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Administration • 100 North Fifth Avenue West, Room 202 • Duluth, MN 55802
Phone: (218) 726-2450 • www.stlouiscountymn.gov

Kevin Z. Gray
County Administrator

NEWS RELEASE

FOR IMMEDIATE RELEASE: 
March 8, 2016

CONTACT: Dana Kazel, Communications Manager

218-725-5049 (office) • 218-591-2219 (cell)

County Board vote gives City of Duluth opportunity to develop tax-forfeited Pastoret Terrace

It's been called a derelict building and a blight on downtown Duluth, but now the property at 127-129 East First Street may see new life, following a unanimous vote by the St. Louis County Board. Pastoret Terrace, more commonly known as the Kozy Bar and apartments, went tax forfeit last November after its owner failed to pay property taxes for the past five years.

At the request of the City of Duluth, St. Louis County Commissioners today approved placing the property on a list of tax forfeited properties to be withheld from re-purchase by its previous owner for one year. This action gives the City of Duluth and the Duluth Economic Development Authority (DEDA) one year to thoroughly inspect the fire-damaged building and identify appropriate options for acquisition of the property. 

"Clearly something needs to be done with this property - whether it can be restored in some way or has deteriorated to the point of needing demolition, that remains to be seen," said County Board Chair Steve Raukar, "But we are confident the City of Duluth will be a good partner and will make something positive happen on that corner."

Meanwhile, Duluth Mayor Emily Larson sent a letter to commissioners stating, "... the City of Duluth has an interest in seeing this property revitalized. We have done our due diligence and fully understand the issues relating to this property. It’s my firm belief that the best path forward requires a different vision and a new plan of action." 

When an owner fails to pay property taxes, the property is forfeited to the State of Minnesota, and it becomes the responsibility of the County's Land and Minerals Department to manage that property. Currently there are approximately 900,000 acres of tax forfeited property in St. Louis County. The majority of that land is classified as conservation parcels and are used for forest management and timber sales. In the case of tax forfeited properties not held in conservation, the County works with local jurisdictions to identify possible economic development opportunities or offer for sale through public auction. 

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