Ostreicher also owns the Kenwood Village apartment and retail complex. Those investments and others total $85 million. His company bought the hillside property from the Duluth school district for $8 million in 2022.
Among the eight listed issues, DEDA Executive Director Tricia Hobbs wrote that funding sources Ostreicher submitted for the Incline Village are no longer accurate. The city is also missing evidence of project financing, which missed a deadline to begin construction despite four waivers allowing delays. The letter says the site hasn’t been maintained and Ostreicher’s companies are in default of its construction contracts.
Jeff Schiltz, an executive with the construction management firm representing Ostreicher in Duluth, said he was not able to comment Monday night. He said in December the groundbreaking was pushed from summer due to delays in obtaining financing stemming from economic uncertainties and increased construction costs, along with site studies done to minimize blasting and rock removal. He said the site would be ready for foundations by spring.
A spokeswoman for the city declined to comment Monday night.
The multibuilding project underwent an alternative urban areawide review to study how different development scenarios will affect the environment. It was approved last spring.
A one-bedroom to be built as part of the first phase lists for $650,000 and a two-bedroom for $850,000.