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RESOLUTION AUTHORIZING A SECOND AMENDMENT TO DEVELOPMENT AGREEMENT WITH PORTLAND LAND CO., LLC
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WHEREAS, on June 28, 2021 the Duluth Economic Development Authority (“DEDA”) entered into a Development Agreement bearing DEDA Contract No. 21 860 113 (“the Development Agreement”) with Portland Land Co., LLC (“Developer”) for redevelopment of property located at 627 E 4th Street in Duluth, Minnesota into a multi-family residential apartment (the “Project”); and
WHEREAS, on July 12, 2023 DEDA entered into a First Amendment to Development Agreement bearing DEDA Contract No. 21 860 113(1) (“the First Amendment”) with the Developer for the Project; and
WHEREAS, due to unforeseen delays, the parties desire to enter into a Second Amendment to Development Agreement to extend the final Project completion deadline and amend the Project scope contained therein.
NOW, THEREFORE, BE IT RESOLVED, that the proper DEDA officials are hereby authorized to enter into a Second Amendment to the Development Agreement substantially in the form attached hereto as Exhibit A, with the Developer to extend the completion deadline and amend the Project scope.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution approves a Second Amendment to the Development Agreement with Portland Land Co, LLC for the redevelopment of the property located at 627 E. 4th Street, now known as the Brewery Creek Terrace. The amendment updates the project's affordability requirements to provide that not less than fifteen (15) residential units will be reserved as long-term rental housing for households earning 80% or less of the area median income. In addition, the amendment revises the source of the developer reimbursement payments, providing that the payment obligations will be payable from TIF District No. 16 rather than TIF District No. 24. The project will continue to advance the redevelopment of a vacant and underutilized property while supporting the creation of affordable housing opportunities. The Developer is confident renovation will be completed by September 30, 2026.