Title
RESOLUTION OF INTENT TO SUPPORT THE REQUEST BY BLUE LIMIT LLC, TO THE STATE OF MINNESOTA FOR LOW INCOME HOUSING TAX CREDITS FOR THE BURNHAM APARTMENTS REDEVELOPMENT PROJECT.
Body
CITY PROPOSAL:
RESOLVED, that the proper city officials are hereby authorized to express support for Blue Limit LLC, request for funding to the Minnesota Housing Finance Agency for low-income housing tax credits to redevelop the former St. Louis County Jail into an affordable housing apartment building.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution expresses the city council's support of an application to be submitted to the Minnesota Housing Finance Agency (MHFA) by Blue Limit LLC, for low-income housing tax credits that may be awarded by MHFA for the redevelopment of the existing former St. Louis County Jail on 2nd St. in downtown Duluth into 32 affordable apartment units. The deadline for submission of the application to MHFA is July 16, 2020. MHFA intends to finalize their funding decisions by December 2020.
The proposed Burnham apartment project calls for redevelopment of the historic St. Louis County Jail at 521 W. 2nd St. into 32 studio, one-bedroom and two-bedroom apartments; the units will be available at an average of 60% of the area median income. The project has received for its Part 2 application for Historic Tax Credits and will thus be adaptively re-used in a manner that maintains the historic integrity of the structure.
MHFA requires tax credit applicants for housing developments in Duluth to receive the support of the city council. The support is required to assure that a given proposal is a priority for the City of Duluth and that it meets locally identified housing needs. A 2019 Maxfield Research Inc. housing analysis reported that Duluth could absorb up to 3,509 additional units of affordable housing by 2024. The demand for this type of housing has been further substantiated through staff research and analysis during both the Image Dulu...
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