Shoppers Ramp demolition costs climb above $3 million in Duluth

Duluth’s effort to tear down the old Shoppers Ramp has now crossed the $3 million mark, with the latest change order approved 4-0 by the Duluth Economic Development Authority expected to lift the bill to about $3.045 million. The added cost, up to $515,016 more, underscores how a project that started as a $967,000 demolition and shoring job has become far more expensive as crews run into urban fill, hazardous conditions and other disposal problems.

The ramp at 18 N. Second Avenue W. has been a downtown eyesore for years, closed since 2019 and later certified as structurally substandard. DEDA bought the ramp and the attached New Garrick building together for $545,000 because the two structures were physically linked, with the ramp built onto the 1920s-era building in the 1950s. That connection forced the city to plan the teardown carefully so the New Garrick could be preserved for possible reuse.

The original contract went to Carleton Companies, Inc. for $967,000 under bid number 24-99847, after the city received bids from Veit & Company, Inc. at $1,176,940, Rachel Contracting, LLC at $978,789 and Alliance Steel Construction, Inc. at $1,789,000. The city and DEDA announced that demolition would begin on April 23, 2025, and Mayor Roger Reinert called the kickoff an “historic day” for downtown.

Since then, the project has slowed as crews encountered problems at the neighboring building, which DEDA said had hazardous conditions. At a Nov. 19, 2025 meeting, DEDA said it needed budget changes to make money available for Phase II of the demolition. That followed the earlier decision to fund the project and a 2026 budget step that kept the work moving, even as the cost kept rising.

For Duluth leaders, the expense is part of a larger bet on downtown redevelopment. Reinert, DEDA staff and downtown boosters have tied the site to future housing and commercial use, arguing that clearing the long-blighted block will open space for new investment and a more active street front. The latest price jump shows how much the city is willing to spend to remove one of downtown’s most visible barriers to that goal.