Title
RESOLUTION AUTHORIZING FIFTH AMENDMENT TO AGREEMENT WITH THE LAKEVIEW PROPERTIES LLC INCREASING THE PROJECT SUPPORT BY $1.3 MILLION.
Body
RESOLVED, that the proper DEDA officials are hereby authorized to enter into a Fifth Amendment to a development agreement (DEDA Agreement No. 22 860 ___), substantially in the form of Exhibit A attached hereto, with The Lakeview Properties, LLC amending DEDA Contract No. 19 860 927, increasing the amount of support thereunder by an additional $1.3 million for a total amount of not to exceed $7.5 million.
Statement of Purpose
STATEMENT OF PURPOSE: The purpose of this resolution is to amend the development agreement for the Lakeview 333 Apartments housing development project, located at the northeast corner of 4th Avenue East and East Superior Street, to provide an additional $1.3 in additional Tax Increment Financing (TIF) support for the project, bringing the total amount of the TIF support for the project to $7.5 Million. The proposed funding is subject to the amount of TIF actually generated by the project, as this obligation is a revenue-only obligation.
The anticipated construction of the new buildings at the Lakeview 333 Apartments is anticipated to begin in 2022. The request for additional assistance is based on changing project costs driven by inflationary pressure in the construction materials and labor markets. The request has been evaluated by DEDA and by Ehlers, Inc., to evaluate the applicable project financing gap and the availability of TIF to support closing that gap.
The proposed Lakeview 333 Apartment building is anticipated to provide in excess of 200 new housing units in the community, adding to the opportunity for expansion of the City's housing stock in 2022 and 2023, and following the authorization of new housing projects supported through mechanisms such as the new Affordable Housing Trust Fund and the housing supports provided under American Recovery Plan funding. The proposal will ...
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