Title
RESOLUTION APPROVING A SECOND AMENDMENT TO THE DEVELOPMENT AGREEMENT BETWEEN THE DULUTH ECONOMIC DEVELOPMENT AUTHORITY AND SATURDAY ZENITH, LLC, FOR THE DEVELOPMENT OF THE ZENITH HISTORIC OLD CENTRAL HIGH SCHOOL PROJECT
Body
CITY PROPOSAL:
WHEREAS, pursuant to the provisions of Minnesota Statutes ?116J.994, Subdivision 3(d), and Resolution 10-0229, the city council of the city of Duluth approved a development agreement between the Duluth Economic Development Authority ("DEDA") and Saturday Zenith, LLC ("Developer") on August 16, 2021 under Resolution No. 21-0585R, and first amendment on November 8, 2021 under Resolution No. 21-0848R related to the Zenith Historic Old Central High School multi-family residential development located between Lake Avenue and First Avenue East and between Second Street and Third Street in Duluth, Minnesota; and
WHEREAS, the project's estimated construction costs now exceed initial estimates by $10 million.
NOW, THEREFORE, BE IT RESOLVED, that proper city officials are hereby authorized to approve a second amendment to the Development Agreement between DEDA and Saturday Zenith, LLC for the development of the Zenith Historic Old Central High School Project, substantially in the form of that attached hereto, increasing the amount of eligible reimbursable costs from $4,470,000 to $5,465,000 and the total estimated project cost from $46,000,000 to $56,000,000.
Statement of Purpose
STATEMENT OF PURPOSE: The purpose of this resolution is to obtain the City Council's approval of a second amendment to the development agreement between DEDA and Saturday Zenith, LLC for the development of the Zenith Historic Old Central High School project located between Lake Avenue and First Avenue East and between Second Street and Third Street. The project will be located on property currently occupied by the historic Old Central High School and parking lots to the east and west of that building. The amendment will increase ...
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