Duluth officials voted to cancel their development agreement for a massive project called Incline Village. The plan was to build a $500 million mix of housing, retail, and other community spaces on the old Central High School site, a prime location that overlooks downtown and Lake Superior. City leaders said they had no choice but to end the deal because the developer, Incline Plaza Development LLC, failed to prove they had enough money lined up to build it.
Why the Agreement Fell Apart
The city’s Economic Development Authority, known as DEDA, required the developer to show proof of financing. That proof never came. Without it, Duluth couldn’t risk letting the project drag on. Officials stressed this wasn’t about rejecting development—it was about holding the developer accountable. After months of waiting and repeated extensions, the five commissioners voted unanimously to cancel the agreement.
The Developer Pushes Back
The company’s representatives argued that they had already invested heavily, putting in close to ten million dollars in cash and taking on millions more in debt. They claimed the delays weren’t their fault, pointing to problems with a bank that had promised financial backing but failed to deliver. That disagreement even turned into a lawsuit. One of the developers, Luzy Ostreicher, flew in from New York to plead for more time. He asked the city for a 120-day extension to secure the funding. Despite his appeal, the commissioners said they couldn’t allow any more delays.
The Mayor’s Take
Mayor Roger Reinert supported DEDA’s decision. He said the agreement included protections to keep taxpayers from paying the price if things went wrong, and that foresight paid off. Reinert emphasized that the city spent no public money on Incline Village and still views the Central High School site as valuable for future housing and development. He stressed that the issue wasn’t whether development should happen but whether the city should trust someone who could actually deliver.
What Happens Now
The site itself still belongs to the developer, which complicates things. Duluth can’t simply hand the land to another builder, at least not right away. City officials have made it clear they want to see housing and community growth on the property, but they’ll need a partner who can prove they have the money and the stability to make it happen. For now, the project is at a standstill, and the future of Incline Village depends on whether Ostreicher can rebuild trust with the city or if a new developer eventually steps in.
