St. Louis County Board authorizes $19.5 million bond sale to fund improvements at Depot, other county projects
By DANA KAZEL
The St. Louis County Board has authorized the issuance of $19.5 million bonds to fund critically needed mechanical improvements at the historic St. Louis County Depot, as well as other county projects. The Board's vote on Tuesday was unanimous.
Of the bond issuance, $3 million is for various projects identified on the County's Capitol Improvement Plan. The majority of the bond issuance - $16.5 million - is to replace the aging and frequently malfunctioning Heating, Ventilation, and Air-Conditioning (HVAC) system and Mechanical, Electrical, and Plumbing (MEP) systems at the 133-year old Depot. The County has sought state bonding support for seven years to replace the failing systems. While the state provided $1.5 million in 2020 to assist with roof repairs and other exterior needs; the estimated cost to replace the HVAC system has doubled in the time since the county first made its request.
During a Public Hearing on Tuesday, Commissioners reflected on the years of work and efforts to find other funding sources prior to today's decision to issue bonds.
"We can't control what happens in St. Paul. We put our best foot forward. But here we are," said Commissioner Mike Jugovich, "We care about the Depot. It means a lot to St. Louis County and we have to move forward now."
Added Commissioner Paul McDonald, "It's important to make our investment that continues the history of northeastern Minnesota."
Many of The Depot's systems and structures have reached or are nearing the end of their useful lifecycles, impacting operations for county staff and tenants, safety, and long-term maintenance costs. Replacing and modernizing these systems will ensure continued effective delivery of county services and Depot operations, reduce emergency repair costs, and improve energy efficiency.
The Depot is a landmark facility in downtown Duluth, and is listed on the National Register of Historic Places. It currently is home to the Lake Superior Railroad Museum, North Shore Scenic Railroad, Duluth Superior Symphony Orchestra, St. Louis County Historical Society, Minnesota Ballet, Lyric Opera of the North, Arrowhead Regional Arts Council and the Depot Foundation.
The building had been slated for demolition in the early 1970s until a group of citizens worked to save it and turn it into a center for arts, culture and history. In support of that vision, St. Louis County took ownership of the building in 1972. Since 2017, the County has increased its investment in the facility to improve the management and operations of the facility and to ensure the Depot remains a vibrant and welcoming facility. In 2024 alone, approximately 200,000 people visited The Depot.
"We have committed to a vision for the Depot," said Commissioner Ashley Grimm, "a vision where it is fully utilized and a thriving space that lives up to its potential, and the real mission of sustaining arts and culture through all of SLC. To bring that to fruition, we need capital and to make the building sustainable."
The sale of the bonds is expected to take place next month, with construction to begin before the end of the year. The Depot has committed to remain open throughout the project, which is expected to take two years, and is working with tenants to ensure continuity of operations as they may need to temporarily relocate to other parts of the building when work is underway in their space. The goal is to finish the project by the end of 2027.