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RESOLUTION AUTHORIZING TRANSFER OF $128,000 TO THE DULUTH ECONOMIC DEVELOPMENT AUTHORITY AND APPROVAL OF A FIRST AMENDMENT TO DEVELOPMENT AGREEMENT WITH PLOVER PLACE, LLC FOR CONSTRUCTION OF THE NEW MODEL OF HOUSING FOR HOMELESS
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CITY PROPOSAL:
RESOLVED, that the proper city officials are hereby authorized to transfer to the Duluth Economic Development Authority (“DEDA”) the sum of $128,000, payable from Fund 110-700-1450-5447(General, Transfers and Other Functions, Transfers and Accruals, Payment to Other Government Agencies), to support construction of housing for people experiencing homelessness.
BE IT FURTHER RESOLVED, that the proper city officials hereby authorize a First Amendment to the development agreement between DEDA and Plover Place, LLC, substantially in the form of attached Exhibit A, increasing the amount of support thereunder by an additional $128,000 for a total amount not to exceed $1,728,000.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes the transfer of $128,000 from the City to DEDA and First Amendment to the development agreement with Plover Place, LLC to support construction of housing for people experiencing homelessness. Due to unforeseen construction overages associated with sidewalk and stormwater management infrastructure, the Developer sought additional gap funding to continue the project.
Plover Place, LLC, a Minnesota limited liability company which is wholly owned by One Roof Community Housing, a 501(c)(3) non-profit corporation, will lead construction of the New Model of Housing for Homeless located on W Palm Street and S Robin Avenue in Duluth, Minnesota. The modified revenue loss calculation included in the updated ARPA guidance expanded the City’s capacity and flexibility to fund projects out of the general fund. The ARPA guidance allowed for the City to fund provisions for governmental services included in the annual budget, thereby freeing up budgeted resources to subsidize homeless housing units. St. Louis County has agreed to match the City’s additional contribution with $172,000 to further support the financing gap.
This First Amendment provides for additional support of $128,000 for a total amount not to exceed $1,728,000 for the development in two phases, each phase being a two-story structure with twelve (12) single occupancy units with in-suite bathrooms, one of which will be a fully accessible unit for those facing homelessness. The micro space reduces overall footprint and costs while providing safe and private units for tenants. In addition to sleeping units, each building will provide a flexible quiet room, open gathering space with a common kitchen, open lounge with TV, outdoor patio, laundry room, storage room and private office for staff. The agreement term runs until ten (10) years from after the date of the issuance of Certification of Completion. Construction is anticipated to begin by January 1, 2024 with completion by December 31, 2025.