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RESOLUTION AUTHORIZING A FIFTEEN-YEAR LEASE AGREEMENT FOR A PORTION OF THE SECOND LEVEL IN THE MEDICAL DISTRICT PARKING RAMP WITH THE LAKEVIEW AT 333 SUPERIOR PARKING, LLC FOR $35,100 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 a portion of the real property legally described on the attached Exhibit A (the “Property”); the portion of the Property subject to the lease is depicted on the attached Exhibit B; 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 65 spaces in the second level of the Medical District Parking Ramp. The Medical District parking Ramp is located at First Street and 4th Avenue East. The initial term of the lease agreement is 15 years, with four additional five-year renewal periods. Annual rent for the first year of the lease agreement shall be $35,100, with annual increases based on the Consumer Price Index (pursuant to the calculation contained in the lease agreement). The Developer desires to lease 65 spaces 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”). Although the parties entered into the lease agreement authorized under Resolution No. 19-0264, it could not be filed with the St. Louis County real estate records because it did not contain a legal description of parking ramp nor the portion of the parking ramp to be leased. The parties desire to terminate the existing lease and enter into this new lease to fix such deficiency. All major terms of the new lease are substantially the same as the Initial Lease, except for the clarification and correction of the property subject to the lease. Additionally, the Developer has since 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.