Duluth City Council Agenda Session and HRA Candidate Interview - January 9, 2025
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Duluth City Council Agenda Session and HRA Candidate Interview - January 9, 2025
The Duluth City Council held an agenda session on January 9, 2025, at 5:15 PM. The meeting included a public interview for a Housing and Redevelopment Authority (HRA) board appointment, a review of consent calendar items, and a discussion of agenda items for the upcoming meeting. No formal votes were taken during this agenda session.
Consent Calendar
- Resolution 20: Authorizing issuance and sale of $8,116,359 general obligation water utility revenue note (Series 2025A) for the Woodland Booster Station, at a 1.99% interest rate via the Public Facilities Authority.
- Resolution 18: Authorizing purchase of network switch replacements from Paragon Development Systems Inc. for $258,353.
- Resolution 29: Approving temporary on-sale liquor licenses to various licensees.
- Resolution 5: Transferring $112,000 in CDBG funds from SOAR Career Solutions to True North Goodwill.
- Resolution 23: Accepting $5,000 from the Minnesota Department of Labor and Industry for a registered apprenticeship strategic plan.
- Resolution 4: Renewing agreement with the Duluth HRA to accept $17,500 for the Tenant Landlord Connection program operated by One Roof Community Housing, and entering an agreement with One Roof for $46,250.
- Resolution 30: Confirming council committee assignments for 2025, with an update noted to include Vice President Tomonic on the PUC.
- Resolution 17: Authorizing purchase of a T-880 Vactor truck from McQueen Equipment Inc. for $638,260.
- Resolution 25: Amending contract with Northland Consulting Engineers for Chester Park Drive Alley Reconstruction, increasing amount by $90,600 for a new total of $156,340.
- Resolution 1: Accepting $1,246,603 from DOJ for the Comprehensive Opioid, Stimulant, and Substance Use Site-Based Program (COSUP), with agreement with St. Louis County for social worker services.
- Resolution 2: Accepting $26,486 from DOJ and executing partner agreement with St. Louis County.
- Resolution 3: Authorizing city to serve as fiscal agent for Lake Superior Violent Offender Task Force reimbursement under the Minnesota Anti-Heroin Task Force Program.
- Resolution 8: Accepting $999,268 from DOJ Bureau of Justice Assistance for the 2024 SACE project, with agreement with PAVSA.
- Resolution 13: First Amendment to agreement with Lake Superior Traffic Enforcement Team for 2025 Toward Zero Death enforcement grant.
- Resolution 14: Agreement with St. Louis County for police services under Operation Stone Guard, accepting $71,476 reimbursement.
- Resolution 15: Authorizing purchase of eight 2025 Ford Police Interceptors from 1040 Ford Inc. for $356,783.
- Resolution 16: Amending agreement with Alliance for additional architectural design services for Spirit Mountain Upper Chalet Phase 2, increasing by $52,000 to $2,299,710.
- Resolution 21: Five-year lease agreement with the University of Minnesota for Park Point aquatic center, boatshed, and recreational programming. Pulled from consent by Councilor Mayo due to employment conflict.
- Resolution 22: Lease amendment with Arrowhead Youth Soccer Association for office space at Wheeler Fields House.
- Resolution 24: Lease amendment with Arrowhead Youth Soccer Association for use/operation of soccer fields at Gene Duluth, Arlington, and Gary New Duluth.
- Ordinance 72: Authorizing Duluth Airport Authority to accept federal/state grants for improvements to Duluth International and Sky Harbor airports in 2025.
Discussion Items
- HRA Board Candidate Interview: The council interviewed a candidate (a Bell Bank market president and Duluth resident) for the HRA board. The candidate answered seven questions covering potential conflicts of interest, background/experience, interest in affordable housing, scheduling availability, strengths, current board service, and additional comments.
- The candidate stated he has never had a conflict with the HRA and would recuse himself if one arose.
- He highlighted his banking career (24 years), including underwriting single- and multifamily housing developments, and his service on the Center City Housing board (9 years) and Duluth Economic Development Authority (9 years).
- He expressed full support for the HRA's work and described the housing need as "massive."
- He cited strengths including asking hard questions, due diligence, collaboration, and compromise.
- He currently serves on the Miller-Dwan Foundation and Amber Wing Executive Committee.
- Councilors asked follow-up questions about financial insecurity, experience with redevelopment, and rental property ownership. The candidate noted his wife owns several single-family rentals and he had been involved in redeveloping the Water and Gas Building.
- Spirit Mountain Design Services (Item 18): Mr. Montgomery explained the amendment covers furniture, fixtures, and equipment design inadvertently omitted from a prior resolution. Councilor Durwachter questioned the cost; Mr. Montgomery agreed to provide clarification.
- Police Interceptors (Item 17): Chief Snow explained the 2025 Ford interceptors have standard gasoline engines due to supply chain issues and Ford not offering a hybrid; the department still prioritizes hybrids/EVs when available.
- Substance Use Response Team (Item 1): The social worker will be employed by St. Louis County for jail re-entry, with peer recovery specialists and a coordinator funded through the grant. Funds will be passed through to the county.
- PAVSA (Item 14): Councilor Al asked about the sexual assault kit backlog. Chief Snow said all kits were tested by 2019-2020, prosecutions continue, and the grant funds two PAVSA positions and three police department positions.
- Committee of the Whole Scheduling: Council discussed moving the upcoming lobbying update to before the council meeting; Mr. Montgomery said he would check with the lobbying firm.
Key Outcomes
- No formal votes were taken; the agenda session is for discussion and preparation.
- Item 19 (Resolution 21) was pulled from the consent calendar because Councilor Mayo recused herself due to employment with the University of Minnesota.
- The HRA board candidate interview will be followed by mayoral appointment and a future council vote; the candidate's name will be placed on an upcoming agenda.
- Administration will update the committee assignments attachment to include Vice President Tomonic on the PUC.
- Council will attempt to move the lobbying update before the regular meeting on Monday, pending confirmation from the lobbying firm.
Meeting Transcript
Um so we have seven questions for you tonight. And the first one is do you have any personal or financial interest, direct or indirect, uh, with uh the uh HRA board, or are you engaged in any capacity whereby a conflict of interest may arise? I thought about that question. So um uh my day job is as a banker, and in 24 years as a banker in Duluth, I've never had a conflict or I've never done business with the HRA. I can't imagine a scenario where I would if there was some future project where traditional bank financing was needed. I suppose in theory, there could be something there, but like I said, in 24 years as a banker in this community, I I've never experienced it. So I'm gonna say highly unlikely. If there was, if there was a situation situation like that arose, obviously I would abstain and and uh recuse myself. Excellent, thank you for that. A next question is please give a brief outline of your educational and work experience and how will your background experience be a benefit in relation to the housing and redevelopment authority. So from an education perspective, as I said, grew up in Duluth East High School, went on to UMD, so I'm a proud bulldog. Uh continued education uh for my career, went to the graduate school of banking at the Stonier School, which is at the University of Pennsylvania. Also took other other coursework related to banking. Um in terms of the my career itself, uh started my career at U.S. Bank in 2001 as a business credit analyst in 2004, became a lender, a business banker, that is, and then in tw uh was with Republic Bank from 2004 to 2019, I've been with Bell Bank from 2019 until the present, where I'm the market president. So, how will that background and experience benefit the HRA? So I have direct experience underwriting both single and multifamily housing developments throughout the our community throughout the region and in several states with my day job as a business banker and now as I said as a community president, which enables me to bring a realistic perspective when assessing housing projects and a pragmatic approach in decision making. With a background in traditional financing methods coupled with project development experience through my nine years of board service at Center City Housing and nine years on the Duluth Economic Development Authority, I've been exposed to many uh types of non-traditional financing, non-traditional being that otherwise other than a bank, uh, and subsidies to accomplish what is necessary to continue advancing our community while assisting those of whom are in need of the excellent, thank you for that. You t you talked a little bit about this, about your interest in affordable housing. Our third question is if you could expound a little bit more of your interest in this particular board. I think that right now, I think we can all acknowledge that we we hear it all the time, we see it all the time, we feel it all the time. The housing need in this community is massive. And again, it it it doesn't, it is we need affordable housing, we need workforce housing, we need high-end housing, that's my opinion. And I think the HRA's position in the community and the work that they're doing, it's greatly beneficial. Um so all of those things make me passionate about trying to improve our community. I think the HRA is in a great position to do so, and again, I'd like to be part of it. Excellent. Sounds great. Um the fourth question kind of deals with capacity. Do you foresee any personal scheduling conflicts which may prevent you from attending regular meetings? There's times where if quorum isn't met, voting can't happen. Do you ever foresee any conflicts there? I don't. Based on the schedule that's that's public, I don't see any issues with that. Of course, things may come up at times, and I understand that it is a commitment, and I fully intend to make all the meetings I can. Wonderful. Thank you for that. Fifth question. Uh what do you consider your personal strengths that you bring to the HRA? So outside of the past experiences that I have that I've already mentioned, um my willingness to ask hard questions, perform thorough due diligence, collaborate and compromise, should be a uh beneficial to the HRA. Wonderful. Uh next question. Are you presently serving on any other boards or commissions? And if so, which ones? The only ones I'm currently serving on right now are the Miller-Duan Foundation and then the Amber Wing Executive Committee. Thank you. And final question. Is there anything else you'd like to add concerning your possible appointment to the board? I don't think so. Any questions for me?
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