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The NorShor redevelopment in Duluth has been raised by several people. The following information was found on the Sherman & Associates website and in a Duluth News Tribune article:

  • The Duluth EDA purchased the property (including the adjacent Temple Opera building and annex) in 2010 for $2.3 Million and is donating the NorShor building to the developer (retaining the other buildings) with the provision that after 7 years it will be given to the Duluth Playhouse, Inc. Once the non-profit owns the property it will be exempt from paying future real estate taxes.  The Duluth EDA is offering a $2.2 Million tax-increment package, but funding generated would only be for 7 years and detail has not been found related to the amount this would actually generate. The developer is guaranteeing that the city and EDA won't need to subsidize the cost of operating the property during the initial 7 year lease.
  • The developer George Sherman is contributing $1.575 Million in equity. The developer owns the nearby Sheraton Hotel and Greysolon Plaza buildings. There is a nearby parking ramp connected via skyway.
  • The Duluth EDA is also contributing $247,000 for renovation of the Temple Opera Building.
  • The proposal comes with a strong business plan from the Duluth Playhouse which is being given a start-up 0% loan of $3.5 Million from the Duluth EDA to be paid back by the end of 2025. The nonprofit theater group is committed to investing $4.5 million to pay for the equipment needed to put on performances and has already raised $1Million.
  • The 1910 former vaudeville performance stage was converted into a movie theater in 1941. In 1982 it became a venue for live events. The site received $7 Million from the state grants and $14 Million in state and federal tax credits. The total investment to renovate the property is $30.5 Million.

The Terrace Theater/Mall acquisition price, including the North Memorial owned parking lot, is nearly $6 Million; the owner is not interested in selling the properties separately and ownership of the parking lot is essential from an investor's perspective. The theater is in substandard condition and while it could be restored and be eligible for grants, it cannot be examined in a vacuum. Terrace Theater is located next to the Terrace Mall which is also in poor condition. The soil under the mall building and in the parking area requires the use of deep pilings for construction, a challenge for any developer. There has been no solid business plan submitted for use of the theater.  The Robbinsdale EDA and City of Robbinsdale do not have the funding comparable to that being offered by Duluth.