Company in charge of old Central High School development gets warning letter
DULUTH, Minn. – The group in charge of Incline Village, a proposed complex with apartments, condos and retail on the site of the old Central High School, has received a warning letter saying it is not lived up to some of its agreements with Duluth Economic Development Authority (DEDA).
DEDA Executive Director Tricia Hobbs sent the letter to Luzy Ostreicher the leader of the effort, and lawyer William M. Burns of the Hanft Fride law firm in Duluth.
Renderings of Incline Village
The letter titled “Notice of Breach” stated, “This letter serves as formal notification that STC Building, LLC, Chester Creek View, LLC, and Incline Plaza Development, LLC (collectively referred to as “Developer”) are in material breach of the Development Agreement with the Duluth Economic Development Authority (“DEDA”) for the Incline Plaza Project. ”
The letter then lists specific breaches.
It lists financial concerns.
It says, “It has come to DEDA’s attention that the previously submitted information on detailed sources and uses of funds no longer accurately reflects the Developer’s sources of funds and therefore Developer is in breach of this term.”
The next breach accusation says, “Developer failed to enter into a Minimum Assessment Agreement for the First Project. DEDA demands Developer promptly deliver an executed Minimum Assessment Agreement and continue its best efforts to cause the St. Louis County Assessor to execute the same.”
It continues, “Developer failed to provide copies of loan commitments, financing commitments, or evidence of equity contribution for the Project and is in breach of the Development Agreement.
DEDA demands Developer deliver evidence of construction financing.”
It also lists failures to meet construction timelines and duties.
In the “Commencement and Completion of Construction section” the letter says “Developer is in default of the October 15, 2024 date to commence construction of the Minimum Improvements for the first project. DEDA granted Developer four waivers of this deadline. The waiver of default expired on April 1, 2025 and Developer failed to cure within 45 calendar days of this default.”
There was a ground breaking ceremony on December 10, 2024.
RELATED: Former Central HS Site to become $500 Million Housing Development
The next paragraph includes, “It has come to DEDA’s attention that earth work on site ceased today and that Developer fails to maintain the Property is [sic] a neat, orderly condition. DEDA demands Developer cause its contractors to stabilize the site.”
The letter then continues to raise concerns about paperwork and filings.
It reads, “Developer Chester Creek View LLC is not qualified to do business in the State of Minnesota. DEDA demands Developer provide a Certificate of Authority from the Minnesota Secretary of
State for Chester Creek View LLC.”
FOX21 checked Minnesota Secretary of State filings and could not find that any company called “Chester Creek View LLC” has ever filed for a business license with the state.
The letter giveS the developer 45-days to fix most of the problems.
FOX21 has asked Luzy Ostreicher and William M. Burns for a comment.
Ostreicher’s e-mail returned an “Out of the office for Holiday” message.
Burns did not immediately reply.
