Duluth City Council Agenda Session – November 7, 2024

The Duluth City Council held an agenda session at 5:15 p.m. on November 7, 2024, to review items scheduled for formal action. The agenda included equipment purchases, a board appointment, a proposed $1 million partnership to fund a temporary shelter at the Damiano Center, cannabis zoning and business regulations, infrastructure contracts, and several bond and ordinance items. No formal votes were taken; most items are expected to proceed to the next council meeting(s).

Purchasing & Licensing

• Resolution 875: authorizing purchase of one tandem plow truck chassis from Ascendance Trucks for $166,166.34. No discussion.
• Resolution 876: authorizing purchase/installation of sanding body equipment from Burt’s Truck Equipment of Moorhead, Inc. for $175,045. No discussion.
• Resolution 877: authorizing purchase/installation of sanding body equipment from Burt’s Truck Equipment of Moorhead, Inc. for $229,764. No discussion.

Personnel

• Resolution 883: confirming the appointment of Stephanie LaFleur to the Duluth Entertainment and Convention Center (DECC) authority. Councilor Kennedy asked whether this was a reappointment and whether there were other applicants; Vice President Tomonic said LaFleur was interviewed, and Clerk Johnson said he would check on applicants and follow up by email. Councilor Kennedy expressed concern about equity in board/commission appointments.

Discussion Item: Resolution 889 – Temporary Shelter at Damiano Center / Homelessness Funding

• Seth Courier (Executive Director, Damiano Center) and John Cole (representing Chum) testified in support. Courier said the county has allocated $1.4 million; an additional $1 million from the city (from the Cirrus Incubator Building sale and DITA) would cover the approximately $2.315 million remodeling cost (contractor bid $2.275 million plus $45,000 architecture fee). The project would create 120 sleeping spaces (versus Chum’s current 78 beds), with construction starting as soon as January and Chum moving in by May 2025. Cole said Chum has secured $10 million total ($2 million federal, $8 million state) for its expansion, which must begin spring 2025; the Damiano space is needed during the 12–18 month construction.
• Councilor Swenson questioned the timeline and the shifting use of ARPA/funding. President Randor explained the evolution of the “Stepping On Up” plan and noted DITA must approve its $500,000 portion before final council action. Councilor Forsman clarified that the $1 million consists of $500,000 from Cirrus proceeds and $500,000 from ARPA/DITA, with no additional funds remaining for other Stepping On Up projects.
• Councilor Nephew asked about long-term funding for the Damiano third floor; Courier cited conversations with the Bob Tavani Medical Respite House and other nonprofits but acknowledged the city cannot be the ongoing funder. Councilor Kennedy expressed support for the project but argued that public health/human services funding should primarily come from the county/state, noting the county budget is “11% larger than the whole city budget.”
• Mr. Montgomery (city administrator) also reported on efforts to fund HDC crisis response for 2025, with the city share possibly reduced but the full $600,000 maintained.
• President Randor indicated the item is scheduled for a preliminary vote on Tuesday (stated as Nov. 20), with DITA consideration in between and final council approval on Nov. 25.

Planning & Economic Development

• Resolution 871: approving the Tax Increment Financing (TIF) plan for the Braveview TIF District as proposed by the Housing and Redevelopment Authority (HRA). Mr. Montgomery described a 26-year TIF district with 72 affordable 55+ units, including 8 units for households exiting homelessness; HRA will commit 15 project-based vouchers, and Essentia is contributing. No questions.
• Resolution 873: authorizing a sixth amendment to the general fund appropriation bond master grant agreement with the Minnesota Department of Employment and Economic Development (DEED) for the Duluth Regional Exchange District Project. No questions.

Public Safety

• Resolution 867: authorizing acceptance of reimbursement up to $32,760.31 from the U.S. Department of Justice Bureau of Justice Assistance for purchases of ballistic vests. No questions.

Public Works & Utilities

• Resolution 863: awarding a contract to Contour Incorporated for high-priority lead water service replacements at sites 40, 53, and 54, total not to exceed $91,495.
• Resolution 868: awarding a contract to Contour Incorporated for sites 59, 67, and 70, total not to exceed $87,897.
• Resolution 874: amending the contract with LHB Incorporated for the Third Street Reconditioning Project, increasing the amount by $94,789 for a new total of $547,410.
• Resolution 881: authorizing an agreement with LINE Engineering for design services for the Sixth Avenue East Reconditioning Project for $64,900. Councilor Mayo asked about prior preliminary engineering; Mr. Montgomery said the project is moving to detailed work focused on lead line identification.
• In a follow-up, Mr. Montgomery corrected that the Inger Park street flow will be east to west.

Recreation, Libraries & Authorities

• Resolution 864: authorizing acceptance of a FY2025 Cross-Country Ski Grant-in-Aid from the Minnesota Department of Natural Resources for up to $12,650. Staff confirmed no match is required.
• Resolution 869: authorizing a five-year seasonal lease with Huntington National Bank for 90 golf carts and 8 maintenance utility vehicles, total contract amount not to exceed $484,360. Staff clarified the carts are leased, not purchased, and maintenance is included; Councilor Mayo asked whether they are electric, to be followed up.

Planning & Economic Development – Cannabis Ordinances

• Ordinance 57: amending zoning regulations for adult-use cannabis, including permitted use tables, use-specific standards, and definitions. Manager Moses said changes align cannabis uses with existing retail/industrial zones, clarify that community gardens do not include cannabis cultivation, and remove outdated medical cannabis language. The city aims to have it in effect by the end of the year; no hard state deadline exists.
• Ordinance 56: adding Chapter 8A regulating cannabis businesses and amending Chapter 12 for violations. Mr. Montgomery explained the city must implement state mandates (e.g., a minimum of one retail outlet per 12,500 residents, approximately 6–7 for Duluth) and retains local zoning control similar to alcohol. Clerk Johnson said local registration fees are capped by statute. Councilor Alwell asked about expungement and DUI measures; the city attorney noted expungement is underway via the courts and that there is no numerical drug impairment standard like for alcohol.

Finance

• Ordinance 48: authorizing issuance of taxable grant anticipation revenue notes up to $8,218,142 for improvements to the municipal water utility. Councilor Mayo summarized that the public utilities commission would decide how to collect the funds from ratepayers; state bonding and other sources are also being pursued. No questions.

Zoning / Concurrent Use Permits

• Ordinance 50: reclassifying three half blocks along East War Street from Mixed-Use Neighborhood (MUN) and Mixed-Use Institutional (MUI) to Form District 6F6. No questions.
• Ordinance 52: granting Minnesota Power a concurrent use permit for a loading dock along West Michigan Street. No questions.
• Ordinance 53: granting Festies Inc. a concurrent use permit for a stoop and retaining wall at 711 Martha Street. No questions.

Public Works & Utilities (continued)

• Ordinance 54: dedicating perpetual easements for utility purposes over city-owned property. No questions.

Key Outcomes

• No formal votes or final approvals were taken during the agenda session.
• Most items are expected to proceed to the next regular council meeting (Tuesday, per the chair’s reminder). For Resolution 889, the president stated a preliminary vote on Tuesday (Nov. 20), DITA review, and final council approval on Nov. 25.
• Council directed Clerk Johnson to provide information on DECC applicants; Mr. Montgomery to investigate golf cart type; and the city attorney to follow up on DUI drug testing standards.
• The meeting concluded with a reminder that council will meet on Tuesday instead of Monday.