Duluth Council Approves DEDA’s Help in Paying Rising Cost of Historic Old Central Redevelopment

Supply chain issues and the rising cost of materials have brought the project cost up an additional $4.3 million.

DULUTH, Minn,- Supply chain issues and the rising cost of materials have affected the redevelopment of Duluth’s Historic Old Central High School into housing units.

According to Councilor Zack Filipovich, the project cost has gone up an additional $4.3 million dollars due to those issues.

With the developer covering about $2.7 million of that, Duluth City Council voted unanimously Monday to allow the Duluth Economic Development Authority or DEDA to fill the remaining $1.5 million with tax increment financing.

Filipovich says it’s worth it for a project checking the boxes of housing and historic preservation.

“We’re getting a bang for our value on this extended deal,” he said.

“We’re extending the lifetime of the TIF district as well and this will help ensure that this project, this vital housing project gets completed and that Historic Central, the building is preserved and rehabilitated,” said the Councilor-At-Large.

The Duluth School District sold the building in May for $3 million to Saturday Zenith LLC which intends on restoring the property into 121 housing units, while maintaining the historic architecture.

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