Thanks Cookie,
I just took the whole rear wheel apart, checked spacers, bearings, etc. There was lots of pits from salt and hardened grease, etc, but when I put it all back together it still got harder to spin as I tightened the axle nut. So I got my spare rear wheel and put that on - same thing.
So I sprayed silicone on the rear brake disk and it got easier to spin. I think one of the floating brake pistons is stuck, and when the axle nut gets tightened, the disk rubs against the brake pad and the tighter the axle nut, the harder the disk presses against the stuck piston and pad.
I will take apart the brake tomorrow and make sure it is working ok.
Don