Duluth City Council Meeting - May 26, 2026
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Duluth City Council Meeting - May 26, 2026
The Duluth City Council met on Tuesday, May 26, 2026, at 6:00 PM in Council Chambers. The meeting included approval of the consent agenda, public comments on several topics, consideration of resolutions and ordinances, and discussion of the Downtown Development Strategy which was tabled for further committee review.
Consent Calendar
- 26-0451R: Amendment to Crime Victim Services Prosecutorial Grant, extending term and adding $17,500.
- 26-0459R: Lawful gambling permits for Irving Community Club, Southern SLC Fair Assn (Tappa Keg and Aces on 1st), Piedmont Heights Hockey.
- 26-0463R: Liquor licenses including new off-sale for Sabor by Pedros LLC and Cave Enterprises, temporary on-sale for COGGS and Race Across Duluth, temporary expansions for Lemon's Reef (Grandma's and Shipwrecked) and Grandma's Marathon.
- 26-0458R: New civil service classification of Operations Program Coordinator and contract benefits.
- 26-0477R: New civil service classification of Workforce Development Supervisor and contract benefits.
- 26-0460R: DEDA subrecipient funding agreement with Inland Development Partners, LLC for contamination cleanup of Lot D ($2,134,320).
- 26-0461R: Support for Union Gospel Mission's request for multifamily funding and $400,000 pre-commitment for Mission Heights Housing.
- 26-0462R: Support for One Roof Community Housing's request for multifamily funding and $400,000 pre-commitment for Decker 2 project.
- 26-0465R: Second amendment to city loan agreement with Sofidel America Corp.
- 26-0467R: Joint powers agreement with Minnesota Housing Finance Agency for Low-Income Housing Tax Credit Program 2027.
- 26-0466R: License agreement with Duluth Seaway Port Authority for temporary use of property on Rice's Point for Lift Station 40 improvements (no cost to city).
- 26-0468R: Contract award to JMF Construction, Inc. for 5th Avenue West Down Drain project ($282,527.06).
- 26-0469R: Application to MPFA for forgivable loan for 2026 High-Priority Lead Service Line Replacement.
- 26-0470R: Application to MPFA for forgivable loan for 2026 Neighborhood Lead Service Line Replacement.
- 26-0476R: Ten-year agreement with GND Development Alliance for use and maintenance of Gary New Duluth Recreation Center.
All consent agenda items were approved unanimously by voice vote.
Public Comments & Testimony
On Agenda Items (Downtown Development Strategy):
- David Schimpf expressed concern that the strategy does not cap vacation dwelling units in the Main Street district, potentially undermining primary housing goals. He also noted the strategy is silent on public restrooms.
- Kristi Stokes (President, Downtown Duluth) expressed support for the strategy, noting it consolidates multiple previous plans (Imagine Downtown, comp plan, medical district plan) and provides a clear timeframe for action.
- Jnana Hand (property owner) urged consideration of building height limits and emphasized the importance of keeping the library downtown as a vital third space for community connection, especially for elders, teens, and homeless individuals.
- Shaun Floerke (Boreal Waters Community Foundation) expressed strong support, stating the foundation is committing up to 25% of its endowment to local place-based investments. He stressed "capital follows cohesion" and said he hopes to attract major partners to build housing for working families.
On Non-Agenda Items:
- Olin Pogorels spoke in favor of keeping the library at its current downtown location, citing that a move to Rice Lake Road would reduce size by 71%, increase long-term costs due to leasing, and reduce accessibility for students and those without cars. He noted that library usage has risen 9% in-person and 20% for programs, and that a prior consultant advised staying downtown or moving further in.
- Peter Krause criticized the new parking system, arguing it excludes seniors and tourists who cannot use smartphone apps. He requested kiosks on all streets and described the system as "punitive and confusing." He also supported public toilets and the library.
- Craig Sheets advocated for installing Geiger counters and scintillation counters at port cranes, rail yards, and weigh stations to detect radioactive materials entering via containers.
- Loren Martell praised the lead service line replacement project, describing the work as "government at its finest." He noted that his line was replaced via trenchless drilling and thanked city staff, contractors, and former officials. He expressed concern that only about 15% of the requested state bonding money for lead line replacement was allocated and hoped for future funding.
Discussion Items
- Downtown Development Strategy (26-0450R): Councilor Randorf spoke in support, describing the extensive community engagement process (18 focus groups, 1,500+ survey responses, 51 workshops). Vice President Kennedy moved to table the resolution to allow for a Committee of the Whole discussion. The motion to table passed unanimously (9-0).
- Purchase of Property from Minnesota Power (26-0471R): Councilor Desotelle moved approval to purchase real property in the Irving neighborhood for $100 plus associated costs. Councilor Forsman abstained due to his employment with Minnesota Power. The resolution passed 8-0 (Forsman abstaining).
- Agreement with Duluth Climbers Coalition (26-0455R): Approved unanimously to authorize an agreement for operation and maintenance of ice farming infrastructure at Quarry Park.
- Documents Affecting Park Hill Cemetery Property (26-0473R): Approved unanimously to authorize execution and recordation of three documents for real property acquisition in the Morley Heights/Parkview neighborhoods.
- Ordinances (Second Reading):
- 26-010-O: Granted ISD 709 a concurrent use permit to pave and stripe portion of 101st Ave W right-of-way. Approved 9-0.
- 26-012-O through 26-015-O: Granted AT&T concurrent use permits to install small cell wireless facilities on Minnesota Power poles at four locations (Parkwood Lane, N 53rd Ave E, N 50th Ave E, N 58th Ave E). Each was approved 8-0, with Councilor Forsman abstaining on all due to his employment with Minnesota Power.
- Ordinances (First Reading):
- 26-016-O: Granting Minnesota Power a concurrent use permit for transformer installation on W Michigan St. Read for first time.
- 26-017-O: Amending Chapter 35 to regulate private egress across the Marten Trail. Read for first time.
Key Outcomes
- Downtown Development Strategy: Tabled (9-0) for further discussion in a Committee of the Whole.
- Property Purchase in Irving Neighborhood: Approved 8-0 (Forsman abstaining).
- Quarry Park Ice Farming Agreement: Approved unanimously.
- Park Hill Cemetery Documents: Approved unanimously.
- AT&T Small Cell Permits: Four permits approved, each 8-0 (Forsman abstaining).
- ISD 709 Right-of-Way Permit: Approved 9-0.
- **Meeting adjourned at 6:43 PM.
Meeting Transcript
I can't see far away classes. All right. Good afternoon, counselors. We will now open our finance committee meeting. Um welcome and thank you guys. Uh this is the second in a series of nine finance committee meetings designed to prepare and educate the council on the 2027 budget. Our intent throughout this series is to present financial information in a steady, accessible way so we can better understand the full picture without being overwhelmed by the complexities as we move to set the max levy in September and then the final budget in December. So thank you again. Let's begin tonight. We're going to hear from budget managers managers Missy Harold and Josh Bailey. We with the presentation on Strong Towns, the finance Dakota results. So I'll turn it over to you guys. Good evening, and thank you for having us, Chair Randor from City Councilors. Tonight we'll be walking through the Strong Towns Finance Dakota framework and sharing where Duluth falls within that lens of financial analysis. In January, Mayor Reinert invited the city's leadership team to read Strong Towns by Charles Morone. He then invited Chuck to speak to our leadership team retreat about Strong Towns and the six principles of building financially resilient communities. Our focus tonight will be on the first principle of financial solvency. Strong Towns emphasizes that long-term prosperity depends on a city's ability to sustainably maintain its infrastructure, services, and financial obligations over time. To support this discussion, Strong Towns provides a financial decoder that helps communities evaluate municipal financial solvency and long-term fiscal resilience. The following slides present an overview of Deluxe financial solvency using that framework. It's important to note that many of our budget discussions typically center around the city's general fund. However, the information in these slides reflect the financial position of the city as a whole, including all government and enterprise activities such as utilities and parking. Before we get into the actual uh slides and charts, which which I think there's seven of, I want to point out a few things. Uh first of all, the city follows accounting standards set by the governmental accounting standards board, also known as GASBE. This is an independent organization that uh sets the standards for state and local governments throughout the whole country. So the purpose of this decoder is to use a consistent method. It actually there's actually a cheat sheet that Strong Towns has that tells you where to pull these specific numbers from in your financial statements. Um that way all organizations are in theory using the decoder uh consistently if you're gonna look at your results compared to someone else's. Uh secondly, I also mentioned that the city is audited annually by the Minnesota Office of the State Auditor, and all of the numbers that we used for our for the decoder came right from the city's annual comprehensive financial report, also known as the ACFER. Uh we used figures from 2009 through 2024, and we'll update the analysis when the 2025 audit is complete. The numbers have been handed into the auditors. It just takes a while to get through their review process and their St. Paul office before the report is issued, but that will be coming in the relative near future. Um as we work our way through these graphs, the blue portion represents the more sustainable side of the trend. And depending on the metric, the blue section may appear at the top or bottom of the graph. But as you look at the graphs, blue means good and orange or gold or whatever color color that is, means kind of not as positive. Um also mentioned these are the strong town metrics. You could argue that there's other metrics out there, but for the purpose of tonight's presentation, we're using the the metrics as set up by strong towns, and I'll add some additional context and nuances as we go through the the charts. Um to focus less on the exact data points and more on the overall direction of the trend. Uh the key question is whether the city is moving towards greater long-term financial stability. The first graph shows the city's net financial position, which measures the difference between the city's financial assets, excluding capital assets such as infrastructure and buildings and the city's liabilities. In simple terms, it reflects the city's available financial resources compared to what it owes. The black bar represents the break-even point, meaning the city has sufficient financial assets to cover all of our liabilities. Values above that line indicate a stronger financial position, while values below it indicate greater reliance on future revenues to meet existing obligations. And I want to point out a nuance on this slide, which actually carries into several of the slides. As I mentioned earlier, we follow governmental accounting standards set by GASBY. For the 2015 audit, we had to implement GASB 68, which is accounting and financial reporting for pensions. The city of Duluth and all local governments throughout the whole country were required to report on their financial statements the pension shortfall for the plans they participate in. We participated in the Minnesota ParaPlan. Um we had to book a multi-million dollar liability for the city share of their of their pension shortfall.
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