Title
RESOLUTION AUTHORIZING AGREEMENT WITH HRA FOR PAYMENT IN LIEU OF TAXES.
Body
CITY PROPOSAL:
Resolved, that the proper city officials are hereby authorized to enter an Agreement, substantially in the form of attached Exhibit A, with the Housing and Redevelopment Authority of Duluth (“HRA”) for the HRA to make payments in lieu of taxes on property it manages and controls pursuant to Minnesota Statutes Section 272.026.
Statement of Purpose
STATEMENT OF PURPOSE: The purpose of this resolution is to modify the agreement with HRA to make payments in lieu of taxes on property it manages and controls as authorized by Statute.
The city has had a similar agreement with HRA for many years. It was last amended in 2021 to address a proposed change in property ownership structure which was under contemplation at that time. This agreement simply clarifies that it is applicable to all properties used by the Authority for providing assisted housing.
HRA agrees to continue to pay 10 percent of “shelter rents” in lieu of taxes as it has done under the prior agreement.