Title
RESOLUTION APPROVING AMERICAN RESCUE PLAN ACT AGREEMENT WITH THE CITY OF DULUTH AND MERGE LLC FOR DEVELOPMENT OF THE URBANE DULUTH PROJECT
Body
CITY PROPOSAL:
WHEREAS, Merge LLC ("Developer"), will acquire the property located at the northwest corner of Superior Street and 20th Avenue West in the Lincoln Park neighborhood of Duluth and has entered into an agreement with the Duluth Economic Development Authority ("DEDA") for the development of the Project as described in the Development Agreement dated August 9, 2021 and bearing DEDA Contract No. 21 860 121, hereinafter referred to as the " Development Agreement", for the redevelopment of the property into no less than 40 apartment units, all of which will be affordable; and
WHEREAS, the City of Duluth ("City") received an allocation of funds under the American Rescue Plan Act of 2021 from the federal government for the purpose of relieving the impacts of the COVID-19 pandemic which includes a shortage of affordable housing to persons of low and moderate income; and
WHEREAS, on July 19, 2021, the Duluth City Council approved the allocation of $19.2 million of the City's American Rescue Plan Act funds toward affordable housing
WHEREAS, the City and Developer have agreed that in consideration of additional assistance from City to Developer as provided for in the American Rescue Plan Act Agreement (the "ARPA Agreement"), that Developer will provide additional affordability off all units in the Project,
WHEREAS, City, DEDA and the Developer have agreed that the provisions of the additional affordable housing and the additional assistance from the City shall be provided under the terms and conditions of the Development Agreement except to the extent that inconsistent to this ARPA Agreement and that City shall have the same rights as DEDA under the Development Agreement.
NOW, THEREFORE, BE IT that the proper DEDA officials to enter into the ARPA Agreement with Developer and ...
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