Construction Returns To Duluth Housing Project With ‘Cash,’ No Financing

DULUTH, Minn. – FOX 21 learned Tuesday that construction crews are back on site of a delayed housing development (Urbane 218) in Duluth’s Lincoln Park neighborhood. But the final piece of funding from LISC, which halted the project in August, is still not in the developer’s hands.

Merge Urban Development told FOX 21 Tuesday the company is “currently paying for the construction with cash and without financing.”

Rendering of Urbane 218

The company also said, “The roof sheathing is on and the roofing materials will be installed starting November 30th.”  And from there, construction will move on to Tyvek and windows.

As for the final piece of the financing for the project on the former site of the Seaway Hotel, it’s been held up with the Local Initiatives Support Corporation, or LISC.

In the first part of October, LISC told FOX 21, it was continuing to work with Merge and the national LISC team to “secure required information, complete due diligence and bring this much needed housing deal to close.”

At the end of October, the Duluth News Tribune reported the city of Duluth was requiring the unfinished building undergo a structural evaluation after the building sat still and in the weather.

FOX 21 filed a data request for the inspection, at the request of the city, which was accepted and under review Tuesday.   We’ve also reached out to LISC for an update.