Title
RESOLUTION AUTHORIZING A THIRD AMENDMENT TO THE DEVELOPMENT AGREEMENT WITH LSC FLATS, LLC RELATED TO CONSTRUCTION OF
STUDENT HOUSING NEAR LAKE SUPERIOR COLLEGE, EXTENDING THE CLOSING DATE THEREUNDER
Body
CITY PROPOSAL:
RESOLVED, by the Duluth Economic Development Authority ("DEDA") that the proper DEDA officials are hereby authorized to enter into a Third Amendment, substantially in the form of that attached hereto as Exhibit A (DEDA Contract No. 19 860 9293), to the Development Agreement with LSC Flats, LLC related to construction of student housing near Lake Superior College, extending the closing date thereunder to May 31, 2022.
Statement of Purpose
STATEMENT OF PURPOSE: The purpose of this resolution is to authorize a third amendment to the Development Agreement with LSC Flats, LLC ("Developer") that will extend the Closing Date deadline to May 31, 2022. The other deadlines in the Agreement will remain the same. The First and Second Amendments were authorized to extend the deadlines due to continued negative impacts and market uncertainty from COVID-19 pandemic. The Second Amendment in particular was requested due to uncertainty around in-person enrollment at Lake Superior College; the Developer and their lender wanted to wait and observe fall 2021 enrollment. Having done so, the development team is ready to proceed.
This third amendment is requested to accommodate Minnesota State's process. Specifically, they require that an Access and Maintenance Easement Agreement is negotiated and approved prior to selling the property to DEDA, which would then immediately close with the Developer. Both Minnesota State and the Developer would like to proceed and are acting in good faith the finalize the Easement Agreement, but this is unlikely to be completed by the January 31st deadline as established in the Second Amendment. Both parties are confident they will reach agreement prior to the May 31, 2022 deadline requested in this resolution.
...
Click here for full text