Title
RESOLUTION APPROVING A FIRST 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.
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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, 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 Developer received updated bids for redevelopment constructions costs that exceeded initial cost estimates by $4.3 million; and
WHEREAS, the Developer is contributing an additional $2.7 million of equity to address these increased costs but are unable to address the remaining $1.5 million gap without rendering the project infeasible; and
WHEREAS, on October 27, 2021 DEDA authorized a first amendment to the Development Agreement, substantially in the form of that attached hereto as Exhibit A with Saturday Zenith, LLC, increasing the amount of eligible reimbursable costs by $1,530,000, the estimated total project cost by $4 million, and the term of financial assistance from 19 years to 26 years.
NOW, THEREFORE, BE IT RESOLVED, that proper city officials are hereby authorized to approve a first amendment to the Development Agreement between DEDA and Saturday Zenith, LLC for the development of the Zenith Historic Old Central High School Project.
Statement of Purpose
STATEMENT OF PURPOSE: The purpose of this resolution is to obtain the City Council's approval of a first amendment to the development agreement between DEDA and Saturday Zenith, LLC for the development of ...
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