Duluth City Council Approves Tax Financing for Housing Project

The Duluth City Council voted to approve tax-increment financing for the housing project at the old Central High School location.

The nearly $500 million project is being constructed by Incline Plaza Development LLC, which plans to build 1,300 multi-family market rate condos and apartments along with shops and green space at the former high school.

Before construction could begin on the project however, the company needs to do a great deal of prep work on the site due to the infrastructure of the ground. According to a Northern News Now report, City of Duluth officials say the water and bedrock in the area makes building very difficult. Those concerns are what prompted the city to consider approving a tax-increment financing for the area.

The program would allow the developers of the project to begin construction, and pay the costs of the infrastructure work needed at the site themselves. After work is completed, the developers can present the city with an invoice for the infrastructure work they did, which will be paid back to them from the property taxes the city collects on the site.

Some residents spoke against the approval, saying they were concerned that the plan could eventually increase their property taxes and that it should not be approved unless the developers guarantee a certain amount of affordable housing. City officials say money won’t be taken out of the city’s budget, and the additional tax revenue brought in from the project can be used for things like road and park improvements.

Now that the proposal has been approved, the developers are planning to begin their first phase of construction in August. When completed, the site will feature two 120 unit condo buildings and a 220 unit apartment building.