Duluth City Council talks golf, jobs, housing

Nevertheless, more than two dozen citizens made impassioned pleas for the council either to adopt the proposed ordinance so as to deter young people from taking up smoking, or to reject it because of the damage it could cause to local businesses.

In the rest of what proved to be a wide-ranging agenda, city councilors discussed the future of Duluth's municipal golf courses, authorized city staff to seek a $1 million forgivable loan for the Verso Duluth Paper Mill and also OK'ed plans to pursue a state grant to boost the community's supply of workforce housing.

Golf

A resolution offered by 5th District Councilor Jay Fosle called on city administration to look at privatizing either or both of Duluth's municipal golf courses — Lester Park and Enger Park.

But several members of a group called Friends of Duluth Golf urged the council to give it six months to develop a plan to put the golf courses on firmer financial footing.

One member of that group, Deb Showalter, said: "I think Councilor Fosle's proposal is a bit premature."

Fosle said Monday night was the first he had heard about ongoing conversations between the golfers' organization and city staff.

While he remains concerned by financial subsidies the golf courses courses have continued to require, he agreed to pull the resolution to allow time for the public discussion to continue.

Duluth's municipal golf courses have amassed about $2.2 million in operating debt, to date, and the courses are expected to operate at a combined loss of $135,000 in 2018.

Mill aid

The council unanimously authorized city staff to seek a $1 million forgivable loan from the Minnesota Department of Employment and Economic Development to help Verso Corp. invest in its Duluth paper mill.

Mill Manager John Bastian noted that the Duluth plant currently employs 240 people with annual wages and benefits of about $25 million.

"We contribute about $100 million on an annual basis to the economy of northeast Minnesota," he said.

Verso is considering whether to invest about $21 million in equipment at its Duluth mill that would enable it to recycle packaging-grade scrap paper, opening a new market to the plant that could help keep it viable well into the future. But he said the mill also would continue to produce supercalendered paper, as it does today.

"We're committed to producing supercalendered papers at the Duluth mill for the foreseeable future, but as market demand for these types of products continues to decline, we're looking at ways to diversify our manufacturing capabilities and help keep the mill successful in the future. The packaging sector is growing at 2 to 3 percent annually," he said.

If the grant application proves successful and Verso moves ahead with the project, Duluth would be asked to chip in another $242,000.

New housing

Councilors also signed off on plans to seek an $800,000 Workforce Housing Grant from the Minnesota Housing Finance Authority. A grant award could lead to the construction of a 96-unit apartment building at 333 N. First Ave. W.

The new $20 million building would be called CityView Flats.

Monthly rents there would range from $835 for a small studio unit to $1,835 for a two-bedroom apartment, plus electricity. Underground parking also would be offered for an additional charge.

To assist with the project, both the city and St. Louis County will each be asked to abate $300,000 in property taxes. But after 10 years, the full value of the property would go on the tax rolls.