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Record of Proceedings

Duluth City Council Meeting – September 28, 2026

City Council — Monday, September 28, 2026
BodyDuluth, Minnesota
SessionCity Council
DateMonday, September 28, 2026
StatusFILED
Video Record
0:00 / 1:18:28

Original source
Transcript — VerbatimClick a timed line to jump · ⧉ to share it

Speaker numbers apply only to this recording.

Speaker 1

0:03

Good evening, counselors.

Unassigned speaker

0:04

It is 5 15.

Speaker 1

0:05

We'll go ahead and start our finance committee meeting.

0:07

We're excited tonight to have uh a little deeper dive into our tax increment financing, our TIFF.

0:12

We have the senior municipal advisor from Ellers here, Jason Arswold.

0:17

Um Answold.

0:18

So I'll go ahead and turn it over to uh to Jason.

0:20

Welcome.

0:27

Jason, you're still on mute.

Unassigned speaker

0:30

Is

Speaker 2

0:31

it a PowerPoint?

Speaker 1

0:33

Yes.

0:35

Jason, can you hear

Unassigned speaker

0:36

us?

Speaker 1

0:43

Was he on before?

0:44

Okay.

0:45

We'll give him a minute.

Unassigned speaker

0:46

Chair

Speaker 3

0:47

Randor, as we wait for uh Jason to come on, I just wanted to ask the counselors.

0:51

We've uh put a presentation there uh for all of you all if you can hold your questions for the end.

0:55

That way we make sure we have enough time to get through all

Speaker 4

0:57

of the material.

Speaker 5

1:07

Hold them to the end.

1:10

Um it's right here.

1:12

It's not on the screen.

Unassigned speaker

1:17

And

Speaker 5

1:17

he may put it up.

Speaker 1

2:44

Should we call him on his cell or how what would you like to do?

2:47

Can we call him and see if he's having some tech issues?

Speaker 6

2:53

I'm sorry, I couldn't hear.

2:55

Can you all hear me now?

Speaker 1

2:56

Yeah.

2:57

There we go.

2:58

Jason, welcome.

Speaker 6

3:00

Sorry, yeah, thank

Unassigned speaker

3:02

you.

Speaker 1

3:04

Go ahead.

Speaker 6

3:07

Okay, I missed like everything, so you're ready for me just to dive into the presentation.

3:11

Yeah,

Speaker 1

3:11

yeah, we we uh you were right at the top of the hour, so we just welcomed you.

3:14

So uh we formally want to welcome you and looking forward to the presentation.

Speaker 6

3:18

All right, sorry here.

3:19

I had that just I was trying

Unassigned speaker

3:21

to uh

Speaker 6

3:23

pull up multiple screens so I could actually figure out how to share my presentation here.

3:27

So let me just bear with me.

Unassigned speaker

3:29

Okay

Speaker 6

3:29

and that caused my audio problem.

Speaker 1

3:32

And we do have a PowerPoint in front of us as well, a printed version.

Speaker 6

3:36

Okay.

3:39

Let me see.

Speaker 3

3:44

It had popped on the screen earlier, Jason, so I don't know what you had done, but it popped on momentarily and then came back off.

Speaker 6

3:51

Yeah, I'm sorry, I dock, and we had multiple screens, and then I wanted to pull the audio from the dock, and that's where I had my problem.

3:57

So I unhooked and now I'm trying to share it just from my um, otherwise we

Speaker 7

4:04

can't

Speaker 6

4:04

laptop screen.

Speaker 7

4:05

I can share it on our computer here, and you would just need to tell me when to advance the slides.

Speaker 6

4:10

That might be best.

4:11

I'm sorry, I'm just having trouble figuring out how to get that to work.

Speaker 7

4:14

All right, just give me a few seconds.

Discussion Breakdown — Share of Meeting
Economic Development████████████████████████24%
Tax Increment Financing████████████████████████24%
Procedural██████████████████████22%
Budget████████████12%
Technology and Innovation██████6%
Education Funding████4%
Public Utilities███3%
Animal Welfare███3%
Public Engagement██2%
Summary of Proceedings

Duluth City Council Meeting – September 28, 2026

On Monday, September 28, 2026, at 6:00 PM in Council Chambers, the Duluth City Council held its regular meeting. The Council unanimously approved the consent agenda, passed several resolutions and ordinances, and heard public testimony on a franchise fee agreement, a proposed code of conduct, concerns about a potential animal shelter merger, and school district finances. All members were present; Councilor Clanaugh participated remotely via Teams.

Consent Calendar

  • Minutes of September 14, 2026 – Approved unanimously (9-0).
  • 26-0834R – Liquor license issuance for Zeitgeist Arts (temporary expansion).
  • 26-0792R – Appointment of Muhammet Atan to the Duluth Public Utilities Commission.
  • 26-0845R – Appointment of Pez Davila to the Parks and Recreation Commission.
  • 26-0846R – Appointment of members to the Transportation Commission.
  • 26-0825R – Agreement with the Minnesota Department of Children, Youth, and Families for up to $73,544.50 in SNAP E&T 50/50 funds (October 1, 2026 – September 30, 2027).
  • 26-0835R – Vacation of a retained utility and pedestrian easement in vacated 50th Avenue East (Crosley Park Addition).
  • 26-0840R – Clarifying the term of interim controls on a short-term rental permit moratorium.
  • 26-0841R – Conditional pre-commitment of $228,000 in Statewide Affordable Housing Aid (FY2027) to One Roof Community Housing for the Faith Haven Apartments Rehabilitation Project.
  • 26-0826R – Acceptance of a one-year extension of an EPA grant to improve public access to the St. Louis River Estuary.
  • 26-0827R – First amendment to a sub-recipient agreement with the St. Louis River Citizens Action Committee for public access along the St. Louis River.
  • 26-0828R – Application to the Minnesota Historical Society for up to $20,000 from the Minnesota Historical and Cultural Heritage Small Grants Program for a building conditions assessment at Enger Tower.

All consent items were adopted unanimously by roll call vote (9-0).

Public Comments & Testimony

  • Brandon Parker (District 4) spoke on two agenda items:
    • Ordinance 26-042-O (Minnesota Power franchise fee): Expressed support for moving from a 10-year to a 3-year agreement, noting it allows future councils to hold Minnesota Power accountable for carbon reduction commitments, rate increases, and the proposed sale to BlackRock. Praised revised fee structure but urged raising residential rates to ~4% and commercial/industrial to 6–7% to reduce reliance on property tax levies.
    • Resolution 26-0810R (Standing Rules Code of Conduct): Questioned whether the code would apply to councilors or the public, and whether it would address microaggressions among councilors or potential open meeting law violations.
  • Kelsey Pettit (District 2, Animal Allies Humane Society staff): Opposed a potential merger of the city's animal control facility with Animal Allies without a city-subsidized building expansion and additional funding. Cited capacity shortfalls (over capacity for dogs by 10 kennels and cats by 45 kennels), a three-year adoption low, and a nearly 80% drawdown of organizational savings over six years. Warned that without a real plan, euthanasia for space could occur, and the shelter may close before 2030.
  • Loren Martell (District 2): Discussed ISD 709's bond referendum, noting lack of media coverage in 2023 and difficulty obtaining financial information. Announced a public forum on the referendum scheduled for September 29, 2026, at 5:00 PM at The Garden in Canal Park.

Discussion Items

  • Resolution 26-0842R (Reappointment of Andrew R. Streitz to Natural Resources Commission): Approved 8-0-1 (Councilor Desotelle abstained due to a family relationship with the appointee).
  • Resolution 26-0843R (Appointment of members to the Indigenous Commission): Councilor Forsman moved to return the nomination to the administration, explaining the commission is under new leadership and conducting a reset. Motion carried unanimously (9-0).
  • Resolutions 26-0800R, 26-0801R, 26-0802R, 26-0812R (Tax levies for 2027): These four resolutions had been tabled. Councilor Randorf successfully moved to remove each from the table (all unanimously). After brief remarks, each was approved unanimously (9-0):
    • 26-0800R – General purposes levy.
    • 26-0801R – Special Parks Fund levy.
    • 26-0802R – Housing and Redevelopment Authority levy. Councilor Randorf thanked HRA Executive Director Keppers for maxing the levy, enabling the Mission Heights and Union Gospel Mission projects.
    • 26-0812R – Duluth Transit Authority levy. Councilor Randorf thanked Finance Director Chris Beldon for a restrained budget. Councilor Klana praised DTA's utilization and encouraged social marketing of transit.
  • Resolution 26-0810R (Amending Standing Rules to include a Code of Conduct): Vice President Kennedy stated the authors' intention to leave the item on the table. No action taken.
  • Ordinances read for the first time:
    • 26-041-O – Taxable grant anticipation revenue notes (not to exceed $61,630) for municipal water utility improvements.
    • 26-042-O – Establishing the franchise fee to be paid by Minnesota Power.
  • Ordinances read for the second time and approved:
    • 26-024-O – Revising Chapter 13 of the city code (various sections). Approved unanimously (9-0).
    • 26-040-O – Amending Chapter 50 regarding lodging (permitted uses, parking, enforcement, etc.). Approved unanimously (9-0).

Key Outcomes

  • The Consent Agenda was adopted in full (9-0).
  • Appointment of Andrew R. Streitz to the Natural Resources Commission was confirmed (8-0-1).
  • The nominations for the Indigenous Commission were returned to the administration (9-0).
  • Four 2027 tax levy resolutions (general, parks, HRA, DTA) were removed from the table and each approved unanimously (9-0).
  • The proposed Code of Conduct amendment to the Standing Rules was left on the table with no vote.
  • Two ordinances (water utility notes and MN Power franchise fee) received first readings; final passage will occur at a future meeting.
  • Two second-reading ordinances (Chapter 13 revisions and lodging code amendments) were passed unanimously (9-0).
  • Councilor Desotelle thanked staff for fiber optic solutions in District 2.
  • Councilor Klana thanked citizen Parker for his comments and noted the need for equitable handling of the code of conduct.
  • Councilor Johnson clarified that Standing Rule #18 (enforcement) is already in effect and urged caution on franchise fee increases that could affect supportive housing providers.

Meeting Transcript

Good evening, counselors. It is 5 15. We'll go ahead and start our finance committee meeting. We're excited tonight to have uh a little deeper dive into our tax increment financing, our TIFF. We have the senior municipal advisor from Ellers here, Jason Arswold. Um Answold. So I'll go ahead and turn it over to uh to Jason. Welcome. Jason, you're still on mute. Is it a PowerPoint? Yes. Jason, can you hear us? Was he on before? Okay. We'll give him a minute. Chair Randor, as we wait for uh Jason to come on, I just wanted to ask the counselors. We've uh put a presentation there uh for all of you all if you can hold your questions for the end. That way we make sure we have enough time to get through all of the material. Hold them to the end. Um it's right here. It's not on the screen. And he may put it up. Should we call him on his cell or how what would you like to do? Can we call him and see if he's having some tech issues? I'm sorry, I couldn't hear. Can you all hear me now? Yeah. There we go. Jason, welcome. Sorry, yeah, thank you. Go ahead. Okay, I missed like everything, so you're ready for me just to dive into the presentation. Yeah, yeah, we we uh you were right at the top of the hour, so we just welcomed you. So uh we formally want to welcome you and looking forward to the presentation. All right, sorry here. I had that just I was trying to uh pull up multiple screens so I could actually figure out how to share my presentation here. So let me just bear with me. Okay and that caused my audio problem. And we do have a PowerPoint in front of us as well, a printed version. Okay.

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