OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Duluth City Council Meeting - October 14, 2025

City Council — Tuesday, October 14, 2025
BodyDuluth, Minnesota
SessionCity Council
DateTuesday, October 14, 2025
StatusFILED
Video Record
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0:00

Parks and trails also provide essential transportation links and contribute to public health, environmental sustainability, and community well-being.

0:10

However, the Duluth Parks Recreation Division faces ongoing financial challenges.

0:16

The 2011 park fund levy set funding at $2.6 million annually, a fixed amount that does not adjust for inflation or rising costs.

0:27

Over time, this has reduced the fund's purchasing power and resulted in continual reduction in the park's budget without cuts formally being made.

0:38

As a result, revenue for parks operation and capital improvements has steadily declined.

0:44

Limited funding for routine maintenance leads to costly deferred maintenance.

0:50

Without changes to the current budget construction, capital funding for Duluth Parks could be depleted by 2028.

0:56

In passing our resolution last month, the Parks Commission respectfully asked the council and administration to treat the fixed park fund as the foundation for the parks budget.

1:08

Offset increases to the expenses with the general fund or other or other sources.

1:13

Otherwise, the division will effectively continue to operate with a reduction in their budget.

1:20

Remember, the essenties plan actually called for an increase in park funding in line with an industry standards.

1:28

The plan also called for strategic investments to decrease routine in long-term maintenance requirements.

1:35

Our resolution hopefully serves as a reminder of these strategies that have already been adopted.

1:41

We also hope the council will continue to work with Parks and Recreation Department, our Commission, and other key stakeholders, such as some of the folks here today with me, to explore other long-term solutions.

1:54

Some of those discussed could include but are not limited to private public partnerships, alternative funding models, and asset reduction.

2:04

That said, of all these potential solutions, particularly with respect to asset reduction, they all must be conducted with full public transparency, utilizing public planning processes and guiding principles of adoptive plans, including the essential spaces and Imagine Duluth 2035 comprehensive land use plans.

2:25

I spoken to many of you throughout my tenure here at Parks Commission, and I know that all of you value our park system.

2:32

I also know that you are weighing some very difficult and big decisions right now with respect to our budget.

2:39

But I want you to know that the Parks Commission is ready to think bold.

2:43

We are willing to think big.

2:45

We are stewards of these lands, and they're held in trust for generations, as they always have been.

2:51

The Parks Commission is here to take the long view.

2:54

We know this discussion and this budget here tonight is just one step in changing the trajectory of Duluth Parks funding.

3:01

Please view parks as being part of the solution.

3:05

They underpin our economy and quality of life.

3:09

I thank you for this time and the work that you do to make Duluth Parks a truly pre-eminent world-class park system.

3:17

Thank you, Mr.

3:18

Demer.

3:19

Are you willing to take questions?

3:21

Uh President Tolmek, I will answer questions as I can as I can within my ability.

3:26

Counselors, do we have any questions for Mr.

3:28

Dimer?

3:33

Counselor Swenson.

3:34

Thank you, Mr.

3:35

Demer for being here, and you're a very strong advocate for parks and have been a great support of me as I've transitioned into supporting you guys.

3:43

When you talk about public-private partnerships, have you had any conversations of what this might look like or what the goal of the Parks Commission might be on that?

3:52

Thank you, Counselor Swenson.

3:54

Uh in the conversations that I have you know talked with folks about, it seems like there could be potentially a couple ways to look at this.

4:02

There could be the long-term, large private partnerships as well as not going to say small, but like trail segment style of types of sponsorships as well.

4:15

So I think it very much depends on the nature of the sponsorship itself, but I there are models out there for large long-term private public partnerships within parks in the state that we could look at for potential support for our infrastructure.

4:31

Thank you.

4:32

Thank you, Councillor Swenson.

4:34

Counselor Awell.

4:35

Thank you, President Timonic.

4:36

Thank you so much, Parks uh Parks Board President Demer for being here and giving your presentation.

4:42

It seems um, excuse my voice.

4:44

Um slowly losing it due to the weather changes.

4:47

Um quick question for you.

4:49

You had mentioned um on the similar line of uh private public relationship.

4:56

I know that there's a lot of entities that support uh the general programming that happens around our parks.

5:01

Multiple different um you know I had the opportunity to serve on the parks board the previous year and advocate and I heard a wide range of just amazing community members who are you know um have park oriented activities and groups that meet.

5:18

And I was just curious I know we on the library um side we know that the library foundation does a lot of foundation work but then the friends of the library also does a lot of programming and supports the library staff in bringing in small amount donations.

5:32

I'm just curious have there's been ever conversations within the parks board of like a friends of the parks that kind of oversees brings together all of those smaller groups um and does some of those funding efforts where that maybe that public nonprofit partnership could potentially come in.

5:50

So I was just curious on your thoughts on that.

5:52

Yes thanks for the question Counselor Owell.

5:55

There have been conversations uh regarding um different funding models and such and there are um potential there to look at things like a parks foundation for example those are some of the so there's some of the points that we would like to at least bring to the table and are more than willing to the um to to have that discussion there are certainly considerations with that um especially when you're talking about the types of monies that would uh be required to make the substantial move on something like that um but I talking with the public I do think that there is a genuine interest in how private individuals can help with some of these problems and I think when we're talking in particular about parks there it seems to be a unified theme that people recognize their importance and people seem like they are willing to get behind especially if we are willing to think outside the box.

6:57

Thank you so much if I may follow up go ahead thank you President Timonic thank you so much um for that your response excited to hear that there's some conversations in that manner um and the reason I asked is I've heard from so many different visitors um while I'm on the parks trail who who specifically say that they're coming to Duluth to really access our nature to access so it's like I think the parks is much so tied with you know tourism to Duluth and I know we're gonna have a big conversation around the tourism taxes today.

7:27

Curious if you know how the Parks Board is kind of also viewing the conversation of a regional parks board and I'm wondering if you could kind of um chime in here because I know that you know the users of our parks is not just Dules residents but also quite a few residents in our local cities too has local cities um you know I know the administration's been working on this too but has um folks from other surrounding cities reached out regarding their support of parks to the Parks Board thanks for that question counselor owl um first back to the economic side of things and just recently um explorer Minnesota put out a report of over 800 million dollars annually to St.

8:09

Louis County of economic output due to outdoor recreation no doubt Duluth Parks is a significant contributor to that and you're absolutely correct uh a lot of people come to Duluth for outdoor recreation pursuits uh also worth reminding ourselves that when the majority of Duluth Parks was built Duluth was the city was the urban center here there were literally there was no Rice Lake there Procter and Hermittown were very different size municipalities and so there is this regional use of our system there's no doubt about that whether individuals have reached out or not I know there has been conversation um from uh some of the folks about connections like with Keene Creek coming advancing their trails down to the west end of town here there definitely is conversation but a major hurdle of course with a regional parks district would be the political will of the surrounding municipalities so that would absolutely be something we would look to our political leaders to help us with thank you so much counselors other questions I I do have one Mr.

9:30

Demmer can you remind us how many parks there are in Duluth in the park system that's a good good question uh President Tomick I believe it's 164 okay and some of those smaller parks um I'm thinking about the economic um ability to to maintain all those parks do we have an adopt a park program for some of those smaller parks that aren't maintained uh President Tomek that I could tell you in certainty other than the fact that I've seen signs for different adopt uh boulevard type of the boulevard type of parks I that I couldn't tell you for sure that answer um one thing I I would highlight though is that we do recognize that there are parks that don't necessarily fit squarely into our essential spaces plan there are spaces um a lot of them are either tax forfeited or donated outright that

Discussion Breakdown — Share of Meeting
Affordable Housing██████████████████18%
Human Rights Commission█████████████13%
Economic Development███████████11%
Tourism Management███████████11%
Procedural███████████11%
Parks and Recreation████████8%
Public Engagement███████7%
Public Safety████4%
Fiscal Sustainability███3%
Summary of Proceedings

Duluth City Council Meeting - October 14, 2025

The Duluth City Council met on Tuesday, October 14, 2025, at 6:00 PM in the Council Chambers. The meeting included presentations on parks funding, the 2026 tourism tax allocation process, and the city's Housing Trust Fund, along with public comments on parking rates, right-to-repair, and surveillance. The council approved most items on the consent agenda, passed several resolutions and ordinances, and tabled a resolution on short-term rental moratorium pending a future vote.

Consent Calendar

  • Resolution 25-0758R: Authorized a change order with Stack Bros. Mechanical Contractors for the DECC hot water pipe replacement (Phase 1) for $94,425.00, new total not to exceed $319,665.00.
  • Resolution 25-0797R: Approved issuance of liquor license applications (transfers for CPGM to Greenmill, Rosscoe's, and Blacklist Beer).
  • Resolution 25-0776R: Confirmed appointments to City of Duluth boards and commissions.
  • Resolution 25-0742R: Vacated a portion of right-of-way along Hazel Street between 79th and 81st Avenues West.
  • Resolution 25-0808R (Item 6): Adopted interim controls pending final decision on a moratorium for certain short-term rental permits – pulled and tabled.
  • Resolution 25-0722R: Authorized acceptance of tax-forfeited land from St. Louis County for road purposes.
  • Resolutions 25-0763R through 25-0782R: Accepted permanent and temporary easements in the Lincoln Park neighborhood from Minnesota Power, Durbin Holdings, Farrell Brothers, Kornerstore #800, Lamar OCI North, Rohlfing of Duluth, and WB Ibiza – at no cost to the city. Councilor Forsman abstained from items 25-0763R and 25-0764R due to employment.
  • Resolution 25-0783R: Authorized acceptance of additional tax-forfeited land for road purposes.
  • Resolution 25-0793R: Authorized an agreement with Northland Consulting Engineers for preliminary design of the Ideal Street Reconstruction Project for $59,560.00.
  • Resolution 25-0794R: Authorized an agreement with MnDOT for ownership/maintenance of roadway and storm sewer adjacent to Trunk Highway 535.
  • Resolution 25-0795R: Awarded a contract to Ulland Brothers, Inc. for the East Superior Street Mill and Overlay Project (45th Ave E to 33rd Ave E) for $646,375.00.
  • Resolution 25-0796R: Authorized an agreement with Short Elliott Hendrickson Inc. for design services for the 4th Street Reconstruction Project for $1,349,940.00.
  • Resolution 25-0779R: Accepted a $117,600 grant from the Minnesota Department of Public Safety for the 2026 Towards Zero Deaths Project and authorized an agreement with partner agencies.
  • Resolution 25-0784R (Item 23): Authorized purchase of a Drone as First Responder program, Draft One dictation software, storage, maintenance, and support from Axon Enterprises for six years (2026-2031) for up to $1,919,995.09 – pulled and debated separately.
  • Resolution 25-0785R: Authorized a software license agreement with N. Harris Computer Corporation for i2 data processing software for one year at $2,427.60.
  • Resolution 25-0800R: Authorized a ten-year multi-jurisdictional agreement with Hermantown for a regional tactical response team.
  • Resolution 25-0789R: Authorized a development agreement with the Chester Bowl Improvement Club for reconstruction of the Thom Storm Chalet and Outdoor Recreation Center.
  • Resolution 25-0790R: Accepted a $2,312,000 grant from the Environmental and Natural Resources Trust Fund for the Chester Bowl project.
  • Resolution 25-0791R: Assumed and amended an agreement between Chester Bowl Improvement Club and LHB, Inc. (total not to exceed $197,625.00).
  • Resolution 25-0792R: Accepted a $560,000 EPA grant for design and implementation of Waabizheshikana: The Marten Trail Segment 7.

The consent agenda passed 9-0 after removing items 6 and 23.

Public Comments & Testimony

  • Renan Goodrich (Indigenous Commissioner): Expressed gratitude for Indigenous Peoples' Day recognition and urged the council to approve four new Indigenous commissioners to continue positive work on tribal relations and cultural expertise.
  • Sam Weston (1509 E 1st St): Voiced outrage at the Parking Commission's recommendation to double on-street parking rates to $2.50/hour, arguing it would harm downtown revitalization and burden working Duluthians.
  • Barb Monty (2114 E 5th St): Spoke against the proposed "right to repair" ordinance, stating it would upset landlord-tenant balance and cited negative outcomes in St. Paul (80% reduction in building permits, $1.6B lost property value).
  • Marcus Edgett (8925 Congdon Blvd, Human Rights Commissioner): Supported consolidating protected class commissions into the Human Rights Commission but emphasized that commissions should vote voluntarily; expressed concern over the proposed restructuring of the NQT2SLGBIA commission without its consent.
  • Jay Walker (Executive Director, Great Lakes Aquarium): Supported tourism tax funding (Resolution 25-0805R), noting the Aquarium's 2024 record attendance of 224,000 (75% from >100 miles away) and $43 million annual economic impact. Highlighted leveraging tourism tax for state grants (e.g., $500,000 for Lava to Lakes exhibit).
  • Josie Leport (903 E 9th St): Opposed Leicester Park conveyance to DITA without following the required public process (Parks Commission, Planning Commission reviews, comprehensive plan amendment, rezoning). Cited statutory limits on tax-forfeit land acquired for open space.
  • Speaker opposing Resolution 25-0784R (621 Atlantic Ave): Urged rejection of the $1.9 million drone program, arguing funds should go to community needs (libraries, crisis response, parks) and raised surveillance concerns in the current political climate.
  • Lauren Martell (623 E 7th St): Criticized the budget process for setting the levy without full budget details; warned about rising property taxes from city, county, and school district levies.

Discussion Items

  • Parks Commission Presentation: Parks Commission President Demer presented ongoing financial challenges – the 2011 park fund levy of $2.6 million fixed annually has lost purchasing power, and capital funding could be depleted by 2028. He called for treating the fixed fund as a foundation, offsetting increases through general fund or other sources, and exploring public-private partnerships, alternative funding, and asset reduction with transparency. Councilors asked about private partnerships (e.g., a parks foundation, regional parks district), the number of parks (164), and asset divestment opportunities. Demer noted the Parks Commission is open to bold thinking.
  • Visit Duluth Presentation: Executive Director Haley Hedstrom detailed the 2026 tourism tax allocation process. The discretionary amount is $695,000, now fully administered by Visit Duluth under a five-year service agreement (approved March 2025). Applications open within a week, close in early November, awards by end of November. Key changes: requiring visitor origin data (zip codes) for funding eligibility; refined application questions emphasizing measurable outcomes, revenue diversification, and impact if unfunded. Councilors raised concerns about geographic equity (ensuring West Duluth organizations compete fairly) and conflict of interest in the review committee. Hedstrom confirmed non-recipients serve on the committee and scoring rubrics ensure fairness.
  • Housing Trust Fund Presentation: Senior Housing Developer Tom Church and Housing Planner Lena Fancook reported on the fund established in 2021 with $4 million from the general fund. Current fund value ~$4.7 million; balance ~$2 million after 17 loans totaling $5.5 million, supporting 135 housing units (70 completed). Nine loans repaid ($2.7 million revolved). Affordability incentives: 12 of 17 loans (70%) supported affordable housing, creating 106 affordable units (49 completed). Success stories included a fire-damaged triplex in Observation Hill ($375,000 loan) and a fourplex in Lincoln Park ($600,000 loan, 3.5% interest, $50,000 forgiveness). They announced a new dedicated affordable housing program, seeded by a $225,000 state grant (MHFA), plus a planned partnership with LISC (~$3 million) for a blended loan product totaling ~$4 million. Projected 2026 fund value: $6–6.5 million. Councilors praised the work and asked about consulting other communities (e.g., Detroit) and the partnership with LISC.
  • Resolution 25-0784R (Drone Program): Councilor Awal pulled the item, expressing concern about spending $1.9 million during a projected $5.5 million deficit and surveillance implications. She noted the program could improve police response efficiency and potentially save costs by reducing officer dispatches. After discussion, Councilor DeLuca pointed out the cost is spread over six years and represents a staff supplement. The resolution passed 8-1 (Awal opposed).
  • Ordinances on Protected Class Commissions: First readings of Ordinance 25-027-O (incorporating protected class commissions as committees within the Human Rights Commission) and Ordinance 25-026-O (integrating the NQT2SLGBIA commission into the HRC) were conducted. Councilor Awal clarified her ordinance does not force any commission to change but establishes a committee structure; she requested commissions vote by end of November. Councilor Kennedy noted the NQT2SLGBIA commission has quorum and should meet soon. Councilor DeLuca suggested a more generous timeline (third quarter 2026) but Awal preferred by year-end. Councilor Randorf noted commissions can call special meetings. A personnel committee meeting on October 23 will provide updates.
  • Leicester Park/Golf Course Clarification: Councilor Forsman clarified that the Leicester Park land swap with the county did not involve Lester Park Golf Course. Manager Hobbes stated a conveyance of the golf course to DITA will initiate a prescribed public process with a land use study, Planning Commission review, and multiple opportunities for engagement. No action was on tonight's agenda.

Key Outcomes

  • Consent Agenda: Approved 9-0 with items 6 (tabled) and 23 (separately voted) removed.
  • Resolution 25-0805R (Tourism Tax Distribution): Passed 9-0.
  • Resolution 25-0781R (Development District 17 Modification): Passed 9-0.
  • Resolution 25-0808R (Short-Term Rental Interim Controls): Tabled to be considered with Ordinance 25-028-O at a future meeting; passed to table.
  • Resolution 25-0784R (Drone as First Responder Program): Passed 8-1 (Councilor Awal dissenting).
  • Ordinances 25-023-O (Lakewalk Restoration Bonds, $1,245,000) and 25-024-O (Lakefront Restoration Bonds, $1,840,000): Passed 9-0 (second readings).
  • Ordinance 25-025-O (Cannabis retail business registrations): Passed 9-0 (second reading).
  • First readings of Ordinances 25-027-O, 25-028-O, and 25-026-O were completed; further action expected after commission votes.
  • Next Steps: Personnel committee meeting on October 23 to discuss boards and commissions; Planning Commission to consider Leicester Park Golf Course land use study on October 15; Housing Trust Fund ordinance amendments expected in early November.

Meeting Transcript

Parks and trails also provide essential transportation links and contribute to public health, environmental sustainability, and community well-being. However, the Duluth Parks Recreation Division faces ongoing financial challenges. The 2011 park fund levy set funding at $2.6 million annually, a fixed amount that does not adjust for inflation or rising costs. Over time, this has reduced the fund's purchasing power and resulted in continual reduction in the park's budget without cuts formally being made. As a result, revenue for parks operation and capital improvements has steadily declined. Limited funding for routine maintenance leads to costly deferred maintenance. Without changes to the current budget construction, capital funding for Duluth Parks could be depleted by 2028. In passing our resolution last month, the Parks Commission respectfully asked the council and administration to treat the fixed park fund as the foundation for the parks budget. Offset increases to the expenses with the general fund or other or other sources. Otherwise, the division will effectively continue to operate with a reduction in their budget. Remember, the essenties plan actually called for an increase in park funding in line with an industry standards. The plan also called for strategic investments to decrease routine in long-term maintenance requirements. Our resolution hopefully serves as a reminder of these strategies that have already been adopted. We also hope the council will continue to work with Parks and Recreation Department, our Commission, and other key stakeholders, such as some of the folks here today with me, to explore other long-term solutions. Some of those discussed could include but are not limited to private public partnerships, alternative funding models, and asset reduction. That said, of all these potential solutions, particularly with respect to asset reduction, they all must be conducted with full public transparency, utilizing public planning processes and guiding principles of adoptive plans, including the essential spaces and Imagine Duluth 2035 comprehensive land use plans. I spoken to many of you throughout my tenure here at Parks Commission, and I know that all of you value our park system. I also know that you are weighing some very difficult and big decisions right now with respect to our budget. But I want you to know that the Parks Commission is ready to think bold. We are willing to think big. We are stewards of these lands, and they're held in trust for generations, as they always have been. The Parks Commission is here to take the long view. We know this discussion and this budget here tonight is just one step in changing the trajectory of Duluth Parks funding. Please view parks as being part of the solution. They underpin our economy and quality of life. I thank you for this time and the work that you do to make Duluth Parks a truly pre-eminent world-class park system. Thank you, Mr. Demer. Are you willing to take questions? Uh President Tolmek, I will answer questions as I can as I can within my ability. Counselors, do we have any questions for Mr. Dimer? Counselor Swenson. Thank you, Mr. Demer for being here, and you're a very strong advocate for parks and have been a great support of me as I've transitioned into supporting you guys. When you talk about public-private partnerships, have you had any conversations of what this might look like or what the goal of the Parks Commission might be on that? Thank you, Counselor Swenson. Uh in the conversations that I have you know talked with folks about, it seems like there could be potentially a couple ways to look at this. There could be the long-term, large private partnerships as well as not going to say small, but like trail segment style of types of sponsorships as well. So I think it very much depends on the nature of the sponsorship itself, but I there are models out there for large long-term private public partnerships within parks in the state that we could look at for potential support for our infrastructure. Thank you. Thank you, Councillor Swenson. Counselor Awell. Thank you, President Timonic. Thank you so much, Parks uh Parks Board President Demer for being here and giving your presentation. It seems um, excuse my voice. Um slowly losing it due to the weather changes. Um quick question for you. You had mentioned um on the similar line of uh private public relationship. I know that there's a lot of entities that support uh the general programming that happens around our parks.

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