Title
RESOLUTION AUTHORIZING A SIXTH AMENDMENT TO DEVELOPMENT AGREEMENT WITH LSC FLATS, LLC
Body
WHEREAS, on September 25, 2019 the Duluth Economic Development Authority (“DEDA”) entered into a Development Agreement bearing DEDA Contract No. 19-860-929 (“the Development Agreement”) with LSC Flats, LLC (“Developer”) related to construction of student housing near Lake Superior College in Duluth, Minnesota (the “Project”); and
WHEREAS, on May 27, 2020 DEDA entered into a First Amendment to Development Agreement bearing DEDA Contract No. 19-860-929(1) (“the First Amendment”) with the Developer for the Project; and
WHEREAS, on June 28, 2021 DEDA entered into a Second Amendment to Development Agreement bearing DEDA Contract No. 19-860-929(2) (“the Second Amendment”) with the Developer for the Project; and
WHEREAS, on January 26, 2022 DEDA entered into a Third Amendment to Development Agreement bearing DEDA Contract No. 19-860-929(3) (“the Third Amendment”) with the Developer for the Project; and
WHEREAS, on June 22, 2022 DEDA entered into a Fourth Amendment to Development Agreement bearing DEDA Contract No. 19-860-929(4) (“the Fourth Amendment”) with the Developer for the Project; and
WHEREAS, on June 28, 2023 DEDA entered into a Fifth Amendment to Development Agreement bearing DEDA Contract No. 19-860-929(5) (“the Fifth Amendment”) with the Developer for the Project; and
WHEREAS, due to unforeseen delays and project evolution, the parties desire to enter into a Sixth Amendment to Development Agreement to extend the final Project completion deadline and to amend the Project scope contained therein.
NOW, THEREFORE, BE IT RESOLVED, that the proper DEDA officials are hereby authorized to enter into a Sixth Amendment to the Development Agreement substantially in the form attached hereto as Exhibit A, with the Developer to extend the completion deadline and amend the Project scope.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes a Sixth Amendment to the Development Agreement with LSC Flats, LLC for the development of property located near Lake Superior College in Duluth, Minnesota into a mixed-income residential apartment, now known as The Legacy. The amendment updates the Project's definition adjusting the unit count from 100 to 148 units; expands the housing type from student housing to mixed-income housing; and adjusts unit types to permit studio to 2-bedroom units, instead of 2-bedroom to 4-bedroom units. All changes are clearly marked in the amendment. These changes will better allow the Developer to offer 30 units at 50% AMI pursuant to the Housing TIF District established by the Duluth Housing and Redevelopment Authority. This change in the project definition has been approved by the Minnesota State Colleges and Universities Vice Chancellor, as required in the agreement. The amendment also updates the project commencement date from September 30, 2024 to September 30, 2027, and the completion deadline from December 31, 2026 to December 31, 2028. The Development Agreement with all subsequent amendments are included as Attachment A.