Duluth City Council Meeting: Downtown Plan, TIF Policy, Zoning Modernization, Transportation Commission, and Farewell to Councilor Mayou - June 16, 2025
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Duluth City Council Meeting - June 16, 2025
The Duluth City Council met on Monday, June 16, 2025, beginning with a Committee of the Whole presentation on the Imagine Downtown initiative, followed by the regular council session at 6:00 PM. Key actions included adoption of a policy on development incentives for tax increment financing (TIF), passage of a consent agenda covering 35 resolutions, approval of a resolution supporting comprehensive zoning and code modernization, and the first reading of an ordinance to establish a Duluth Transportation Commission. Councilor Mike Mayou, who resigned effective June 30, 2025, received tributes from colleagues during the meeting.
Committee of the Whole: Imagine Downtown Initiative
- Presentation by MIG Consultants: Jay Rankins and Sue Garner presented the draft downtown action plan, now approximately 90% complete. The plan focuses on achieving a five-year vision for a safe, welcoming, vibrant, and prosperous downtown neighborhood by 2030.
- Key Themes and Big Moves:
- Safety: Create a partnership between city, police, fire, property owners, and service providers to reduce homelessness, mental health, and drug-use issues.
- Housing: Establish a development corporation to create 1,500 new residential units downtown, aligning with the mayor's housing goal.
- Neighborhood Amenities: Support a food cooperative model to provide grocery and services.
- Infrastructure: Improve walking and biking routes connecting downtown to surrounding neighborhoods.
- Economic Development: Tie K-12 and higher education to workforce development to support downtown employment.
- Focus Areas: The plan identifies five focus areas: Gateway/Civic Campus (transit-oriented development), Waterfront (better multimodal connections), Downtown Core (adaptive reuse and street-level activation), Canal Park (physical and programmatic connections to core), and Medical District (partnership with Essentia Health). Catalytic projects include streetscape improvements, skywalk enhancements, and infill development on vacant lots.
- Next Steps: The consultants will hold additional community engagement on July 9-10, with a final plan expected by the end of July 2025. Councilor Randorf noted that Boreal Waters Community Foundation provided a matching grant for the initiative.
Consent Calendar
- Delinquent Fee Assessments: Resolutions confirming assessment rolls for:
- Delinquent solid waste collection fees (March 1, 2024 – June 1, 2025) [25-0493R]
- Property violation assessments (April 1, 2024 – April 1, 2025) [25-0496R]
- Delinquent utility fees (January 1 – December 31, 2024) [25-0511R]
- Liquor Licenses: Premises application for Irving Community Association [25-0514R]; temporary on-sale licenses for Valley Youth Center, Duluth Superior Pride, and Grandma's Marathon [25-0515R]; 2025/2026 liquor license renewals [25-0516R]; transfer for Up North Taps LLC dba 7 West Taphouse [25-0517R].
- Reappointments: Michael Henderson and Jason Crawford to the Duluth Airport Authority [25-0513R].
- Housing Resolutions:
- Support for One Roof Community Housing's Decker II project with a conditional pre-commitment of $400,000 FY2026 HUD funds [25-0443R].
- Support for Union Gospel Mission's Mission Heights project with $400,000 HUD conditional pre-commitment [25-0446R].
- Joint Powers Agreement with Minnesota Housing Finance Agency for Low-Income Housing Tax Credit 2026 [25-0469R].
- Increase of $20,106.07 FY2025 HOME Investment Partnership Program [25-0488R].
- Reprogramming $48,030.71 of Emergency Solutions Grant funds [25-0489R].
- Decrease of $245 FY2025 Emergency Solutions Grant [25-0490R].
- Decrease of $9,087 Community Development Block Grant [25-0491R].
- Funding allocation changes and finalizing the 2025 Annual Action Plan [25-0492R].
- Conditional pre-commitment of $228,000 in Statewide Affordable Housing Aid for Mission Heights [25-0502R].
- Grant of $149,000 in SAHA funds to Center City Housing Corporation for Wadena West Project [25-0503R].
- Becks Road Land Use Study: Reimbursement agreements with Ulland Brothers, Inc. [25-0509R] and Iron North Productions, LLC [25-0510R].
- Skywalk Study: Professional services contract with Moore Iacofano Goltsman, Inc. not to exceed $58,900 [25-0512R].
- Public Works Items:
- Joint construction of pedestrian island and median with Zeitgeist Center for Arts and Community along 6th Avenue East [25-0482R].
- No-parking zone on 40th Avenue West between Grand Avenue and North 4th Street [25-0497R].
- County project on CSAH 91 (40th Ave. West) improvements [25-0498R].
- Contract award to A-1 Excavating LLC for 26th Avenue East/London Road water main relocation ($933,933) [25-0500R].
- Contract amendment with LHB, Inc. for Palm Street stormwater pond retrofit (increase of $254,718.78, new total $402,322.78) [25-0504R].
- Contract with Minnesota Power for Woodland Booster Station electrical upgrades ($319,209) [25-0505R].
- Five-year right-of-entry for Aerial Lift Bridge improvements (no cost to city) [25-0508R].
- Recreation & Library Items:
- First and second amendments to DNR ENRTF grants for St. Louis River Estuary access [25-0483R, 25-0484R].
- Contract with ArchKey Technologies for City Hall card access upgrades ($196,477.96) [25-0485R].
- Amendment to Confluence Inc. for Seawall/Baywalk/Harbor Plaza design ($28,560 increase, new total $664,830) [25-0486R].
- Nomination of Lester-Amity-Hawk Ridge Natural Area to Duluth Natural Areas Program (pulled from consent, passed separately) [25-0494R].
- Cooperative agreement with MN DNR for Perch Lake landing access improvements ($150,000 funding) [25-0495R].
- Amendment to LHB, Inc. for solar PV/storage site evaluation ($13,827 increase, new total $194,301) [25-0507R].
- Consent Agenda Vote: Passed unanimously (9-0) with Councilor Forsman abstaining on resolution 25-0505R due to employer conflict with Minnesota Power.
Public Comments & Testimony
- Library Funding:
- Theo Sperl, age 8, shared why the Duluth Public Library is special, citing programs and helpful staff.
- Dan Diallaird (Library Advocacy Committee) urged the council to avoid cutting library resources, noting the building's failing infrastructure, thin staffing, and aging collection.
- Betty Ramsland (former library board member) stated the library budget has not significantly changed since 2002, while the main library's HVAC, elevator, windows, and roof need repair.
- Transportation Commission: Seven speakers expressed support:
- Adam McGill (DTA Board) stated early public input will increase transparency and shift focus from cars to pedestrians.
- Libby Bent (Vibrant Streets Duluth executive committee) cited examples from St. Paul and Richfield where transportation commissions improved project outcomes and provided a professional forum.
- Forrest Vodden (Vibrant Streets volunteer) argued that infrastructure choices shape transportation culture; a commission would ensure diverse needs (seniors, families, people with disabilities) are heard.
- Alison Clarke emphasized the need for accessible participation on transportation issues.
- Kaitlyn Tillman (social worker, bike commuter) noted that people in poverty are disproportionately affected by transportation access; she referenced a pedestrian fatality on Mesaba Avenue.
- Kristin Zarr (new Duluth resident from Madison, WI) contrasted Duluth's poor pedestrian and bike infrastructure with Madison's, citing fake bike lanes and unsafe crossings; she supported the commission to improve safety.
- Parks and Green Space: Jose LaPorte (Parks and Recreation Commissioner, speaking as a resident) proposed codifying parks as core public infrastructure to enable eligibility for state/federal grants, addressing capital budget shortfalls without raising taxes.
- Tax Increment Financing Policy: Mike Casey criticized the TIF policy's allowance of vacation dwelling units (VDUs) in subsidized projects, arguing that TIF subsidies cannot be separated by unit type. He urged adoption of a policy that truly prohibits vacation rentals in subsidized housing.
- Lester-Amity-Hawk Ridge Natural Area: Nick Erickson, an adjacent property owner, requested removal of certain parcels from the nomination, citing potential impacts on housing development and existing access easements. He noted a pending litigation risk from the Hawk Ridge Neighborhood Association.
- Farewell to Councilor Mayou: Dave Montgomery thanked Councilor Mayou for his dedicated service to the Second District and the community.
Discussion Items
- Resolution 25-0393R: TIF Policy on Development Incentives: After being tabled the previous week, Councilor Durrwachter withdrew her five proposed amendments, stating she would reintroduce them later after further refinement. Councilor Forsman noted the policy is foundational and staff-led. Councilor Awal thanked staff for their work and indicated she will also bring additional amendments. The resolution passed unanimously (9-0).
- Resolution 25-0520R: Comprehensive Zoning and Code Modernization: Councilor Forsman moved the resolution, emphasizing the need to align rules with community goals to increase housing supply across all income levels. Councilor Nephew highlighted the urgency of increasing housing units. Councilor Awal stressed limiting short-term rentals (vacation dwelling units) to prevent displacement and gentrification, with further discussion planned. Councilor Durrwachter expressed concern about eliminating planning commission/council review of certain projects. Councilor Mayou noted recent removal of parking minimums as a positive step. The resolution passed unanimously (9-0).
- Ordinance 25-014-O: Establishing Duluth Transportation Commission (First Reading): Councilor Mayou introduced the ordinance, citing a year-long process with staff, mayor's office, and an AmeriCorps VISTA study of best practices from cities like St. Paul, Richfield, and Madison. The commission would oversee multimodal transportation policy, provide early public input, and advise on projects. Councilor Awal cited Duluth's low walk score (36/100), high crash rates, and five traffic fatalities in 2024 as reasons for urgency. Councilor Kennedy asked about district representation on the commission and coordination with the Metropolitan Interstate Council (MIC). Councilor Mayou agreed to consider district-based appointments and noted the commission would set its own bylaws, potentially including a MIC liaison. Councilor Forsman questioned the commission's role in the street improvement plan; Mayou clarified that approving street budgets is outside the commission's scope. The ordinance was read for the first time; second reading is scheduled for July 21, 2025.
- Resolution 25-0494R: Lester-Amity-Hawk Ridge Natural Area Nomination: Pulled from consent for discussion. Mr. Philby Williams (City staff) clarified that approval of the nomination is provisional; a full management plan will come back to council after one year, and the designation only applies to city-owned property, not adjacent private land. Councilor Swenson confirmed that the final plan will go through the Natural Resources Commission, Planning Commission, and council. Councilor Durrwacher asked if Mr. Erickson's concerns could still be addressed; Mr. Philby Williams confirmed they could be surfaced during the one-year planning period. The resolution passed unanimously (9-0).
- Farewell to Councilor Mike Mayou: Councilor Mayou announced his resignation effective June 30, 2025, due to family relocation. He expressed gratitude for the opportunity to serve, highlighting constituent casework and the importance of local government. Colleagues praised his dedication, passion, and service at a young age. Council President Tomanek noted a photo and reception would follow the meeting.
Key Outcomes
- TIF Policy on Development Incentives (25-0393R): Adopted unanimously (9-0). Staff and council will continue refining the policy in future meetings.
- Consent Agenda: Passed unanimously (9-0) with Councilor Forsman abstaining on resolution 25-0505R (Minnesota Power contract). All 35 resolutions approved.
- Comprehensive Zoning and Code Modernization (25-0520R): Adopted unanimously (9-0). Staff to return with recommendations within 150 days.
- Transportation Commission Ordinance (25-014-O): First reading completed; second reading and potential adoption set for July 21, 2025.
- Lester-Amity-Hawk Ridge Natural Area Nomination (25-0494R): Approved unanimously (9-0). One-year provisional period for development of a full management plan.
- Councilor Mayou's Resignation: Accepted with appreciation. Appointment process for interim Second District councilor to begin.
Meeting Transcript
Committee of the whole this evening. Thank you. Thank you, President Tomonik and Counselors. Great to be here. We wanted to provide you a little bit of an update on our imagined downtown initiative. I think many of you know we have been working on this since uh started it last summer and really looking at trying to develop a five-year plan for our downtown. Um we will have our consultants that will be joining us as well virtually to give you a bit of an update. One of the things that I just really want to go back and give you a little bit of the the background again is um you know many downtowns across the country have faced some of the same challenges we have since the pandemic, and that is dealing with uh fewer people in our downtown, fewer workers in the downtown. So really what's the future of our downtown? Where does it lie? How do you activate those spaces? And uh we know a lot of that will be in residential, so we've had many conversations about that. And what we've really said is we want the community to be involved in helping us to really develop that plan, that vision where we see our downtown in the next five years. So we took on um this initiative and really looked at being inclusive, ensuring safety and comfort for all, and looking at our downtown more like a neighborhood. Um you'll hear um probably Jay from our consulting team talk about the phrase neighborhoodification, and so that will be something that we'll like to share about today too. Um, a little bit of how this has come together. Um, we've had a steering committee made up of about 16 people who have helped lead this effort as well, including Councillor Ros Randorf has been on our steering committee, so we've been pleased to be able to have her input uh from that perspective. We've had city representatives, county representatives, uh folks from social services, as well as business professionals. So we've really tried to have a real broad group on our steering committee, and now it's going to be getting to the point where we have to start doing the more heavy lifting here locally because we'll be getting into some working groups and hopefully the implementation of this. So I would say right now we are probably at about 90% of being able to provide uh uh draft plan to all of you, and we thought it would be a great time to be able to present it to the council and share a little bit more as to some of the things that are coming out of this, some of the strategies, and hopefully maybe even mention a big move or two. So um I brought boards. You may have seen some of these boards um from our past presentation, but it's always fun to be able to share some of that, talk about some of the catalytic projects that we've maybe highlighted, as well as really talk about you know the goals of us really looking at our downtown as a neighborhood, being inclusive and making sure that our businesses are really vibrant down here and that it's a safe place for everyone. So with that, um we do have our consulting team from MIG with us, uh Sue Garner and Jay Rankins, and I am going to turn it over to them to be able to start things off. Now, we did hear we're going to hope if you guys have a presentation that it does show up correctly because um the monitors were doing some mirroring uh before. So we're gonna take a look and see what it looks like, Jay, but hopefully everything will come across well. So with that, I think I am turning it over to Jay. Yes, um, for some can you can hear me okay? Yes. All right. Um I cannot, I'm not seeing video, so hopefully we can make this work. Um I'm not sure why it's not coming through, but um are you all are you sharing the presentation on your end? Or do you need us to? Um we're not seeing the presentation right now. Do you have a way to share that, Alyssa? She hasn't been sent anything yet. So is there a way for Sue? Do you mind sharing? Oh no, I don't know. Yeah. Sorry, Scale set up here. So while we're waiting, I'll also mention um we just came from a steering committee meeting right before this. Um so it was a great opportunity for members to be able to have some input on some of the the draft plan, just the final things that we've really been looking at. And you know, just know that there are some things where we all didn't agree, and so this was a way for us to be able to work with MIG and to determine how do we come to a consensus just even with the steering committee for all of us to say this is the direction we think should be presented to the community, and it's also based upon what we've heard from the community. Yeah. Is it working to pull up the presentation? Um looks like I need permission. It says meeting organizers and presenters can share only. All right, we have IT help here. So we'll get that going for you. And I can also send it to Alyssa right now if we need to.
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