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Former Kozy Owners Put Up Money Needed to Stall Demolition, City Says

The former owneers of the Pastoret Terrace building has provided a $50,000 bond needed to stall demolition. The former owneers of the Pastoret Terrace building has provided a $50,000 bond needed to stall demolition.  |  Photo: WDIO-TV file

Baihly Warfield
Updated: February 14, 2020 08:32 PM

The former owners of the Pastoret Terrace building have put up the $50,000 needed to stall demolition of the building, according to a City of Duluth spokesperson. 

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In October, Judge Eric Hylden sided with DEDA, saying there was no alternative to demolition. Dr. Eric Ringsred and a group called Respect Starts Here appealed against Hylden's decision. The judge ordered that if the group provided a $50,000 bond, the demolition could be stayed while their appeal works its way through a higher court. 

"We are disappointed but will continue to defend the case vigorously in the Court of Appeals," City of Duluth Assistant City Attorney Elizabeth Sellers said in a press release.

Earlier this week, the Duluth City Council signed off on the Duluth Economic Development Authority's plan to demolish the building. 

On Tuesday, Ringsred asked the judge to reduce the $50,000 requirement or accept $25,000 and give them another six months to come up with another $25,000. They sought a temporary restraining order to prevent demolition. Friday morning, Judge Hylden denied those requests. 

Miles Ringsred, Eric Ringsred's attorney, told WDIO News that the $50,000 came together through donations from at least three people. 

"I think we have a very good case moving forward on appeal," Miles Ringsred said. 

He said the end game for them is to save and preserve the building. He thinks it can be done through federal Historic Preservation Tax Credits, which Miles Ringsred said will cover 40 percent of development costs. 

St. Louis County acquired the Pastoret Terrace when the previous owners got behind on taxes. The county then sold it to DEDA in 2016. 

The city doesn't yet have a timeline as to when both sides will make their case to the Minnesota Court of Appeals. After that, a panel of judges will have three months to make a decision.

Public Information Officer Kate Van Daele said city contracts like the one with Rachel Contracting have time limits. So if the city wins in the Court of Appeals, the demolition will likely have to be re-bid and go back to the City Council again. 

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Baihly Warfield

Copyright 2020 WDIO-TV LLC, a Hubbard Broadcasting Company. All rights reserved

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