Title
RESOLUTION AUTHORIZING A DEMOLITION LOAN PROGRAM APPLICATION IN AN AMOUNT NOT TO EXCEED $305,000 TO THE MINNESOTA DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT RELATING TO LOT D.
Body
CITY PROPOSAL:
BE IT RESOLVED that the city council has approved the Demolition Loan application submitted to the Department of Employment and Economic Development (DEED) on February 1, 2025, by the Duluth Economic Development Authority (DEDA) for the Lot D site.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes DEDA to submit a Minnesota DEED Demolition Loan application relating to the removal of the concrete foundation at Lot D to help prepare the site for future redevelopment. The application to DEED will seek $305,000 of loan funding. Loans are low-interest (2%) and interest-free for the first two years. Principal and interest payments start in year three and loan terms cannot exceed 15 years. If the site is developed, the remaining principal and interest (up to 50% of the loan) could be forgiven based on development benefits.