Duluth’s Downtown Development Authority sold 3.46 acres on the corner of Hill Street and Ridgeway Road in July for $890,000 to HSC Downtown Duluth LLC. The new owner is expected to build residential housing on the property.
The property was originally purchased by Duluth for $500,000 in April 2013 with 2009 SPLOST parking funds with the expectation that public parking would be developed on the property, possibly in conjunction with a larger development.
Now that the property has been sold to a private developer, the DDA will recognize a $390,000 gain on the sale and requires the transfer of $500,000 back to the 2009 SPLOST account because the property will not be used for public parking. In addition, the DDA has agreed to reimburse Pulte Group for $15,000 of its soil testing cost.
The Duluth City Council authorized budget amendments to recognize these changes at their council meeting earlier this month.
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