Preservationists sue Duluth, investors over plans to demolish former Hotel Astoria

DULUTH — A Duluth preservation group has sued the city of Duluth and a California-based investment company over demolition plans for a historic downtown building.

The Duluth Preservation Alliance has also asked the court for a temporary restraining order to prevent demolition of the former Hotel Astoria, that was set to begin this week. It must pay $60,000 in bond money by Friday to secure the order.

The preservation group is alleging the city improperly followed procedures when it allowed the City Council to weigh in on a decision made by the Heritage Preservation Commission, a group of city-appointed volunteers. The commission this summer denied demolition, and in September, the City Council reversed its decision.

The preservation group argues that the commission was following state preservation review law for the nationally designated property, and its decision should have been appealed to the state appeals court, said Miles Ringsred, an attorney for the group.

"The City Council didn't have jurisdiction," he said. "They only have jurisdiction to review locally designated properties."

It also alleges the building owner, North Creek Investors, wants to demolish the building for purely economic reasons, which would violate state environmental law related to historic designations, Ringsred said.

The E. Superior Street building, which most recently housed two shops and a restaurant, is in a nationally designated historic section of the city. The commission denied the owner's request to demolish it based on the harm it could cause to the historic nature of the area and its lack of plans for the property.

Preservationists, who accused the company of neglect, have been vocal about saving the building, which contributes to downtown's National Commercial Historic District, on the National Register of Historic Places. The 117-year-old Hotel Astoria was built by prominent Duluth architect John Wangenstein.

Its owner has said that the historic features of the blighted building are gone, and rehabilitation would cost millions. Since demolition was granted by the city, the Duluth Fire Department has conducted several training exercises in the building, further damaging it.

If the group doesn't raise the money for the restraining order, it will continue with its suit alleging state environmental review law wasn't followed.

The hope is to set a precedent for future demolition requests within the district, said Blake Romenesko, president of the alliance.

Several buildings that contribute to the historic district have been torn down in recent years, and if the Astoria and others join those, Ringsred said, they add to the growing concern the district will lose its historic status. The building is in the same area as the Pastoret building, also the subject of ongoing litigation.

North Creek Investors, which has owned the property since 2017, has said it has no plans for the land because of market conditions, but will not build a parking lot.

A city spokeswoman declined to comment on the lawsuit. An attorney for the investment company did not respond to an interview request.