Title
RESOLUTION APPROVING THE FIRST AMENDMENT TO THE AMENDED AND RESTATED DEVELOPMENT AGREEMENT BETWEEN THE DULUTH ECONOMIC DEVELOPMENT AUTHORITY AND GARFIELD BUSINESS PARK LLC.
Body
CITY PROPOSAL:
RESOLVED, that the city council of the city of Duluth does hereby approve the first amendment to the amended and restated development agreement, attached hereto as Exhibit A, between the Duluth economic development authority (DEDA) and Garfield Business Park LLC (developer) related to the Garfield warehousing/office project.
Statement of Purpose
STATEMENT OF PURPOSE: The purpose of this resolution is to obtain the city council's approval of the first amendment to the amended and restated development agreement between DEDA and developer for the Garfield warehouse/office project as to required pursuant to the business subsidy law, Minnesota Statute Section 116J.994 Subd. 3(d).
In 2001, DEDA entered into a development agreement with developer and approved the creation of a tax increment financing district for the redevelopment of a major portion of the unused railroad yards southwest of Garfield Avenue on Rice's Point. The development agreement contemplated a phased development and required a minimum development of 100,000 square feet of combined office/warehousing facilities (Business Subsidy Goal).
At the time the development agreement was signed and the district created, the property was owned by the Burlington Northern Railroad (BN). The developer was able to acquire property from BN upon which the first phase (48,960 square feet) was constructed (the "Developer Property"). The developer had purchase options to acquire additional adjacent property from BN once environmental conditions on the option property were remediated (the "Option Property"). To date, BN has unfortunately been unable to obtain clearance from the MPCA on the Option Property. Consequently, developer has been unable to acquire the Option Property necessary to build the additional ...
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