Clerk, with The Lakeview at 333 Superior Parking, LLC for those portions of Lots 1 through 8 and Lots 14 through 16, Block 26, Portland Division, St. Louis County, Minnesota legally described and depicted on the attached Exhibit A; lease payments payable into Fund 505-015-1480-2512-4374-04 (Parking Fund, Public Administration, Off Street Parking, Medical District Ramp, Contract Parking - Long Term Lease).
FURTHER RESOLVED, that in the event the lease is not executed on or before April 1, 2021, the authorization set forth herein shall terminate.
Statement of Purpose
STATEMENT OF PURPOSE: The purpose of this resolution is to authorize the City of Duluth to enter into a lease agreement with The Lakeview at 333 Superior Parking, LLC (“Developer”), substantially in the form attached as Exhibit 1, for those portions of the ground level of the Medical District Parking Ramp described on Exhibit A. The Medical District Parking Ramp is located at First Street and 4th Avenue East. The initial term of the lease agreement is 50 years, with one fifteen-year extension term permitted. Annual rent for the first year of the lease agreement shall be $38,400, with annual increases based on the Consumer Price Index (pursuant to the calculation contained in the lease agreement). The Developer desires to lease those designated portions of the ground level of the Medical District Parking Ramp for the purpose of providing parking for its multi-family residential and mixed use development to be constructed in the location of the Voyageur motel.
The City approved a similar lease agreement under Resolution No. 19-0264 (the “Initial Lease”). The parties entered into the lease agreement authorized under Resolution No. 19-0264, but now desire to terminate it and enter into this new lease agreement (in lieu of making an amendment to the Initial Lease). Since entering into the Initial Lease, the Developer has amended its development agreement with the Duluth Economic Development Authority (the “Development Agreement”), and the timelines stated in the new lease mirror the timelines stated in the Development Agreement, as amended. All other terms of the new lease are substantially the same as the Initial Lease.