TOWER— The Tower Economic Development Authority gave its approval last week to a concept plan for the city’s harbor that calls for a 44-unit hotel along with other associated commercial spaces. The proposed development, which would be located on the harbor’s south side, was presented by landscape architect Luke Sydow, of SAS and Associates of Duluth, and Orlyn Kringstad, who is working on contract with the prospective developers.
Work is already well underway on a related development just north of the harbor, on property located behind the Marjo Motel. The group involved in that project, Marjo RE, LLC, will likely be the primary developers of the proposed harbor hotel, although none of the parties have made a formal commitment to the harbor hotel as of yet.
Approval of the concept plan will help advance a planned sewer and water connection to the Marjo property. That utility extension is expected to extend from existing utilities located on the southeast corner of the harbor and would run roughly parallel to the harbor before crossing under Hwy. 169. The new service lines would connect with up to 50 new units of housing planned for roughly 18 acres located between the Marjo Motel and the Your Boat Club marina. The first three units, which are currently being built in Vinstra, Norway, are scheduled for delivery in June, with additional units expected to be delivered later this year.
Marjo RE, LLC is owned by Luke Kujawa and Michael Jellish, the principles of Your Boat Club, who see the project, at least in part, as a means to provide lodging for members of their club when they come to Lake Vermilion. Jamie Tatge, president of Leisure Hotels and Resorts, has also indicated an interest in helping to advance the project and manage the property once the development is complete.
Kujawa, who joined last week’s TEDA meeting virtually, thanked the TEDA board for its support for their ongoing project. TEDA and Kujawa were set to close as early as this week on the sale of 5.02 acres of land along Marina Drive to provide road access and utility easements for the Marjo property. That property, which TEDA is selling for $25,000, is subject to a development agreement that calls for the construction of multi-family housing as well as streets and utilities. Combined with the Marjo property, which Kujawa and Jellish acquired last year, Marjo RE will have approximately 23 acres available for development with a prime location just off Hwy. 169, sandwiched between the harbor and the marina.
Should the planned hotel move forward at the harbor, it would also likely be the subject of a development agreement. As of yet, the parties have not discussed a price for the harbor property.
In other action, the TEDA board approved a contribution of $2,000 to pay for an architectural study by Widseth Architects. The nonprofit Vermilion Housing Corporation, which manages apartment buildings in Tower and Soudan, is looking to renovate the Tower apartment building in hopes of increasing occupancy. Currently some of the rooms are not in rentable condition and the nonprofit is seeking funds to enable the renovation to create more housing opportunities in Tower.