Discussions Continue Between City, P&R Properties To Keep ‘Lincoln Park Flats’ Fully Residential

DULUTH, Minn. – FOX 21 learned Tuesday that the city of Duluth is continuing discussions with a one-year-old housing development to try to avoid the second floor from converting into boutique hotel units.

The development is known as the Lincoln Park Flats on West Superior Street, which is owned by P&R Properties out of Duluth.

The city remains firm that the development agreement included 74 residential units — nothing less — including at least 23 units as affordable housing.

But P&R Properties told FOX 21 on Monday that skyrocketing construction costs and interest rates have made the current business model unsustainable.

P&R believes it meets the development and TIF agreements by keeping at least 23 units of affordable housing.

As for the tenants on the second floor, company official told FOX 21 everyone who wants to stay in the building will be able to by moving into other units opening up come June.