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The Family Freedom Center intends to boost Hillside services with the help of up to $500,000 from the Duluth Superior Area Community Foundation over the next five years.
City officials remain optimistic the housing projects will reach completion.
Sister operation Dovetail Cafe and Marketplace is so successful it has overtaken the building's main floor. Organizers hope to find suitable acreage within 30 minutes of Duluth.
The $16 million fund is intended to catalyze housing growth with low-interest loans.
Natural gas customers will face steep fuel cost increases.