Title
RESOLUTION APPROVING A DEVELOPMENT AGREEMENT BETWEEN THE DULUTH ECONOMIC DEVELOPMENT AUTHORITY AND KENWOOD VILLAGE LLC RELATED TO THE MIXED USE DEVELOPMENT AT THE SOUTHWEST CORNER OF ARROWHEAD ROAD AND KENWOOD AVENUE.
Body
CITY PROPOSAL:
RESOLVED, that the city council of the city of Duluth does hereby approve, pursuant to the provisions of resolution no. 10-0229, the development agreement between the Duluth economic development authority (DEDA) and Kenwood Village LLC, substantially in the form of that attached as Exhibit A, related to the mixed use development at the southwest corner of Arrowhead Road and Kenwood Avenue.
Statement of Purpose
STATEMENT OF PURPOSE: The purpose of this resolution is to obtain the city council's approval of the Development Agreement between DEDA and Kenwood Village LLC (Developer) for the development of the mixed use project at the southwest corner of Arrowhead Road and Kenwood Avenue as is required pursuant to Paragraph 19 of the amended DEDA enabling Legislation Resolution 10-0229. DEDA approved the Agreement at its September 23, 2015, meeting.
The project will be located in an area identified as Tax Increment District No. 29, a 26-year redevelopment district. The agreement provides for the construction of not less than 80 market rate apartment units, not less than 14,000 gross square feet of commercial space and approximately 73,000 square feet of parking, some of which will be located within a two-story parking deck.
DEDA will provide 90% of the TIF generated by the project up to $2,862,500 plus interest to pay for public eligible costs of construction on a pay-as-you-go basis. The Developer is contributing $200,000 to the city toward street improvements to Kenwood Avenue and Arrowhead Road.
The public purpose of the tax increment assistance to be provided pursuant to this Agreement is to stimulate the redevelopment of underutilized, blighted or obsolete land uses including rehabilitation...
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