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RESOLUTION GRANTING A TAX ABATEMENT FOR THE FIRST STREET LOFTS PROJECT, AUTHORIZING A TAX ABATEMENT AGREEMENT WITH ST. LOUIS COUNTY, AND FURTHER AUTHORIZING A DEVELOPMENT AGREEMENT WITH ROERS LAKE & FIRST LLC.
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CITY PROPOSAL:
BE IT RESOLVED, by the city council of the city of Duluth, St. Louis County, Minnesota, as follows:
Section 1. Purpose and Authorization.
1.01 The city, pursuant to the provisions of Minnesota Statutes, Sections 469.1812 through 469.1815, as amended (the "Tax Abatement Act"), is authorized to grant an abatement of the property taxes imposed by the city on a parcel of property, if certain conditions are met, through the adoption of a resolution specifying the terms of the abatement.
1.02 Roers Lake and First LLC ("developer") owns or controls 1 East 1st Street and 5 East 1st Street at the corner of Lake Avenue and 1st Street in downtown Duluth which it desires to redevelop into approximately 47 rental units, 10% of which will be units with rents restricted to reflect 80% area median income, to assist in addressing an unfulfilled need for such housing in the area (the "project").
1.03 The tax abatement assistance to be provided to developer constitutes a business subsidy within the meaning of Resolution 18-0515R of the city of Duluth (the "Business Subsidy Resolution"), and the development agreement with developer constitutes a "business subsidy agreement" under the Business Subsidy Resolution.
1.04 Pursuant to Minnesota Statutes, Sections 116J.993 through 116J.995 ("the Business Subsidy Act"), after a public hearing, if the creation or retention of jobs is determined not to be a goal, the wage and job goals may be set at zero.
1.05 Pursuant to the Tax Abatement Act and the Business Subsidy Act, on the date hereof, the city council conducted a public hearing on the desirability of granting an abatement of property taxes on developer's owned or controlled properties, which properties are located in St. Louis county and le...
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