Superior’s Redevelopment Authority has reached an agreement with F.I. Salter Inc of Duluth and RK Winter Street LLC for a $5.7 million development in the Winter Street Industrial Park.

The authority will sell property east of the developing Lakehead Constructor’s headquarters for an almost 30,000-square-foot facility to be leased to Rihm Kenworth of Superior.

The Kenworth dealership is currently located on Tower Avenue south of Menards.

“They have been looking for a site for probably the last five or so years in the Twin Ports,” said Jason Serck, economic development, port and planning director. “The owner (and CEO), Kari Rihm, really likes this site.”

Serck said the new facility would offer a shop, sales and offices that would be developed by F.I. Salter and RK Winter Street LLC for the purpose of leasing it.

Construction is expected to get underway this fall, Serck said. He said the price of the property is about $2 per square foot, which puts the price of the property a little over $400,000.

The city would grant back $350,000 at the end of the project to help with the cost of site improvements.

Clay left on the site when the city developed Railroad Street will be removed by the city as part of the agreement and will be used at the landfill, Serck said.

“It’s a great success story,” said Sandy Hoff, president of F.I. Salter. “Kari took over the business from her husband, who passed away. She’s continued to run the business. Her sales are good, and she basically wants to double the size of her facility. I teamed up with her to build the facility for her.”

Hoff said he’s looking forward to getting the project moving.

“What a nice, refreshing process you have here in Superior,” Hoff said. “It was wonderful to work with Jason and get things done efficiently.”