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Duluth Economic Development Authority gives Silos at Pier B investors more time to make $610K balloon payment

PierBFilePhoto
This shot shows Pier B Resort nearing completion in 2016, with the concrete silos from the former Lafarge Cement terminal in the foreground./ News Tribune file photo

Pier B Holding LLC was due to make a $610,000 balloon payment to the Duluth Economic Development Authority on Feb. 20, but investors will need more time to come up with the needed funds.

On Wednesday night — six days after the due date — DEDA commissioners voted 5-0 to retroactively grant the owners of the waterfront resort and restaurant at the site of the former Lafarge Cement Terminal an additional 90 days to make good on their financial commitment per a land purchase note. Pier B Holding LLC will now have until May 20 to pay back the $610,000, with interest accruing during the extension.

In the "statement of purpose" attached to the DEDA resolution passed Wednesday, the following rationale for the longer timeline was given: "The developer is in the process of refinancing the project, which refinancing will result in the repayment in full of the note plus accrued interest, but complications in the refinancing process have resulted in the need to extend the date for payment."

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