Duluth Economic Development Authority to return Kozy funds

The agreement should still leave the authority with sufficient funds to demolish the fire-damaged building.

File: Kozy Nov. 2 2020
Duluth's Pastoret Terrace building, which formerly housed the Kozy Bar and Apartments, is seen after its latest major fire in November 2020. (Steve Kuchera / File / News Tribune)

Members of the Duluth Economic Development Authority unanimously approved a resolution Wednesday night signing off on a legal settlement between a prior owner of the Paul Robeson Ballroom and Pastoret Terrace building, formerly home to the Kozy Bar and Apartments.

Under the terms of the agreement, St. Louis County will pick up almost all the $190,000 cost of the settlement with Paul King. But DEDA will help with a small portion of the tab by forgoing $11,929 of the $325,000 St. Louis County had set aside to help with redevelopment and/or demolition costs.

DEDA has already burned through a portion of those funds, as its legal battle over what shall become of the historic but fire-damaged property continues.

Assistant County Attorney Nick Campanario said the agreement should still leave DEDA with sufficient funds to cover the anticipated $233,000 cost of tearing down the building, if and when it obtains legal authorization to do so.

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