Spirit Mountain, struggling financially, gets $300K from Duluth

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Spirit Mountain is getting $300,000 from Duluth, which will allow the recreation area to meet payroll in the weeks to come.

The Duluth City Council voted Monday to approve giving tourism tax revenues to the ski hill and outdoor area, which has been struggling financially in recent months following an unseasonably warm winter, FOX 21 reports.

Tourism tax collections are running $375,000 ahead of projections this year, the Duluth News Tribune says.

This isn't the first time the city has given the recreation area a helping hand. Earlier this year, the city-backed ski hill was given a $1.2 million line of credit to stay afloat after a challenging winter weather-wise, Northland's NewsCenter reported.

Members of the city council were willing to approve the financial aid because they believe it's a community asset, the Duluth News Tribune says, while others are confident Spirit Mountain can bounce back, Northland's NewsCenter said.

"What we're trying to do is get Spirit Mountain into a place financially where they've got a solid foundation under them," Duluth Chief Administrative Officer Dave Montgomery said, according to FOX 21.

Spirit Mountain made changes this year to cut costs, including trimming staff and reducing salaried employees' pay to up to 20 percent, Northland's NewsCenter notes.

These budget cuts followed several years of investments at the mountain. In 2012, it spent $7 million on a new chalet and other upgrades, the Business Journal reported.

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