Title
RESOLUTION APPROVING A FIRST AMENDMENT TO THE DEVELOPMENT AGREEMENT BETWEEN THE CITY OF DULUTH AND MERGE, LLC FOR THE RESIDENCE RESIDENTIAL PROJECT.
Body
CITY PROPOSAL:
WHEREAS, Resolution No. 22-0832R authorized the proper city officials to enter into a development agreement ("Development Agreement") with Merge, LLC ("Developer") for development of the Residence housing project and city expenditure in a total amount not to exceed $4,000,000.
NOW, THEREFORE BE IT RESOLVED, that the proper city officials are hereby authorized to execute a first amendment to the Development Agreement, substantially in the form attached as Exhibit A, extending the construction commencement deadline to July 31, 2024 and completion deadline to December 31, 2025.
Statement of Purpose
STATEMENT OF PURPOSE: STATEMENT OF PURPOSE: This resolution approves a first amendment to the development agreement with Merge, LLC ("Developer") for construction of the Residence residential project located at 3401 Grand Avenue in Duluth, Minnesota.
On July 19, 2021, pursuant to Resolution 21-0515R, the City Council identified eligible priority uses for $58 million of federal funds from the American Rescue Plan Act. The Council identified affordable housing as a priority and preliminarily allocated $19.2 million of ARPA funds for that purpose. City staff issued a request for proposals on November 29, 2021 for multifamily affordable housing projects and selected Merge, LLC's proposal to fund.
Due to unforeseen construction overages and delays associated with geotechnical concerns related to poor soil conditions, the Developer is altering the construction design from a slab on grade foundation to an underground parking garage and deep foundation that will support the residential structure.
The agreement provides for the development of a mixed income apartment development which includes construction of eighty (80) new units, not less than thirty-two (32) of which will be affordable to h...
Click here for full text