Title
RESOLUTION APPROVING THE FIFTH AND SIXTH AMENDMENTS TO THE DEVELOPMENT AGREEMENT BETWEEN THE DULUTH ECONOMIC DEVELOPMENT AUTHORITY AND LAKEWALK PROPERTIES LLC FOR THE DEVELOPMENT OF THE LAKEVIEW APARTMENTS PROJECT.
Body
CITY PROPOSAL:
Resolved, that, pursuant to the provisions of Minnesota Statutes ?116J.994, Subdivision 3(d), and Resolution 10-0229, the city council of the city of Duluth does hereby approve the fifth and sixth amendments to the development agreement between the Duluth Economic Development Authority ("DEDA") and Lakewalk Properties, LLC ("Developer"), substantially in the form of those attached as Exhibit A and Exhibit B, related to the Lakeview Apartments multi-family residential development located at 333 East Superior Street and immediately west of 4th Avenue East in Duluth, Minnesota, increasing the amount of TIF assistance by $1.3 Million, increasing the interest rate on the TIF note to 6.25%, and extending the start date to November 30, 2022.
Statement of Purpose
STATEMENT OF PURPOSE: The purpose of this resolution is to obtain the city council's approval of the fifth and sixth amendments to the development agreement between DEDA and Lakewalk Properties, LLC for the development of the approximately 192-unit Lakeview Apartments project (the "Project") located at 333 East Superior Street. The project will be located on property formerly occupied by the Hacienda del Sol and the Voyageur Motel, structures that were demolished in 2021. The area has been designated as Tax Increment Financing ("TIF") District No. 31. DEDA entered into the original development agreement on August 26, 2019.
The fifth amendment was approved by DEDA at its May 25, 2022 meeting as DEDA resolution 22D-30. The sixth amendment was approved by DEDA at its July 20, 2022 meeting as DEDA resolution 22D-42.
The fifth and sixth amendments to the development agreement provide for the following modifications to the development agreement:
1. Increase in th...
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