#People’sDuluthDownload 25.1
The 'people’s' perspective on the ongoings of Duluth's City Council Meetings, 01/27/2025
All signs point toward another busy year for Duluth’s municipal governing body. If Monday night’s meeting is a fair indicator of what is to come it appears housing will remain a key issue on councilor’s agendas.
Monday night’s meeting started with a presentation by the Housing and Urban Development (HUD) Committee of the Whole where presenters highlighted the goals of their consolidated plan for housing in Duluth. The HUD is responsible for collaborating with community organizations, gauging stakeholder (low and moderate income individuals and neighborhoods) needs and desires, and allocating around $3 million of funding each year based on survey input. Their three main priorities for 2025 are providing and sustaining living wage jobs, supporting small businesses, and bolstering Duluth’s childcare infrastructure for more affordability and accessibility.
According to survey data collected by the HUD affordable housing was the prominent concern for community stakeholders [something that the current council makeup seems less focused on while they concern themselves more with trepidatious market rate housing projects]. The HUD also mentioned they are looking to secure Housing and Redevelopment Authority (HRA) funds for 90+ units of affordable housing in Duluth, which would include reconstruction efforts for existing housing. The HUD is also concerned with increasing access to neighborhood food markets (anti-food desert policies) which is a significant problem affecting many Duluth neighborhoods, particularly those in West Duluth and families with less access to a car in our highly unwalkable/unbikeable transportation network.
Following the HUD presentation the council meeting began with its usual series of rituals (one with fascist undertones). Every meeting also begins with a “Report from Administration” which can occasionally be uninteresting or dismissed, however Monday’s report highlighted the retirement of the City Administrator, Attorney David Montgomery. Throughout the council meeting we heard a good bit about the new incoming City Administrator, Matthew Staehling. Mayor Reinart highlighted the role a City Admin. plays:
“[They are] hired by the city to implement vision and direction of 900 employees for the city…It’s a key leadership role. Only 5 staff report directly to the Mayor, 900 report directly to the City Admin...Matt has 30 years experience in municipal government and has served as a city attorney before. He spent the last decade serving as City Admin of St Cloud” [a second class Minnesota city that lies in 3 counties, more complicated intergovernmental relationships and collaboration]. The outgoing City Admin. Montgomery was quite adversarial toward the Palestine Solidarity encampment occupiers during Summer of 2024 and frequently took excessive measures to curb their access to public buildings adjacent to Priley Circle. He also played a significant role in the implementation of draconian “Public Safety” ordinances that were a response to the encampment [public safety for whom?…certainly not the destitute and marginalized in our community]. I’m certain he won’t be missed by Duluth’s Left and hope he doesn’t come out of retirement, again.
Also, before getting into business the council offers its “Opportunity for Citizens to be heard”. Only four speakers addressed council with public comments this meeting, three of which were a “thank you” from AFSCME city workers regarding the new negotiated contract with the city. The most engaged comment came from Lauren Martel whom I’ve watched speak at every council meeting over the past year regarding his concerns with the Incline Village development. Over our time attending council together I’ve had short conversations with him and he is incredibly focused on this issue as a neighbor of the development. He mostly speaks about the traffic concerns and lack of inlets/outlets for the likely increase the mixed use development would bring, which is a valid concern. Increasingly, however, Martel has targeted his three minute comment times with concerns about the developer, Rabbi Lazar Ostreicher, as more comes out about his bankruptcy charges and financial mismanagement of his development firm:
“I am not trying to stop Incline village, but I have concerns about the plan and don’t feel confident about the people the city is involved with in this project. The developer declared bankruptcy with another project in Duluth, the Endi Flats. Fannie Mae is suing the developer. The developer has falsified records and is alleged of financial deception.”
[The developer in question is Rabbi Lazar “Luzy” Ostreicher, who shares real estate business assets and relationships with his family in NYC. He was recently in Duluth for ‘groundbreaking’ on the project where he gifted Mayor Reinart a Menorah last month. Ostreicher has reportedly missed mortgage payments on the Endi Flats along London Road and 21st Avenue East. The developer still plans to open Incline Village with 70 units by 2026! Remember this is a $75 million TIF project of the city (no public funding has flowed to the project yet) with a developer that has claimed bankruptcy, barely broken ground, and had originally proposed a 120 unit initial development on the property (moving the goal post?…or just delayed development?). Once the property is fully developed he has promised near 340 housing units! Ostreicher claims all involved in the Incline Project are still getting paid. It’s difficult to find an online presence for this developer...we can’t make too many assumptions, but it is certainly weird to see AI generated art and weird AI website jargon appear when “Luzy” is google searched. Despite his financial issues, not being a MN-based investment is likely most effective argument against this developer].A significant subject on Monday’s council agenda was the single-family housing development, Amity Bluffs, which has been in the works for years and is now an amended project from the developer, Kevin Christiansen. The 14-15 lot subdivision in the 1st District Woodland neighborhood for a cul-de-sac is a significant departure from the original plans that included 25 to 30 subdivisions and has been adjusted to address the environmental concerns of neighbors adjacent to Amity Creek, a trout stream.
At the agenda setting meeting on the Thursday prior to Monday’s meeting Councilor Durrwatcher tried to pull this development approval “just in case” and in consideration of her constituents environmental concerns, but she changed course as the developer proved malleable to citizens interests. The approval of the development passed unanimously.
Item 27 on the meeting agenda was the approval of a settlement agreement between property owners of the Kozy Bar/Pastoret Terrace and the Duluth Economic Development Authority (DEDA). The city has long desired to do something with this tax forfeited and blighted area of Downtown Duluth that is on the intersection of 1st Street and 2nd Avenue East. The $2+ million settlement means the collapsed building will finally be demolished, it includes grants and loans that will provide opportunities for adjacent “historic place” property owners to repair and redevelop, and it will also allocate funding to dignify and restore the Clayton Jackson Memorial. The agreement also lays out design guidelines for new construction on the historic property site. It is as of yet unclear whether housing will be a priority for the site. Prior to the Kozy Bar fire in 2010 there were 40+ units of housing on the site.
Although it was not on the council meeting agenda it is worth noting that DEDA has also recently taken action to push forward the stalled housing project in Lincoln Park at the former Seaway Hotel property which was demolished after a fire in January 2022. The “Urbane 218” 45-unit affordable-housing project is managed by developer Brent Dahlstrom of Merge Urban Development Group (based in Cedar Falls, Iowa) who has fielded a series of notices from DEDA concerning how the stalled project is in breach of a development contract while it lies incomplete and exposed to the elements. Considering this housing project has received over $1 million in Tax Increment Financing (TIF) from the city (as well as some federal funding) I hope the developer’s optimism for this project’s completion by October 31, 2025 bears fruit and I sincerely hope we don’t see a repeat of the Lincoln Park Flats reneging of development promises.
Lastly, during closing comments at Monday’s meeting, At-Large Councilor Forsman revealed that he plans on introducing policy resolutions/charter amendments “on the future of the skywalk” in February...likely alluding to similar “public safety” [public unsafety] rhetoric of the past 2024 summer. Something to look out for and be wary of for the next few sessions.
Until then, Comrades … Peace, love, and rage in our time of collective grief.