A project review committee has recommended that the Duluth Economic Development Authority issue a second request for proposals to redevelop the Pastoret Terrace property, formerly home to the Kozy Bar.
A previous round of proposals was deemed insufficient, and a statement issued Thursday night concluded that additional marketing would be needed "to attract a more diverse group of developers who will bring the financial capacity and experience necessary to redevelop the entire block as part of the Pastoret development."
DEDA is expected to hold a special March 1 meeting to consider the review committee's recommendations.
"We are aware of the complexities of developing the Pastoret Terrace parcel," said DEDA Executive Director Heather Rand in a written statement. "The site has been problematic for years but is ripe for an exciting transformation, given the right partner."
She thanked the project review committee for its efforts and said: "The right redevelopment of this site can be the catalyst for future growth and restoration along First Street and will be a key linkage between First Street and the Historic Arts and Theatre District along Superior."
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The fire-damaged Pastoret has been condemned for habitation.
DEDA purchased the building, as a tax-forfeited property, from St. Louis County last year.
In November, the authority sent out its initial request for proposals, which were due in January. It received three proposals, all calling for the restoration of the 129-year-old building, designed by architect Oliver Traphagen.