Duluth, Min. (NNCNOW.com) -- The future of the troubled Seaway Hotel in Lincoln Park is looking brighter.
The Housing and Redevelopment Authority (HRA) has moved a step closer to owning the apartment building.
On Thursday the Minnesota Housing Finance Agency approved spending $1.1 million to make substantial repairs to the building.
Another $498,000 has also been approved to cover operational expenses for the next three years.
HRA recently made a purchasing agreement with the Duluth Economic Development Authority (DEDA) to operate the hotel.
The City asked HRA to take over the building as part of a larger plan to revitalize the Lincoln Park Neighborhood.
City officials say having a professional management company take over the building will help reduce crime in that area.
Tenants say they are excited to see the project move forward.
"I think with HRA and a better management company the Seaway can actually become a productive place for the Lincoln Park Association," said Larry Pfeifer.
"We went through a lot of hurdles to get this funding, so I think it's going to be a great positive outcome," said Jason Koehler.
HRA Executive Director, Rick Ball, says funding from the Minnesota Housing Finance Agency was the last approval needed to complete the purchase.
Ball says they hope to be full owners of the Seaway by the end of April.
Posted to the web by Kati Anderson.