01-0713R

RESOLUTION AUTHORIZING AN AMENDMENT TO AGREEMENT NO. 18939 WITH NORTHERN COMMUNITIES LAND TRUST DELETING THE SALE OF ONE LOT AND REDUCING THE SIZE OF THE PROJECT.

BY COUNCILOR ECKENBERG:

        RESOLVED, that the proper city officials are hereby authorized to execute an amendment to City Contract No. 18939, substantially in the form of that which is on file in the office of the city clerk as Public Document No. ___, with the Northern Communities Land Trust reducing the size of the project authorized thereunder and eliminating therefrom the sale of Lot 8, West Fifth Street, Duluth Proper, First Division.



STATEMENT OF PURPOSE:  The purpose of this resolution is to authorize an amendment to City Contract No. 18939 with Northern Communities Land Trust reducing the size of the project and eliminating the sale of one of the city lots originally authorized to be sold to them.

The original agreement contemplated the sale of two vacant lots of city-owned property on Fifth Street just west of Lake Avenue to the land trust and their construction of a new duplex on each of these lots which would be available for persons of low and moderate income. The two city lots were on opposite sides of 5th street from one another.

As the project evolved, the land trust determined that it would be best to construct their project on only one of the city lots, Lot 7 on the north side of the street, and to finish the intended construction on another lot they owned adjacent to this city lot. This renders the sale of Lot 8 to the land trust superfluous. In addition, the agreement defines the project as both duplexes being built on the two city lots.

Therefore it is necessary to amend the agreement to eliminate the other city lot, Lot 8, from the agreement and to redefine the project to include only the duplex to be located on city property. This resolution authorizes this amendment to the agreement.

In addition, because of the above changes in the project, the time for conveyance under the original agreement has passed. This amendment extends the time for the sale through the end of the year.