Duluth City Council approves housing loan measures, adopts process to fill Second District vacancy

Duluth City Council members at a special meeting unanimously approved two housing-related financing actions and adopted a procedure to fill a vacancy on the council.

The council voted 8-0 to accept an allonge to the promissory note tied to Village Place Apartments and to authorize a contract guaranteeing a promissory note under the Section 108 loan guarantee assistance program for a variable/fixed rate note with a principal amount of $2,521,000. The council also adopted a resolution establishing a candidate-selection procedure for the Second District vacancy that sets application and interview deadlines in August.

The first measure, resolution 25562, authorized acceptance of an allonge to a promissory note related to Village Place Apartments. Councilor Forsman asked staff to confirm that Village Place Apartments is not the Incline Village. Administration staff Staley responded, “I can confirm that.” The resolution was moved by Councilor Nephew and seconded; the council approved it by roll call, 8-0.

The second measure, resolution 250563, authorized a contract to guarantee a promissory note under the Section 108 loan guarantee assistance program and to execute a variable/fixed rate note for a principal amount of $2,521,000. The motion was moved by Councilor Nephew and seconded by Councilor Auel. Councilors approved the resolution by roll call, 8-0.

On the council’s appointment process for the Second District vacancy, the council approved committee-of-the-whole resolution 561 establishing application and interview procedures. City attorney Laird described the timeline and mechanics: the application period will close at 4:00 p.m. on Aug. 4, 2025; the council will conduct first-round interviews on Aug. 7 following the agenda session; the clerk will tally ranked ballots (each councilor ranking their top three candidates, with 3 points for first choice, 2 for second and 1 for third) and announce a top three; the top three will return for finalist interviews on Aug. 11 at 5:00 p.m.; finalists will be asked two questions by the personnel committee chair and each councilor will have five minutes to question each finalist. If no candidate receives a majority, the council will eliminate the lowest vote-getter and repeat voting; if an eight-member tie remains, the resolution specifies resolution of the tie by coin toss. The motion to adopt the procedure was moved by President Tomanek and seconded by Councilor Nephew; the council approved it by roll call, with affirmative votes from all eight members present.

Votes at a glance

- Resolution 25562 — Acceptance of an allonge to a promissory note related to Village Place Apartments. Moved by Councilor Nephew; seconded (recorded). Roll-call vote: 8-0, approved.

- Resolution 250563 — Authorize contract guaranteeing a promissory note under the Section 108 loan guarantee assistance program; execute variable/fixed rate note, principal $2,521,000. Moved by Councilor Nephew; seconded by Councilor Auel. Roll-call vote: 8-0, approved.

- Resolution 561 — Establish procedure to select candidate to fill Second District vacancy (application deadline 4:00 p.m. Aug. 4, 2025; first-round interviews Aug. 7; finalist interviews 5:00 p.m. Aug. 11; ranked ballots and tiebreak rules specified). Moved by President Tomanek; seconded by Councilor Nephew. Roll-call vote: 8-0, approved.

The council adjourned after adopting the items. The appointment timeline set by resolution 561 anticipates a final selection and swearing-in before the council’s next full meeting, pending the schedule laid out in the resolution.