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RESOLUTION AUTHORIZING DEDA TO CONTRIBUTE UP TO $115,000 TO PLOVER PLACE, LLC FOR EXPENSES RELATED TO THE PLOVER PLACE DEVELOPMENT AND APPROVAL OF A SECOND AMENDMENT TO DEVELOPMENT AGREEMENT WITH PLOVER PLACE LLC FOR CONSTRUCTION OF THE NEW MODEL OF HOUSING FOR HOMELESS
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CITY PROPOSAL:
RESOLVED, by the Duluth Economic Development Authority ("DEDA") that the proper DEDA officials are hereby authorized to provide up to $115,000 to Plover Place, LLC, payable from Fund No. ____, to assist with expenses necessary to fund construction of housing for people experiencing homelessness (the "Project").
BE IT FURTHER RESOLVED, that the proper DEDA officials are hereby authorized to execute a Second Amendment, substantially in the form of that attached hereto as Exhibit A, to the Development Agreement with Plover Place, LLC, (DEDA Contract No 23 860 107) to include DEDA funding for the Project in the amount not to exceed $115,000.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution provides funds to Plover Place, LLC a wholly owned subsidiary of One Roof Community Housing, LLC to remove hazardous debris from the site of the Plover Place development and to pay additional construction costs.
The City of Duluth has previously supported this project with approximately $1.7 million in ARPA funding and a $250,000 construction loan from the city's Housing Trust Fund. St. Louis County also contributed a $1.7 million funding match from their independent ARPA allocation. The project is very near completion but the recent discovery of contaminated material on site has created a funding gap. This resolution will provide funds to cover that gap.
DEDA has recently received approximately $14.5 million in revenue loss replacement funding, which is intended to support "affordable housing or other economic development activities." Plover Place will provide 24 new units of housing for people recently experiencing homelessness, and supporting t...
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