Title
RESOLUTION APPROVING DEDA RESOLUTION 24D-32 AUTHORIZING DEDA TO CONTRIBUTE UP TO $115,000 TO PLOVER PLACE, LLC FOR EXPENSES RELATED TO THE PLOVER PLACE DEVELOPMENT AND APPROVING DEDA'S SECOND AMENDMENT TO THE DEVELOPMENT AGREEMENT WITH PLOVER PLACE LLC FOR CONSTRUCTION OF THE NEW MODEL OF HOUSING FOR HOMELESS
Body
CITY PROPOSAL:
RESOLVED, that pursuant to Resolution 10-0229, the city council hereby approves Resolution No. 24D-32 of the Duluth Economic Development Authority ("DEDA") authorizing the proper DEDA officials 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) and 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").
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes DEDA to provide 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.
The City of Duluth recently transferred approximately $14.5 million in revenue loss replacement funding to DEDA, 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 this project i...
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