Developer Proposes 115 Townhomes in Duluth Market Expansion

A significant proposal to construct approximately 115 townhomes in Duluth is set to be reviewed by the Duluth Planning Commission on January 21, 2024. The developer, Arris IV LLC, plans to build these townhomes on a 9.4-acre site located south of a recently completed 200-unit apartment building at 330 E. Palm St.. This project necessitates a zoning change from R-1 (single-family residential) to R-P (residential-planned), which will be discussed during the commission’s meeting at 5 p.m. in City Council Chambers at 411 W. First St..

The site presents challenges due to its sloped terrain and limited access from East Orange and Palm streets. Dennis Cornelius, owner of Amcon Construction, a design/build firm based in Minnetonka, mentioned that the rocky substrate encountered during the construction of the apartment building could complicate the townhome development as well. Cornelius noted that the investment group acquired the property about four to five years ago, intending to develop it following the completion of the apartment project. He emphasized the importance of being sensitive to the surrounding neighborhoods.

Duluth Senior Housing Developer Tom Church confirmed that Cornelius and his team collaborated closely with the city’s land-use staff to formulate the proposed site plan. The development team has indicated that they will not seek subsidies for the project. The townhomes are planned as rental units, featuring two- to three-bedroom layouts, each equipped with an attached private garage.

Project Details and Community Impact

While concept plans have been established, more detailed designs are still underway. The developer aims to provide both two-story and single-level options to meet diverse housing needs. Church expressed confidence in the project, stating that Duluth has seen very few townhome developments in recent years, indicating a demand for such housing. He pointed out that this proposal stands out, as it would represent the largest townhome development in Duluth in at least two decades.

A recent market analysis conducted by Maxfield Research estimates that Duluth will require over 8,700 housing units by 2035 to keep pace with projected demand. The proposed townhomes would reach a height ranging from 35 to 45 feet above grade, significantly exceeding the current limits set by the R-1 zoning.

Community engagement has been a priority for the development team. Approximately 30% of the site is planned to remain as open space, preserving wooded areas, wetlands, and upland prairie habitats. Additionally, a public recreational trail is proposed to connect East Orange Street to East Palm Street, providing access to a public transit station located on Central Entrance.

The design strategy aims to adapt to the natural contours of the land, minimizing extensive earthwork. Townhomes will likely be organized in clusters of no more than six units. Cornelius praised the design team for efficiently utilizing the buildable portions of the property while prioritizing unit density.

Residents within 350 feet of the proposed site have been informed about the project, with over 50 attendees present at a public meeting held on December 3. The outcome of the Planning Commission’s decision on January 21 will be crucial for the future of this significant development in Duluth.