Title
RESOLUTION APPROVING DEDA RESOLUTION 26D-18 AUTHORIZING A DEVELOPMENT AGREEMENT BETWEEN THE DULUTH ECONOMIC DEVELOPMENT AUTHORITY AND HISTORIC DULUTH ARMORY, LLC FOR THE REDEVELOPMENT OF THE ARMORY ARTS AND MUSIC CENTER AND APPROVING THE DEVELOPMENT AGREEMENT
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CITY PROPOSAL:
BE IT RESOLVED that, pursuant to Resolution 25-0278R, the city council of the city of Duluth does hereby approve Resolution 26D-18, attached as Attachment A, of the Duluth Economic Development Authority (“DEDA”) authorizing a development agreement between the DEDA and Historic Duluth Armory, LLC ("Developer"), substantially in the form of that attached as Attachment B, and pursuant to the provisions of Minnesota Statutes §116J.994, subdivision 3(d), approves such development agreement, related to the redevelopment of the Armory Arts and Music Center building and associated property, located at 1301 London Road in Duluth, Minnesota, wherein Developer proposes to provide space for working artists, inclusive music programs, a food hall, and two large community event spaces, creating new jobs and revenue streams and expanding existing arts programs for the local economy.
Statement of Purpose
STATEMENT OF PURPOSE: The purpose of this resolution is to obtain the city council’s approval of the Duluth Economic Development Authority (“DEDA”) Resolution 26D-18 the development agreement between Historic Duluth Armory (“Armory”) and DEDA DEDA to support to support the Armory’s redevelopment of the Armory Arts and Music Center (“AAMC”). DEDA approved the agreement at its July 22, 2026 meeting. To support the proposed creation of approximately 14 full-time permanent new jobs, tax increment financing (“TIF”) will be utilized. DEDA set the wage and job goals after a public hearing in accordance with the Business Subsidy Act, Minnesota Statue Sections 116J.993-116J.995.
Once the $33,000,000 redevelopment is completed, the building will operate as a multi use cultural and community destination. Programmed uses include a large event and concert venue in the historic drill hall, a daily operating food hall, a 4,000 square foot ballroom for weddings and large events, reduced-rent artist studios and office space, and education and rehearsal space for youth music programs. Specifically, the building will offer almost 15,000 square feet of studio/office space for 12-15 users outside of the AAMC-operated drill hall and ballroom. The anticipated project timeline reflects significant progress to date, with abatement and roof work already completed and full build out progressing toward August 2026 closing. Construction completion and stabilization are targeted for Fall 2027. The Armory Arts and Music Center is located at 1301 London Road, Duluth, MN 55805.
The total development cost is estimated to be $33,000,000. DEDA will provide up to $2,600,000 of the TIF generated by this project plus interest at the rate of 5% to pay for public eligible costs of redevelopment on a pay-as-you-go basis. The term of the TIF Note is for a period of twenty-six (26) years from the date of receipt by DEDA from the St. Louis County Auditor’s Office of the first payment of Captured Tax Increment, or until the principle interest on the TIF Note has been paid in full, whichever is sooner.
Tax base impact statement:
The current market value (2025, payable 2026) of the properties located in this 25 year Redevelopment TIF District (to be created by DEDA) is $1,977,800 and the property is generating $5,412 in net tax capacity. After the improvements are completed, the taxable market value will increase to $7,300,000 and the annual tax increment will be provided to the Developer to facilitate the redevelopment. After the TIF District is terminated, the development is anticipated to generate over $378,454 per year in net tax capacity (based on the County Assessor’s valuation of the completed property, not including inflation).