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Tuesday, December 06, 2005

Council refuses to give more money to wet house.

Last night the Duluth City Council send the proposal back to the administration. The developers wanted the extra $100,000 dollars to buy property just down from were they are to built and then they say they would resell the purchase.


The following is part of what apprears in the paper and you can read the whole article again ath there web site.

Center City Housing, the project's developers, wanted the loan to come from unused Community Development Block Grant funds so it could purchase, for an estimated $300,000, the Downtown Service Garage that sits downhill of its proposed development. But some city councilors expressed concerns that the city shouldn't help a private nonprofit speculate on property.
The developer had proposed borrowing city money, buying the property, selling it and then paying back the zero-interest loan within four years.

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