A recently filed lawsuit accuses the Duluth Economic Development Authority and the city of Duluth with willful neglect in the care of two historic structures - Pastoret Terrace, aka the former Kozy Bar and Apartments, and the neighboring Paul Robeson Ballroom building.
The buildings' former owner, Eric Ringsred, seeks to protect them from prospective demolition. He lost ownership of the buildings to tax forfeiture in 2016. At the time, Ringsred owed more than $26,000 in taxes and penalties on the Pastoret and the Robeson, dating back to 2011.
In his complaint, Ringsred alleges that DEDA and the city "have neglected roof inspections, allowed roof drains to become plugged and ignored water accumulations to the point that a portion of the roof has collapsed on the Paul Robeson Ballroom."
Duluth City Attorney Gunnar Johnson said the building already was structurally compromised when DEDA took over ownership of the buildings. Following a fire in 2010, the buildings were condemned for habitation.
"All that occurred when Eric owned the building," Johnson said.
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As for the suit, Johnson said: "We just received Mr. Ringsred's complaint. It's early in the process, and we're exploring all of our legal avenues."
Ringsred, an emergency room physician and avowed preservationist who formerly also owned the NorShor Theatre, previously mounted other legal challenges to redevelopment efforts in the city of Duluth.
"Over the years, we've seen Mr. Ringsred has sued many times on many different projects and this is that same kind of MO (modus operandi). So, I can't speak for why he does that, but we will defend it as we have successfully defended these in the past," Johnson said.
Meanwhile, Ringsred faces his own legal challenges, including a federal lien of more than $2.5 million, which the Internal Revenue Service filed against him last year for unpaid taxes and penalties. As of Tuesday, that lien remained outstanding, according to the St. Louis County Recorder's Office.
The News Tribune could not reach Ringsred for comment Tuesday.
His lawsuit notes that both Pastoret Terrace and the ballroom are listed as "contributing structures" within a designated historic district and claims the city should consult the Heritage Preservation Commission about the future disposition of the buildings at 129-131 E. First St. The 130-year-old Pastoret Terrace building was designed by noted local architect Oliver Traphagen.
Mike Poupore, the commission's chairman, said city staff members already have verbally notified the body that the Pastoret property quite likely could face demolition.
Poupore said the commission unfortunately is apt to have little say as to what ultimately becomes of the buildings.
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"They don't give the HPC any power to do anything like that. In fact, they've intentionally removed any power that we have," he said.
DEDA's previous request for proposals yielded three prospective redevelopment plans last March, but none of them was deemed acceptable by members of a screening committee.
Poupore said he wishes the city would invest a bit of money to put new roofs on the buildings and clean them up, in hopes of attracting new redevelopment interest.
But Poupore said he has encountered a sense of resignation.
"The city's not being proactive. It seems like they've kind of already thrown in the towel," he said.
Johnson said city staff continue their efforts to make the best of a difficult situation.
"The city would like to redevelop the building, but you have an old building that was neglected by its former owner. It's in bad shape. There have been fires in there, and so, whether it's economically viable to redevelop that existing structure or it makes more sense to tear that down and put something new up, those are things that have been on the table from the get-go," he said.
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