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RESOLUTION AUTHORIZING A GROUND LEVEL LEASE AGREEMENT AND A SECOND LEVEL LEASE AGREEMENT IN THE MEDICAL DISTRICT PARKING RAMP WITH THE LAKEVIEW AT 333 SUPERIOR PARKING, LLC RELATED TO THE VOYAGEUR MULTI-FAMILY RESIDENTIAL AND MIXED USE DEVELOPMENT.
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CITY PROPOSAL:
RESOLVED, that the proper city officials are hereby authorized to enter into a lease agreement ground level, substantially in the form attached as Exhibit 1, with The Lakeview at 333 Superior Parking, LLC, (“Developer”) pursuant to which to the Developer will lease a portion of the ground level of the Medical District Parking Ramp for purposes of providing parking for its multi-family residential and mixed use development to be constructed in the location of the Voyageur motel; 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 the proper city officials are hereby authorized to enter into a lease agreement second level, substantially in the form attached as Exhibit 2, with Developer pursuant to which the Developer will lease 65 spaces in the second level of the Medical District Parking Ramp for purposes of providing parking for its multi-family residential and mixed use development to be constructed in the location of the Voyageur motel; 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 above referenced leases are not executed on or before September 1, 2019, 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 long-term leases for the remaining ground level of the Medical District Parking Ramp (the “Ramp) and for 65 spaces in the second level of the Ramp which is located at First Street and 4th Avenue East. Approximately one-third of the ground level area is currently owned by the development team that will construct the mixed used development (“Lakeview”) located at the corner of 4th Avenue East and Superior Street; this and the proposed leased spaces will be used by future Lakeview residents. The ground level space currently owned and occupied by the City is largely underutilized. The ground level lease has a fifty-year term with an option to extend. The second level lease has a fifteen-year term with an option to extend.