Duluth planners propose cutting shoreland permit fee to $100; council presses for safeguards

Duluth planning staff on agenda preview said the city will lower a shoreland permit fee from $500 to $100 as part of the 2026 fee schedule, a change staff describes as "right-sizing" to better match the time required to review routine permits.

Director Van Tassel told the council the department reevaluated planning fees and concluded that many shoreland reviews — for projects ranging from decks to houses — are relatively simple and should not carry the higher charge. "This fee landed at a $100," Van Tassel said. He added that "nothing has changed as far as the requirements that need to be met and the in-depth nature that staff does," and that state rules require fees be aligned to cover costs.

Councilor Durwachter said the reduction felt "really drastic" and asked why the fee had been $500 and what logic supported a $100 fee now. Councilors expressed concern that a lower fee could lead to less thorough shoreline reviews for some projects. Van Tassel said staff still expects some shoreland reviews to require in-depth work and that the fee is an add-on to other building-permit charges, not a substitute for substantive review.

Councilor Klonagh asked whether the department’s intent is to cover administrative costs rather than raise revenue. Van Tassel replied, "What we look to do with fees is cover our costs," and noted that state rules support that approach.

The change would apply to the 2026 fee schedule and was presented at the agenda-session preview; staff offered to provide additional detail if councilors want more analysis of workload and which categories of review are most likely to require time-intensive review.

The council is expected to consider the full package at the upcoming Monday meeting; Van Tassel said staff can follow up with bookkeeping or budget details if members request a report on how shoreland-review work is charged and counted.