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By Howie Hanson
DULUTH — The Duluth City Council faces a Wednesday deadline to set its proposed 2027 property tax levies, putting four previously tabled measures among the most consequential items on Monday night’s agenda. Councilors also are scheduled to consider a broad rewrite of lodging rules, the first reading of a new Minnesota Power franchise fee and a $228,000 commitment that would help preserve 121 affordable apartments for seniors.
The levy resolutions were introduced earlier this month and remain listed as tabled. They cover general city purposes, a $2.6 million voter-approved parks levy, a $2,252,987 levy for the Duluth Housing and Redevelopment Authority and a $3,297,655 levy for the Duluth Transit Authority. City budget documents say the council must certify proposed levies to St. Louis County by Sept. 30. For the general city and transit levies, the council will adopt final amounts in December, but those amounts cannot exceed the maximums set now. The HRA proposal is different: City staff say its levy would be final once certified and would not return for a December vote.
The HRA’s proposed levy would support housing and community programs, including $500,000 for capital work at the Lincoln Park Community Center, $300,000 for a high-rise security contract and $333,000 for single-family home improvement programs. Its request also includes funding for a warming center, construction training, housing rehabilitation and tenant-landlord assistance. The parks levy is restricted to parks and recreation. The DTA levy would support transit operations.
A separate housing decision concerns Faith Haven Apartments. The council will consider conditionally committing $228,000 from Duluth’s fiscal 2027 statewide affordable housing aid allocation to One Roof Community Housing’s rehabilitation of the 121-unit senior housing property. One Roof received more than $10 million through a Minnesota Housing program in 2025 but needs local matching funds to secure that award, according to a city memo. The city previously pledged up to $500,000 from another funding source when One Roof sought low-income housing tax credits, but that application was unsuccessful and the condition for the earlier pledge was not met. Monday’s proposed commitment would take effect only if One Roof assembles the full financing package; city staff say it would have no effect on the general fund.
The council also is scheduled for a second reading — the stage at which it could give final approval — of an ordinance restructuring how Duluth regulates lodging. The proposal grew out of a study conducted during the city’s moratorium on permits for certain short-term rentals. It would remove vacation dwelling units, accessory home shares and accessory vacation dwelling units as land use categories. Short-term rental permits and licenses would instead be handled through other provisions of city code by the city clerk’s office and life safety staff. City planners say the change is intended to address enforcement problems and prevent properties from being classified under a different lodging category to avoid short-term rental rules.
The ordinance would replace several existing categories, including hotels, motels, bed-and-breakfasts and seasonal camps or cabins, with updated lodging classifications. Proposed standards for smaller commercial lodging operations include an in-person front desk during check-in and checkout hours and guest assistance available around the clock. Larger operations would generally need a staffed front desk at all hours, although virtual staffing could be used between 10 p.m. and 6 a.m. The proposal also creates updated rules for campgrounds and recreational vehicle parks. The Planning Commission recommended the changes on a 9-0 vote Sept. 8.
Related to that measure, councilors will consider a resolution clarifying that the short-term rental permit moratorium began Nov. 10, 2025, and ends Nov. 10, 2026. City staff say the clarification is needed because the measure was introduced nearly a month before it was adopted. The resolution would not extend the moratorium; its purpose is to ensure the city’s replacement rules are in effect before the temporary restrictions expire.
For Minnesota Power customers, the council will give a first reading to an ordinance changing the franchise fee the utility pays the city beginning Jan. 1. The existing fee is 3% across customer classes. Under the proposal, residential customers would remain at 3%, general service and commercial customers would move to 4.25%, and large light and power customers would move to 4.75%. The maximum fee for any individual customer would rise from $420,000 to $500,000. City staff say the ordinance must pass this fall to give Minnesota Power time to prepare its billing system and notify state utility regulators. Monday’s first reading would not be final approval.
Another tabled measure would add a code of conduct to the council’s standing rules. Sponsored by four councilors, the proposal calls for respectful treatment of residents, city employees and fellow councilors while recognizing that criticism and difficult questions are legitimate parts of public debate. It also addresses meeting decorum and the presiding officer’s options when disruptive conduct prevents the council from carrying out its business.
Several other items are proposed for the consent agenda. One would extend a $455,000 federal grant for St. Louis River estuary access projects through September 2027 without increasing the award or requiring a local match. The work includes a planned pedestrian connection between Perch Lake Landing and Chambers Grove Park, an accessible connection to the Kingsbury Bay fishing pier and improvements at Grassy Point. A related measure would extend a $50,000 agreement with the St. Louis River Citizens Action Committee for water trail maintenance, promotion and programming.
The council also will consider seeking a grant of up to $20,000 to assess Enger Tower’s condition. City staff report corrosion on steel stair components and cracks in concrete and mortar at the 1939 landmark. A historical architect would assess the damage and recommend repairs if the grant is awarded. Other business includes accepting up to $73,544.50 for workforce development services, a first reading of a financing measure for lead water service line replacement and a possible final vote on revisions to city civil service hiring procedures.
The meeting begins at 6 p.m. Monday in council chambers at City Hall, 411 W. First St. Public comment periods are scheduled for agenda and non-agenda matters.
