Title
RESOLUTION AUTHORIZING AN AMENDMENT TO AGREEMENTS FOR DESIGN AND CONSTRUCTION OF ROAD AND UTILITY WORK AS PART OF THE DULUTH REGIONAL EXCHANGE DISTRICT TO INCREASE THE TOTAL AMOUNT FROM $10,423,182.78 UP TO $11,179,576.78.
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CITY PROPOSAL:
WHEREAS, Resolution No. 19-0575 authorized the city to enter into a development
Agreement with St. Mary's Duluth Clinic Health System d/b/a Essentia Health East ("Essentia") for certain road and utility work as part of Project 5 of the Regional Exchange District ("RED") project pursuant to which the city will reimburse Essentia for costs thereof in an amount not to exceed $5,262,000.00 (the "Phase I Development Agreement");
WHEREAS, Resolution No. 21-0306 authorized the city to enter into a development
Agreement with St. Mary's Duluth Clinic Health System d/b/a Essentia Health ("Essentia") for additional road and utility work as part of Project 5 of the Regional Exchange District project pursuant to which the city will reimburse Essentia for costs thereof in an amount not to exceed $5,161,182.78, as amended by a first amendment that was authorized under Resolution No. 23-0014 (collectively, the "Phase II Development Agreement");
WHEREAS, the work performed by Essentia under the Phase I Development Agreement and Phase II Development Agreement (collectively, the "Project 5 Agreements") was funded with State of Minnesota (the "State") appropriation bond proceeds authorized under the Regional Exchange District legislation, Minnesota Laws 2019, 1st Special Session Chapter 6, Article 10, as amended by Section 1 of Laws of Minnesota 2021, 1st Special Session Chapter 9 (the "Legislation");
WHEREAS, the actual costs of the road and utility work completed by Essentia under the Project 5 Agreements exceed the amount allocated in the Project 5 Agreements and the Legislation;
WHEREAS, the Legislation provides that, under certain terms and provisions, any unexpended amount for certain RED projects that have been substantial...
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