Council to eliminate Duluth Legacy Endowment advisory board; demolition phase 2 described for former TerraCyte site

City staff told the Duluth City Council that a resolution would eliminate the advisory board overseeing the Duluth Legacy Endowment Fund while keeping the fund and its annual interest intact for city projects.

Duluth Planning and Economic Development Director Van Tassel explained the fund was established by the council in 2004 to accept private donations for city purposes; in recent years fundraising had diminished and the advisory board primarily approved relatively small grants funded by interest—about $15,000–$20,000 a year—distributed in awards of roughly $2,500–$5,000.

Van Tassel said the resolution does not dissolve the fund or transfer donations into the general fund, noting that “when a fund, endowment fund is set up, and donations were received, the intent that those donations were received from needs to remain intact” and that formally dissolving the trust would be “a very lengthy and complicated process.” Under the proposed change, the Duluth Superior Area Community Foundation will continue to manage the endowment and advise the city annually on the available interest; the city will receive and administer the interest-funded grants and report to council on expenditures.

Councilors asked for examples of projects previously funded; Van Tassel said past awards supported library materials, park equipment and community arts and that awards were typically for city-led projects that met a public benefit standard. Councilors requested that the city continue to provide annual reports on fund balances and spending now that the advisory board would be eliminated.

Separately, councilors asked about item 18, the second phase of demolition for a former TerraCyte building. Public works staff described phase 2 as hauling debris, stabilizing and leveling the site, cleaning up and repairing, and seeding for temporary stabilization pending redevelopment. Staff said they would hold a preconstruction meeting and that they were coordinating with the Clayton Jackson McGlashan (CJM) Memorial group to maintain appropriate access during work and to minimize impacts to sidewalks and street access.

The endowment change was read into the record as “resolution 1 63 authorizing the third amendment to the auth organizational endowment of the Duluth Legacy Endowment Fund.” The demolition was read as “resolution 1 59 authorizing deeded to expend up to 252,200 for phase 2 of a 2 phase building demolition.” The transcript shows questions and clarifications but does not record final votes on these items during the session.