Duluth City Council approves redevelopment of Seaway Hotel

By KBJR News 1

March 10, 2014 Updated Mar 10, 2014 at 10:58 PM CDT

Duluth, MN (NNCNOW.com) --- The Duluth city council approved funding Monday in an eight to one vote, that will allow the Duluth Economic Development Authority, or DEDA, to fund the redevelopment of the Seaway Hotel.

Councilors say these dollars are expected to help revitalize the entire Lincoln Park neighborhood.

The $230,000 loan will help upgrade and remodel the 70 units at the Seaway Hotel.

More than $3,000 will be dedicated to each unit.

The Housing Redevelopment Authority, or HRA, hopes to renovate the building and create commercial space to help attract business to the area.

The Lincoln Park area underwent a substantial facelift in the 1970's and has suffered from stagnation since.

City officials say a crucial element is because of the Seaway Hotel.
The hotel itself is deteriorated and has had ongoing issues with management.

"The building is in desperate need of rehabilitation. By supporting the HRA plan the city will be acting as a catalyst to bring radical change to the neighborhood, and it most surely will prompt other property owners to do the same," said Dale Lewis, president of Park State Bank in Duluth.

Leaders say by having a professional management group take over the building, many issues related to crime and lack of economic development in the area might be solved.

Rick Ball, executive director of the HRA says current tenants would not see a substantial increase in rent, but new tenants would.

Elsa Robins