DULUTH — A yearslong legal battle over the fate of the Paul Robeson Ballroom and Pastoret Terrace building, formerly home to the Kozy Bar and Apartments, appears to finally be nearing an end.
A resolution passed 5-0 Wednesday night by the Duluth Economic Development Authority signals its approval of a proposed $2.13 million settlement that would clear the way for the fire-damaged buildings to be demolished.
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"This has been a long time coming," said Arik Forsman, who serves both as a city councilor at large and a DEDA member.
While a statement detailing the proposed settlement obligates the city to make continued investments in its Commercial Historic District, it said: "The settlement also allows for the demolition of the Pastoret Terrace/Kozy Building. The City has found that it is not feasible to restore the decayed and fire-damaged property."
DEDA would be required to pay $700,000 toward the settlement. Meanwhile, the Duluth City Council will be asked Monday night to sign off on an additional commitment to contribute $1.43 million toward putting the case to rest.
The former owner of the buildings, Eric Ringsred, and a small group of local preservationists called Respect Starts Here have been fighting to save the fire-damaged historic buildings from the wrecking ball for years since a fire swept through the property — the first of several more to come for the condemned structures.
Under the terms of the settlement, DEDA would provide up to $700,000 to the plaintiffs to be invested in "other contributing buildings in their control" in the historic district, identifying three specific candidate properties: the Wabasha at 114 E. First St.; the Scarlett at 213-215 E. First St.; and the Eagles Wings Building at 110 E. First St.
St. Louis County previously provided similarly earmarked assistance to help Ringsred make needed improvements to the St. Regis Apartment Building at 117-129 E. Second Ave. E.
The city also would agree to pay $30,000 in delinquent taxes for contributing buildings under the plaintiff's control, such as the St. Regis.
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But the majority of the settlement dollars, $1.4 million, will go to establish a fund that could offer grants and low-interest loans to the owners of contributing buildings in the Duluth Commercial Historic District for repairs to those structures. Duluth's 1200 Fund would oversee those grants and loans, with priority to be given to improvements along the First Street corridor.
Assistant City Attorney Elizabeth Sellers referred to the agreement as "a wonderful resolution to what's been a hotly contested dispute for years."
"I think this represents a significant win-win for all involved," she said, noting that it will allow the city to address lingering blight and also invest in preserving the historic nature of its downtown.
Janet Kennedy, who serves on both the council and DEDA, suggested some of the funds might rightly be directed to support the upkeep of the Clayton Jackson McGhie Memorial across the street from Pastoret Terrace. She noted that the tribute to local lynching victims draws people to Duluth from across the nation.
The proposed settlement arose from mediation conducted May 23, with Duluth attorney Steve Reyelts serving as the neutral intermediary.
Ringsred later sought to back out of the agreement, but Judge Eric Hylden ruled Dec. 18 that the settlement should be considered binding.
"This settlement demonstrates the City and DEDA’s commitment to the vitality of and reinvestment in historic downtown Duluth," a statement released Wednesday said. "Although the Pastoret Terrace itself will be lost to demolition, the settlement will allow the site of the Pastoret Terrace to be a catalyst for reinvestment in the neighborhood."
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As for any reconstruction on the site of the Pastoret and Paul Robeson Ballroom, the settlement calls for the next building to conform with the character of the surrounding historic district, including storefront windows on the street level. Other aspects of the redevelopment are not spelled out, opening the way for a building of greater height than the original to be constructed, possibly with skywalk connections.
This story was updated at 7:29 p.m. Jan. 22 with additional information from a recently adjourned DEDA meeting. It was originally posted at 5:04 p.m. Jan. 22.
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