Duluth's Radisson hotel expected to change handsIn a deal expected to close at the end of this month, a Wayzata, Minn.-based firm is poised to buy the hotel from Trinity Hotel Investors LLC of New York City.
By: Peter Passi, Duluth News Tribune
Duluth’s downtown Radisson hotel soon could be under new ownership.
In a deal expected to close at the end of this month, a Wayzata, Minn.-based firm is poised to buy the hotel from Trinity Hotel Investors LLC of New York City. Pam Snyder, one of the prospective new investors in the hotel and a principal partner in Bay Ridge Properties of Wayzata, said she could not comment on the pending sale Monday, as her firm is in the final stages of conducting its due diligence.
But in anticipation of the deal closing successfully, Wayzata Duluth Hospitality Associates LLC successfully sought the transfer of the hotel’s liquor and dancing licenses to its control after Aug. 31. The Duluth City Council approved that transfer Monday night, following a recommendation from the city’s Alcohol, Gambling and Tobacco Commission.
Ryan Stauber, a member of that commission, said Lee Fundanet, another prospective investor and chief operating officer of Bay Ridge Properties, spoke to the commission of future plans for the Radisson.
“He said they plan to keep both the restaurants open and to keep the current union contracts intact,” Stauber said, explaining that commission members were comforted to learn that the restaurants’ experienced and trained staff will be retained and not replaced.
“That was a huge plus in favor of their request,” Stauber said.
Fundanet did not return a call to his office Monday afternoon.
For her part, Snyder declined to comment on any of the financial details of the pending hotel sale.
The hotel had been placed on the market with a Chicago brokerage firm in January. The initial asking price for the 288-room hotel was $9.5 million.
The property last sold in January 2007 for a little more than $5.8 million, according to records on file at the St. Louis County auditor’s office.
In March of this year, the hotel was forced to close temporarily when a broken water main knocked out power to the building and caused major damage to its mechanical systems.
The hotel reopened June 6, following about $3 million in repairs and renovations.
The Duluth Radisson’s general manager, Steven Kipnis, was out of the office and unavailable for comment Monday.