#DuluthDownload 2024.2
Following the happenings of the 2024 Duluth City Council and more.
Thank you to all of the folks who reached out to me with positive feedback after the launch a few weeks ago! Some of these will be longer than others. This is a big one based on the volume of important things going on that I think are worth sharing. I’d love to hear your feedback in the comments. Let’s dive in.
1/22/2024 - Council Meeting #2
Monday night was one of the more packed council agendas we’ll likely have all year:
BAYFRONT SHIFTING AWAY FROM DECC MANAGEMENT FOR 2024
Since 2012, the DECC has been tapped to manage booking and running events at the park. At the time, this marked a shift from an era of private management, with the most recent firm in charge criticized for not bringing enough big acts to town.
The proposal that went in front of council on Monday was to accept a one-year contract with a new firm headlined by locals Jeff Stark and Dan Russell called Winterfell Management. There was considerable discussion about the lack of a formal Request for Proposal (RFP) (not typically a best practice when public money is going to a private entity, especially for the first time). The rationale given by the city administration for why was that there wasn’t enough time to do a full RFP and that an urgent decision was needed, but that they would commit to a full process in 2025 that allows other organizations to compete for the contract.
Ultimately the proposal was approved, but with clear direction from the council that a more robust and open process is expected in the future. Interestingly, multiple former councilors reached out to me on this to share some of the history and challenges of contracting Bayfront out to private management. Stay tuned for next year.
Duluthians know that a Bayfront loaded with shows and entertainment is a good thing for locals and economic impact.
CITY SETS BONDING PRIORITIES AND APPROVES NEW LOBBYING FIRM
Every year before the Minnesota legislative session begins, the city administration proposes a list of priorities for the city council to consider. This year, Mayor Reinert’s team proposed just a list of bonding priorities. The state uses bonding, or the issuance of debt, to help pay for priority construction projects across Minnesota. Usually, a 50% local match is required for projects. This slide deck has a handy breakdown of how it all works. The mayor and council work together to approve a slate of priorities to give our lobbyists and legislators direction of what we would like to see accomplished from this legislative session.
The approved list of top bonding priorities is as follows:
Funding for Lakewood Water Treatment Plant repairs to roof and other building components and rehabilitation of the granular filtration system used to treat and ensure safe drinking water for the Duluth metro area, including Duluth, Proctor, Hermantown and Rice Lake;
Funding for Aerial Lift Bridge for significant structural repairs to the lift span, sidewalk reconstruction and painting of the overhead truss across the ship canal;
Funding to cover costs to rehabilitate Lot D in Duluth's bayfront area to enable new economic development opportunities on the site. Costs include seawall repairs, demolition of existing infrastructure, utilities and other site preparation;
Funding for the Spirit Valley multi-purpose community center and sports arena in Memorial Park which will provide wellness, recreation and workforce programming across all age group;
Funding for planning to reconceptualize the downtown library project, envisioning a new library facility incorporating complimentary privately funded development including housing, commercial and retail space.
More on this one later in the Download.
We also formally endorsed a few other non-city projects looking for funding this year:
Funding for the Duluth Airport Authority’s control tower project, replacing a more than 70-year-old tower facility;
Funding for the Duluth Entertainment Convention Center for accessibility improvements, deferred infrastructure repairs and maintenance, and investments in energy saving improvements;
Funding in support of the redevelopment of the Duluth Armory.
State funds to support the Duluth Air National Guard Base new aircraft shelter project (added by myself, Councilor Nephew, Councilor Swenson, and Councilor Kennedy).
On a related topic, the city now has a new lobbying firm. The council approved the proposal to hire Taft Stettimius & Hollister LLP for 2024 lobbying at both the state and federal levels. A good lobbyist can have a significant ROI for a city as we seek dollars for our priority projects. This contract saves the city ~ $23,000 from what we paid for similar services in 2023. Similar to the Bayfront contract, there was not an RFP issued and lots of council interest was expressed in seeing that happen for 2025.
LIBRARY A HOT TOPIC
That last bonding priority related to the downtown library sparked a lot of public interest and emails to the council over the last week. As you may know, Mayor Larson had proposed a teardown of the existing library and a new build at the same site. The total project cost was estimated at $72 million. Mayor Reinert was public during the campaign last year that they did not align on that vision.
While the fate of the downtown library is up in the air, I believe that there is a consensus that the current building is failing, and a more permanent replacement of some sort will be needed in the near-to-mid future. The state bonding library ask would allow the city to build upon the 2023 study that was done in partnership with the Duluth Library Foundation and develop additional options for what the next iteration of the downtown library could be. That could include the original vision of including public services and the workforce center, as well as adding housing and private business into the mix.
The council also accepted annual gifts from the Duluth Library Foundation and Friends of the Duluth Library at our meeting. These two organizations provide considerable resources to supplement the city’s annual budget (over $100k combined this year) and we are grateful for their support!
NEW OWNER AT THE (TISSUE) PAPER MILL
In 2020, the future of the Duluth paper mill was in jeopardy after it was idled by former owner Verso and ~225 workers were laid off. In 2021, a new owner in ST Paper emerged and underwent an ambitious project to convert the mill from a supercalendar product (think the glossy paper used in newspapers, magazines, etc.) to a tissue product. At last check publicly, ST Paper had ~ 80 workers. Then earlier this month, it was announced that Italian firm Sofidel was acquiring the facility. The news about Sofidel has sparked optimism that future expansions in Duluth could be possible to fuel the growing domestic demand for their products.
To facilitate the sale, the council had to sign off on a slew of resolutions Monday to transfer agreements related to forgivable loans, tax credits, and an incentive rate for water usage from ST Paper to Sofidel. The resolutions were approved unanimously. I’m excited to see where the mill goes from here, but the future looks bright!
Other Quick Highlights from the Meeting
Allocated federal funding and adopted an action plan for a variety of federal programs for 2024
Approved more council appointments to various boards
Approved the construction contract for Phase 3 of the Cross City Trail
Accepted state funding for our Violent Offender Task Force
Amelia’s Question of the Week
Where my daughter brings you her Duluth curiosity of the moment.
Q: “Dad, when is the Cat Cafe opening?”
A: I am sensing a trend to these questions. Yes, there is indeed a cat cafe called the Wired Whisker planned at 1823 E. Superior St. I first learned about it when the 1200 Fund, one of the boards I sit on, approved some gap financing for the project. I reached out to the owners, who said they don’t have an official date yet but are aiming for early spring. I know one girl who will be asking to go visit when that happens.
Duluth Economic Development Authority Meets for First Time in 2024, Incline Village Project Takes Center Stage
The Duluth Economic Development Authority, also known as DEDA, started with a bang in 2024. The development agreement for the Incline Village, the project proposed for the former Central High School site on the top of the hill, was on the docket. The proposal is very ambitious - about a ~$500 million investment if all six phases are built that would add more housing than the last thirty housing projects in Duluth combined. The first phase would entail a condo development on the hillside, with future phases and public amenities (like an amphitheater and public trail) to follow. The developer on the project also owns Duluth properties like Kenwood Village and Endi. There is also a variety of retail planned at the site. The project would utilize robust Tax Increment Financing (TIF), a commonly misunderstood economic development tool, to help develop the site. I plan to do a deeper dive into explaining what TIF is and how the city uses it later in the year.
A development agreement is a contract between the developer and city for commitments both make to each other. This is, without doubt, the most complex development agreement I’ve reviewed in my time in city government, and our staff spent many hours working to enable this development to move forward to add needed housing units and develop this vacant site with mixed-use while also protecting the city’s risk. I asked questions about how & when the developer plans to start public engagement with neighbors, how the agreement is structured, and examples of past projects this developer has completed.
I captured most of the slides that were shared and have posted them in a gallery below. DEDA approved the proposal unanimously. It now goes to the full council for final approval. If green-lit, construction will begin this summer. A Project Labor Agreement (PLA) and Community Benefits Agreement will be required due to the city incentives.
The other two big items on our agenda were to extend the deadline for the developer of the half-built apartment complex in Lincoln Park to get that project done (now reported in the news that they also got financing to finish the building) and to renew our annual film production credit that helps incentivize TV shows and movies to be shot in Duluth (more on that in a minute).
Councilor Round-up
I may not do this every edition, but from time to time I will share some of the things I’m working on to provide a “day in the life” for folks. Here’s a rundown of what I’ve been up to the last few weeks:
Met with Stepping On Up to discuss funding for the emergency triage shelter that would help reduce homeless encampments in town. $900,000 in funding has been secured, but a gap of $1,200,000 remains. We will continue to struggle with encampments this summer if a facility like this isn’t built, so the work continues.
Met with a new ATV Club in western Duluth interested in exploring how the city could work with them to allow limited ATV use in the Gary neighborhood.
Met with the Library Foundation along with Councilor Nephew to learn more about their work and priorities for the coming year and items related to the downtown library.
Went on a ride-along with Sgt. Meghann Jones of the Duluth Police Department. Morale in the department is currently high.
Attended the MLK Community Breakfast, where I bumped into Councilors Tomanek, Kennedy, and Durrwachter.
Discussed funding for a potential new childcare center that would be built into a new housing development with community partners.
Attended Downtown Duluth’s lunch event that featured Mandy Turpin, the producer behind both of the Christmas films shot in town the past few years. Mandy has high hopes and ambitions for Duluth’s future as a film & TV shooting destination. I worked with the Upper Midwest Film Office (UMFO) in 2021 to author the resolution that helped put Duluth on the map for filming and led to our current city incentive (which is essentially a rebate, so nothing is spent if no film production occurs). Councilor Tara Swenson and I will be working with city staff and UMFO on some potential related projects, so stay tuned!
Important Things to Know
Yes, Amazon is indeed planning a distribution center for Duluth. DEDA sold the land to the developer last July. Glad it’s finally public!
The Presidential Nomination Primary Election is planned for March 5th.
The Sustainability Office has monthly workshops planned for the public throughout the year.
There is a GoFundMe set up for Ray Skoglund, a Duluth firefighter who sustained significant injuries in a recent accident. Please donate if you can!
Thanks, folks! Keep the feedback and ideas coming for next time.
I learned SO much from this newsletter. Thank you Arik for compiling and sending this out to community members. My extended family would have been around for the historic Incline railroad at the turn of the century. I loved learning more about the project and think they would approve of the plans to return that space to the community.
Thank you for this impressive update!! Very informative about the happenings on the City Council - I greatly appreciate the time and effort to put this forward.
Regarding the Library - there should be a Library presence downtown, but it can’t be the sole occupant of a building. I agree with combining Library foot print with the Career Force resources, and private businesses to take advantage of that location.
Looking forward to the opening of the Cat Cafe — I have nieces who will want to visit the cafe simply for the cats! Thanks again.