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RESOLUTION APPROVING A TWENTY YEAR DEVELOPMENT AGREEMENT BETWEEN THE CITY OF DULUTH AND THE HOUSING AND REDEVELOPMENT AUTHORITY OF DULUTH, MINNESOTA FOR THE FAIRMOUNT COTTAGE HOME VILLAGE AT A TOTAL COST NOT TO EXCEED $1,150,000.
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CITY PROPOSAL:
RESOLVED, that the proper city officials are hereby authorized to execute a development agreement with the Housing and Redevelopment Authority of Duluth, Minnesota ("HRA"), substantially in the form of that attached as Exhibit A, for development of the Fairmount cottage home village and city expenditure in a total amount not to exceed $1,150,000, payable from fund 226-125-5000-6002-5458 (Local Fiscal Recovery Funds, Finance, Affordable Housing, HRA Fairmont Cottage Village, Payments to Developers).
Statement of Purpose
STATEMENT OF PURPOSE: This resolution approves a development agreement with the HRA for the Fairmont Cottage Home Village located at South 71st Avenue West and Redruth Street in Duluth, Minnesota.
On July 19, 2021 pursuant to Resolution 21-0515R, the City Council identified eligible priority uses for $58 million of federal funds from the American Rescue Plan Act. The Council identified affordable housing as a priority and preliminarily allocated $19.2 million of ARPA funds for that purpose. City staff issued a request for proposals on November 29, 2021 for multifamily affordable housing projects and selected the HRA's Fairmount Cottage Village proposal to fund.
The agreement provides for the development of a cottage home village which includes construction of eighteen (18) new homes, not less than four (4) of which will be affordable to households at 50% or less of area median income, not less than four (4) of which will be affordable to households at 80% or less of area median income, not less than five (5) of which will be affordable to households at 90% or less of area median income, and not less than five (5) of which will be affordable to households at 100% or less of ...
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