Duluth City Council Meeting and Committee of the Whole - March 23, 2026
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Duluth City Council Meeting and Committee of the Whole - March 23, 2026
The Duluth City Council met on Monday, March 23, 2026, at 6:00 PM in the Council Chambers. The agenda included two Committee of the Whole presentations (Athletic Venues Reinvestment Initiative and Spirit Valley Core Investment Area Plan), followed by the regular council meeting. During the regular meeting, the council approved minutes, a consent agenda, several regular agenda items, and two ordinances. Two vehicle purchase resolutions were referred back to administration. All votes were unanimous (9-0) unless otherwise noted.
Committee of the Whole: Athletic Venues Reinvestment Initiative
Staff from Property, Parks, and Libraries (Eric Berkland, Katie Bennett, and Jessica Peterson) presented an update on the Athletic Venues Reinvestment Initiative, funded by the "half and half" tax (one-half percent food and beverage tax and one-half percent lodging tax). They noted the fund balance is approximately $31.2 million. Phase one projects were previously approved, including Anger Irrigation, Spirit Mountain Nordic Center snowmaking/lighting, Wade Stadium repairs, and Gary New Duluth skate park. Community engagement for later phases included three workshops with over 100 attendees, six focus groups, a survey with over 1,400 responses, and 17 user group questionnaires. The market analysis by Johnson Consulting concluded Duluth should focus on upgrading existing facilities rather than adding many new outdoor venues, with market support for synthetic turf fields, indoor multi-use courts, and indoor ice. Staff recommended prioritizing deferred maintenance and core infrastructure, then leveraging partnerships for additional amenities. Councilors asked questions about fund balance, youth vs. adult usage, the future of Freiburger Arena, potential new ice facilities, and east-west equity. Councilor Desotelle expressed concern about imbalance between west and east side facilities. Councilor Forsman requested a line-item breakdown of the $31 million allocation.
Committee of the Whole: Spirit Valley Core Investment Area Plan
City Planner Mr. Deming presented the Spirit Valley Core Investment Area Plan, a small area plan for West Duluth/Spirit Valley. The study area boundaries were described, and community engagement included 352 participants at Spirit Valley Days, 272 survey responses (63% from Spirit Valley), and 74 attendees at a recent community meeting. Top community priorities were bringing more businesses, improving walkability, and adding housing. The plan includes recommendations for redeveloping the former Kmart site (e.g., re-establishing a street grid, mixed-use development), improving pedestrian and bike infrastructure, and potentially accommodating 700 housing units. Councilors asked about attracting tourists, interest from developers, Kmart ownership (believed to be the Oliver family), and coordination with the future Transportation Commission.
Consent Calendar
- Minutes of the March 9, 2026 meeting were approved unanimously by voice vote.
- The consent agenda was approved unanimously by voice vote. It included:
- Resolution 26-0212R: Lawful gambling applications (Lake Superior Steelhead Association).
- Resolution 26-0213R: Various liquor licenses (temporary licenses for Stella Maris Academy and Ecolibrium 3; temporary expansions for Bent Paddle and Taste at Fitgers).
- Resolution 26-0191R: Contract with Greystone Construction for three brine salt material sheds, not to exceed $131,690.
- Resolution 26-0202R: Amendment to Truepani agreement for lead service line filter pitcher and test kit services, increasing amount by $220,116 to a new total of $511,016.
- Resolution 26-0203R: Contract with JMF Construction for High Priority Lead Service Line Replacement Phase 2, not to exceed $1,640,372.
- Resolution 26-0204R: Contract with KorTerra, Inc. for utility locating services for five years, not to exceed $54,950.
- Resolution 26-0176R: Agreement with St. Louis County for Operation Stonegarden police services, accepting $75,085 in reimbursement.
- Resolution 26-0179R: Memorandum of Agreement with Minnesota State Historic Preservation Office regarding Chester Bowl Chalet demolition and replacement.
- Resolution 26-0180R: Host site agreement with True North AmeriCorps for placement at Duluth Public Library at no cost.
- Resolution 26-0182R: Agreement with TKDA for design and engineering for Park Point Beach House exterior improvements, not to exceed $58,700.
Public Comments & Testimony
- Linda Herron spoke during the agenda item public comment period, urging the council to purchase electric vehicles (EVs) rather than gasoline-powered fleet vehicles. She cited the Duluth Climate Action Work Plan, the goal of carbon neutrality by 2050, and the city's Race to Zero commitment. She expressed full support for the amendment requiring at least two EVs or hybrids in the vehicle purchase resolutions.
- Roy Hamlin spoke during the non-agenda public comment period about a vape shop being constructed next to Hamlin Music Academy. He stated this was his ninth visit to the council, requested an interim ordinance to prevent the vape shop, and expressed frustration with the lack of response from council members.
Discussion Items
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26-0184R: Purchase of five Ford Transit T-250 utility vans ($272,552.50) Councilor Desotelle moved approval, then proposed an amendment to require at least two of the five vehicles be EV or hybrid. Councilor Klana spoke in support of the amendment. Director Benning (Public Works) stated that the city lacks charging infrastructure and that the state contract may not include EV vans. He recommended referring the item back to administration rather than amending. Councilor Desotelle withdrew the amendment and moved to refer the resolution back to administration. The motion carried unanimously (9-0).
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26-0185R: Purchase of three Ford F-250 crew cab pickups ($160,921.11) Councilor Desotelle moved to refer the resolution back to administration, citing the same concerns about EV options and infrastructure. The motion carried unanimously (9-0).
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26-0192R: DECC facility conditions assessment ($150,000) Councilor Johnson moved approval. Councilor Durwachter expressed support, noting the assessment is long overdue and that St. Louis County is contributing half the cost. The resolution passed unanimously (9-0).
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26-0193R: MnDOT ten-year limited use permit for Lakewalk Trail The resolution authorizes construction, maintenance, and operation of portions of the Lakewalk Trail within MnDOT's right-of-way on Trunk Highway 35, at no cost to the city, with a renewal term up to ten additional years. It passed unanimously (9-0).
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26-006-O: Ordinance amending mobile food truck licensing period The ordinance changes the licensing period in Section 27-18 of the Duluth City Code. It passed unanimously (9-0).
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26-008-O: Ordinance dedicating perpetual easement for trail and recreational purposes The ordinance dedicates a perpetual easement over city-owned property for trail and recreational uses. It passed unanimously (9-0).
Key Outcomes
- Approved minutes of the March 9, 2026 meeting unanimously.
- Approved consent agenda unanimously (all items listed above).
- Resolution 26-0231R (board and commission appointments/reappointments) passed unanimously (9-0).
- Resolution 26-0232R (Planning Commission, DTA, Spirit Mountain Authority appointments) was tabled unanimously (9-0) to allow for candidate interviews.
- Resolution 26-0201R called a public hearing on the Orchard of Morgan Park Tax Increment Financing District; passed unanimously (9-0).
- Resolution 26-0184R was referred back to administration unanimously (9-0).
- Resolution 26-0185R was referred back to administration unanimously (9-0).
- Resolution 26-0192R passed unanimously (9-0).
- Resolution 26-0193R passed unanimously (9-0).
- Ordinance 26-006-O passed unanimously (9-0).
- Ordinance 26-008-O passed unanimously (9-0).
- Councilors expressed gratitude to retiring Public Works Director Jim Benning, and Councilors Klana and Durwachter apologized for prior statements about the finance department.
Meeting Transcript
Well I would have to do it. Yes, I can. Can you hear me? We sure can, thank you. Yeah, yeah. Yeah, but all there and yeah, okay. Oh yeah, yeah. Counselors, we're gonna get ready for the committee of the whole deep. You wanna bring it together. Um good afternoon. Good evening. Um welcome. We have a committee of the whole. This is for the Athletic Venues reinvestment initiative. If you could just give us your names of who you are, introduce yourselves, and you can get started. Um what we'll do is we have about uh 30 minutes, so we'll save questions for after, if that's okay. Counselors. Thank you for being here. Thank you, Chair Kennedy Counselors. I'm Eric Berkland, Director of Property Parks and Libraries. Katie Bennett, Senior Parks Planner. And Jessica Peterson, Parks and Recreation Manager. Could you two bring the mics closer to you, please? Is that better? Can you hear that? That's better. The last mic worked really well, so whatever that person's taking and copy them. Oh, well, thanks for having us here this evening. Um I'm not gonna be doing most of the talking, it's gonna be Katie and and Jess. But uh just wanted to kick it off by saying that um PPL staff have been working for uh quite some time on this initiative. We have looked at all of our athletic facilities. We've talked with stakeholder groups and uh worked with a consulting firm uh to go through a comprehensive process of reviewing the current facilities that we have, the condition that they're in, and we've looked at various options for reinvestment into our athletic uh facilities across the entire city. So tonight we're just going to be giving you an overview of um where we started and where we are now and how we are proposing that we proceed to move forward with this project. Thank you. Katie, your guests? Yep, I'll take it from here. Okay, good evening, counselors. Thank you for the opportunity to present you an update on our athletic venues reinvestment initiative. Um so I'd like to just start with a quick review of the legislative history of the funding that makes this initiative possible, which is our so-called half and half tax. The half and half tax refers to two existing taxes in Duluth. The first is a one-half of one percent of Duluth's food and beverage tax, and the other is a one-half of one percent of Duluth's lodging tax. Per state law, the food and beverage taxes and the lodging taxes are considered tourism taxes and may only be used in a manner that supports tourism. The enabling legislation for specific tourism taxes often includes additional restrictions. And here's how half and half tax project financing works here in Duluth. The city borrows to pay for authorized tourism supporting improvements, and then the annual half and half tax revenues are used to make the debt payments on that borrowing. And it was then reauthorized for athletic venues in 2023. So in January of 2023, this city council unanimously approved resolution 95R, which supports the extension of the half and half tax fund to half and half tax to fund 36 million dollars in additional capital improvements. And this time for parks-based athletic venues that support sports tourism and our Duluth quality of life. In May of that same year, the Minnesota legislature and Governor Walls fulfilled council's request with passage of a 2023 omnibus tax bill that includes a provision authorizing renewal of the half and half tax to fund improvements to our parks-based athletic venues. Now to select projects eligible for our half and half funding, the following question is used.
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