Duluth mayor focuses on development in western part of city

Duluth Mayor Don Ness presented a rosy, upbeat picture of his home in his annual State of the City address Monday night.

Since much of his presentation focused on the St. Louis River corridor, it is only fitting that he delivered his address to an audience gathered in the new chalet built at the base of Spirit Mountain in West Duluth.

Ness said the city entered 2013 facing significant challenges, including the difficulties of dealing with the prolific sale of synthetic drugs in its downtown, and the threat of significant cuts in the local government aid it received from the state.

The city successfully fended off both those concerns. It prevailed in its legal battle to close Last Place on Earth -- a local head shop notorious for its sales of synthetic drugs. The city also avoided reductions to the state aid it receives, and was able to reduce its property taxes in 2013 for the first time in 14 years.

Ness noted that job growth has helped reduce local unemployment to the lowest levels since the Great Recession began, with Duluth's unemployment rate falling to 4.6 percent in December.

To illustrate recent progress, he pointed to AAR Aircraft Services, which has already exceeded its pledge to create 200 jobs by the end of 2013. Ness said the company ended the year with 279 people on its local payroll and expects to have more than 300 employees on board by the end of this year.

But new jobs have brought new challenges, as well.

Ness said Duluth is "on the verge of a housing crisis." To keep pace with demand, he predicts the city will need to provide 1,000 additional units of new or extensively renovated housing by 2017 and a total of 2,300 units by 2020.

Ness hopes much of that growth will occur in the neighborhoods of western Duluth along the St. Louis River corridor, which he believes is poised for a period of rapid redevelopment.

The river was designated as an "area of concern" in 1989, when it was identified as one of the most polluted sites on the Great Lakes. Ness expressed optimism that the city is on track to have the river estuary delisted by 2025.

Not including $90 million that went into recent Interstate improvements, Ness said the area is on tap to receive about $290 million in total public investment between the years 2010 and 2015.

The river corridor boasts more than 1,000 acres of land suitable for industrial development.

Ness also said the growing recreational opportunities of the area, including new paths and improved river access points, should also attract young families.

The mayor also shared his vision of the river corridor becoming a tourist attraction that could one day complement and rival the Canal Park/downtown waterfront district.

"This is our moment to create a vibrant future for these neighborhoods and Duluth," he said.

Charlie Stauduhar, operator of the Spirit Lake Marina and the Indian Point Campground, said he was encouraged by Ness' comments.

"Some of the same things that will attract tourists are the same things that will attract young people to live in the area," Stauduhar said, pointing to the lure of new paths and opportunities to explore the St. Louis River by water.

"Up until now, it seems like no one has looked beyond the lake. That's one of the problems we've had with city government," said Stauduhar, who said he was pleased to see the attention Ness was placing on the St. Louis River. "We're a blossoming, burgeoning part of the city just waiting to open."

Will Munger Jr., whose family has been the longtime owner of the Willard Munger Inn, said he was impressed by what he heard Monday night.

"I do think that Mayor Ness, more than any other mayor I've seen, seems to understand more about West Duluth and what it can become," he said, adding that even previous mayors who grew up in the area seemed to lack the same vision of the area's potential.

Munger predicted the city's investments in the river corridor neighborhoods will pay big dividends.

"I think that more trails and having this new chalet, plus all the other natural amenities we have to offer, will serve as enticement to attract more development to this area. And I expect to see more people invest in housing, both new and existing," he said.

"I'm elated," said Dale Lewis, president and CEO of Park State Bank, reflecting on Ness' speech. "It's critical in any housing environment to bring in young people with fresh ideas."

Especially with the city facing a need for new housing, Lewis said the St. Louis River corridor offers unique opportunities.

"There's more available real estate available along the waterfront here than you're ever going to find up the Shore. And you're not going to find the same kind of outstanding waterfront sites like those that look down on the St. Louis River for anywhere near as affordable prices," she said.

Combine that with the opportunity for industrial development and new jobs in the area, and Lewis said the area has all the necessary ingredients for significant growth.

"We have tremendous potential," she said. "Just look around. There's so much green space."

Duluth Mayor Don Ness presented a rosy, upbeat picture of his home in his annual State of the City address Monday night.

Since much of his presentation focused on the St. Louis River corridor, it is only fitting that he delivered his address to an audience gathered in the new chalet built at the base of Spirit Mountain in West Duluth.

Ness said the city entered 2013 facing significant challenges, including the difficulties of dealing with the prolific sale of synthetic drugs in its downtown, and the threat of significant cuts in the local government aid it received from the state.

The city successfully fended off both those concerns. It prevailed in its legal battle to close Last Place on Earth -- a local head shop notorious for its sales of synthetic drugs. The city also avoided reductions to the state aid it receives, and was able to reduce its property taxes in 2013 for the first time in 14 years.

Ness noted that job growth has helped reduce local unemployment to the lowest levels since the Great Recession began, with Duluth's unemployment rate falling to 4.6 percent in December.

To illustrate recent progress, he pointed to AAR Aircraft Services, which has already exceeded its pledge to create 200 jobs by the end of 2013. Ness said the company ended the year with 279 people on its local payroll and expects to have more than 300 employees on board by the end of this year.

But new jobs have brought new challenges, as well.

Ness said Duluth is "on the verge of a housing crisis." To keep pace with demand, he predicts the city will need to provide 1,000 additional units of new or extensively renovated housing by 2017 and a total of 2,300 units by 2020.

Ness hopes much of that growth will occur in the neighborhoods of western Duluth along the St. Louis River corridor, which he believes is poised for a period of rapid redevelopment.

The river was designated as an "area of concern" in 1989, when it was identified as one of the most polluted sites on the Great Lakes. Ness expressed optimism that the city is on track to have the river estuary delisted by 2025.

Not including $90 million that went into recent Interstate improvements, Ness said the area is on tap to receive about $290 million in total public investment between the years 2010 and 2015.

The river corridor boasts more than 1,000 acres of land suitable for industrial development.

Ness also said the growing recreational opportunities of the area, including new paths and improved river access points, should also attract young families.

The mayor also shared his vision of the river corridor becoming a tourist attraction that could one day complement and rival the Canal Park/downtown waterfront district.

"This is our moment to create a vibrant future for these neighborhoods and Duluth," he said.

Charlie Stauduhar, operator of the Spirit Lake Marina and the Indian Point Campground, said he was encouraged by Ness' comments.

"Some of the same things that will attract tourists are the same things that will attract young people to live in the area," Stauduhar said, pointing to the lure of new paths and opportunities to explore the St. Louis River by water.

"Up until now, it seems like no one has looked beyond the lake. That's one of the problems we've had with city government," said Stauduhar, who said he was pleased to see the attention Ness was placing on the St. Louis River. "We're a blossoming, burgeoning part of the city just waiting to open."

Will Munger Jr., whose family has been the longtime owner of the Willard Munger Inn, said he was impressed by what he heard Monday night.

"I do think that Mayor Ness, more than any other mayor I've seen, seems to understand more about West Duluth and what it can become," he said, adding that even previous mayors who grew up in the area seemed to lack the same vision of the area's potential.

Munger predicted the city's investments in the river corridor neighborhoods will pay big dividends.

"I think that more trails and having this new chalet, plus all the other natural amenities we have to offer, will serve as enticement to attract more development to this area. And I expect to see more people invest in housing, both new and existing," he said.

"I'm elated," said Dale Lewis, president and CEO of Park State Bank, reflecting on Ness' speech. "It's critical in any housing environment to bring in young people with fresh ideas."

Especially with the city facing a need for new housing, Lewis said the St. Louis River corridor offers unique opportunities.

"There's more available real estate available along the waterfront here than you're ever going to find up the Shore. And you're not going to find the same kind of outstanding waterfront sites like those that look down on the St. Louis River for anywhere near as affordable prices," she said.

Combine that with the opportunity for industrial development and new jobs in the area, and Lewis said the area has all the necessary ingredients for significant growth.

"We have tremendous potential," she said. "Just look around. There's so much green space."