City May End Agreement for Funding of Lincoln Park Flats

DULUTH, MINN. — Earlier this year P&R Companies, the owner and developer of Lincoln Park Flats announced that it would be converting the second floor of the building into a boutique hotel, and all the tenants on that floor would need to find a new place to live.

That announcement was not well received by city leaders or others in the community. This was in large part because the city had promised the developer $2,350,000 in Tax Increment Financing also known as TIF funding.

The city would pay the developers a portion of the TIF money twice yearly through 2048.

Next Tuesday at noon the Duluth Economic Development Authority will hold a special meeting. On the agenda is the item labeled “Termination of Development Agreement, TIF Note, and Minimum Market Assessment Agreement.’

At this point in time, the developer has been paid just $106 in TIF money and is scheduled to receive another $706.