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Duluth Economic Development Authority OKs $230K Loan Agreement for Seaway Purchase

Updated: 02/26/2014 9:55 PM
Created: 02/26/2014 9:49 PM WDIO.com
By: Alan Hoglund
ahoglund@wdio.com

The sale of Duluth’s Seaway Hotel is one step closer to completion.

The Duluth Economic Development Authority approved a $230,000 loan agreement in their Wednesday afternoon meeting, according to a tweet from Emily Larson, a city councilor. The money will go to the Housing and Redevelopment Authority to buy the building, which is one of the last remaining in the city providing low-income housing.

Eyewitness News first reported that the HRA had entered into a purchase agreement with the Seaway’s owner in early January. Then, Duluth Planning and Construction Services Director Keith Hamre explained that the Seaway was condemned in July of 2012 when it needed emergency repairs after flooding. The city lifted the order a few months later and gave the owner a year to make other changes, including professional property management.

Hamre said the Seaway was operating without a rental license and could have been vacated by an order from the fire chief. However, he said “we did not want to do that without trying to exhaust every potential solution.”

The HRA hoped to purchase the Seaway by March, and after that they’d begin making repairs.

City Council President Linda Krug said the DEDA loan agreement still needs to be approved by the city council. She said it will likely be on an agenda early next month.

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