The Duluth Downtown Development Authority has entered into an agreement with Dreamland Bar-B-Que Restaurants of Atlanta to construct and operate a restaurant with the DDA assisting in the financing of the restaurant’s construction.
The financing will come from two sources, revenue bond funds and DDA cash reserves.
In May, the Duluth DDA issued its Series 2015 Revenue Bond in the amount of $7.5 million and entered into an Intergovernmental Agreement with the city to pledge its millage against the obligation. Ultimately the repayment of the bond will come from private redevelopment in downtown
The DDA is requesting a transfer of $773,391 from the city, consisting of $522,950 to meet bond obligations due Dec. 1 and June 1, $250,000 for loan financing and $441 for reimbursement of bond attorney fees.
It is fully expected these funds will be repaid to the city from future DDA revenues.
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