Duluth Airs $100,000 Request for Red Clay Expansion Design

A request by the Duluth Downtown Development Association for $100,000 to cover architectural design and other professional fees for a proposed expansion of Red Clay is expected to be on the budget at the next Duluth City Council meeting, but questions apparently still remain on the potential cost of the expansion and construction financing.

The Red Clay and other issues were discussed at the city’s first Mini Strategic Work Session Monday (July 29) night. The city is planning to hold these work sessions on the fifth Monday of the month, four a year, according to City Manager Tim Shearer,  “to talk about some of the bigger type issues” in the city.

These work sessions, Shearer said, bring together the city council, DDA and city staff to interact. The gathering in the basement of Red Clay was open to the public.

The proposed Red Clay project includes expanding the basement, enlarging the street-level lobby including more restrooms, and adding a second-floor open-air rooftop tavern. Each of the three floors of the addition would contain about 2,400 square feet. The lobby restrooms would be shared by theater and tavern patrons.

The city owns the facility located on Main Street in downtown Duluth. Eddie Owen manages and books acts in the music venue. Owen would also operate the tavern, which would be open whether music shows were being performed or not.

Owen plans to open a music school in the existing basement. This is a separate project from the expansion funded with a donation of $24,000 by the Duluth Fall Festival Committee.

The DDA is so committed to the Red Clay project that it has offered nearly $100,000, all of the money it has available, toward the design service, but it isn’t enough. The DDA recently voted to hire the architectural firm of Gardner, Spencer, Smith, Tench & Jarbeau to design the expansion. The firm would be paid an additional $3,000 to design the basement renovation for the music school.

The cost of the Red Clay expansion has been estimated at $1.55 million to $2 million.

Typically, the architect is paid a standard rate of 8 percent of the construction costs.

City Engineer Melissa Muscato presented a budget of estimated construction costs. “The worse case scenario would be $2 million,” she said. “We hope to come in under budget.”

Councilwoman Marsha Bomar expressed concern about spending funds for designing the expansion when the city has not yet determined how to finance its construction.

The availability of future SPLOST funds to fund other projects is uncertain, she added. A referendum on extending the one-cent Special Purpose Local Option Sales Tax is expected to be placed on the November General Election ballot.

Also, a firmer construction cost figure would be available after the architect draws up the plans and bids are sought.

The additional $100,000 for the Red Clay design would come from the city’s reserve funds, according to Shearer.

Financing options for construction of the Red Clay expansion include using additional reserve funds, borrowing the money or a combination of both.

Councilman Billy Jones was ready to proceed with the Red Clay project. The unsightly hole in the ground next to Red Clay has been there more than two years, he said. (The hole was created after the end wall was repaired to stop water leaks in the basement.)

“Let’s do something,” Jones said. “Either do it or not do it.”

DDA Vice President Rob Ponder expressed support for the project. “We have to fill in that hole,” he said. “Red Clay needs a lobby. The [present] lobby is inadequate.”

Kathryn Willis, a DDA member and founder of the Duluth Fall Festival, said the Red Clay expansion is important to the city’s efforts to revitalize downtown.

Red Clay is a focal point of the city’s proposed downtown revitalization. Cheri Morris of Morris & Fellows, whom the city has hired as a consultant, gave a brief progress report on the master plan for revitalization the firm is developing. Morris is scheduled to present a full report in September.

A revised sketch of proposed improvements to sidewalks on Main Street was presented by City Planner James Riker and Shearer. The design was developed with input from Morris. It includes parallel parking spaces, places for public art, and an area for performing arts.

The sidewalk improvements would be paid for with SPLOST funds. Shearer said authorizing the design work could be placed on the agenda for the next council meeting. Bomar suggested the city do a mock-up with a chalk marker to get an idea of what the changes would like.

The council's next regular meeting is Aug. 12.