DULUTH, MN. (CBS 3 Duluth) – What is known as the former Kozy Bar might be renovated by a local business owner.
The Pastoret Terrace on Second Avenue and First Street in Downtown Duluth is being eyed by Rod Raymond, the owner of Fitger’s Brewhouse and several other businesses in the city.
“Giving some love to First Street is kind of the big idea,” Raymond said.
He wants to turn the building into a hotel.
“It will be so special to remodel it,” he said, ” to bring it back to its former glory.”
Raymond says the Pastoret Terrace will be a challenge to fix up, but he wants to keep the character of the area.
“The Pastoret was the crown jewel, there’s nothing like this,” he said.
The project will cost about $13 million and Raymond said he needs help to get it done.
Some of the help would have come from the Minnesota Historic Structure Rehabilitation Tax Credit.
The credit “offers a 20% state tax credit for qualified historic rehabilitation,” according to the Minnesota Department of Administration State Historic Preservation Office.
The credit expired at the end of the last legislative session, leaving developers like Raymond scrambling.
“It makes this project very difficult, it’s a 20 percent hit,” Raymond said, “and when you’re talking about a multi-million dollar project and you take a 20 percent hit, that’s debilitating.”
Chris Fleege, the Director of Planning and Economic Development for Duluth, said the city would like to see an extension of the tax credit.
“The City of Duluth strongly supports the Minnesota Historic Tax Credit and is disheartened to see it expire,” Fleege said, “investments into projects that improve people’s lives are at the core of the City’s work to better our community.”
Raymond did not give a timeline on the renovation project or when the building would become available for purchase.
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