St. Paul, MN (Northland's NewsCenter) --- More money is coming Duluth's way to ensure the success of the new 15 story corporate tower in downtown Duluth.
Governor Mark Dayton has announced that $8.5 million has been awarded for the proposed downtown redevelopment project that includes the new "Duluth Corporate Tower" at the corner of Superior Street and 5th Avenue West.
This $8.5 million grant was part of $47.5 million that was awarded to multiple projects across the state.
This comes after the announcement that $60 million in private investment--the largest private investment in Duluth's history--is going toward the project.
According to Duluth Mayor Don Ness, the project will anchor the western edge of downtown, transform the skyline, and symbolize the "tremendous commitment" and confidence in the private sector.
The tower is expected to create over 200 full time, professional jobs, along with 150-300 construction jobs once ground is broken in Spring of 2013.
The tower will host 800 to 1000 mixed employees--the vast majority of which will be employed by the yet to be named corporation--and is expected to add $11 million in new payroll.
Mayor Ness said the leverage this project represents is "incredible," and cannot be matched by any project in the state. Most other state projects had a "1 to 1" investment, or, for every $1 of local, public investment matched by $1 of state investment.
This project, according to Ness, has $3.70 of private investment matched by $1 of public/state/local investment, $7 of private investment for every $1 from MN, and $8 of local investment fro every $1 from MN.
Mayor Ness says the city of Duluth needs to match $8.5 million that the Minnesota Department of Employment and Economic Development (DEED) has provided, for a total of $17 million in public investment.
Currently, the tower is "well over 70% full," according to the AtWater Group, who's leading the project.
Local revenue dedicated to the project will come from revenues generated from the project itself in two ways, says Ness: tax increment financing, and parking revenue.
Mayor Ness added that the overall project would not have been able to go forward had it not been for the state investment.
This 15 story business tower will offer 300,000 square feet of office space and will include a new parking ramp and a sky-walk.
'We want to thank the Governor, Legislature, and DEED for their support and partnership in this project. The Duluth Corporate Tower project will result in hundreds of private sector jobs during a time when the city is in need of an economic infusion," says Mayor Don Ness,
Earlier this year, Mayor Ness announced the construction of the 15 story office building, which was the former KDLH building.
The name of the primary corporate partner will be announced on Friday in Duluth.
Posted to the web by Billy Wagness