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Duluth officials ask $10.85 million in state funding to prepare Lot D for mixed‑use redevelopment

5108216 · April 8, 2025
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Summary

City of Duluth and Representative Johnson asked the committee for $10,850,000 in capital funds to repair a failing seawall, remediate contaminated soil, demolish obsolete structures and prepare a waterfront site (Lot D) for private development that proponents say would deliver housing, hotel rooms and a research facility.

Representative Rick Johnson told the House Capital Investment Committee on April 8 that House File 333 would provide $10,850,000 to ready Lot D on Duluth’s bayfront for private development.

John Dukich, policy and government affairs staff for Duluth’s mayor, said the site requires seawall repair and environmental remediation to stop contaminated soil from leaching into Lake Superior. "The seawall is collapsing into Lake Superior and without any additional work on that location the soil, the contaminated soil on the site will continue to leak into the lake," Dukich said. He said the requested state funds would cover demolition, seawall rebuilding, utility work and environmental cleanup to make the parcel shovel ready.

Nut graf: Dukich and Representative Johnson said the project is expected to unlock substantial private investment and deliver housing and commercial development, including a public research facility with the University of Minnesota Duluth.

Dukich told the committee the full redevelopment could support about 300 hotel rooms and nearly 500 multifamily housing units, plus a public research facility in partnership with the University of Minnesota Duluth. He said the city expects roughly $110 million in housing investment and between $250 million and $300 million in total private investment for the site once shovel‑ready work is complete. The city would provide a local match equal to the requested $10,850,000, he said, and is pursuing federal cleanup funds in parallel.

Ending: Proponents said the Lot D project is shovel ready and that state capital would catalyze broad private development on Duluth’s waterfront.