TOWER— The Tower Economic Development Authority has given a unanimous green light to a concept plan that would bring a hotel, an adjacent commercial space, and a handful of second-floor apartments to the city’s harbor. The plan would also include the construction of as many as 23 condominiums and 19 small, short-term rental cottages on approximately 23 acres north of the harbor located between the East Two River and Marina Drive.
The combined development, which would be undertaken by Tower Vision 2025, remains in the early planning stages and TEDA’s approval at its Sept. 7 meeting is no guarantee that the final development will move forward but it allows Tower Vision and its new architect, Ryan Arola, of Duluth, to develop more detailed plans and projections.
Arola led the presentation to the TEDA board and he highlighted an L-shaped, 50-room hotel that would have high visibility from Hwy. 169 as people enter town. He said the adjacent commercial space could provide opportunity for businesses catering to hotel guests, such as bike or kayak rentals, dining, spas, or similar services. The second story of the structure would have room for 3-4 apartments with views overlooking the harbor.
Once the concept is fully developed, the major backers of the proposed project, including Your Boat Club co-owner Luke Kujawa and Jamie Tatge, head of Leisure Hotels and Resorts, would develop the financial projections as part of a pro forma that would go to potential funders, most likely venture capitalists. At this point, the TEDA board is anticipating that construction will begin in 2024, although it isn’t clear at this point which portions of the overall project will advance first.
The development of the river cottages and condominiums is contingent on an agreement between TEDA, Tower Vision 2025, and Kujawa, to purchase 5.02 acres of TEDA-owned property located along the east side of Marina Drive. Kujawa has already purchased the 18 acres adjacent to the TEDA property, formerly owned by the Mesojedec family. Under the concept approved by TEDA, the 18 acres would house the river cottages and several additional condominium units.
The current concept plan would utilize TEDA’s Marina Drive property to access the entire combined site as well as provide space for the construction of approximately 16 condominiums. The sale of both the Marina Drive property as well as the land around the harbor would be subject to development agreements with construction timelines and claw back provisions should the project not move forward.
In other TEDA action, the board toured the newly renovated Vermilion Country School, which was a major TEDA project this year. While the work is nearly completed, executive director Marshall Helmberger said he’s putting together a punch list of the handful of small items that remain undone. It appears the project will come in under TEDA’s $400,000 budget.