Seaway Hotel to be Purchased by HRA
By:
DULUTH - If everything goes as planned the Seaway Hotel will soon be under new ownership.
The current owner is in a purchase agreement with the Housing and Redevelopment Authority of Duluth to sell the property for $230,000.
The city of Duluth told the hotel owner he's got a year to make changes, and that time is up.
The hotel was condemned after the flood in 2012.
Months later, the city of Duluth let the hotel re-open if the owner agreed to fix some of the damage, and find a professional property management company to take over.
A year has passed and nobody has stepped up to take over, so the owner has agreed to sell the property.
The HRA is waiting for a loan from the Duluth Economic Development Authority to finalize the deal.
Then, they need an additional $800,000 for repairs and operating funds.
The HRA and the city hope under new ownership the Seaway Hotel will become an asset to the Lincoln Park neighborhood.
“It's got great potential,” explained Duluth city planner, Keith Hamre. “It's in a business district or commercial district that's got some neat things happening with Frost River and Bent Paddle.”
The deal is part of a bigger plan the city has for the area.
They hope to make it more of a business district.
Currently, the Seaway is not up to Duluth’s rental standard.
If it was any other time of year, the fire department would have the building vacated.
Because of the cold weather rule they can't kick anyone out until April 15.
By then, the deal should be done and improvements should be made.
Nobody should be losing their room at the Seaway anytime soon.
The HRA hopes to close on the deal end of February.