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Developer balks at higher costs

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Detroit Lakes Detroit Lakes, 56501
Detroit Lakes Minnesota 511 Washington Avenue 56501

After a couple weeks of sending e-mails back and forth, the partners who make up DLM Downtown Properties LLC said they will give the Detroit Lakes Development Authority an answer in 30-60 days whether they are moving forward and developing the crescent area or not.

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"They haven't signed anything yet," Community Development Director Larry Remmen said.

The group submitted a letter of intent on the development, but after some time was spent on the issue, the city council upped the price of the land from $300,000 to $350,000. The land is the first phase of development in the crescent area -- McKinley Street to Washington Avenue, Highway 10 to Frazee Street.

Remmen said the concern is over the increased cost of land, and nothing else has been altered in the contract.

"They indicated they'll do it sooner rather than later," Remmen said of the 30-60 days.

The Detroit Lakes Development Authority agreed to hire HR Green to apply for an assessment grant that would be used to make sure the soil and land is buildable at different sites around the city.

While two sites were named -- the former Grover Lindberg area west of town and the old Orton's property in the Highway 10 redevelopment area -- Remmen said the grant could be used for any site.

"This is something we would end up doing regardless," he said of the land assessments. "This seems like a good idea, so we'd be in line for the grant."

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