Urgent Update: Duluth Parking Ramp Demolition Cost Soars to $2.5M

UPDATE: The cost to demolish the abandoned Shopper’s Ramp in Duluth has surged to over $2.5 million, raising concerns about budget overruns as the city prepares for new downtown development. The Duluth City Council is set to convene on Monday to approve additional funding necessary to stabilize the nearby New Garrick Building.

Officials from the Duluth Economic Development Authority reported that the initial demolition phase, which cost approximately $967,000, has been completed. However, unforeseen complications related to the structural integrity of the New Garrick Building have led to a significant increase in projected expenses. Director Tricia Hobbs emphasized the challenges in obtaining accurate engineering assessments due to the proximity of both structures.

“Today, we have a clearer view of the situation now that the ramp is down,” Hobbs stated. The original estimate of $1.7 million for the entire project has more than doubled due to these complications, particularly as winter conditions pose further challenges to completing the work efficiently.

If the Duluth City Council approves the change order during their session, Ben Van Tassel, Director of Planning and Economic Development, anticipates the stabilization work could wrap up by late winter or early spring of next year. However, Wendy Durrwachter, 1st District Councilor, raised concerns about the viability of seeking additional bids to manage costs, suggesting it might be impractical to switch contractors at this stage.

The current contractor, Carleton Cos. Inc., had the lowest bid among four qualified submissions for the demolition phase, with the highest bid coming in at nearly $1.79 million. Durrwachter’s inquiry reflects a growing concern among council members about the financial implications of the project as costs continue to rise.

The Duluth City Council regularly meets on the second and fourth Mondays of each month at 6 p.m., with agenda meetings at 5:15 p.m. each preceding Thursday. These sessions are vital for community engagement, as they are available for live streaming and later viewing on the city’s official website.

As the situation develops, the community is closely watching the City Council’s decisions, which could have lasting impacts on downtown Duluth’s development landscape. Residents and stakeholders are encouraged to stay informed as this critical project progresses.