Title
Resolution authorizing an amended and restated DEVELOPMENT agreement with one roof community housing, Brae view LLlp, and brae view developer llc FOR THE DEVELOPMENT OF THE brae view PROJECT
Body
WHEREAS, Brae View LLLP (“Owner”), and its partner One Roof Community Housing (“Grantee”), a nonprofit corporation with the mission of providing affordable housing, and Brae View Developer LLC (“Developer”), a wholly-owned subsidiary of Grantee, proposed the Project (described and defined herein) which includes the construction of a mixed use development with 72 senior-designated apartments, all units of which will be available and affordable to individuals earning 60% or less of area median income, all at rental rates determined by the United States Department of Housing and Urban Development, known as the “Brae View Project”; and
WHEREAS, the City of Duluth (the “City”) received an allocation of funds under the American Rescue Plan Act of 2021 sec. 9901, Pub. L. 117-2 codified as 42 U.S.C 802 et seq. from the federal government for the purpose of ameliorating the impacts of the COVID-19 pandemic which would include actions to ameliorate the shortage of affordable housing to persons of low and moderate income and issued a request for proposals on November 29, 2021 for multifamily affordable housing projects and the City selected the Grantee’s proposal for funding; and
WHEREAS, the City transferred $14,507,890 of its American Rescue Plan Act allocation to DEDA via City Council Resolution 24-0425R with the condition that the funding be used to support “affordable housing projects” and affirming the allocation of up to $3,857,143 to the Brae View Project; and
WHEREAS, the City made a separate allocation of funding in the amount of $725,000 in 2021 HOME-ARP Funds to the Project by City Council Resolution 25-0094R; and
WHEREAS, DEDA has determined that this Project is an appropriate use of up to $3,132,143 of funds transferred by the City and that this transaction furthers its general plan of economic development; and
WHEREAS, DEDA previously authorized a Development Agreement (DEDA Contract No. 25 860 023) supporting this project via DEDA Resolution 25D-31A and Estoppel Agreement with One Roof Community Housing and Brae View LLLP via DEDA Resolution 26D-17, which terms the parties desire to fully amend and restate; and
WHEREAS, the parties have agreed that this Agreement as amended and restated terminates in all respects a previously executed Development Agreement and Estoppel Agreement for the Brae View Project which was not recorded and will not be recorded so that this Agreement is the definitive Agreement between DEDA and the other parties hereto.
NOW, THEREFORE, BE IT RESOLVED, that the proper DEDA officials are hereby authorized to enter into an Amended and Restated Development Agreement, substantially in the form of Document A attached hereto with One Roof Community Housing, Brae View, LLLP, and Brae View Developer LLC for the development of the Brae View Project.
Statement of Purpose
STATEMENT OF PURPOSE: he purpose of this resolution is to authorize an Amended and Restated Development Agreement with One Roof Community Housing, Brae View, LLLP, and Brae View Developer LLC, for the construction of Brae View Apartments. The Development Agreement includes a $3,132,143 grant from DEDA to support the project.
The Brae View Project will provide at least 72 new senior-dedicated affordable apartment units in Duluth’s downtown neighborhood. The project will also include a daycare facility on its ground floor with capacity for 100 infants and children. The project has been awarded $28,303,000 in funding from the Minnesota Housing Finance Agency and will receive $2,100,000 from a Housing TIF District administered by the Housing and Redevelopment Authority of Duluth.
This Amended and Restated Development Agreement terminates the previous Development Agreement and Estoppel Agreement in all respects, and is updated to reflect the development’s ownership structure necessitated by other financing sources, and corrects the completion deadline to September 30, 2030.