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Council adopts pay increase delay, approves solar lease and several zoning ordinances

5610075 · July 28, 2025
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Summary

Duluth City Council voted to delay a Charter Commission pay recommendation until Jan. 1, 2027; approved negotiation of a lease for the Hayfield Solar Energy Project (Eden Renewables); and passed three zoning ordinances in unanimous or near-unanimous votes.

The Duluth City Council took multiple formal actions at the meeting, including amending the effective date of a Charter Commission recommendation on council compensation, authorizing negotiation of development and lease agreements for a city solar project, and approving three zoning-related ordinances.

Council compensation: The council voted to adopt the Charter Commission's recommended fee for council members but amended the effective date so the new pay would begin Jan. 1, 2027. Councilors Randolph and Forsman moved and seconded the amendment to delay implementation; the amendment passed on a roll call vote, 8-0. The full resolution as amended was then adopted on a subsequent vote, 8-0. City staff and council members discussed that the Charter Commission calculated its recommendation based on a decade of inflation and personnel changes; finance staff noted the total budget impact is small (about $29,000, roughly 0.07% of the property tax levy and immaterial in the context of the city's $108 million general fund) though several council members said delaying implementation would help navigate an otherwise uncertain budget cycle.

Hayfield Solar Energy Project (Eden Renewables): The council moved to authorize negotiation of development and lease agreements with Eden Renewables for the Hayfield Solar Energy Project. City staff described the proposed site as a 38-acre installation with an expected output of about 10 megawatts, roughly enough to serve about 1,700 homes over the 25-year facility lifespan; staff estimated the project would prevent about 60,000 tons of carbon emissions over that period and generate approximately $1.6 million in revenue for the city. Councilor Forsman announced a conflict of interest and abstained from the vote; the motion passed 7-0 with one abstention.

Zoning ordinances: The council approved three ordinances on second reading: - Ordinance 17: Reclassify parcel 010-1773-00010 and part of adjoining right-of-way from Residential Urban R-2 to Mixed-Use Neighborhood (passed 8-0). - Ordinance 18: Amend screening rules for commercial containers in Chapter 50 (passed 8-0). - Ordinance 19: Reclassify several parcels from Residential Traditional R-1 to Residential Planned RP (passed 8-0).

Other procedural votes: The consent agenda and approval of the minutes passed unanimously (8-0). The meeting also included a public hearing on a state affordable housing aid grant resolution (25-0615) for $725,000 to One Roof Community Housing; the hearing was opened and closed with no public speakers for that item.

How votes were recorded: The record shows roll-call and voice votes. The Charter Commission amendment and the final compensation resolution were recorded with a roll call; the Hayfield Solar resolution recorded Councilor Forsman as abstaining and otherwise passed with all remaining council members voting in favor.

What this means: The council's action delays the council pay adjustment until after a difficult municipal budget year, provides a path forward for the city's first large municipal solar lease to move into negotiation, and finalizes several zoning reclassifications that had been on second reading. Additional ordinance or contract approvals and final negotiated agreements will return to council when staff or partners bring them forward for formal approval.