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OPENPUBLICA · PUBLIC MEETING RECORD

Record of Proceedings

Duluth City Council Meeting: September 23, 2024 – Budget, Crisis Response, and Special Districts

City Council — Monday, September 23, 2024

BodyDuluth, Minnesota

SessionCity Council

DateMonday, September 23, 2024

StatusFILED

Video Record

0:00 / 2:36:23

Transcript — VerbatimClick a timed line to jump · ⧉ to share it

0:00

Okay.

0:00

I have no personal or uh financial interest in the port authority, but one disclosure.

0:06

Um I work for North Shore Bank, and there is a banking relationship there, and that's not uncommon with nonprofit boards.

0:14

Um it's fully disclosed in conflict of interest statements, and any action on a bank matter, obviously I would excuse myself from.

0:25

Do you want to explain that a little bit more?

0:28

How much of what your work would be at the port authority would involve an area where you might have a conflict?

0:36

Um, one example if the relationship was a line of credit, lines of credit are renewed every year.

0:45

And so when that line of credit would come up for renewal, I wouldn't be able to be involved in the process or in the vote for that line of credit renewal.

0:56

Thank you.

0:57

Can you give a brief outline of your educational and work experience and how that background will benefit you and your work on the port authority?

1:04

Certainly.

1:05

Um started my banking career in 1983.

1:08

Uh the last 30 years have been with North Shore Bank, um, primarily on the lending side, both commercial and residential, but specifically in real estate.

1:20

Um real estate I consider my specialty, but also with 40 years comes a lot of background with financial statements and how businesses operate.

1:32

So uh just the general business dealings are very familiar to me.

1:37

As far as education, I have a degree in economics from Harvard.

1:41

Okay, can you tell us why you're interested in serving on this particular board?

1:45

Sure.

1:46

I've always had an interest in the port.

1:47

So I was a little kid down on the piers back in 1960, whatever it was, watching the boats go back and forth.

1:56

And um it's always been interesting to me.

1:59

I'm fascinated by how the port works.

2:02

Um the contribution it makes to the local economy, obviously, is a huge deal.

2:08

And um, I just I'd be interested in being more involved in what the port authority does.

2:14

Okay.

2:15

Do you foresee any personally personal scheduling conflicts that might prohibit you from attending regularly scheduled meetings?

2:23

No, no.

2:23

Okay.

2:24

And what do you consider your personal strengths that you would bring to this position?

2:28

Okay, just a couple of things.

2:30

I've got the finance background and the real estate background.

2:33

Um, but one thing that's really important to me serving on nonprofit boards is that the board has to realize that they have two things that they're responsible for.

2:44

One is strategic planning and the other is policy.

2:47

Um I feel very strongly about that.

2:49

I brought that to other boards that um I've worked on.

2:54

The board can't get into the day-to-day.

2:56

That's why you have staff, um, leave that to the staff and focus uh simply on policy and strategic planning.

3:03

So if what the board is discussing doesn't fit in one of those two categories, it's probably not a board matter.

3:10

Okay, thank you.

3:12

You presently serving on any other boards or commissions that might interfere with this work or be a conflict of interest.

3:19

Uh no.

3:20

I'm currently on two other boards, one roof, which we saw each other today at the brewery creek opening.

3:28

Um also on the Kitchey Foundation board.

3:31

I just got off the St.

3:32

Luke's board after 11 years.

3:34

Um most of these nonprofit boards tend to meet the last week of the month, so I've generally just blocked the week off for that type of thing, and there are no conflicts at this point.

3:45

So great.

3:46

Is there anything else you'd like to tell the council concerning your application or possible appointment to the port authority?

3:54

Um yeah, the the last thing I'd like to say is that I've been on a lot of boards, 10 or 12 um over the years.

4:02

I'm a firm believer in giving back to the community, and that's one of the primary reasons that I do all the board work is that um giving back is is important to me.

4:12

I I grew up here.

4:14

Um the city and the people here have been great to me, so any opportunity I can get to give something back, I'd like to take advantage of it.

4:23

Great.

4:24

So anything else I can we'll see if there are any questions.

4:29

Counselors.

4:40

Counselor Randorf, thank you so much, uh, Chair Tamonic.

4:44

I just want to thank Mr.

4:44

Murphy for his interest in serving on the board.

4:47

I think you just nailed it when you talked about uh the role of the board is to you know see strategy and then also policy.

4:54

That is so important.

Discussion Breakdown — Share of Meeting

Public Transportation███████████████████████23%

Public Safety█████████████13%

Procedural███████████11%

Mental Health Awareness███████████11%

Budget Equity Analysis███████████11%

Boards And Commissions█████5%

Housing And Redevelopment Authority█████5%

Fiscal Sustainability███3%

Historic Preservation███3%

Summary of Proceedings

Duluth City Council Meeting

Date: September 23, 2024, 7:00 PM (Finance Committee presentation at 6:15 PM)

The Duluth City Council convened to set the maximum property tax levy for 2025, approve a one-year contract for the Community Crisis Response Program, and handle a range of routine consent items. A pre-meeting finance committee presentation featured the Duluth Transit Authority (DTA) budget and levy request. Public testimony focused on the condition of the Clayton Jackson McGee Memorial, support for the crisis response team, and the Downtown Waterfront Special Service District renewal.

Consent Calendar

Approved minutes of previous meeting (9-0).
Approved 14 consent agenda items (24-0730R through 24-0765R) unanimously, including liquor licenses, engineering services agreements, software licenses, ATF task force participation, parking enforcement software, state grants, and amendments to various city contracts.

Public Comments & Testimony

Henry Banks (55806) expressed anger over the neglected condition of the Clayton Jackson McGee Memorial (a city park) and called on the city to maintain it. He noted the memorial is one of the top 52 in the U.S. according to National Geographic.
Beach Juke opposed offering tax increment financing to Sofidel unless the company restarts the recycled pulp mill and purchases locally sourced post-consumer waste instead of pulp from South America.
Unnamed speaker thanked the council for securing one-year funding for the Community Crisis Response Program, criticized the administration for cutting it, and argued that defunding mental health services shows misplaced priorities.
Daniel Winings thanked the council for restoring crisis response funding and urged gathering data to demonstrate the program’s impact on public safety and emergency room congestion.
Angel DeBro, a member of the crisis response advisory council, thanked the council for the one-year extension and urged long-term sustainable funding.
Christy Stokes (President, Downtown Duluth) expressed property owner support for the renewal of the Downtown Waterfront Special Service District, noting 61% of tax capacity support.
Isabella Di Nicola urged long-term funding for the crisis response team, sharing that she frequently refers patients in crisis to HDC.
Kyle Radmar (Denfeld High School staff) shared positive experiences with HDC’s in-school therapy services and supported sustained funding.
Andrea Gill thanked the council for preserving crisis response and called it a core service.
Blair Paulis (member of ONIDA Nation and Emerson Tenants Cooperative) accused the administration of callously attempting to defund the crisis response program, endangering citizens and police officers.
Lily Tapper (psychiatric nurse) advocated for long-term crisis response funding, warning that without it, patients will turn to overextended ERs or law enforcement.
Lauren Martell discussed access issues at the former Central High School site, identifying only one viable entry-exit point.

Discussion Items

2025 Maximum Property Tax Levies (Resolutions 24-0703R, 24-0704R, 24-0705R, 24-0738R):
- Councilor Forsman read in resolutions for general purposes, Housing and Redevelopment Authority (HRA), Parks, and Duluth Transit Authority (DTA).
- Councilor Owell withdrew a motion to amend the general levy to fund the crisis response program after other funding was identified.
- HRA Levy Amendment: Councilors Nephew and Owell proposed raising the HRA max levy by $171,000 (approx. $3.31 per year on a $240,000 home) to fund 40 units of supportive housing in partnership with Union Gospel Mission (Mission Heights project). After debate about property tax burden, the amendment passed 9-0, and the amended resolution passed 9-0.
- Councilors expressed support for keeping the general levy flat (1.85% new growth only, net zero increase) while investing in city staff and core services.
- DTA Levy: Council approved a 2025 levy of $2,322,280 (no increase over 2024, funded partly by COVID relief and state subsidies). DTA presented its Better Bus Blueprint, ridership 11% increase since network redesign, and a request to maintain fares.
- Mayor Reinert gave remarks noting the city’s levy has been zero percent for the first time in a decade, but warned future budgets will face structural challenges as pandemic-era federal funds ($68.5 million) are exhausted.
Community Crisis Response Program (Resolution 24-0770R):
- Resolution authorizing a one-year $47,953 contract with the Human Development Center (HDC) was sponsored by Forsman, Nephew, Tomanek, and Owell.
- Councilors debated the need for long-term funding, data collection, and partnership with the county. The program was initially funded three years ago as part of a public safety package.
- Passed unanimously 9-0.
Blacklist Brewing Temporary Liquor License (24-0766R): Approved 9-0 after Councilor Durwacher noted licensing delays.
Interfund Loan for TIF District No. 22 (24-0761R): Approved 9-0.
Downtown Waterfront Special Service District (Resolutions 24-0742R, 24-0743R, 24-0744R): Tabled 9-0 to align with ordinance renewal.
First Readings:
- Ordinance renewing the Downtown Waterfront Special Service District (24-042-O) – to be considered again October 15.
- Snow emergency ordinance amendments (24-043-O) – to be considered again October 15.
Ordinance Dedicating Park Property (24-041-O): Second reading and adoption passed 9-0.

Key Outcomes

2025 Max Levy – General Purposes: Approved 9-0 (1.85% growth, net zero increase).
2025 Max Levy – HRA: Approved 9-0, amended to increase by $171,000 for supportive housing.
2025 Max Levy – Parks: Approved 9-0.
2025 Max Levy – DTA: Approved 9-0, $2,322,280.
Crisis Response Program: One-year contract with HDC approved 9-0.
Liquor License (Blacklist Brewing): Approved 9-0.
Interfund Loan (TIF District 22): Approved 9-0.
Park Property Dedication: Passed 9-0 on second reading.
Downtown Waterfront SSD Resolutions: Tabled.
First Readings of ordinances: Scheduled for October 15, 2024.

Meeting Transcript

Okay. I have no personal or uh financial interest in the port authority, but one disclosure. Um I work for North Shore Bank, and there is a banking relationship there, and that's not uncommon with nonprofit boards. Um it's fully disclosed in conflict of interest statements, and any action on a bank matter, obviously I would excuse myself from. Do you want to explain that a little bit more? How much of what your work would be at the port authority would involve an area where you might have a conflict? Um, one example if the relationship was a line of credit, lines of credit are renewed every year. And so when that line of credit would come up for renewal, I wouldn't be able to be involved in the process or in the vote for that line of credit renewal. Thank you. Can you give a brief outline of your educational and work experience and how that background will benefit you and your work on the port authority? Certainly. Um started my banking career in 1983. Uh the last 30 years have been with North Shore Bank, um, primarily on the lending side, both commercial and residential, but specifically in real estate. Um real estate I consider my specialty, but also with 40 years comes a lot of background with financial statements and how businesses operate. So uh just the general business dealings are very familiar to me. As far as education, I have a degree in economics from Harvard. Okay, can you tell us why you're interested in serving on this particular board? Sure. I've always had an interest in the port. So I was a little kid down on the piers back in 1960, whatever it was, watching the boats go back and forth. And um it's always been interesting to me. I'm fascinated by how the port works. Um the contribution it makes to the local economy, obviously, is a huge deal. And um, I just I'd be interested in being more involved in what the port authority does. Okay. Do you foresee any personally personal scheduling conflicts that might prohibit you from attending regularly scheduled meetings? No, no. Okay. And what do you consider your personal strengths that you would bring to this position? Okay, just a couple of things. I've got the finance background and the real estate background. Um, but one thing that's really important to me serving on nonprofit boards is that the board has to realize that they have two things that they're responsible for. One is strategic planning and the other is policy. Um I feel very strongly about that. I brought that to other boards that um I've worked on. The board can't get into the day-to-day. That's why you have staff, um, leave that to the staff and focus uh simply on policy and strategic planning. So if what the board is discussing doesn't fit in one of those two categories, it's probably not a board matter. Okay, thank you. You presently serving on any other boards or commissions that might interfere with this work or be a conflict of interest. Uh no. I'm currently on two other boards, one roof, which we saw each other today at the brewery creek opening. Um also on the Kitchey Foundation board. I just got off the St. Luke's board after 11 years. Um most of these nonprofit boards tend to meet the last week of the month, so I've generally just blocked the week off for that type of thing, and there are no conflicts at this point. So great. Is there anything else you'd like to tell the council concerning your application or possible appointment to the port authority? Um yeah, the the last thing I'd like to say is that I've been on a lot of boards, 10 or 12 um over the years. I'm a firm believer in giving back to the community, and that's one of the primary reasons that I do all the board work is that um giving back is is important to me.

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