Duluth City Council Meeting - December 9, 2024
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Duluth City Council Meeting
This regular meeting of the Duluth City Council on December 9, 2024, included public hearings, approval of consent agenda items, a quasi-judicial appeal hearing, budget presentations from the Duluth Airport Authority and the Duluth Entertainment Convention Center (DECC), allocation of tourism tax funds, and a vote on a tourism marketing services contract. The meeting lasted several hours, beginning with an appeal hearing at approximately 5:00 PM and the regular session at 7:00 PM.
Consent Calendar
- Minutes of the November 25, 2024 meeting approved unanimously (9-0).
- Resolutions approved under the consent agenda included:
- Capital Improvement Plan and bond issuance intent
- Capital equipment notes ($3.9 million)
- Duluth Transit Authority FY2025 operating budget
- Duluth Economic Development Authority FY2025 budgets
- Duluth Airport Authority FY2025 operating budget
- Annual bonding plan for 2025
- Liquor licenses for Greysolon Ballroom, Duluth Whiskey Project, and Duluth ES Hotel Associates
- Civil service classification amendments for Fire Inspector
- Election of member to Duluth/North Shore Sanitary District
- Joint powers agreements with MN DEED for vocational rehabilitation (up to $33,571.20)
- Memorandum of understanding with St. Louis County for Civic Center Plaza design and construction
- Annual renewal with Hexagon for software maintenance ($90,000)
- Fire Department Class A uniform purchase
- Axon body camera and vehicle camera system (7-year, up to $4,035,622)
- ATV route study grant application (up to $200,000)
- Buckthorn removal amendment at Hartley Nature Area ($6,375)
- Lake Superior Coastal Program grant amendments for Park Hill Cemetery acquisition and Minnesota Point boardwalk replacement
- Morgan Park Community Center energy equipment grant application ($500,000)
- Snowmobile trail grant acceptance (up to $17,245.10)
Public Hearings
- Blatnik Bridge Construction Project (Resolution 24-0872R): No public testimony; hearing closed.
- Truth in Taxation (Ordinance 24-062-O): No public testimony; hearing closed. City Administrator Montgomery noted the city's proposed operating budget includes a 0% levy increase (only 1.85% from business growth), placing Duluth near the bottom of property tax increase requests.
- Proposed Capital Improvement Plan Amendment (Resolution 24-0946R): No public testimony; hearing closed.
Public Comments & Testimony
- Brian Morris (property owner): Appealed the planning commission's denial of his interim use permit for a vacation dwelling unit (VDU) at 809 W 4th St. Stated he had been on the eligibility list since October 2021, invested $40,000 in improvements, and was not out of compliance with his accessory home share license. Claimed the planning commission used incorrect information.
- David Morris (father): Supported his son's application, noting his diligent efforts to meet code requirements.
- John Hoffman (guest): Described staying at the property and questioned why the permit was denied, suggesting citizens should be allowed to learn from mistakes.
- Mark Bogan (Gary New Duluth/G&D Rec): Requested $25,000 in tourism tax funds for an outdoor art gallery mural on concrete walls along Commonwealth Avenue, involving Native American and local artists.
- Ken Bueller (Lake Superior Railroad Museum/Northern Lights Express): Thanked the city for support of tourism tax funds for the North Shore Scenic Railroad and the Northern Lights Express passenger rail project; noted USA Today named the museum the best transportation museum in America.
- Sarah Blank (Lake Superior and Mississippi Railroad): Requested tourism tax funds for marketing and track maintenance; highlighted 45 seasons of volunteer-run operations.
- Tom Zoman and Rome Schlakan (Duluth Sister Cities): Sought support to revive a folk festival in 2025 and welcomed delegations from Irania and Sweden.
- Justin Jantunen (FinFest USA): Thanked the council for past support; reported 2024 FinFest attracted thousands from 41 states and 7 countries, with 80% of attendees from outside a 50-mile radius. Plans to invite the president of Finland in 2025.
- Karen Piank (Visit Duluth Ad Hoc Committee): Urged approval of the Madden Media marketing contract, emphasizing stability and the ongoing transition to a destination management organization (DMO) model.
- Mark Danielson and David Arnott (Duluth Superior Symphony Orchestra): Requested tourism tax funds; noted 20,000 attendees annually, with about 2,800 from outside the area, and that concerts occur in the low-tourism winter season.
Discussion Items
- Appeal of VDU Permit Denial (Items 26-27): The council heard testimony from the applicant (Brian Morris) and planning staff (Jen Moses). Morris argued he was in compliance with his accessory home share license and had remedied issues. Staff stated the property was operating as an entire unit rental without proper licensing and the planning commission denied the permit based on current code violations. After debate (5-4 vote against reversal), the council affirmed the planning commission's decision (9-0), denying the permit. The applicant may reapply and wait for a future opening.
- Duluth Airport Authority Budget Presentation: Finance Director Joelle Baudine reported a $81,000 surplus budget for 2025, with operating revenues at an all-time high. Executive Director Tom Werner provided updates on air service (strong fall 2024, 90% load factors, challenges with Denver route due to post-pandemic cost increases; exploring westward destinations with low-cost carriers). Capital projects included Taxiway Alpha reconstruction, general aviation hangar expansion, LifeLink 3 hangar, air traffic control tower funding ($11M secured, seeking $47M more), new Sky Harbor terminal, and snow removal equipment building.
- Duluth Entertainment Convention Center (DECC) Budget Presentation: ED Dan Hartman and Finance Director Amanda Jenness reported improved finances ($1.3M cash on hand vs. $365K last year), $45.7 million economic impact in 2024, and 517,000 attendees (excluding Bayfront). The 2025 budget projects $13.7M revenue, $14.4M expenses, and $545,000 profit before depreciation. Staffing reductions saved $600K; a facilities condition assessment and public purpose conversation are planned. Geothermal and solar opportunities are being explored.
- Tourism Tax Distribution (Resolution 24-0918R): Councilor Forsman moved approval of the distribution list. An amendment by Councilor Tomanek (seconded by Forsman) transferred $25,000 from Northern Film Alliance to Upper Midwest Film Office, citing an administrative error. Passed 8-0-1 (Mayo abstained due to conflict of interest). Final resolution passed 8-0-1 after additional proposed amendment for DSSO funding was withdrawn.
- Tourism Marketing Services Contract (Resolution 24-0925R): After extensive debate, the council approved a two-year (2025-2026) agreement with Madden Media (out-of-state firm) for tourism marketing. Councilors expressed frustration that the RFP process did not select a local firm but acknowledged the city's legal obligation to follow the competitive bidding process. The vote was 8-1 (Durwachter opposed). Councilor Randorf noted Madden scored 81.65 vs. local runner-up at 78.29 (3-point difference). The contract is intended to be a bridge to a full DMO model under Visit Duluth.
- Blatnik Bridge Replacement (Resolution 24-0872R): Approved unanimously (9-0). Councilor Mayo highlighted the inclusion of a multimodal pedestrian/bike path expected to last 100 years.
- Water Utility Revenue Note (Ordinance 24-060-O): Authorized issuance of $8,116,359 in water utility revenue notes for water system improvements; passed 9-0.
- City Code Amendment for Water Infrastructure (Ordinance 24-055-O): Tabled (9-0) pending a committee-of-the-whole meeting on the water infrastructure surcharge and EPA administrative order.
Key Outcomes
- Consent Agenda: Approved 9-0.
- VDU Appel: Denied (affirmed planning commission) 9-0; appellant may reapply in future lottery.
- Tourism Tax Distribution: Approved 8-0-1 (Mayo abstained) with amendment shifting $25,000 to Upper Midwest Film Office.
- Tourism Marketing Contract (Madden Media): Approved 8-1 (Durwachter dissented).
- Blatnik Bridge Municipal Consent: Approved 9-0.
- Water Utility Revenue Note: Approved 9-0.
- Code Amendment: Tabled 9-0 for further review at committee-of-the-whole.
- Officer Nominations: Councilor Nephew nominated for Vice President 2025; Vce President Tomanek nominated for President 2025; votes scheduled for January 13,2025.
Next Steps
The council will hold a committee-of-the-whole meeting on the water infrastructure surcharge and related ordinance on December 12, 2024. The 2025 budget and tax levy ordinances will be adopted after the Truth in Taxation hearing. The tourism marketing contract with Madden Media begins January 2025.The VDU enforcement process will be reviewed in early 2025.
Meeting Transcript
Good evening. Um, tonight we will be starting with the appeal before us from planning commission. Um, is the applicant here? Um, so this evening we will hear an appeal filed by the property owner, Brian Moores, which asked the city council to reverse the November sixth planning commission decision. The planning commission denied Mr. Moore's, I hope I'm saying that correctly, application for an interim use permit for the vacation dwelling unit or BDU. State statute and our city code authorize the city council to hear this appeal and make a final decision on the application for an interim use permit. An appeal hearing is different from our more familiar public hearing or public comment process. So I would like to take a minute to orientate council members on the city council's role in an appeal hearing. When I'm finished with this introduction, we'll hear from the applicant. Um, that is appealing the planning commission's decision, and then hear from staff who will speak in support of the planning commission's decision. We'll also have some time during this hearing to ask questions of staff, staff and the applicant. Counselors will have the opportunity to discuss this matter during the regular council meeting when the two opposing resolutions are read. The council's role this evening is to function in a quasi-judicial capacity. In this role, we'll be acting more like a court than an administrative body. This is why it's a more formal process for an appeal hearing, and that's why we are meeting at this time ahead of the regular meeting. After consideration, the facts presented at the hearing and in record. We have to determine if the application for the interim use permit or vacation dwelling unit meets the following applicable criteria outlined in the UDC related to the special use permits. Number one, the application is consistent with the comprehensive land use plan, and number two, the application complies with all applicable provisions of the UDC, including any use specific standards applicable to the proposed use. In addition, we are determined, we are to determine whether the application for the interim use permit for a vacation well dwelling unit meets the following interim use permit criteria. Number one, a time limit is needed to protect the public health, safety, and welfare from potential long-term impacts of the requested in the use location. And two, the applicate applicant agrees to sign a development agreement with the city. If the application for the interim use permit does not satisfy the applicable code provisions, we may affirm the planning commission and thus deny the appeal. This means that the application for a VDU is denied. If the application for the interim use permit satisfies the application code provisions, we may reverse the planning commission's reverse the planning commission and thus grant the appeal. This means that the application for the BDU is approved. We may also approve the application for the interim use permit with conditions. We will make our decision on the appeal by passing a resolution related to the appeals appeal during tonight's council meeting. In deciding the appeal, we will set out the factual findings and legal conclusions that support our decision. Either by passing a resolution as currently drafted or by amending a draft to confirm to our findings and conclusions and passing that amended version. The applicant will have five minutes to present their case, and the city staff will have five minutes to present on behalf of the planning commission. Counselors will have 15 minutes to ask questions following those presentations. And just to let you know, up there the timer says three minutes. I'm gonna do two minutes here, so when you see the light come on, it means that the we're two minutes in and you have three minutes remaining. You have five minutes. Okay. All right. So I'm gonna try to go through this pretty quick then. Um so my name's Brian Morris. Um, I'm of course writing for the appeal for the um decision from the Duluth Planning Commission. Um, first to give some little background information. I've been a landlord city of Duluth since 2012. Um as long as I've been a lifelong resident, I've worked in Duluth, I've been a teacher in Duluth, I've I've committed my life to you know living in Duluth, Minnesota, working and being a landlord. So just to give you some I and also I submitted this to the city council, so and also a couple other letters too. Um so um I guess I'll just go straight through it. Um so on approximately one for 2022. I was drawn number uh 77, initial vacation unit lodge. So the original one back, I was I was drawn 77. I went through all the process, so I'm trying to go through this kind of quick because I thought I had 15 minutes. Um, what I did was I got a vacation or accessory home share dwelling unit.
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