Title
RESOLUTION AUTHORIZING AN OPTION AGREEMENT WITH UNION GOSPEL MISSION, INC. RELATED TO DEVELOPMENT OF AN ENGAGEMENT CENTER SERVING PEOPLE EXPERIENCING HOMELESSNESS IN THE DOWNTOWN NEIGHBORHOOD
Body
RESOLVED, by the Duluth Economic Development Authority ("DEDA") that the proper DEDA officials are hereby authorized to enter into an option agreement, substantially in the form of that attached hereto as Exhibit A, with Union Gospel Mission, Inc, for the purposes of development of certain property in the Downtown neighborhood for an engagement center, subject to the terms and conditions of a Purchase and Development Agreement to be negotiated between the parties, located in the City of Duluth, County of St. Louis, State of Minnesota, pursuant to Minnesota Statutes section 469.105, legal described as:
Lot 53 WEST SECOND STREET, DULUTH PROPER FIRST DIVISION
Lot 55 WEST SECOND STREET, DULUTH PROPER FIRST DIVISION
E1/2 of Lot 57 WEST SECOND STREET, DULUTH PROPER FIRST DIVISION
Statement of Purpose
STATEMENT OF PURPOSE: The purpose of this resolution is to authorize an option agreement with Union Gospel Mission, Inc., ("UGM") for the development of an engagement center to serve people experiencing homelessness on DEDA-owned property on West 2nd Street in the Downtown neighborhood. The project will also include the creation of forty (40) housing units intended to serve people who have experienced homelessness. UGM desires to apply to the Minnesota Housing Finance Agency (MHFA) for financing and Low-Income Housing Tax Credits (LIHTC) for the proposed project and to perform additional analysis of the property in order to determine whether the property can be feasibly developed.
Should UGM decide to exercise this Option Agreement, UGM will have the right to acquire the property for $1.00 to construct the project. The proposed development will address the significant need for supportive services and transitional housing opportunities in the Downtown neighborhood....
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