Duluth City Council Meeting - January 27, 2025: Consolidated Plan, Settlements, and Leadership Appointments
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Duluth City Council Meeting - January 27, 2025
The Duluth City Council met on January 27, 2025, at 7:00 PM in the Council Chamber. The meeting began with a Committee of the Whole presentation on the 2025-2029 Consolidated Plan and funding recommendations, followed by the formal council meeting that included public hearings, a consent agenda, and several major resolutions. Key actions included approval of a settlement for the Pastoret Terrace property, confirmation of new leadership positions, and unanimous passage of all consent agenda items.
Consent Calendar
- All 42 resolutions on the consent agenda were adopted unanimously (9-0). These included:
- Collective bargaining agreements for the Confidential Unit (2025-2027) and AFSCME Local 66 (Basic Unit, 2025-2027).
- Confirmation of assessment rolls for sidewalk repairs, sanitary sewer extension (Westwood Lane), and stormwater sewer extension (Woodlawn Street).
- Various contracts and agreements (e.g., Depot Foundation $150,000; Spirit Mountain $400,000; Great Lakes Aquarium $310,000; legal services $98,000; equipment purchases and maintenance contracts).
- Appointment of Matthew Staehling as City Administrator and Dr. Marsha Lue as Human Rights & Equity Officer.
- Approval of HUD funding requests (CDBG, HOME, ESG) and the 2025-2029 Consolidated Plan/2025 Annual Action Plan.
- Redevelopment grant application ($691,687 for Goodwill project) and demolition loan application ($305,000 for Lot D).
- Settlement approval (see Discussion Items).
- Numerous other routine authorizations (newspaper designation, grants, easements, facility planning, tree removal, park management, etc.).
Public Comments & Testimony
- Cindy Falconer (AFSCME member): Expressed appreciation for the collective bargaining agreement, stating it supports retention and talent acquisition while enabling staff to maintain excellent city services.
- Sean Eastman (city employee): Thanked the council for ratifying the AFSCME contract, highlighting solidarity and the power of unity.
- Andrea Hannack (former HRA resident commissioner): Supported Tim McShane's appointment to the HRA Board but urged the council to improve the application process for boards and commissions, noting glitches that prevented some from applying.
- Lauren Martell: Raised concerns about the Incline Village development, questioning the developer's financial credibility (citing a bankruptcy and a Fannie Mae lawsuit) and the project's delay. Urged scrutiny before proceeding.
Discussion Items
- Committee of the Whole Presentation (Consolidated Plan 2025-2029): Senior Planner Suzanne Kelly introduced the Community Development Committee, chaired by Steve Wick. The committee detailed the five-year plan and 2025 annual funding recommendations for CDBG, HOME, and ESG funds. Key funding areas: affordable housing (approximately $825,000 for 95 units), public services ($352,000, capped at 15% of total), economic development ($373,480 of $613,000 requested), public facilities ($330,520), administration ($470,000), and contingency plans. The plan was based on extensive public input: a community needs survey (231 responses), 30-day comment period, and public hearing with 14 written comments and 12 speakers. Goals include affordable housing, neighborhood revitalization, living-wage jobs, homelessness services, health services, food and child care access.
- Council Questions on Consolidated Plan: Councilor Mayou noted an attachment error and asked about Justice North's unfunded application. The committee responded that Justice North submitted a poor application and did not respond to follow-up questions; they were not new applicants. Councilor Swenson inquired about budget allocation percentages, which the committee sets based on community needs surveys.
- Resolution 25-0086 – Settlement for Pastoret Terrace (Respect Starts Here lawsuit): Vice President Nephew moved approval of a $2,130,000 settlement for the lawsuit over the Pastoret Terrace property. Councilor Randorf supported demolition as the only viable option due to structural instability, calling the settlement a reinvestment in the First Street corridor. Councilor Forsman thanked city attorney Tabor and staff. Councilor Kennedy added that the city will work with the Clayton Jackson McGee Memorial to ensure they are made whole. The resolution passed 9-0.
- Resolution 25-0063 – Amity Bluffs Development Agreement: Councilor Durrwachter noted the developer, Kevin Christensen, listened to community concerns and adjusted the platting. The resolution authorized a development agreement for the Amity Bluffs plat (east of Woodland Avenue and north of Vassar Street). Passed 9-0.
- Council Comments on Appointments: Councilor Awal highlighted the appointments of Matthew Staehling as City Administrator and Dr. Marsha Lue as Human Rights & Equity Officer, urging continued support and budget allocation for the equity work. Councilor Mayou praised the AFSCME contract and noted the need to address climate goals and staff the sustainability department. Councilor Forsman welcomed Staehling, thanked retiring City Administrator Dave Montgomery, and announced a future resolution on the Skywalk system. Vice President Nephew thanked Montgomery and welcomed Staehling.
- Public Hearing on Sewer Extensions and Sidewalk Assessments: No public speakers; hearings were closed.
Key Outcomes
- Consent Agenda: All 42 items adopted unanimously (9-0), including collective bargaining agreements, HUD plans, and various contracts.
- Settlement Approval: Resolution 25-0086 (Pastoret Terrace) approved 9-0; the city will pay approximately $2,130,000 to resolve the lawsuit.
- Development Agreement: Resolution 25-0063 (Amity Bluffs) approved 9-0.
- Appointments Confirmed: Matthew Staehling as City Administrator and Dr. Marsha Lue as Human Rights & Equity Officer (via consent agenda).
- Item Withdrawn: Resolution 25-0019 (Tim McShane appointment to HRA) was pulled and returned to administration at the request of the outgoing city administrator.
- Council Directive: Councilor Forsman announced plans to introduce a resolution on the future of the Skywalk system in February 2025.
Meeting Transcript
Committee of the whole, starting with senior planner Suzanne Kelly. Hello, and thank you very much for um having us. My name is Suzanne Kelly, senior planner with the Planning Economic Development Division. And I'm here with my staff, Phyllis Webb. Um, and we um are very excited to be here, and we are also very excited to um have the privilege to introduce to you to the community development committee members. The community development committee has some spending this past year working on the consolidated plan, which included an action plan of funding recommendations that is on Excel spreadsheet that was passed out to everybody. Um the committee members will provide um an oversight of each section, uh just mentioning key elements and are here to provide their insight and um wisdom of why they are recommendations are being made, and this is based on the input. They have spent many hours attending meetings, reviewing applications, and discussing what's best for the community and meeting the community goals. And so with my very brief presentation, I would like to introduce um chairperson Steve Wick. Thank you very much. Uh so good evening, President Tamonic and Counselors. Uh my name is Steve Wick, uh, and I uh serve as the chair of the community development committee. Um I want to thank you all for your time tonight. Uh before we begin, um I just want to kind of go over uh kind of a few things that we've kind of uh done in this past year. Uh so first off, um, as Suzanne mentioned, uh HUD requires public participation in this entire process. That's us in part. Um and through our work, uh we we do a lot throughout the year. Um the first thing that I want to quickly note is the consolidated plan. So this is a five-year plan. Uh this is our new one. This is the one that uh we will be discussing tonight, and uh you will have on your agenda uh for tonight's meeting. Um the last plan went from 2019 through uh 2024. And the uh new consolidated plan presented tonight covers 2025 through 2029. Uh the process for developing this new consolidated plan began in March of 2024. Uh HUD uh requires the five-year consolidated plan to be reviewed annually, uh and that portion uh is part of what is called the uh annual action plan, that annual part. Uh the funding priorities uh being recommended tonight are for that 2025 action plan. Uh and HUD requires that these funding priorities also have public input. So the CD committee met this requirement by SPRIT or my my uh bullet points here, having a public input session regarding community needs on June 25th of 2024. Uh and these aren't in any sort of uh order um unfortunately. Uh having city staff interview twelve agencies with an open five question survey asking about community needs and issues that we were then given and reviewed. Uh we held a meeting with African organizations to discuss our po uh specific needs and learn more about the process together. So that was basically an open um session where we met with some of the community partners that uh you'll see in the applications tonight and discuss what their needs were uh in real time. Uh not doing some sort of formal uh paperwork type thing, but having uh an honest discussion about it. Uh city staff also conducted a community needs survey over three weeks from May 10th through May 31st of this year. Uh that survey was available online, and city staff tabled and at community events with the survey. Um Planning and Development Division staff also emailed information about the survey and a printable flyer with a link and QR code to the survey to our community partners, uh, asking them to share the survey on social media. The city also shared that survey on its Facebook page. Uh city partners such as the library and career force were asked to display the information about the survey uh near computers so members of the public uh who have access to them could also fill it out there. In addition, and now I'm rookie talking of city staff here, but they do a lot of work for us on this. City staff tabled at three different events. They were at the Lincoln Park Farmers Market Kickoff Party on May 16th. They uh spent time at Union Gospel Mission on May 29th, and they were also uh at the Freedom Fridays at the Family Freedom Center in the Central Hillside on May 31st. Um, the community needs assessment received 231 responses, which was pretty good. Um we also had a 30-day public comment period and public hearing on our funding recommendations uh that you are discussing tonight. Um that was on November 19th of this past year. Uh one of the things uh, or a couple pieces of that, uh, that public hearing results in 14 written comments, and uh we had 12 people speak at our uh open session. And one of the themes that was brought up um continually throughout throughout that was collaboration. Um the organizations and agencies in our city uh do a lot of good work together, but they also do a lot of good work with the city. Um of the main questions that was asked during that meeting that uh got us all thinking a little bit, um, and we're hoping we'll get you thinking as well is that uh how can the providers work with the city to bring more funding to bear? What can the providers do to help the city bring in more funding, and what can the city do to help the providers bring in more funding?
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