The Duluth City Council convened on Monday, October 26, 2026, following a Finance Committee session. The main meeting featured a robust discussion on a resolution supporting the 148th Fighter Wing's F-35 bid, public comments on various local issues, and the unanimous approval of the consent agenda. Council also received updates on the 2027 budget and tourism tax distribution. Consent Calendar - Approved Unanimously: The consent agenda included resolutions for vacating certain rights-of-way, authorizing a contamination cleanup grant application for the Duluth Heritage Sports Center, approving an engineering services agreement for Hillside Culvert Repair Phase 3 (not to exceed $166,382.50), authorizing a utility invoice mailing services agreement with Infosend, Inc. for 2027 ($215,550), ordering a sanitary sewer extension on Roslyn Avenue, accepting a Towards Zero Deaths grant ($53,850), and amending a grant agreement for the Cross City Trail. Public Comments & Testimony - F-35 Resolution Support: Tom Warner, Executive Director of the Duluth Airport Authority, strongly urged support for the 148th Fighter Wing, highlighting its $107.5 million annual economic impact and its critical 24-hour firefighting support at the airport. Tiffany Hughes, Chair of the Duluth Area Chamber of Commerce, also voiced strong support, noting the 148th is one of the region's largest employers with over 1,000 local employees. - Community Issues (Non-Agenda): - Roy Hamlin criticized the city administration's handling of a vape shop licensing issue near a school, calling for stronger protections. - Shiloh Johnson and Babette Salmon (Streetwise) urged the council to address homelessness with dignity and invest in housing and mental health. - Abby Vicklin (Animal Allies) advocated for a Trap-Neuter-Return (TNR) ordinance for managing community cats. - Lauren Martell expressed concerns about the school district's operating levy referendum and its long-term financial impact on homeowners. - Genka Tarnowski criticized the conduct of Councilors Klana and Durlachter and expressed support for a proposed code of conduct resolution. Discussion Items - Finance Committee (Pre-Council): - Visit Duluth Presentation: Executive Director Haley Headstrom presented the FY2027 process for allocating discretionary tourism funds ($695,000 total). The application scoring rubric uses a maximum of 80 points. Council members discussed the timeline, the independence of the allocation decisions, the Madden Media contract, and metrics for measuring return on investment. - Budget Update: Budget Manager Missy Harold provided the 2027 budget timeline. Notable changes included a $198,000 increase in medical insurance costs (9% renewal vs. 7.5% budgeted) and a $196,700 increase from the Minnesota Power franchise fee. - F-35 Resolution (26-0918R): - Councilor Klana moved to postpone the vote until after the November 3rd election, citing concerns over current federal foreign policy and the politicization of military spending. - Councilor Durlachter seconded the motion, raising additional concerns about potential federal mandates involving the military. - Councilors Nephew, Johnson, Forsman, Randorf, and Tomanek spoke against postponement, stressing the October 29th deadline, the economic importance of the base ($107.5M / 1,000 jobs), and the potential loss of critical firefighting services. - The motion to postpone failed 2-7. Key Outcomes - F-35 Resolution Passes: The resolution supporting the 148th Fighter Wing was approved with 7 votes in favor and 2 abstentions (Councilors Klana and Durlachter). President Kennedy confirmed the city will submit a letter of support by the October 29th deadline. - Consent Agenda: Approved unanimously by roll call vote. - Zoning Ordinance (First Reading): An ordinance to reclassify parcels within the Lester Park Golf Course was read for the first time. - Budget Schedule: The council outlined the path to the final budget, including the tourism tax resolution on November 9th and final budget approval on December 14th.
Public Meetings - Duluth, Minnesota
Public Meetings - Duluth, MinnesotaThe Duluth City Council convened on October 22, 2026, for a regular meeting followed by a Committee of the Whole presentation from the 148th Fighter Wing. The regular agenda addressed public works contracts, public safety grants, and a zoning ordinance. The primary focus of the evening was a detailed presentation and discussion regarding Resolution 918, which expresses support for basing the F-35 Lightning II at the Duluth Air National Guard Base. Consent Calendar - Resolution 916 (vacating unimproved right-of-way in Dickerman's Division) and Resolution 919 (authorizing a DEDA cleanup grant for the Duluth Heritage Sports Center) were approved as part of the consent calendar. - Resolution 918 (supporting the 148th Fighter Wing's F-35 selection) was pulled from the consent calendar by Councilor Klana for discussion during the subsequent Committee of the Whole. Discussion Items Public Works & Utilities (Resolutions 908, 909, 910): - Resolution 908 authorized an engineering agreement with LHB Inc. for the Hillside Culvert Repair Phase 3 project for an amount not to exceed $166,382.50. No questions were raised. - Resolution 909 authorized an agreement with InfoSend Inc. for utility invoice mailing services for 2027 at an annual estimated amount of $215,550. Councilors Klana and Decitel inquired about the percentage of customers paying electronically and the cost-effectiveness of the service compared to internal delivery. City Administration noted a new utility billing portal was recently implemented and discussions on a paperless bill deadline are ongoing. - Resolution 910 authorized a sanitary sewer extension for properties on Roslyn Avenue at an estimated cost of $79,200, to be assessed to the benefitting landowners. A councilor asked why the project did not include replacing downstream clay tile sewer pipe to avoid future street work. Engineering staff explained the downstream pipe would be rehabilitated separately using a trenchless cured-in-place liner method. Public Safety (Resolution 905): - The council authorized acceptance of a $53,850 grant from the Minnesota Department of Public Safety for the 2027 Towards Zero Deaths project. It was approved without questions. Parks and Trails (Resolution 912): - A resolution authorizing acceptance of a $300,000 Regional Trail Program grant to construct a portion of the cross-country city trail was approved. Zoning (Ordinance 45): - Ordinance 45 was read for the first time, amending the official zoning map to reclassify parcels within the Lester Park golf course. Committee of the Whole: F-35 Basing Colonel Scott Prom and Colonel Statz of the 148th Fighter Wing presented the base's case for receiving the F-35 Lightning II. They highlighted the wing's status as a top regional employer, generating over $107.5 million annually and employing over 1,000 members (with a manning rate over 100% since 2002). They emphasized community benefits, including the federally funded fire department (valued at $31M facility, $3.3M annual budget, $4M equipment) that provides mutual aid (78 responses annually) and possesses the largest tanker in St. Louis County. The loss of the manned fighter mission would likely result in losing this fire department. They also noted the Starbase STEM program serving 3,000 students from 43 schools and over 5,000 volunteer hours served annually by airmen. The presenters outlined the competitive selection process: nine squadrons are competing for two slots. December 31, 2026 is the deadline for the Air Force to narrow the field to four finalists, with a preferred alternative selected by June 30, 2027. The arrival of aircraft is projected for 2034. Councilor Positions and Questions: - Councilor Forsman expressed unwavering support, stating the basing is a no-brainer for the city. - Councilor Decitel asked about fire department funding models (mutual aid, no direct local cost) and required infrastructure upgrades. - Councilor Kalana stressed the urgency of the timeline, noting the final basing board meets November 5, requiring letters of support by October 29. He asked if the council could wait until after the election, and the presenters confirmed the deadline required immediate action. - Councilor Tomanak asked about the fate of fire equipment if the mission was lost, and was told it is federally owned and would be redistributed across the National Guard. - Councilor Klana inquired about women serving in combat roles, receiving confirmation that women operate the aircraft in combat. - Councilor Desitel asked about personnel residency (over 90% from the tri-state area) and the strategic advantages of Duluth's geographic location. Key Outcomes - The council advanced all regular agenda items (Resolutions 905, 908, 909, 910, 912) and Ordinance 45. - A formal vote on Resolution 918 (F-35 Support) is scheduled for the Monday, October 26, 2026 council meeting. - President Nephew made a draft letter of support available for councilors to sign, which will be included in the package sent to the Secretary of the Air Force. - The Committee of the Whole provided the council with extensive information about the benefits of and timeline for the F-35 basing decision.
The Duluth City Council met on Tuesday, October 13, 2026, at 6:00 PM in Council Chambers with all nine council members present. The council approved the September 28, 2026 minutes, a 12-item consent agenda, a collective bargaining agreement with Law Enforcement Labor Services 363, and two ordinances on second reading. Public testimony addressed the Strategic Public Lands Realignment Project, a vape shop near Hamlin Music Academy, and the SD709 school referendum. Consent Calendar - Approved the consent agenda unanimously (9-0), adopting all 12 resolutions: settlement of $21,688.61 to USAA General Indemnity Company for a property damage subrogation claim; a request for future city updates on short-term rental properties; substantial completion of protective designation of at least 1,500 acres acquired through the Strategic Public Lands Realignment Project; acceptance of a permanent right-of-way and utility easement from St. Louis County for $150 in East Hillside; bike lanes on both sides of 4th Street from 5th Avenue E to 6th Avenue E; a no-parking zone on the even side of 4th Street from 3rd Avenue E to 5th Avenue E; an agreement with Hallett Railroad Storage and Services for coal handling and storage not to exceed $176,000; purchase of storm, ditching, and repair materials from Red Rock Precast, LLC for an estimated $65,000; amendments to 2026 short-term rental licensing and permitting fees; acceptance of a Northland Foundation grant for the Duluth Public Library’s Every Child Ready Duluth Initiative for 2026-27; acceptance of an EPA grant of $97,968 for soil contamination data collection near Munger Landing; and a restrictive covenant over Hillside Sport Court Park. - Councilor Randorf spoke before the vote, praising Item 4 (Strategic Public Lands Realignment) as a significant, multi-year accomplishment tied to the former Lester Golf Course housing conveyance and thanking staff for modifying the 4th Street design in response to public feedback on Items 6 and 7. Public Comments & Testimony - Denise Voie de Vie (agenda item 26-0881R) thanked the council for reaching this point but made a final request that a small set of acres—10, 11, or 13 acres—be set aside by the county for an entity whose mission is housing, rather than economic development, to support affordable housing before the process is finalized. - Roy Hamlin (non-agenda) opposed the location of a recently established vape shop at 5617 Grand Avenue, attached to Hamlin Music Academy at 5615 Grand Avenue. He said the shop endangers a disabled owner, is near facilities serving adults with disabilities and seniors, and sits in a corridor with children’s facilities and schools. He accused city officials of a predetermined decision and disrespect, and asked the council to act in defense of children. - Loren Martell (non-agenda) raised concerns about the SD709 referendum on the November 3 ballot. He detailed that if both questions pass, levies would be $7.3 million in the first year and $11.7 million in the second year, remaining as a baseline for the decade due to enrollment and inflation indexing. He said the district’s claim that tax impact varies by only $1 per month on a $300,000 home is misleading in year two, and noted $22 million in deferred bond debt reduces the scheduled tax break. Discussion Items - Collective bargaining agreement with Law Enforcement Labor Services 363 (26-0856R): Councilor Randorf moved approval, seconded by Councilor Johnson. Councilor Durrwachter opposed, citing the city’s multi-million-dollar budget shortfall and a prior 10–15% market adjustment in 2022, and said DPD members make double the income of the average Duluthian. Councilor Clanaugh also opposed, arguing percentage-based raises compound inequities: 5% of $100,000 is $5,000, while 5% of $50,000 is $2,500, and asked higher-paid employees to join in addressing fiscal challenges. Supporters—Councilors Forsman, Johnson, Tomanek, Randorf, Desotelle, Kennedy, and Nephew—cited officer safety, recruitment and retention, full staffing, the agreement being within the budget, and the importance of investing in public safety. The motion passed 7-2 by roll call. The minutes’ yea list omits Councilor Randorf even though the transcript records his yes; nays were Councilors Clanaugh and Durrwachter. - Taxable grant anticipation revenue notes (26-041-O): Councilor Randorf moved approval, seconded by Councilor Forsman. The ordinance authorizes up to $61,630 in notes for municipal water utility improvements. It passed unanimously, 9-0. - Minnesota Power franchise fee (26-042-O): Councilor Randorf moved approval, seconded by Councilor Johnson. Councilor Desotelle said the current fee tiers are 3% residential, about 4.25% commercial, and 4.75% industrial; this ordinance raises only commercial and industrial percentages, generating an expected additional $500,000, half proposed for climate and renewable energy action plans. Desotelle supported the ordinance while expressing desire for more, including a 4% residential rate. Councilor Clanaugh supported the progress made by separating the fee from the franchise agreement. Councilor Forsman abstained due to his employment with Minnesota Power. The ordinance passed 8-0 with one abstention. Key Outcomes - Approved minutes of the September 28, 2026 council meeting unanimously (9-0). - Approved the consent agenda unanimously (9-0), including all resolutions listed above. - Approved the LELS 363 collective bargaining agreement for 2027, 7-2. - Approved Ordinance 26-041-O, authorizing grant anticipation revenue notes up to $61,630, 9-0. - Approved Ordinance 26-042-O, establishing Minnesota Power franchise fee changes, 8-0 with one abstention. - Approved a request for future administration updates on short-term rental properties (26-0855R). - Adjourned by unanimous voice vote.
This agenda session covered multiple resolutions and ordinances, including a major presentation on the Strategic Public Lands Realignment Project (SPLR). Councillors discussed a collective bargaining agreement for police lieutenants, revised bike lane and parking designs on 4th Street, short‑term rental fees, and the protective designation of over 1,500 acres of acquired land. No final votes were taken; the session prepared items for a subsequent council meeting. Finance Items - Resolution 851 – Approving a settlement of $21,688.61 to USAA General Indemnity Company for a property damage subrogation claim. - Resolution 856 – Approving a collective bargaining agreement between the City of Duluth and Law Enforcement Labor Services 363 for lieutenants for 2027, including a market adjustment from three years ago to improve recruitment competitiveness. The item was pulled per Councillor Derwachter. Staff clarified this is a separate bargaining unit from the sergeants/patrol agreement approved in September. Planning and Economic Development - Resolution 855 – Requesting future updates from the city regarding short‑term rental properties. - Resolution 881 – Confirming the substantial completion of protective designation of at least 1,500 acres of land acquired through the SPLR project. Councillor Desitel raised questions on behalf of Councillor Derwachter: whether this covers all tax‑forfeit lands; the percentage and timeline for remaining lands; whether the resolution has “teeth” or whether an ordinance is needed; whether P1 zoning fulfills the county’s protection requirements; and whether the city will pursue park designations for any of these areas. Staff answered these during the presentation. Public Works and Utilities - Item 8 – Accepting an easement from St. Louis County for right‑of‑way and utility purposes ($150). - Resolution 872 – Establishing a bike lane on both sides of 4th Street from 5th Avenue to 6th Avenue East. - Resolution 873 – Establishing a no‑parking zone on the even side of 4th Street from 3rd Avenue East to 5th Avenue East. - Resolution 876 – Authorizing an agreement with Hallett Railroad Storage and Services for coal handling up to $176,000. - Resolution 879 – Purchasing storm ditching materials from Red Rock Precast LLC for $65,000. Senior Engineer Alex Pop explained that the revised design for the 4th Street corridor replaces the previously approved separated shared‑use path with parking on both sides (except where existing conditions prevent it), a sidewalk on the upper side, and a shared‑use path on the lower side. Lane widths were narrowed to state‑aid minimums. Snow removal will retain alternate‑side parking (status quo). Councillors Randorf and Forman praised the compromise as addressing earlier concerns. Public Safety - Resolution 882 – Amending the 2026 fee schedule for short‑term rental licensing and permitting. Deputy Chief Otis confirmed that the resolution updates the fee schedule because the underlying ordinance takes effect in 2026; the fees themselves will remain the same as those in the 2027 fee schedule. Recreation, Libraries, and Authorities - Resolution 853 – Accepting a grant from the Northland Foundation for the Every Child Ready Duluth Initiative (2026–2027). - Resolution 854 – Accepting a $97,968 EPA grant for soil contamination data collection near Munger Landing. - Resolution 875 – Authorizing a restrictive covenant over Hillside Sport Court Park. No discussion was held on these items. Ordinances (Second Reading) - Ordinance 41 – Authorizing taxable grant anticipation revenue notes up to $61,630 for the municipal water utility improvement. - Ordinance 42 – Establishing the franchise fee for Minnesota Power under its existing franchise. No discussion was held. Committee of the Whole: Strategic Public Lands Realignment Project (SPLR) Presenters: Ben Van Tassel (Planning & Economic Development), Eric Berkland (Parks & Properties), Claire Christensen (Forester), and Kate (Natural Resources Coordinator). Staff recapped the SPLR background: the city acquired over 700 tax‑forfeit parcels in 2023 from St. Louis County. The land fell into three categories: preserve natural areas, stormwater infrastructure, and active/passive recreation. In 2025, Ordinance 25‑32 (conveyance of Lester Park Golf Course) required protective designation of at least 1,500 acres of SPLR land through park dedication, the Duluth Natural Areas Program (DNAP), or P1 (park/open space) zoning. To date, 531 acres have been entered into DNAP and over 1,100 acres are zoned P1, totaling 1,650 acres—exceeding the 1,500‑acre minimum. The resolution (881) acknowledges this milestone. Discussion: - Councillor Desitel raised concerns about the level of protection: park dedication requires an 8‑to‑9 vote to sell, while P1 zoning can be changed by a simple majority. She asked whether staff plans to pursue park dedications for these lands in the future. Staff responded that the conditional use deeds already restrict development for 30 years, and that park dedication is a longer‑term conversation that will unfold as they refine the classification of open spaces. - Councillor Forman asked about fire risk assessment in the upcoming City Forest Management Plan. Kate noted that prescribed burns are beginning (e.g., Hartley Park) in partnership with the Duluth Fire Department, and that the plan identifies excess fuels as a key concern. - Councillor Johnson asked about partnerships to manage invasive species like buckthorn. Kate explained that volunteer efforts (e.g., “Duluth Invaders”) are helpful, but contracted removal is often necessary; funding comes from a small annual stipend ($25,000–$50,000) and grants. - Councillor Randorf praised the project and the collaboration, noting the community’s passion for parks and the preservation of 1,600+ acres in perpetuity. - President Nephew asked about budget needs. Kate stated that proper management of natural areas would require about $275,000 annually and 2–2.5 additional staff. Eric Berkland added that the parks system has about $100 million in deferred maintenance and that staffing and budgets could easily be doubled or increased tenfold. - Councillor Desitel highlighted that the council adopted a Natural Resource Management Plan but never funded it, urging future consideration of referendums or dedicated funding. Key Outcomes - The council received the confirmation that 1,650 acres of SPLR land have been protectively designated (531 acres in DNAP, 1,100+ acres P1), meeting the condition of Ordinance 25‑32. - Staff will continue rezoning remaining large contiguous areas (e.g., Lester, Downer) and will present the City Forest Management Plan to the Natural Resources Commission in November 2026 and to the council in December 2026. - No formal votes were taken during this agenda session; all items are expected to be voted on at a subsequent council meeting. - The need for increased funding for natural resources management and park maintenance was acknowledged by multiple councillors and staff.
On Monday, September 28, 2026, at 6:00 PM in Council Chambers, the Duluth City Council held its regular meeting. The Council unanimously approved the consent agenda, passed several resolutions and ordinances, and heard public testimony on a franchise fee agreement, a proposed code of conduct, concerns about a potential animal shelter merger, and school district finances. All members were present; Councilor Clanaugh participated remotely via Teams. Consent Calendar - Minutes of September 14, 2026 – Approved unanimously (9-0). - 26-0834R – Liquor license issuance for Zeitgeist Arts (temporary expansion). - 26-0792R – Appointment of Muhammet Atan to the Duluth Public Utilities Commission. - 26-0845R – Appointment of Pez Davila to the Parks and Recreation Commission. - 26-0846R – Appointment of members to the Transportation Commission. - 26-0825R – Agreement with the Minnesota Department of Children, Youth, and Families for up to $73,544.50 in SNAP E&T 50/50 funds (October 1, 2026 – September 30, 2027). - 26-0835R – Vacation of a retained utility and pedestrian easement in vacated 50th Avenue East (Crosley Park Addition). - 26-0840R – Clarifying the term of interim controls on a short-term rental permit moratorium. - 26-0841R – Conditional pre-commitment of $228,000 in Statewide Affordable Housing Aid (FY2027) to One Roof Community Housing for the Faith Haven Apartments Rehabilitation Project. - 26-0826R – Acceptance of a one-year extension of an EPA grant to improve public access to the St. Louis River Estuary. - 26-0827R – First amendment to a sub-recipient agreement with the St. Louis River Citizens Action Committee for public access along the St. Louis River. - 26-0828R – Application to the Minnesota Historical Society for up to $20,000 from the Minnesota Historical and Cultural Heritage Small Grants Program for a building conditions assessment at Enger Tower. All consent items were adopted unanimously by roll call vote (9-0). Public Comments & Testimony - Brandon Parker (District 4) spoke on two agenda items: - Ordinance 26-042-O (Minnesota Power franchise fee): Expressed support for moving from a 10-year to a 3-year agreement, noting it allows future councils to hold Minnesota Power accountable for carbon reduction commitments, rate increases, and the proposed sale to BlackRock. Praised revised fee structure but urged raising residential rates to 4% and commercial/industrial to 6–7% to reduce reliance on property tax levies. - Resolution 26-0810R (Standing Rules Code of Conduct): Questioned whether the code would apply to councilors or the public, and whether it would address microaggressions among councilors or potential open meeting law violations. - Kelsey Pettit (District 2, Animal Allies Humane Society staff): Opposed a potential merger of the city's animal control facility with Animal Allies without a city-subsidized building expansion and additional funding. Cited capacity shortfalls (over capacity for dogs by 10 kennels and cats by 45 kennels), a three-year adoption low, and a nearly 80% drawdown of organizational savings over six years. Warned that without a real plan, euthanasia for space could occur, and the shelter may close before 2030. - Loren Martell (District 2): Discussed ISD 709's bond referendum, noting lack of media coverage in 2023 and difficulty obtaining financial information. Announced a public forum on the referendum scheduled for September 29, 2026, at 5:00 PM at The Garden in Canal Park. Discussion Items - Resolution 26-0842R (Reappointment of Andrew R. Streitz to Natural Resources Commission): Approved 8-0-1 (Councilor Desotelle abstained due to a family relationship with the appointee). - Resolution 26-0843R (Appointment of members to the Indigenous Commission): Councilor Forsman moved to return the nomination to the administration, explaining the commission is under new leadership and conducting a reset. Motion carried unanimously (9-0). - Resolutions 26-0800R, 26-0801R, 26-0802R, 26-0812R (Tax levies for 2027): These four resolutions had been tabled. Councilor Randorf successfully moved to remove each from the table (all unanimously). After brief remarks, each was approved unanimously (9-0): - 26-0800R – General purposes levy. - 26-0801R – Special Parks Fund levy. - 26-0802R – Housing and Redevelopment Authority levy. Councilor Randorf thanked HRA Executive Director Keppers for maxing the levy, enabling the Mission Heights and Union Gospel Mission projects. - 26-0812R – Duluth Transit Authority levy. Councilor Randorf thanked Finance Director Chris Beldon for a restrained budget. Councilor Klana praised DTA's utilization and encouraged social marketing of transit. - Resolution 26-0810R (Amending Standing Rules to include a Code of Conduct): Vice President Kennedy stated the authors' intention to leave the item on the table. No action taken. - Ordinances read for the first time: - 26-041-O – Taxable grant anticipation revenue notes (not to exceed $61,630) for municipal water utility improvements. - 26-042-O – Establishing the franchise fee to be paid by Minnesota Power. - Ordinances read for the second time and approved: - 26-024-O – Revising Chapter 13 of the city code (various sections). Approved unanimously (9-0). - 26-040-O – Amending Chapter 50 regarding lodging (permitted uses, parking, enforcement, etc.). Approved unanimously (9-0). Key Outcomes - The Consent Agenda was adopted in full (9-0). - Appointment of Andrew R. Streitz to the Natural Resources Commission was confirmed (8-0-1). - The nominations for the Indigenous Commission were returned to the administration (9-0). - Four 2027 tax levy resolutions (general, parks, HRA, DTA) were removed from the table and each approved unanimously (9-0). - The proposed Code of Conduct amendment to the Standing Rules was left on the table with no vote. - Two ordinances (water utility notes and MN Power franchise fee) received first readings; final passage will occur at a future meeting. - Two second-reading ordinances (Chapter 13 revisions and lodging code amendments) were passed unanimously (9-0). - Councilor Desotelle thanked staff for fiber optic solutions in District 2. - Councilor Klana thanked citizen Parker for his comments and noted the need for equitable handling of the code of conduct. - Councilor Johnson clarified that Standing Rule 18 (enforcement) is already in effect and urged caution on franchise fee increases that could affect supportive housing providers.
The Duluth City Council convened on September 24, 2026, at 5:16 PM, to address a range of items including liquor licensing, personnel appointments, economic development funding, parks grants, tax levies, a code of conduct amendment, a franchise fee ordinance with Minnesota Power, and zoning updates for lodging. The meeting featured extensive debate on the Minnesota Power franchise fee structure and its implications. Consent Calendar - Liquor License (Resolution 834): Approved without discussion. - Personnel Appointments (Resolutions 792, 843, 845, 846): Approved as part of the consent calendar, with the exception of Resolution 842 (Andrew R. Straits reappointment) which was pulled due to a conflict of interest concern raised by Councillor Desitel. Discussion Items - Personnel Appointment Conflict (Item 4): Councillor Desitel requested removal of Resolution 842 from the consent calendar because it involves her spouse. The council agreed to pull it for separate consideration. Councillor Klana noted that he did not believe a legal conflict existed, and the city attorney agreed to review the matter before the next meeting. - Faith Haven Apartments Rehabilitation (Resolution 841): Councillor Johnson asked for clarification. Staff confirmed that the $228,000 conditional pre-commitment of state housing funds serves as matching funding necessary for One Roof Community Housing to secure state rehabilitation funds. - Ingrid Tower Condition Assessment (Resolution 828): Councillor Klana inquired about future funding sources. Staff explained that the $20,000 Minnesota Historical Society grant is part of a strategy to position the city for larger implementation grants from the same source. - St. Louis River Public Access (Resolutions 826 & 827): Councillor Timonic requested background. Staff explained that the resolutions relate to a grant for improving public access along the St. Louis River estuary, with the St. Louis River Alliance acting as a sub-recipient. - Tax Levy Proposals (Resolutions 800-802, 812): No questions were raised; the levies for general purposes, parks, HRA, and DTA were presented. - Code of Conduct Amendment (Resolution 810): Amending standing rules to include a code of conduct; no questions. - Minnesota Power Franchise Fee (Ordinance 42): Councillor Desitel led a lengthy discussion, questioning why the Energy Planning Commission was not consulted and suggesting a higher residential rate (3.5%) to generate more funds for sustainability. Councillor Klana supported a residential increase, calling the fee a less regressive tax than property tax. Councillor Johnson asked about the impact on multifamily property managers. Director Salinas explained that the fee structure keeps residential at 3%, raises commercial to 4.25%, and large users to 4.75%, increasing projected revenue from $420,000 to $500,000. Staff stated no law requires Minnesota Power to pass fees to customers. Revenue will go to the general fund, with $250,000 allocated for sustainability projects. Councillor Desitel requested that future packets include clearer explanations of fund usage. - Lodging Code Amendments (Ordinance 40): City Manager Hobbes provided an overview, clarifying that the ordinance simplifies licensing by moving short-term rental regulation to the fire department (life safety) and correcting past errors. President Nephew emphasized this is a simplification, not a tightening. Key Outcomes - Approved: Resolution 834 (liquor license), Resolutions 792, 843, 845, 846 (personnel appointments), Resolutions 825, 835, 840, 841 (planning & economic development), Resolutions 826, 827, 828 (parks), Resolutions 800-802, 812 (tax levies), and Resolution 810 (code of conduct). - Pulled from Consent: Resolution 842 (Andrew R. Straits reappointment) will be considered separately after a conflict-of-interest review. - Introduced (First Reading): Ordinance 41 (grant anticipation notes for water utility improvement not to exceed $61,630), Ordinance 42 (Minnesota Power franchise fee), Ordinance 24 (various city code revisions), and Ordinance 40 (lodging code amendments). No final votes were taken on these ordinances during this meeting.
Note: The meeting agenda and minutes indicate the event occurred on September 11, 2026, but the user instruction stipulates the date as September 15, 2026. This summary follows the user's directive, acknowledging the discrepancy. The City of Duluth conducted its annual budget retreat on September 15, 2026, to review the proposed 2027 budget. The day-long session featured presentations from all major departments, highlighting a projected total deficit of $5,517,725. The retreat focused on the strategies to balance the budget, including a recommended property tax increase, use of one-time funds, and departmental efficiencies. Participants discussed the structural deficit challenges facing the city and the need for long-term fiscal planning. Budget Overview and Deficit Solution - Total Deficit: $5,517,725. - Proposed Solutions: - Property Tax Increase (3.61%): $1,641,000 - Broadband Funds (one-time): $1,826,800 - Proposed MN Power Franchise Fee Increase (commercial only): $988,100 (with $250,000 dedicated to sustainability projects) - Anticipated Employee Vacancy Savings: $1,200,000 - Shift of seasonal park maintenance expenses from Parks Fund to General Fund: $419,700 - Contingency Fund Expense Reductions/Miscellaneous Adjustments: -$531,525 - Total Budget Adjustments: $5,517,725 - Discussion: The $1.2 million vacancy savings were questioned as the riskiest element, based on historical averages. Administration confirmed contingency funds of about $1 million are available if savings fall short. Police Department - Proposed Budget: $32,414,600 (General Fund), an increase of 6.4%. - Key Points: - 2026 accomplishments included technology advances (drone as first responder), ICAC lab partnership, largest onboarding in years (23 recruits, 70% from FDLTCC, 22% women). - Sworn filled positions: 143; goal to achieve authorized strength and have ability to “hire ahead”. - Challenges include firearm range closure (ERTC), criminal justice system changes, and quality-of-life issues. - Parking enterprise fund revenue down 5.4% due to MDR bond payoff; reserve funds used for maintenance. - Discussion: Questions about overtime savings vs. vacancies, diversity percentages (1% Hispanic, 1% Native American, 4% African American, 2% Asian), and animal control partnership opportunities. Workforce & Employee Development Department - Proposed Budget: $1,978,900 (General Fund) + $3,435,981 (Special Revenue Fund), total increase 12.9% in GF. - Key Points: - Merger of HR and Workforce Development completed; 1,741 applications reviewed for 150 positions; 241 employees onboarded in 2026. - Workforce Development serving 109 employers and 441 jobseekers through job fairs. - 2027 goals include class & compensation study, electronic employee files, and securing competitive grants for Blatnik Bridge workforce strategy. - Discussion: Clarified that the 16.1% salary increase partly due to transfer of half-time director position; participant wages separated out ($288,652). Property, Parks & Libraries Department - Proposed Budget: $18,008,800 (General Fund), increase of 8.6%. - Key Points: - Fleet preventative maintenance improved from 35% to 66% of work orders. - Library children’s area refresh underway; Lakewalk reconstruction commenced. - Park maintenance expenses shifted from Parks Fund to General Fund to free up $400k for park capital improvements. - Fleet internal service fund revenue up 10% due to fuel and parts inflation/tariff impacts. - Discussion: Clarification on the park maintenance transfer; community investment in parks; library governance and funding challenges. Public Works & Utilities Department - Proposed Budget: $12,520,100 (General Fund), increase of 3.9%. - Key Points: - Department has 267 positions, no change; enterprise funds (water, gas, sewer, stormwater) show strong resilience. - General Fund revenue up 5% due to increased stormwater transfer for street sweeping. - Lead service line replacement mandate (1,000 replacements in 2026) with significant future funding uncertainty. - Discussion: Questions about enterprise fund vs. special revenue vs. general fund; communication strategies for infrastructure projects; commercial growth supporting infrastructure. Legislative & Executive Department - Mayor & City Administrator Budget: $1,465,500 (increase 5.3%); City Council Budget: $263,100 (increase 21.3%); Attorney’s Office Budget: $4,049,200 (increase 12.5%). - Key Points: - Accomplishments include UDC overhaul, developer roundtables, launch of city mobile app. - City council budget increase partly due to budgeted police overtime for meetings ($20,000 in professional services). - Attorney’s office litigated numerous cases; criminal division attended over 8,500 court appearances in 2026. - Challenges: increasing complexity of litigation and AI-generated filings; unfunded mandates. - Discussion: Need for police overtime at council meetings; concerns about downtown safety; regional collaboration opportunities. Technology & Information Services Department - Proposed Budget: $6,346,000 (increase 8.2%). - Key Points: - New department combining IT and Clerk’s office; implemented e-poll pads, online licensing, city app. - IT staffing increased by 1 FTE; software license costs rising significantly (enterprise agreements). - Clerk’s office focusing on special event permit streamlining and aligning license renewal periods. - Discussion: Open source software opportunities considered; understaffing challenges; digital accessibility improvements. Planning & Economic Development Department - Proposed Budget: $4,975,600 (increase 9.5%). - Key Points: - UDC amendments and short-term rental reform accomplished; downtown activation events. - 2027 focus on Lot D, Spirit Valley, First Street improvements, and development process improvements. - Challenges: housing funding gaps, blight remediation (no budget for demolition), scarce property for development. - Discussion: Blight funding from VBR or other sources; DITA role and funding ($450k transfer to city). Fire Department - Proposed Budget: $25,390,500 (increase 2.9%). - Key Points: - Successful overtime reduction strategy (added 3 FTEs); apparatus chassis replacement program. - Life safety division reduced housing inspection backlog from 3 years to 6-8 months. - Critical challenge: closure of ERTC fire training facility by 2028; need for regional training hub. - Revenue up 25.5% due to three-year cycle of multiple dwelling license renewals and fee adjustments. - Discussion: Overtime budget (budgeted $861k); PFAS-free gear transition; short-term rental inspection funding concerns. Finance Department - Proposed Budget: $3,751,200 (General Fund expenses; total revenue captured $100,983,600). - Key Points: - 47th consecutive GFOA award for financial reporting; 43rd for budget presentation; AA bond rating. - Revenue sources: property taxes, sales tax, LGA, franchise fees, cost allocations, broadband fund transfer. - 2027 property tax increase $1.64 million; broadband fund transfer of $1.83 million is one-time, creating larger deficit in 2028. - Discussion: Concerns about structural deficit; broadband fund history; call for long-term fiscal strategy and commercial tax base growth. Key Outcomes - The recommended property tax increase is 3.61% ($1.64 million). - Use of one-time broadband funds ($1.83 million) is proposed, acknowledged to deepen 2028 deficit. - MN Power franchise fee increase for commercial estimated at $988,100; council discussed potential residential impact. - Vacancy savings of $1.2 million are anticipated, with contingency funds available. - Seasonal park maintenance expenses ($419,700) shifted from Parks Fund to General Fund to free up park capital. - No final votes taken; the retreat served as a detailed review. Formal budget adoption will occur later. - Administration committed to presenting a long-term fiscal roadmap in 2027, emphasizing need for structural reforms. - The council expressed strong concerns about sustainability and the need for bold solutions to address recurring deficits.
The Duluth City Council met on Monday, September 14, 2026, at 6:00 PM in Council Chambers. The meeting covered a wide range of agenda items including a public hearing on a Tax Increment Financing (TIF) plan for the Legacy Housing project, adoption of a consent agenda with 24 resolutions, first and second readings of several ordinances, and discussion on a proposed code of conduct and traffic modifications on 4th Street. Several members of the public spoke on agenda and non-agenda items. Consent Calendar The following resolutions were approved unanimously (9-0) as part of the consent agenda: - Resolution 26-0807R authorizing an agreement with Arrowhead Radio Amateurs Club for radio communications equipment at the Highland Water Tower. - Resolution 26-0809R authorizing a three-year Microsoft enterprise agreement for an annual amount of $494,870.60 (total $1,484,611.80). - Resolution 26-0815R approving lawful gambling applications. - Resolution 26-0816R approving various liquor licenses. - Resolution 26-0774R approving amendments to the civil service classification of Deputy Fire Marshal. - Resolution 26-0814R vacating rights-of-way subject to a utility easement. - Resolution 26-0783R accepting a permanent easement from Minnesota State Colleges and Universities. - Resolution 26-0789R granting municipal consent for CSAH 14 reconstruction. - Resolution 26-0790R approving a state project to rehabilitate Trunk Highway 2. - Resolution 26-0794R authorizing purchase of 2,000 tons of coal from Navajo Transitional Energy Company for $202,920.00. - Resolution 26-0795R authorizing engineering services for Canal Park Drive rehabilitation ($102,495.00). - Resolution 26-0796R increasing a purchase order for emergency work at Duluth Energy Systems by $75,000 (new total $220,000.00). - Resolution 26-0797R authorizing engineering services for Cross City Trail Phase 6 ($89,990.00). - Resolution 26-0798R amending a contract for Norton Road Bridge construction, increasing by $110,102.00 (new total $214,753.25). - Resolution 26-0799R authorizing a snow removal agreement with Independent School District No. 709. - Resolution 26-0808R awarding a contract for Upper Lakeside Water Zone Interconnect Phase 2 ($268,625.00). - Resolution 26-0811R authorizing a lease for a trommel screener ($21,300.00). - Resolution 26-0713R authorizing a Joint Powers Agreement for the Lake Superior Forensic Technology Task Force. - Resolution 26-0748R accepting a $29,836 DOJ grant and partner agreement with St. Louis County. - Resolution 26-0804R accepting a $37,008.00 firefighter training award. - Resolution 26-0805R accepting a $100,882.56 firefighter training award. - Resolution 26-0818R accepting $132,405.00 reimbursement for fire suppression in Superior National Forest. - Resolution 26-0730R authorizing an amendment to the Consolidated Maintenance Campus project contract with HCM Architects, increasing by $2,579,905.00 (new total $2,636,155.00). - Resolution 26-0803R authorizing application for a $500,000 Conservation Partners Legacy Grant for forest habitat restoration. Public Comments & Testimony Agenda Items (First Public Comment Period): - Hadrian DeMaioribus (Precinct 7) spoke in support of the 4th Street bike lane and no-parking resolutions, citing parking studies showing sufficient parking and the need for improved multimodal infrastructure, including winterized sidewalks for accessibility. He urged the council to pass the resolutions to advance design work. - Spencer Shields (55803) opposed Resolution 26-0794R to purchase 2,000 tons of coal, arguing the funds should be invested in renewable energy. He criticized the plan to sell old coal to a neighboring city, calling it environmentally harmful. - Jessica Boehland (55802, Park Point) spoke on the short-term rental (STR) ordinance, representing Park Point community groups. She noted 28 licensed vacation rentals on Park Point (roughly one-third of those in residential neighborhoods) and many unlicensed ones. She cited a survey showing concerns about loss of housing, increased property taxes, and diminished neighborhood vitality. She urged the council to pass the ordinance and enforce policies. - Seth Oliver (55802) opposed allowance of shared-room STRs in R1/R2 zoning, arguing it is unenforceable and leads to further loss of housing. He advocated for zero vacation rentals in residential zones except for accessory dwelling units under 400 sq ft. - Dawn Buck (55802, Park Point) thanked staff for addressing STR issues, highlighted safety concerns identified by the fire department, and stressed the need for enforcement and monitoring. - Pat Sterner (55802, Park Point) emphasized the loss of community fabric due to STRs, sharing personal experience of neighborhood gatherings during the pandemic. - Nicole Ottjes (Precinct 4) spoke in support of the 4th Street project, noting her daily bike commute and the need for safe infrastructure. Non-Agenda Items (Second Public Comment Period): - Tone Lanizillo (55812) announced a climate briefing and town hall event, referencing record air quality alerts and a UN report on global warming. - Roy Hamlin (55811) apologized for previous comments at the August 10 meeting regarding a vape shop construction near his daughter's home, and thanked the council for the opportunity to address the issue. - Linda Heron (55812) spoke on climate grief and announced Climate Week activities, including a town hall on September 17 at St. Paul's Episcopal Church. - Eric Lindell (no zip stated) shared a personal story of suicide attempt and urged investment in mental health resources, de-escalation training for first responders, and lobbying for state/federal support. - Loren Martell (55805) criticized the ISD 709 “Red Plan” school construction, warning that new housing developments will exacerbate capacity issues and lead to further taxpayer costs for new schools and maintenance bonds. Discussion Items Public Hearing – Legacy Housing TIF (Resolution 26-0793R): A public hearing was held on the proposed Tax Increment Financing plan for the Legacy Housing District, a 148-unit development (mostly studios and one-bedrooms) adjacent to Lake Superior College, including 30 affordable units at 50% AMI. David Klein (Vice President at Lake Superior College) spoke in support, citing benefits for student and employee recruitment. No other speakers testified. After the hearing, the council suspended rules to welcome a delegation from Ohara-Isumi City, Japan (sister city) for introductions and a photo. Legacy TIF Vote: Councilor Tomanek moved approval, seconded by President Nephew. Councilor Clanaugh moved to table, citing that supporting materials (pro forma, but-for test) were not made available to the public in a timely manner. After debate, the motion to table failed 2-7 (yes: Clanaugh, Durrwachter; no: Desotelle, Tomanek, Forsman, Johnson, Randorf, Kennedy, Nephew). The main motion then passed 8-1 (nay: Durrwachter). Several councilors noted that the level of documentation was consistent with past practice for HRA TIF districts. Code of Conduct (Resolution 26-0810R): Vice President Kennedy and Councilor Johnson presented a revised resolution to amend standing rules to include a code of conduct. The text had been shortened per agenda session feedback. Some councilors expressed concern about receiving the final version only on the night of the meeting and requested more time for review. A motion to table was made by President Nephew, seconded by Councilor Durrwachter, and passed unanimously (9-0), tabling the resolution to the next meeting. 4th Street Traffic Modifications (Resolutions 26-0742R and 26-0743R): The administration had requested these items be sent back for further work. Councilor Desotelle made motions to return both resolutions to administration, seconded by Councilor Tomanek (for the bike lane) and Councilor Clanaugh (for the no-parking zone). Both motions passed unanimously (9-0). The items will be revisited after administrative review. Short Term Rental Ordinance (Ordinance 26-038-O) – Second Reading: The ordinance to regulate STR licensing and permitting in Chapters 29 and 29A was moved by President Nephew, seconded by Councilor Clanaugh. Councilors discussed the need for a starting point despite acknowledged loopholes, particularly regarding owner-occupied shared rentals and enforcement. Deputy Chief Otis was commended for leading the effort. Councilor Forsman raised concerns about potential impacts on existing licensed STRs under stricter state health requirements but was reassured by staff. Councilor Durrwachter noted an estimated 400–800 illegal STRs in the city. The ordinance passed unanimously (9-0). Several councilors committed to ongoing amendments and a one-year review. Other Ordinances – Second Readings: - Ordinance 26-029-O reclassifying Piedmont Trail System parcels from RR-1 to P-1: passed 9-0. - Ordinance 26-036-O amending the Home Rule Charter pertaining to vacancies of mayor and councilor: passed 9-0. Ordinances – First Readings: - Ordinance 26-024-O revising Chapter 13 of the city code (personnel) was read for the first time. - Ordinance 26-040-O amending Chapter 50 regarding lodging (zoning and parking standards) was read for the first time. Key Outcomes - Legacy Housing TIF (Resolution 26-0793R): Approved 8-1 after a failed motion to table (2-7). - Code of Conduct (Resolution 26-0810R): Tabled unanimously (9-0) to the next meeting. - 4th Street Bike Lane (Resolution 26-0742R) and No-Parking Zone (Resolution 26-0743R): Returned to administration unanimously (9-0) for further work. - Short Term Rental Ordinance (Ordinance 26-038-O): Approved unanimously (9-0) as a second reading, with plans for future amendments. - Piedmont Trail Rezoning (Ordinance 26-029-O): Adopted 9-0. - Vacancies of Mayor/Councilor (Ordinance 26-036-O): Adopted 9-0. - Consent Agenda (24 resolutions): Approved unanimously (9-0) as a block. - Finance Items (Resolutions 26-0800R, 26-0801R, 26-0802R, 26-0803R – tax levies): All tabled to the September 28 meeting, following presentations from DTA and HRA (which occurred prior to the council meeting). - Collective Bargaining Agreement with Law Enforcement Labor Services (Resolution 26-0806R): Approved unanimously (9-0). The meeting adjourned at approximately 8:30 PM (based on transcript length).
The Duluth City Council held a personnel committee interview and an agenda session on September 10, 2026, before the September 28 levy certification vote. The council reviewed a large consent calendar, questioned staff on a proposed Legacy TIF housing project, debated a council code of conduct, discussed 4th Street parking and bike-lane changes, and heard Mayor Reinert's administration present the proposed 2027 maximum property tax levy. No final budget or levy vote was taken; the council is scheduled to act on the maximum levy on September 28 and to adopt the final budget in December. Personnel Committee Interview - A Duluth resident and duplex owner, Mr. Aitson, interviewed for a vacancy on the Duluth Public Utilities Commission. He described his project-management background, 4.5 years in plumbing and HVAC, work on city lead water line replacement projects, and interest in bringing a ratepayer and property-owner perspective to utility rate setting and infrastructure planning. - He said he would study the commission's reinvestment and budget cycle before advancing ideas and supported explaining plans through public hearings to residents. He stated that he had no conflicts of interest. - Council members asked about balancing long-term system investment with ratepayer affordability and about navigating disagreement. The chair said the application would be held over for a vote at a subsequent meeting. Consent Calendar and Pulled Items - Items 2–6, including the proposed 2027 general levy, park levy, HRA levy, Duluth Transit Authority levy, and the Law Enforcement Labor Services 538 collective bargaining agreement, were pulled from consent by Councillor Darwakter for further review. - Resolution 793, the Legacy TIF housing district plan, was pulled from consent. - Resolution 810, the standing-rules code of conduct amendment, was pulled from consent. - Resolutions 742 and 743, the 4th Street bike-lane and no-parking measures, were pulled from consent for further discussion. - Other consent items received questions but were not pulled, including the Microsoft enterprise agreement with an annual amount of $494,870.60 and a total amount of $1,484,611.80, the Highland Water Tower radio equipment agreement, Canal Park Drive design services at $102,495, Cross-City Trail Phase 6 design services at $89,990, the Upper Lakeside Water Zone Interconnect Phase 2 contract at $268,625, emergency Duluth Energy Systems steam repairs, and the Norton Road Bridge contract amendment. Discussion: 2027 Maximum Levy and Budget - Mayor Reinert presented a recommended maximum total property tax levy increase of 3.65% for 2027, a net levy impact of 2.65% after subtracting 0.98% new growth. He said this would be the third consecutive year Duluth had the lowest net levy among its peer group, and that the three-budget average levy increase was 1.77%. A 1% city levy increase equals about $455,000. - The administration reported a structural gap: expenses are growing by about 6–7% annually while revenue grows about 1.5%, leaving a recurring deficit. The 2027 budget begins with a $5.5 million deficit, resolved through roughly $1.6 million in property tax revenue, a $1.8 million one-time transfer of previously set-aside municipal broadband funds, anticipated Minnesota Power franchise fee revenue of just under $1 million above forecast with $250,000 dedicated to sustainability, $1.2 million in payroll and benefit vacancy savings, transferring park operational expenses to the general fund, and about $532,000 in contingency and miscellaneous reductions. - Mayor Reinert said local government aid has been flat since 2023 and would be about $38 million instead of $35 million if it had kept up with inflation. He said fuel costs are running about $300,000 over budget, and that commercial tax base growth is essential because commercial property pays roughly two-to-one compared with residential. He noted city new growth was just under 1% while St. Louis County reported about 7% growth. - Budget staff said the dedicated park levy has not changed since 2011, with a maximum of $2.6 million, and the budget shifts operating costs so that 100% of the park levy can go to park maintenance and capital work. The budget also sets aside nearly $1 million for 'small ball' capital projects under $50,000. No layoffs or across-the-board cuts are proposed. - Councillor Foresman questioned whether one-time funds and low new growth are sustainable and asked for alternatives to one-time funds in future years. Councillor Johnson expressed concern about below-1% new growth and the need to build momentum in commercial tax base growth. Discussion: Legacy TIF Housing District - Developer Brian Forcier said the project next to Lake Superior College has been eight years in the making, would create 148 units, and is fully financed pending approval of the TIF district. He said 30 units would be affordable to households at 50% of area median income and would not be occupied by full-time students; the remaining units would target student housing. Construction could start by the end of September and take 14–18 months. - Administration and HRA staff stated the project's total cost estimate is $34.068 million, the proposed TIF amount is capped at $5.7 million, the district term is 26 years, and the estimated future market value is about $35.9 million. The HRA would administer the TIF and retain a 10% administrative fee; the developer and owner would receive 90% to pay debt service. Debt service goes negative in year four without the TIF. - Councillors raised concerns about missing TIF application, pro forma, and development agreement documents. Staff said the development agreement is between the HRA and the developer and would be filed against the property. Councillor Darwakter asked for the TIF application, development agreement, and pro forma before the next council vote, and staff said they would work to supply supporting documents. Discussion: Code of Conduct - Councillor Johnson and Vice President Kennedy presented Resolution 810, amending standing rules to include a code of conduct. Johnson described it as aspirational rather than punitive and based on League of Minnesota Cities and National League of Cities recommendations. - Councillor Randor said the draft was too long and offered to support a succinct 149-word version. Johnson and Kennedy said they were open to shortening it. Councillor Klana raised concerns about power dynamics and the risk of civility language being used against people who are culturally different. Councillor Darwakter noted that St. Cloud had redacted its code after ACLU concerns about First Amendment issues. City Attorney Lear said the office reviewed the draft and had no concerns but would continue working with the council. - The item was pulled from consent; no final revision decision was made. Discussion: 4th Street Bike Lanes and Parking - Councillor Darwakter pulled Resolution 743, and Councillor Foresman pulled the linked Resolution 742. The project would remove approximately 99 parking spaces to install bike lanes and improve pedestrian and accessible facilities. - Staff said the Parking Commission voted 4-3 and cited parking utilization data showing many overnight spaces empty. Councillors noted concerns from residents and the Commission on Disabilities. Staff said loading zones and accessible spaces will be thoughtfully placed in later design, and resident parking permits could be added later if needed. Other Discussion Items - Councillor Klana asked about the proposed coal backup fuel purchase for Duluth Energy Systems. Staff said coal degrades, the old stockpile was sold to a university, and coal remains a backup fuel because boiler-conversion bids were too expensive. Eliminating coal remains a goal, but no timeline was given. - On the Consolidated Maintenance Campus project, staff explained that the HCM Architects contract amendment reflects moving from pre-design into design and construction administration under a previously competed RFP. The project target budget is about $45 million, and the funding source is OPEP retiree-health savings. Staff agreed to provide updated savings information. - The council reviewed public safety resolutions including the Lake Superior Forensic Technology Task Force joint powers agreement, which staff said is unrelated to Flock technology and involves digital device forensic work under search warrants. Key Outcomes - No final votes were taken on the consent items during the agenda session; items pulled from consent will be considered at a future council meeting. - The maximum levy presentation set a full-day budget retreat for the next day, and the council will act on the maximum levy by September 28 before adopting the final budget in December. - The Public Utilities Commission applicant was held over for a later vote. - Staff committed to providing the Legacy TIF application, pro forma, and development agreement, as well as updated Consolidated Maintenance Campus savings figures.
The Duluth City Council met at 6:00 PM on Monday, August 24, 2026, with all nine members present (Councilor Johnson participating remotely via Microsoft Teams). The meeting covered a finance committee presentation on tourism taxes and the 2027 budget, public comments on short-term rentals and the Lester Park Golf Course, a consent agenda of 21 items, a major discussion on the Lester Park Golf Course land use study and amendments, appointments to boards and commissions, and first and second readings of ordinances. Consent Calendar - Approved unanimously (9-0) the Consent Agenda, which included 21 resolutions covering: retaining Community Investment Trust Fund interest earnings; amending a professional services agreement with Resolute Law (increase of $100,000, new total $149,000); confirming Cari Pedersen as Director of Public Works and Utilities; amending the comprehensive plan for the Becks Road Land Use Study area; sole source purchase of water meters ($99,540); municipal consent for Rice Lake Road Corridor Phase I; accepting a $750,000 EPA Great Lakes Restoration Initiative grant for the Cody Street Stormwater Filtration Basin; amending a contract for 4th Street Reconstruction engineering services (increase of $115,477.75, new total $1,465,417.75); engineering agreements for 2027 Street Preservation projects in Gary/Piedmont/Duluth Heights ($235,808.70) and Oneota to Lakeside-Lester Park ($121,543); accepting a $1,750,000 HUD grant for library and community health services planning; amending a lease with One Roof Community Housing; authorizing an exclusive use permit for the Bentleyville Tour of Lights 2026 holiday season; amending an EDA grant for DECC seawall reconstruction; amending the Lakewalk project contract with LHB (increase of $239,634, new total $1,358,783); accepting the updated Magney-Snively Natural Area management plan; accepting real property donation from ISD No. 709 for Hillside Sport Court; accepting tax forfeited land in Duluth Heights and Irving neighborhoods for trail purposes; awarding a contract for Morgan Park Community Center roof improvements ($270,835.44); and amending an archaeological services contract for Priley Circle Restoration (increase of $6,159, new total $390,294). Public Comments & Testimony - Short-Term Rental Ordinance (26-038-O): Jessica Boehland and Pat Sterner, representing Park Point Community Club and Minnesota Point 50, expressed strong support for the proposed ordinance, emphasizing that it balances tourism with housing affordability and community cohesion. They urged rigorous enforcement and a first-year check-in review. - Lester Park Golf Course (26-0761R): Nine speakers addressed the council. Chris Cole argued that a Planning Commission amendment (passed 3-2) would allow disposal of all 270 acres, contradicting public input. James Hansen (Natural Resources Commission) supported preserving upper two-thirds and expanding natural areas, suggesting a city-run campground could boost tourism revenue. Hadrian DeMaioribus criticized the process, calling the December 2025 conveyance of parkland premature and coercive. Ansel Schimpff thanked councilors for amendments that would protect the upper 207 acres and follow the land use study. Denise VoieDeVie urged voting no on one appointment and recommended that housing development be directed to entities focused on affordable housing. Mae Gackstetter, Alec Cadlec, Jill Crawford-Nichols (representing the Isaac Walton League), and Lisa Fitzpatrick all supported the land use study recommendations and amendments to preserve 207 acres as parkland. - Non-Agenda Items: Allie Tibbetts spoke about the Lakewalk closure, criticizing the length of the project, lack of public notification, and impact on families and natural features. Loren Martell spoke against the school district's handling of the Red Plan debt, alleging misleading information about tax impacts. Discussion Items - Tourism Tax and Budget Overview (Finance Committee): Finance Director Salinas presented a detailed overview of tourism taxes (lodging and food/beverage), noting that total collections average about $14.6 million annually. She explained the different tax rates (3% lodging on all units, additional 2.5% on hotels over 30 units, 2.25% on food/beverage) and spending restrictions, including a discretionary component. She emphasized that discretionary funds are often used to supplement other obligations. Councillors asked about exemptions for smaller hotels, the sunset for DECC funding, and the need for a clear definition of "promotion." Director Salinas noted that a policy on definitions is being developed. She also updated on the 2027 budget: no reductions in core services, using historical averages for expenses, and recognizing vacancy savings. Next steps include a max levy presentation on September 10 and a budget retreat on September 11. - Lester Park Golf Course Land Use Study (Resolution 26-0761R): The main resolution proposed amending the comprehensive plan to reclassify areas of the golf course. Two amendments were offered and debated: - Amendment by Councilor Nephew and Vice President Kennedy: To adopt the land use study without the Planning Commission's additional recommendation (which would have allowed development of the entire property). This amendment passed 9-0. - Amendment by Councilor Randorf: To initiate the process to remove the upper 207 acres (identified as open space by the study) from the development agreement with DEDA, retain them in city ownership, and rezone them as P-1 park and open space. After discussion about timing, protections, and future steps, this amendment also passed 9-0. Councilors emphasized that this does not add permanent supermajority protection (a future step) but clarifies intent and follows the agreed-upon process. The final resolution, as amended, passed 9-0. - Appointments (Previously Tabled): Resolutions confirming appointments were removed from the table: - Brianna Gunderson to the DECC Authority: Approved 9-0. - Ginka Tarnowski to the Sanitary Sewer Board of WLSSD: Approved 9-0. - Luke Medis to the Building Appeal Board: A motion to table failed 2-7. The resolution was then approved 7-2, with Councilors Clanaugh and Durrwachter voting no. - Ordinance Reducing Building Appeal Board Membership (26-037-O): Second reading and vote. The ordinance reduces the board from 9 members (8 voting) to 7 members (6 voting). Councilor Durrwachter argued against the reduction, claiming it weakens oversight and that recruitment efforts are insufficient. Administrator Cohane stated it was a recommendation from the board itself. Councilor Clanaugh expressed concerns about outreach and consistency with other boards. The ordinance passed 7-2, with Councilors Clanaugh and Durrwachter voting no. - First Readings of Ordinances: Three ordinances were read for the first time: - 26-029-O: Rezoning Piedmont Trail parcels from RR-1 to P-1. - 26-038-O: Regulating short-term rental licensing and permitting. President Nephew announced a companion resolution will be brought at the next meeting to establish a one-year check-in. - 26-036-O: Amending the Home Rule Charter regarding vacancies of Mayor and Councilor. Key Outcomes - Consent Agenda: Approved 9-0 (all 21 items). - Lester Park Golf Course Resolution (26-0761R): Adopted with two amendments (both passed 9-0) that accept the land use study (develop 63 acres for mixed-use, preserve 207 acres as open space) and initiate the process to retain city ownership of the 207 acres. Final resolution passed 9-0. - Appointments: Brianna Gunderson (DECC Authority) approved 9-0; Ginka Tarnowski (WLSSD) approved 9-0; Luke Medis (Building Appeal Board) approved 7-2. - Building Appeal Board Membership Reduction (26-037-O): Passed 7-2 on second reading, reducing from 9 to 7 members. - First Readings: Three ordinances read; will return for second readings at a future meeting. - Public Comments: No official action taken, but council noted support for a future review of short-term rental ordinance. - Adjournment: Motion carried unanimously by voice vote.