Duluth Area Chamber of Commerce

The Impact of Manufacturing on Duluth's Past and Present

2012-01-20T13:11:00.000-08:00

A talented local author and newspaper editor, Chuck Frederick, wrote a compelling book in 1994 titled, Duluth - The City and The People. The book is a community treasure. It illustrates Duluth's remarkable past in a compelling and entertaining fashion. I review the book whenever I need insight into Duluth's rich history or whenever I need to be reminded of how abundantly fortunate I am to live and work in this Shining City on the Hill. Paging through the book always leaves me energized and informed.

Chuck chronicles the city's development from the day of the Ojibwe to the day of the tourist. He shares the magical aspects of our uniquely beautiful city built between the edge of the wilderness and the shores of the Greatest of the Great Lakes.

The book also chronicles the rise and fall of manufacturing in Duluth. Large scale industry came to Duluth in 1913 when U.S. Steel built a $6 million steel plant in the western end of Duluth. The company also built a model neighborhood, named Morgan Park, adjacent to the plant to house the company's employees.

Manufacturing expanded in Duluth with the opening of a cement plant, wire mills and a nail mill. In 1916, a shipyard along the St. Louis River produced eight vessels at a time. Duluth's manufacturing industry continued to grow exponentially, encouraged by the military build-up associated with World War II. It's growth continued as it met the production needs associated with the post-war building boom. It was a wild ride that continued until the 1970's when American industries started moving to other countries. In 1971, U.S. Steel closed its doors. Other smokestack industries struggled and either closed or relocated. Fortunately, manufacturing continued in Duluth; albeit at a greatly reduced level.

If Chuck Frederick decides to update his book and release a 2012 edition, it likely would chronicle the rise and fall...and rise of manufacturing in Duluth. Two weeks ago, a foundry in Gary-New Duluth, ME Elecmetal, announced it will be undergoing a $12 million expansion that is expected to create dozens of jobs. The company announced it will increase production by twenty-five percent. ME Elecmetal produces iron and steel castings for the mining industry. What makes this expansion remarkable is that it occurs so shortly after ME Elecmetal underwent a $10 million expansion in 2011. The combination of the two projects will result in a production capacity increase of 40 percent over two years.

Thankfully, other area manufacturers are also bringing jobs and investment to our beloved community. BendTec, Cirrus Design Corporation, NorthStar Aerospace, Ikonics Corporation, Altec HiLine, Loll Designs, Duluth Pack, Kylmala Truss, Field Logic, GPM, Inc., and Superior Steel, Inc. are keeping our community's legacy of manufacturing alive. The Chamber's leadership appreciates these manufacturers and applauds their tenacity and resilience.

In the early 1900's, manufacturing was instrumental in the building of Duluth. Today, manufacturing remains vital to our community's vibrancy and financial health. It is, therefore, encouraging to witness the renaissance of manufacturing. If written today, Chuck Frederick's story on manufacturing in Duluth would most certainly have a happy ending.

In support,
David

Challenge City Council to Support Needed Reform

2011-12-14T06:48:00.000-08:00

Mayor Ness is seeking to bring additional innovation and efficiency to City Hall. He is endeavoring to reform the City's ponderous and antiquated Civil Service System - a 1940's era employee management system.

The reform is overdue. The system is a relic from a bygone era wherein it was customary for the hiring of a city employee to take four or five months to process. Unfortunately, it still takes four or five months to hire a City employee. By the time the City of Duluth is ready to hire a job candidate, that candidate is often long since been hired by another employer who is unencumbered by such a grinding, glacial hiring process.

The system is advantageous for current city employees hoping to advance or relocate within the City's operations. It is a concurrent detriment to an administration seeking to bring new talent and energy to the City. Current employees are often positioned well to wait the many months the civil service system requires to process job placements. An outsider seeking to become a City of Duluth employee often is unwilling or unable to forgo other employment opportunities while waiting for what, ultimately, may be an opportunity within the City.

Current city employees have the inside track. They win. City unions win. However, tax payers and city administration lose. The potential infusion of additional talent into the City's staff is lost. A city administration that is being called upon to provide city services with fewer resources is hindered when it does not have access to talent from outside of the City's current talent pool.

This is where you and I enter this picture. Mayor Ness has labored for several months methodically moving this proposed reform initiative steadily through an exhaustive evaluation process involving the Civil Service Board, the City's union leadership, and the City Council. He has the reform initiative set for a Council vote. The vote will occur at the City Council Meeting scheduled for Monday, December 19, at 7:00 p.m. in the Council Chamber of City Hall.

Those who seek to keep the Civil Service system unchanged will attend the meeting to oppose the reform. They will make their voice heard. They will call upon the city councilors they have supported, campaigned for, and helped win election, to oppose the reform. This may be another example of how the interests of a small number of passionate opponents can outweigh the broader interests of residents who want city government to operate more efficiently and effectively.

The vote will illustrate which councilors believe city government must continue to reform and adapt to changing times versus those who want to protect the status quo. I encourage you to pay attention to this vote. Ask city councilors to support Mayor Ness in his effort to modernize city government. Let the councilors know you will be watching this vote. You can contact them at council@duluthmn.gov.

The Chamber's leadership unequivocally supports Mayor Ness in his effort to bring this needed reform to City Hall. I hope you will join us in doing so.

In support,

David Ross, President & CEO

A Call to Collaborative Leadership

2011-11-23T10:39:00.001-08:00

When I look at our Chamber members, I see leaders. I see innovation and the will to succeed. I see people who are not waiting for the next generation to make things better. I see the ones we have been waiting for.

With your involvement, we are creating a stronger business community and a more compelling future. I invite you to engage in our beloved community in ways that lift your spirit and honor your convictions. Support initiatives and elected officials that represent your views and values. Be a part of this momentum in an even bigger way.

I hope you will also strengthen our community by supporting each other - local business owners and operators. You employ our family members and our neighbors. You fund our city services, our public schools and our county's programs and initiatives. You purchase supplies from within our community. Our local businesses lift up our community one job, one person and one family at a time. I applaud you.

It is an ideal time to see who is here with us and celebrate. The time of the lone wolf is over. We would do well to gather ourselves to plan and to work together. We would be wise to banish the word "struggle" from our attitude and from our vocabulary. All that we do now must be done in a spirited manner and in celebration.

We choose to live and work in our Shining City upon the Hill. We could have chosen many other places, yet, we are drawn to this fascinating and remarkable place. It is our responsibility and our honor to give back to our community and to one another.

We do so while knowing our lives are full. Our calendars are crowded. Yet, we would be wise to come together precisely because our lives are full. We need the refreshment and the revitalization that comes from setting aside other obligations and activities - to be with business community members who share our excitement and our optimism for our shared future.

Consider this a call to lead and a call to collaborate with the Chamber or any other organization that is striving to move our community forward. Be assured, we will work with you in a spirit of mutual respect. We anticipate a quality conversation between purposeful people. We recognize that no one of us is as smart as all of us. We anticipate benefiting from conversations of consequence - courageous conversations.

In summary, now is the time to gather, to converse and to celebrate. Now is the time to make your voice heard. Now is the time to join together to fulfill our community's shared potential. After all, we are the ones we have been waiting for.

In support,
David

Processing the Impact of Closing Duluth's Mail Processing Center

2011-11-21T12:34:00.000-08:00

The United States Postal Service recently notified our beloved community that they concluded a study to evaluate moving their mail processing operations from the Duluth Processing and Distribution Facility to St. Paul, MN. Their notification heralded the strong probability that they will transfer the operations.

Upon learning of this likelihood, I assisted in arranging for, and participated in, a meeting with the Postal Service's top local official, Postmaster General Arby Humphrey. I did so to better understand the situation and to advocate for the continuation of our current level of postal service on behalf of our Chamber members.

This is what I learned from the postmaster general:

- The proposed annual savings of transferring the operations is $3.8 million.
- The transfer would generate a reduction of 58 postal service positions in Duluth.
- Retail and other services currently available will remain at the Duluth facility.
- Local collection box pick-up times may change.
- The delivery time-of-day of mail to residences and businesses will not change.
- The service standard for local mail delivery will increase from one day to two or three days.
Commercial mailers, who presort mail, will continue to receive applicable postage discounts.

Clearly, the most detrimental impact on our area would be the job cuts. Families will be affected by the employment loss in a time where economic growth and trust in our community is critical. In addition, we will see an increase in service time from one day delivery to a two or three day delivery for mail that is both sent from and delivered to our area. If the loss in jobs and the increase in delivery time is a concern to you, make your voice heard at the one opportunity you will be afforded.

A public hearing is being held to: share the results of the study, allow us to ask Postmaster Humphrey questions, and to provide us an opportunity to share our feedback with Postmaster Humphrey.

The meeting will be held:
Thursday, November 10
6:30 p.m.
Great Lakes Ballroom of the Holiday Center,
200 West First Street

I feel it is important that you be made aware of this unfolding development. Now you know.

Roger Wedin, our Director of Policy & Education, and I plan to attend the meeting. Please contact Roger or me if you have feedback or suggestions for us prior to the meeting. We welcome your sage counsel. I can be reached at 740-3751 or dross@duluthchamber.com. Roger can be reached at 740-3752 or rwedin@duluthchamber.com.

In support and forewarning,
David

David Ross, President & CEO

Let's Take Advantage of a Second Chance

2011-09-26T11:45:00.000-07:00

A few years ago, the Chamber's leadership inquired with our 1,070 members regarding how we should engage in local elections. You clearly indicated the Chamber should not issue candidate endorsements. Instead, you asked us to provide you credible and timely information regarding the local candidates and their positions on business-related issues.

In response, we implemented an ambitious, candidate-neutral education initiative designed to provide our members the insight and information you need to cast informed votes.

In recent months, the Chamber provided you timely and convenient opportunities to connect with the candidates. Within these opportunities, our members learned where the candidates stand on local issues. In the spirit of participating in the discourse of democracy, we recently hosted two Candidate Forums, held August 2nd and September 7th. We invited all twelve city council candidates involved in the primary election. Eleven of the twelve candidates participated in the forum. Additionally, we invited all seven of the school board candidates involved in the primary election. Six of the seven candidates participated in our forum.

We also produced and distributed 2,000 copies of our eight-page educational report, Vote 2011. The report provided candidate responses to questions posed by leaders involved in the Chamber's public policy initiative. We worked closely with the candidates to produce the report. We were delighted that all city council and school board candidates participated in the report.

I share this information with you to illustrate the Chamber's full engagement in the local election process. I trust you can, therefore, appreciate our collective disappointment when we learned Duluth's September 13 primary election generated the lowest voter turnout on record. Only 6,620 ballots were cast. This was 70 percent fewer votes than in Duluth's 2007 primary election. Only 12 percent of our Shining City on the Hill's registered voters took part in the recent primary.

Fortunately, we will soon have another chance to collectively do far better. Duluth's general election is November 8, 2011. Every registered voter in Duluth has reason to vote in the general election, regardless of which school board district or city council district you reside.

We can all have a vote in the Duluth School District's At Large race between Michael Miernicki and Ryan Stauber. Additionally, we can all vote in Duluth's two At Large City Council seats. The four remaining candidates are: Emily Larson, Linda Krug, Tim Riley and Chad Smith. Finally, each of us can vote on two vitally important referendums. The Duluth School District will have three operating levy questions on the November 8 ballot. The City of Duluth will have a ballot question on a proposed ordinance creating a Parks Fund and authorizing a special levy dedicated to funding parks.

The aforementioned votes will impact our beloved community for years to come. The stakes are high. It will be a seminal moment. I encourage you to vote November 8. Let's take advantage of a second chance.

In support,
David

In Collaboration and Celebration

2011-08-08T14:20:00.000-07:00

It is an exciting time to live in our beloved community. Optimism is high. Collaboration is valued and expanding. Our pride in the Emerald City is increasingly obvious to those who visit us and to those who observe our Shining City on the Hill from afar. It is, therefore, an ideal time to see who is here with us in our community - and celebrate. It is time to gather ourselves and to do so in celebration. We are the ones our predecessors have been waiting for to lead us to a prosperous future.

Our community's recent progress has been realized through a shared effort. Union members, labor leaders, elected officials and business owners and operators have stood together to advance our community's interests. One recent example of this remarkable partnership for progress is when our community came together to oppose the 2011 State Legislature's proposed reduction of $31 million in annual local government aid to Duluth.

Business leaders joined with local elected officials and local labor leaders to provide a unified coalition of defense against the proposed cut. Our shared defense attributed to the cut to Duluth's local government aid being far less disruptive - only 10% of the originally proposed amount. When we unite in our defense of Duluth, we do far better.

If Duluth is going to remain vibrant, leaders with disparate views and interests must, whenever possible, continue to place the greater good of Duluth above our parochial interests. The Chamber's leadership gets it. This is why our mission includes the call to provide collaborative leadership within our community.

We recognize the time of the lone wolf is over. It is time to gather ourselves. We must banish the word "struggle" from our attitude and our vocabulary. All that we do now must be done in a collaborative manner and in celebration.

It is the great things that have called us together, the subjects around which a circle of seekers have always gathered. Our ancestors gathered around a fire in a circle to discuss the activities of the day. Family members gather around their kitchen tables to discuss important issues. The Chamber's leadership welcomes opportunities to gather together with others in community dialog. We recognize that it will be through courageous dialog that we harvest the collective wisdom of our community.

We recognize that we are only one group - but we are one. We recognize that we cannot do many things to advance our beloved community - but we can do one thing. That one thing is to reach out to other individuals and other groups and to do so in a spirit of mutual respect. Count us in.

In support,

David Ross, President & CEO

Fighting for our 148th Fighter Wing

2011-07-05T08:48:00.000-07:00

The Duluth Area Chamber is an unwavering advocate for our community's Air National Guard 148th Fighter Wing. Our friends at the 148th make it easy to admire and support them.

The performance of our family members and neighbors who serve in the 148th is unmatched. The Wing earned Excellent or Outstanding ratings on all fifteen of its major inspections over the past ten years. The Wing was the recipient of the 2008 Raytheon Trophy, given to the Air Force's top air superiority squadron. Additionally, the Wing was the first unit in the U.S. Air Force to be awarded the prestigious Star Rating from the Occupational Safety and Health Administration (OSHA).

Success begets success. Strong leaders attract strong colleagues. The 148th is attracting the best and the brightest. It has a proven record of recruitment and retention. The unit's recruitment and retention rates are unparalleled in the National Guard. Its full-time maintenance force averages nineteen years of service.

The 148th campus is as remarkable as are its people. The Wing enjoys a spacious 138-acre campus, plus 83 acres of detached locations in close proximity. At the heart of the base is a new $24 million consolidated maintenance complex. In the past nine years, the Wing has benefited from investing $85 million in infrastructure improvements. The end result is a showcase, state-of-the-art military installation.

Add to these attributes - scheduling rights to one of the best airspaces in the United States. This scheduling availability allows for unmatched flexibility and efficiency. It is understandable that we, at the Chamber, believe the 148th is ideally positioned to expand its mission within our nation's defense.

The people of the Northland have always stood alongside the 148th with great enthusiasm. This is why I trust our community will take comfort in knowing the Duluth Area Chamber will continue our ardent support for the 148th. The men and women of the 148th know the Chamber stands with them. These same men and women also most definitely deserve our support. The 148th is a remarkable base in an equally remarkable community. The Chamber is proud to support both the 148th and our beloved community.

In support,
David

Let's Back our Bulldogs

2011-04-27T06:39:00.000-07:00

UMD will soon host its first Dinner with Champions celebration. The goal is to connect our university with our community in a shared celebration that will honor and show appreciation for our outstanding student athletes.

We have much to celebrate... a NCAA Hockey National Championship for the Men's Hockey Team; two recent NCAA Division II Football Championships for our football team; and five recent Women's Hockey Team NCAA Championships. Clearly, UMD's talented student athletes have done their part in bringing positive attention to our beloved city. Our community's profile has been lifted up and enhanced by these fine young men and women. Our Shining City on the Hill shines more brightly because of UMD's abundant success.

It is time for us to give back to these student athletes and to the University that brings them together.

We need your participation and your financial support to make this celebration a success. You would be a hero if you sponsored a table of eight attendees (four student athletes will join you and your three colleagues at your table). You can also sponsor a single UMD student athlete.

Mark your calendar for Wednesday, May 4, 2011. Join us at the Lake Superior Ballroom in the City Side Convention Center at the DECC. The reception begins at 5:30 p.m. The dinner and program begin at 6:15.

You can register by going to www.umdbulldogs.com or contact my friend and role model, Karen Stromme, UMD's Assistant Athletic Director. Karen will welcome your questions and your registrations. She can be reached at 726-7143 or kstromme@d.umn.edu. You can also open the attached invitation for additional details.

I hope you will join me and my colleagues at the Chamber as we celebrate UMD's student-athletes.

As a bonus, we will enjoy a motivational presentation, Winners for Life, provided by Head Football Coach Bob Nielson. If you are still not convinced you should attend, consider this... we will enjoy a second motivational presentation, What Makes a Champion?, presented by UMD Women's Hockey Coach Shannon Miller.

I am in. Are you?

In support,
David

I-35 Mega Project - A Business Perspective

2011-04-12T06:24:00.000-07:00

Work on the Interstate 35 (I-35) Duluth Mega Project restarted Monday, April 4. Take heart...the majority of the construction work was completed last year. $40 million of the Mega Project's $68 million has been expended. Hopefully, your patience is far from expended. Your continuing patience will be appreciated because work remains to be done. The majority of the remaining $28 million in construction will be completed in 2011. Work will occur from April to October.

The Mega Project entails pavement replacement, bridge repair and bridge replacement from Boundary Avenue, located at the top of Thompson Hill, all the way to 26th Avenue East. The overriding goal of the project is to increase safety and reduce maintenance.

Businesses play a dual role in this Mega Project. First, as citizens impacted by the road work. Second, working with the Minnesota Department of Transportation (MN/DOT) to keep our customers coming and minimizing inconvenience for our customers. Area businesses and MN/DOT have truly been "in this together" as we prepared for the project prior to 2010. We continue to work together as we prepare for another year of road construction.

Working cooperatively as a group has been productive. Together, the business community has accomplished more than individual businesses could have accomplished. We are combining resources for the maximum benefit. Specifically, the Greater Downtown Council, the Canal Park Business Association, the Lincoln Park Business Group, Visit Duluth and the Duluth Area Chamber of Commerce are working well together to prepare businesses for another season of road construction. The Chamber's leadership is pleased and proud to partner in this noble effort.

Two weeks ago, this unprecedented partnership hosted an information session wherein business owners and operators were provided an overview of the upcoming Mega Project work by Roberta Dwyer, 1-35 Duluth Mega Project Manager at MN/DOT. Sixty members of the business community attended the session. Attendees affirmed Roberta Dwyer's assessment that the Mega Project work completed last year was accomplished with less inconvenience than anticipated by travelers and the business community. The partnership is working hard to ensure that Project work in 2011 is, likewise, less onerous than originally anticipated.

Our Emerald City on the Hill will benefit for many years from the work being completed within the Mega Project. Our brothers and sisters in the building trades will enjoy another year of employment as they bring their talent and hard work to the Project. $68 million in federal and state funding is being invested in the gateway to our Shining City, located on the Greatest of the Great Lakes. Travel in and out of our beloved community will occur on safer, more attractive and more comfortable roads.

As we make our way through another year of road construction, we will do well to recognize how the Mega Project will result in mega progress for those of us who choose to reside and work in this uniquely beautiful city.

In support,
David

Poised for Population Growth

2011-03-14T12:17:00.001-07:00

In recent years, the Duluth Area Chamber's leadership has heralded the benefits to be realized by increasing Duluth's population. Our message has been consistent and unwavering. It has also been a voice and a message that has not always been embraced by several of our brothers and sisters within our beloved community.

And, until recently, our voice was a lone voice - distinct and separate from that of others heard in the public arena.

Thankfully, our persistence in advocating for thoughtful, planned growth is gaining support. In his State of the City Address presented earlier this week, Mayor Ness issued his challenge to grow Duluth's population from 85,000 to 90,000. We applaud Mayor Ness' leadership. With Mayor Ness leading the way, the base of support for growth will surely expand.

It is important for community members to realize that we will not so much "grow" to 90,000 as we will "return" to 90,000. In 1960, the population of our Emerald City on the Hill's population peaked at 106,884, and our city's future looked bright. A thriving port city, Duluth was still riding the post-war manufacturing high. Our nation was also fully experiencing the post-war baby boom.

Fast forward to today. The U.S. Census Bureau reported that Duluth's population is 84,262. Can a community lose 22,622 members (21%) within 50 years and still remain vibrant? Each of us has our own perspective on the ideal size for our community. Nevertheless, the recent census figures vividly illustrate that we cannot achieve the goal voiced, in prior years, by many Duluthians to "keep Duluth just the way it is." Communities either grow or decline; it is impossible to maintain a community in a static condition. Attempts to "keep Duluth just the way it is" will only end in frustration.

Growth is the healing balm for our Shining City on the Hill. Growth will lead to additional funding for our school systems. It will result in more opportunities for young people and additional investment in community services. Additional Duluthians will increase our political clout at the State Legislature and in Congress. Growth will infuse our community with additional private and public investment that fund our city services, such as police and fire protection.

There is abundant reason for optimism for those who welcome additional members of our community. Our population base has been stabilized and it appears that, since 2006, we have enjoyed an upturn in our population.

Additionally, Duluth is consistently being recognized by state and national authorities as an attractive and compelling place to vacation, work and live. Jobs are on the increase. More young people are choosing to remain in Duluth and choosing to relocate here. Five new or totally refurbished public schools will open this fall and welcome back our youth. Our colleges and universities are enjoying strong enrollment. Our clean air, pristine water, safe neighborhoods and panoramic views are increasingly compelling.

Our voices heralding the attributes of population growth are joining together to generate a powerful and positive chorus.

In support,
David

Calling Us To Community

2011-02-15T08:37:00.000-08:00

His message was compelling. It was sincere and heartfelt. He concluded his remarks by calling those of us in attendance to action. He asked us to join him in working to achieve a fairer and safer society by working together in service to our community. Mark Rubin, our recently elected St. Louis County Attorney, encouraged us to join him in strengthening services that keep our families healthy and strong.

Mark Rubin can count on me. He inspired me to reach higher and to give more back to our beloved community. I suspect he can also count on most of the other fifty-five business community members who joined me to listen to Mark’s keynote address at a luncheon held earlier this week hosted by the Duluth Area Chamber of Commerce.

Mark Rubin and the Chamber’s leadership understand that a prevailing sense of community is one of the strong points that will make our Shining City on the Hill even more remarkable. A sense of connection that leads us to care more for our neighbors can be what causes us to remain here and causes insightful, community minded individuals and families to relocate here.

If the rise in volunteerism is an indicator, it is apparent that many community members are recognizing what several Chamber members have known all along: we need each other if we are going to keep our community vibrant. If our community is to be consistently renewed, then this involvement with one another must continue.

To deal with our shared community challenges, we must recognize that our community includes persons from different interest groups, different neighborhoods, different political affiliations, and with different ideas regarding what is best for our city.

“Anti-development,” “preservationist,” “environmentalist,” “conservative”, big business,” and other labels come between us and can limit our interaction and flaw our relationships. Undue labeling impedes our collective community’s effectiveness, and we all suffer as a result. Let us not lessen our sense of community by perpetuating the labeling of others. Instead, let’s do as Mark Rubin encourages us to and reach across former barriers to partner in advancing our community.

The Chamber is successfully reaching out to work with individuals and organizations in an effort to strengthen our community. Examples include the establishment of a sustained partnership with: the Duluth Building and Construction Trades Union, the 148th Fighter Wing, the Duluth Public School District, St. Louis County’s leadership, the City of Duluth’s administration, and numerous organizations such as the Life House and Minnesota Teen Challenge.

We have achieved these objectives by avoiding the labeling of others and by sincerely extending ourselves to understand and work with others who were formerly and unjustifiably viewed as anti-development. We now understand that we can partner in advancing our community.

Mark Rubin’s call to service resonates with us at the Chamber. After all, we are an organization sustained by volunteers. We also fully internalize how vitally important it is that our businesses are located in a healthy vibrant community.

It is an exciting time to be living here in this enchanted Emerald City on shores of the Greatest of the Great Lakes.

David Ross
President
Duluth Area Chamber of Commerce

Advocating for You While Contesting Fee Increase

2011-01-24T08:36:00.000-08:00

One month ago, the City Council appeared poised to impose the entire Street Lighting Utility Fee increase on Duluth's 3,820 businesses. The majority of council members concurrently indicated a desire to avoid having Duluth's 24,100 residential units incur any portion of the planned fee increase. Politically, it was understandable. Burden 3,820 business owners versus burdening 24,200 homeowners.

While it may have been politically justifiable, it would have been unfair to our business owners and operators. Some businesses would see their monthly street lighting utility fee increase from $3.50 to $102. Others from $3.50 to $51 per month. Others from $3.50 to $17.

The proposed formula for determining if a business would pay $102 or $17 per month is based on the City's Stormwater Utility Unit Rate System. Unfortunately, there is no direct correlation between a business' stormwater utility usage and its street lighting usage. The formula is flawed. So, too, is the disproportionate fee on business.

This is why, last week, the Chamber proposed a more equitable plan for distributing the proposed fee increase. We respectfully presented our proposal to the Duluth City Council at a meeting last Thursday. It included increasing the monthly fee on residences from $3.50 to $6.15 and the fee on businesses from $3.50 to $15.25.

The proposal takes into account that all of us, homeowners and businesses alike, benefit from the City's 3,500 street lights and 100 signalized intersection lights (stop & go lights). Businesses would still pay more to assist in enabling the City to upgrade and modernize its street lighting system. We believe it is a fair solution.

The city council is planning to decide on the street lighting utility fee at its meeting this evening at 7 p.m., in the City Council Chambers, located in the 3rd floor of City Hall. I encourage you to attend the meeting and to have your voice heard. You can also view the meeting on Public Access Community Television or listen in on 103.3 KUMD FM Radio.

Be assured, the Chamber's leadership will attend the meeting to advocate on your behalf. It will be an honor to do so. Please let me know if you have suggestions, concerns or insight to share with me regarding the proposed fee increase. I can be reached at dross@duluthchamber.com or 740-3751.

In support,
David

Shining Light on the Street Lighting Fee

2011-01-04T12:07:00.000-08:00

Late last month, the Chamber learned the City of Duluth intended to increase its Street Lighting Utility Fee. The proposed fee would increase the current monthly charge of $3.50 to a monthly charge of: $17 for small commercial buildings, $51 for medium sized commercial buildings, and $102 for large commercial and industrial buildings.

Upon learning of this proposed fee increase, the Chamber immediately challenged Mayor Ness' administration to either forego the increase or delay it's implementation. We believe the business community deserves, at minimum, to understand the rationale for the increase prior to being compelled to pay it. We also believe the City's administration should fully understand the negative ramifications that such an increase would have on the business community. A fee increase may prove to be a disincentive for businesses to operate in our beloved city. The proposed fee would appear to clearly be at odds with our mutual goal to boost economic development within Duluth's city limits; as our neighboring communities do not charge their citizens a street lighting utility fee.

I applaud Mayor Ness and his chief administrative officer, David Montgomery, for listening to our appeal. They withdrew the proposed fee increase from the planned vote scheduled to occur at the City Council meeting last week. The council's vote on the fee is now planned for Monday, January 24, 2011.

This delay provides us an opportunity to learn more about the street lighting utility fee. Let us make the most of this brief respite prior to the council taking action on the proposed fee increase.

David Montgomery will be our guest at our Chamber FORVM scheduled for:

Tuesday, January 4, 2011
8:00 a.m. to 9:00 a.m.
Play Ground Theatre
Technology Village (Superior Street Level)
11 East Superior Street

The FORVM will focus on the fee and the city's strategy for dealing with the financial challenges it will face in 2011. The FORVM may be your one chance to engage in a discussion with David Montgomery regarding the city's fees and finances.

Have your voice heard. Join us at the FORVM.

In support,
David

Avoid the Ineffectiveness of Indecision - Vote ‘no’ on Plan B

2010-09-28T09:18:00.001-07:00

Duluth public school students are enjoying the advantages their new and upgraded schools have provided as part of the School District’s Long Range Facilities Plan (sometimes called the Red Plan). With four schools completed and open, seven under construction and the remaining two with construction beginning soon, you see a lot of smiles on the faces of parents, teachers and students.

After four years of often-divisive debate, the community now sees how these modern, safe and energy-efficient schools are a benefit to our children. They are concurrently eliminating the excess space and antiquated equipment we taxpayers have been funding for too many years.

So why, with all these improvements already underway, will we be voting November 2 on potentially undoing the Red Plan?

Because, by state law, we have to. Two years ago, Red Plan opponents circulated a petition for what they dubbed “Plan B”. After the petition was accepted by the school board, it took nearly a year for the petitioners to submit their plan to the State for review and approval for a public referendum. Fortunately, during this time, work continued on the approved long-range plan. Delays would have added new costs for taxpayers and caused more disruptions in our schools.

Despite the fact that 90 percent of the district’s plan is already being implemented, and despite Plan B proponents acknowledge their plan will cost taxpayers more each month, here is the question we will see in the voting booth:

“Shall the School Board of Independent School District No. 709, Duluth, be authorized to issue general obligation bonds totaling $128,000,000 to be used with an estimated $66,092,086 in bonds and investment earnings previously approved by the Board for alternative facilities to build two new middle schools and two new elementary schools; repair and remodel three high schools, one middle school, and five elementary schools; repair and expand two elementary schools; and repair and remodel ‘Old Central High’ and the Secondary Technical Center? BY VOTING ‘YES’ ON THIS BALLOT QUESTION, YOU ARE VOTING FOR A PROPERTY TAX INCREASE."

The referendum doesn’t make any sense – even if it is only advisory in nature. If the school board were to implement it, the District would pay to redesign and remodel already-completed buildings. The District would also need to pay contractors for agreements that would not be completed. Additionally, it would be required to cancel existing bonds and reissue new bonds. These expensive propositions would be an unwarranted cost to taxpayers. Finally, every year we taxpayers would pay more for our schools because we would have more buildings to operate.

There isn’t a wise business owner anywhere that would develop a thoughtful and effective plan, implement 90 percent of it, and then toss it out the window for a more expensive plan - that does less. We taxpayers shouldn’t waste money moving backward, either.

Let us, as residents of our beloved community, put this tired debate behind us. Let’s avoid the ineffectiveness and the inefficiency that accompanies indecision. Let us get back to concentrating on what’s most important – the education of our school age children. Voting “no” on Plan B will allow Duluth to finally move forward. Our shining city on the hill will shine more brightly if we do so.

Join in Welcoming College Students

2010-07-29T06:29:00.000-07:00

Prepare yourself for the wave of energy, investment and business that is coming our way. It will be a wave of humanity and treasure that will lift up our community on a rising tide of prosperity. Our beloved Emerald City on the Hill will soon be turbo-charged with the infusion of 26,000 college students. And, they will need to purchase things - many things.

If you are in the retail, hospitality, housing and service industries, you fully understand the profound positive impact college students have on your bottom-line. Many students spend all summer working jobs in their hometowns so they can come to our beautiful Twin Ports and spend their earnings. It is truly a beautiful thing.

It makes sense, and cents, then to openly and enthusiastically embrace our college students. The Duluth Area Chamber of Commerce's leadership is encouraging our 1,100 members to clearly illustrate your appreciation for our college students. That is why we are distributing to you, our members, posters that read, "Welcome College Students." We are encouraging you to display the posters in August and September when many of our college students are arriving in our Zenith City and in Superior.

The posters will be included as an insert in our August Xpress Newsletter, which you will receive today or tomorrow. Please look for the green poster and display it in a prominent place at your business. If you would like extra posters, we will have them waiting for you at our office located at 5 W. 1st Street, in beautiful Downtown Duluth.

Our goal is to clearly convey to our college students how much we value them. If we are successful in this noble effort, maybe more of our college graduates will remain in our Shining City on the Greatest of the Great Lakes. Please join us in welcoming our college students. Our future depends on it.

In support and appreciation,

David

Ensure That So Few Don’t Decide for So Many

2010-07-02T08:51:00.000-07:00

Our local election season is unfolding early this year. For the first time in Minnesota, the primary election day will be moved forward to Tuesday, August 10, 2010. This change, from what would have been September 14 to August 10, may have a profound impact on the election results.

Parents with grade school and high school age children may still be enjoying summer vacations in August. Many of our beloved community's twenty-plus thousand college students most likely will not have arrived on campus by August 10 for the September start of the college year. When August 10th arrives, many of our community members may not even realize the primary ballot day is no longer in September.

It is easy to image how our historically low primary election turnout, of approximately 25 % of registered voters, will drop to a frighteningly low percentage. Local elected officials are predicting a voter turnout of 15% for the August 10 primary. Minnesota Secretary of State Officials are predicting an alarmingly low voter turnout of 10%.

With such a low number of voters taking part in the primary, those who show up and vote will have a powerful impact on which candidates survive the primary election. If we don't vote in this election, the candidate of our choice may not be on the general election ballot come November 2, 2010. They may have been eliminated by the 10 percent of us who voted in the primary.

You can either take comfort in knowing, or be alarmed when considering, that local special interest groups have their eyes on the prize - the August 10 primary election. The political machinery will be prepared for and participate in the primary election. Will you?

Only eighty individuals gathered in the Arrowhead Place Building in Downtown Duluth last week to determine which candidates were endorsed by the local Democratic Farmer Labor Party (DFL). I applaud those who attended. They are keeping their eyes on the prize. For those of us who did not make this DFL endorsement event or the other political party endorsement events, our chance to have our presence felt is the August 10 primary election.

Never before will so few decide for so many - unless we engage in the political process. Vote on August 10. Vote by absentee ballot, prior to August 10, if you know you will not be able to vote in your precinct on primary election day.

Our beloved Emerald City on the Hill is a remarkably compelling community. Our elected officials should be equally remarkable and compelling. Let's vote to ensure it is so.

In support,
David
President

In support of cutting the cost of city government

2010-05-10T09:25:00.000-07:00

Does the city of Duluth really need to spend $3 million each year in overtime wages? Do city employees truly have to be paid one-and-a-half times their hourly wage to be on call? Why doesn’t the city contract with private service providers to do what is now city overtime work, at a lesser expense? Why can’t part-time employees be hired to provide more flexibility in scheduling?

These were just a few of the questions asked of City Councilors Jim Stauber and Todd Fedora at a recently held FORVM, a monthly public policy discussion hosted by the Duluth Area Chamber of Commerce. In Stauber’s and Fedora’s defense, they have been asking city administration the same questions.

Thankfully, Stauber and Fedora do not endorse several of the current work rules or the current union contract language that contribute to the $3 million in annual overtime wages.

Two months ago, many community members were outraged when we learned of the overtime expense within the city’s operations.

The Duluth News Tribune courageously focused community attention on what were, until then, quietly implemented city work rules. The Tribune’s front-page article fueled indignation within many of Duluth’s tax payers. Yet, what has changed within City Hall since these practices became public? Have staffing efficiencies been implemented?

The cost of city government must be reduced. The state’s funding of city government is in decline. The appraised value of several properties on the city tax rolls has decreased in recent years. Simply stated, the city’s operations need to shrink commensurately with the decreased city funding.

Mayor Don Ness and his administration have gallantly made initial reductions in the city’s expenses. Yet, it is only a noble beginning to what must be a much larger effort.

It will take courage and political will to do what needs to be done within City Hall. Ness needs those of us who support his cost-cutting efforts to publicly support his efforts. We must also challenge our talented mayor to do far more to reduce the cost of city government. When city services are reduced, we need to thank him for the reduction, not contest the reduction. If the mayor transitions non-essential city services to private sector service providers, we need to applaud his efforts. When he takes on the 1950s-era work rules, we would do well to affirm his leadership.

Additionally, we would be wise to concurrently support the three city councilors who have consistently exhibited a desire to reduce the cost of city operations: Fedora, Stauber and Jay Fosle.

Let us keep our attention focused on the city’s operations. By doing so, we will better understand how our tax dollars are being spent. We will also be in a better position to support the city councilors and city administrators who are striving to reduce the cost of our city government.

In support,
David Ross

The Future of Duluth's Public Utilities Decided This Evening

2010-04-12T11:31:00.001-07:00

The management and operation of the City of Duluth's public utilities (water, natural gas, and sanitary sewer) will soon change. If you own property in Duluth, you will feel the financial impact of this change. Yet, few Duluthians appear to be paying attention to this issue. Fortunately, there is one last opportunity to do so and to have your voice heard.

The change will occur this evening when the Duluth City Council is expected to approve an ordinance creating a Duluth Public Utilities Commission. The Commission will be authorized to establish the various utility rates. The majority of city councilors have found that the management and operation of the City's water, natural gas, and sanitary sewer has become more complex. They believe the City would benefit from the focused attention on utilities that can be provided by the Commission. I agree.

Before a proposed ordinance can be voted on by the Council, it must be publicly read at two city council meetings. It is within these two meetings that community members are afforded an opportunity to provide public comment in response to the proposed ordinance. The first reading of this proposed ordinance occurred two weeks ago at the March 29th city council meeting. I attended the council meeting and was the one community member who gave testimony relative to the potential of a Public Utilities Commission. I shared the Duluth Area Chamber of Commerce's appeal to have the establishment of public utility rates be the result of a transparent, disciplined, and responsible process that seeks to keep the utility rates at their lowest possible cost to consumers.

The City's utility rates have increased exponentially in recent years. They have done so without rate payers being assured the increases were the result of a transparent, disciplined, and responsible process that strove to keep the rates as low as possible. The Chamber will applaud any initiative that brings additional structure and accountability to the rate setting process. We also will appreciate being assured that subsequent rate increases will be reinvested in utilities infrastructure improvements. It appears the establishment of a Public Utilities Commission is a step in the right direction.

Our final opportunity to have our voice heard on this issue is at the city council meeting this evening (Monday, April 12) at 7:00 p.m. in the Third Floor Council Chambers of City Hall. Council meetings are broadcast live on radio on KUMD 103.3 FM and on television on Public Access Community Television. You can obtain a copy of the meeting agenda and the ordinance by accessing the City of Duluth's website at www.duluthmn.gov.

Home and building owners will be directly impacted by how well the City's public utilities are managed. The cost of these utilities will be, in part, determined by the Commission. The Chamber will continue to closely evaluate and monitor this initiative. I encourage you to do the same.

I welcome your feedback on this issue and on any issue facing you as a member of our Chamber. I can be reached at dross@duluthchamber.com or 740-3751.

In support,

David Ross

Applauding Superintendent Dixon and Mayor Ness

2010-04-05T11:25:00.000-07:00

Our Shining City on the Hill is shining more brightly these days. It does so by design and not by chance. This illumination is made possible, in part, because of two exceptionally strong and courageous leaders. These leaders, Superintendent Keith Dixon and Mayor Don Ness, bring a quiet confidence and resolve to their leadership roles. It is an honor to stand beside these men of character and stand with them as they accept the leadership challenge of addressing problems that plagued our beloved community for decades.

The problems were bequeathed to them by their predecessors and by our citizenry, who were unable to properly address the concerns.

One of these chronic, formidable problems was the financial and structural condition of our public school system. The number of students enrolled in our Duluth Public School District has steadily declining since 1960. While the District made limited changes in response to the decline, its leadership was unable to implement the comprehensive and decisive actions necessary to bring our school system into alignment with the decreased enrollment. That is, until Keith Dixon took on this challenge.

Keith Dixon is exactly what our school district needed. He is a resilient, intelligent and tough minded optimist who believes in providing our children the best possible centers of learning. He has faced adversity and he has overcome the odds all his life. Those who continue to fuel opposition to the Long Range Facilities Plan are hoping to wear down Keith Dixon. They obviously don't know Keith Dixon. If they did, they would realize they will not discourage this person of conviction and courage. When the dust settles at the school building and remodeling sites, our community will increasingly come to realize the benefits derived from Keith Dixon's leadership.

Another protracted and largely unaddressed community problem was the City of Duluth's financial struggles caused by the compounding city employee retiree healthcare liability. It was decades in the making. Yet, it was Mayor Don Ness who took on the formidable task of addressing this concern in a comprehensive and decisive manner. He was publicly and aggressively lambasted by some who were benefiting from the unsustainable arrangement. Mayor Ness, like Superintendent Dixon, took on the problem despite the controversy generated by his decisiveness.

In his first State of the City Address, Mayor Ness quoted President John Kennedy, who said, "We do not take on our challenges because they are easy - we do so because they are hard." Mayor Ness has courageously taken on the hard challenges he has faced during the three years he has led our city.

Keith Dixon and Don Ness share some admirable traits: they lead with a quiet strength, they are humble and, they remain calm under inordinate pressure. I have a quote that I often reflect on when I am in need of encouragement. It reads, "Courage doesn't always roar. Sometimes courage is the quiet voice at the end of the day saying 'I will try again tomorrow'." The quote reminds me of how well Superintendent Dixon and Mayor Ness possess the energy and the resolve to press on with the work before them.

In support,

David Ross

Transforming Our Beloved Community through Google Twin Ports

2010-03-31T11:52:00.000-07:00

Our beloved community is ideally positioned to convince Google to build an ultra-high speed fiber-optic broadband network in the Twin Ports. This network will bring fiber-optic connections to every home and business at speeds of one gigabit per second, up to 1000 times faster than existing high speed internet connections.

This upgrade will transform our economy. It will revolutionize how we do business and how we connect with each other. It will place Duluth and Superior at the forefront of the next great economic revolution in America. This initiative would likely advance Duluth-Superior into an improved technology innovation hub. Many new programs and services requiring ultra-high speed fiber network will naturally be created in communities that have this service.

Could it really happen in the Twin Ports? Absolutely. We fit Google's criteria extremely well. As well, we are enthusiastically embarking on what we hope will be the most comprehensive attraction campaign in the nation. Ultimately, our success depends on the participation of folks like you. We need you to join us in this noble quest. You can do so by taking this one simple step:

Go to www.googletwinports.com and join the team. You will be walked through how to urge Google to come to Duluth-Superior.

The Twin Ports is on the national map as a forerunner in this contest. Let's press on with conviction and with optimism. We have just a few weeks until the deadline. Please help our Twin Ports become Google Twin Ports.

Thanks for your help,

Mayor Don Ness
and
David Ross, President & CEO

Embracing Duluth’s Progress Zones

2010-01-08T12:41:00.000-08:00

The change is subtle. Yet, it can have a profound impact on how we view developments within our beloved community. The change to which I am referring is viewing the multiple “construction zones” we encounter each day as “progress zones.”

What a difference one word can make. For example, we can respond to a rerouting of traffic caused by one of these progress zones with fascination instead of frustration. Challenges can take the place of problems. Homework becomes home-learning. The Chamber’s leadership views our community’s challenges with positive expectancy. When our Board of Directors gather for our annual off-site planning session, we call the session an “Advance” instead of a “Retreat.”

We have been faced with a challenging economy in recent years. Nonetheless, there is optimism within the Chamber and, increasingly, within our Shining City on the Hill. The revitalization of our historic downtown continues. We can all see the progress being made as the dream of a new DECC Arena is becoming a reality. Our public schools are being revitalized. Our city and county streets are being rebuilt. Student enrollment is at record levels within our institutions of higher learning. New restaurants and hotels are opening within our Zenith City. There are many examples of progress and reasons for optimism – if we choose to acknowledge them. These progress zones are setting the pace for a new and exhilarating spirit in Duluth.

Throughout this past year, the Chamber has marshaled its resources to promote developments that signal excitement in our city. Private and public development will reach a record high of approximately $750 million infused into our community over a period of a few years. This development is generating jobs and opportunities for our community members. Duluth’s unemployment rate is lower than the state and national unemployment rates. This is a positive reversal of our past experience.

True enough, there are calculated risks inherent in the multiple progress zones that the Chamber and others have labored so long to make possible. All real progress involves risk and challenges. However, Duluth has the vibrancy to accept the risks and stride forward boldly. Let us together resolve to embrace the opportunities that now lie before us and begin 2010 as a city experiencing remarkable progress.

In support,
David

No More Fees, Please

2009-11-25T06:45:00.000-08:00

The City of Duluth’s administration was poised to raise our city utilities fees again when the Duluth City Council meeting convened Monday, November 9th. The only thing between yet another increase to our city sewer, water and natural gas rates was a vote by the city councilors. Thankfully, before the councilors voted, there was an opportunity for citizen’s to address the councilors related to the proposed fee increases.

Only six Duluthians took the opportunity to speak on the proposed fee hikes. The first four spoke in support of the fee increases, rationalizing that increased fees were the only way to protect our beloved Lake Superior, the Greatest of the Great Lakes.

The remaining two citizens who addressed the councilors were strongly opposed to the proposed fee increases. I was one of these two citizens. My Chamber colleague, and brother in commerce, Andy Peterson, was the other voice in opposition of the fee increases.

Like the four citizens who spoke prior to us, Andy and I want to protect our treasured Lake Superior. It is our community’s most precious and remarkable asset.

Yet, Andy and I know better than to assume there is a direct link between increased utilities fees and increased protection of our pristine drinking water. The proposed fees increase had far more to do with protecting the city’s union workers and the union’s antiquated, inordinately costly, and unsustainable public sector union benefits.

Councilor Todd Fedora gave powerful testimony detailing the concerns he had relative to the union utility workers alarmingly expensive on-call, overtime and minimum staffing requirements.

The city’s unions have the city’s administration, our city’s utilities, and, consequently, every citizen of Duluth up against a wall – and they are reaching for our collective wallet. At a time when businesses are being called upon to provide more services and products at reduced prices, the City of Duluth is calling upon its citizens to pay more fees. Innovation and creativity are needed within the City’s utilities departments – not more fees to feed the system.

However, all is not lost. There is reason for optimism. The City Council strongly rejected the administrations recommended utility rate increase by a 7-2 vote. The only councilors who voted for the increase were Tony Cuneo and Greg Gilbert. I hope you will join me in applauding the seven councilors who opposed the increase. After voting against the fee increase, city councilors asked city administration to provide them information regarding the utilities department’s union work contract concerns Councilor Fedora shared with them prior to their vote on fees. It is information I also look forward to seeing. I suspect the information will not be comforting. I will keep you posted.

In support,
David Ross

Participate in Improving Zoning Regulations

2009-10-27T07:42:00.000-07:00

As our Shining City on the Hill looks to revitalize our business districts and bring in new developments, there are many considerations for how this development could or should look. The City of Duluth is undertaking the significant task of modernizing its zoning code with immense community input and response. The Duluth Area Chamber of Commerce is an enthusiastic partner in this effort. I was proud to serve as a business community representative on the Comprehensive Land Use Development Plan Committee, which completed the plan in 2006. I am equally pleased to continue representing you on the Zoning Advisory Committee, charged with completing these new zoning regulations by spring of 2010.

Zoning affects us all and we can all be part of the solution to a 50 year old code that does not allow for newer modern buildings, mixed use opportunities, and pedestrian friendly business districts. Our residents and Chamber members are constrained by outdated regulations which do not provide room for creativity and only offer limitations to the usage of existing buildings.

The effort to change the zoning regulations coupled with the City’s work to establish a more effective and efficient permitting process bodes well for the future of Duluth and the revitalization efforts of our downtown area and the city as a whole. Duluth is undergoing a significant revival and these efforts will help to sustain development, growth, and offer a new quality of life now and into the future.

Our beloved Zenith City is fortunate to have an active and engaged citizenry. I encourage community members, and especially our Chamber members, to participate in the City’s public process. The second of four modules on the proposed zoning regulations, or what is formally known as the Unified Development Chapter (UDC) of the City’s Legislative Code, will be presented at a public meeting on: Wednesday, October 28 at 6:00 p.m. in the Great Hall of the Depot.

There is still time to have your voice heard within this important initiative.

If you cannot attend the meeting, information on the first two modules of the proposed zoning regulations can be found on the City’s website at: http://www.duluthmn.gov/planning/udc/meetings.cfm
Comments can also be directly submitted on-line at: http://www.duluthmn.gov/planning/udc/connected.cfm

In unwavering support,

David Ross
President and CEO
Duluth Area Chamber of Commerce

School Board Candidate Contrasts

2009-10-08T10:39:00.000-07:00

School Board Candidate Contrasts

The Chamber’s effort to get school board candidates to clearly state their positions got off to a lively start on Tuesday morning. At our School Board Candidate FORVM, a capacity crowd of citizens and news media attending our gathering in the Duluth Technology Village.

We were honored to be joined by three of the four incumbents – Mary Cameron, Laura Condon and Ann Wasson – and by three of the four challengers – Maureen Booth, Art Johnston and Tom Kasper. Board member Nancy Nilsen was out of the country and could not attend, and challenger Marcia Stromgren informed us she had a conflict. Yet, these two individuals also provided varying levels of email responses to the questions.

To ensure candidates would arrive well prepared, we provided the questions to them a week ahead of time. The purpose was to ensure that attendees would hear exactly where each candidate stands. In most cases, that worked well. However, it took two or three tries to get some of the non-incumbent candidates to commit to precise answers. Even then, some still chose to not answer at all.

Among the surprises at Tuesday’s FORVM were these:

Maureen Booth said she couldn’t comment on Long Range Facilities Plan (LRFP) specifics because she had not been allowed to view the plan. We encourage her, and anyone else seeking detailed information about the Long Range Facilities Plan, to visit the ChooseDuluthSchools.com website that has been live for several months.
Art Johnston said that while he supports Plan B, he is not a member of Let Duluth Vote. That’s apparently a change in his position, because he was the Let Duluth Vote spokesperson who presented Plan B to the School Board on June 23.

The two challengers who said they’d vote to keep more schools open – Johnston and Kasper – did not provide any ideas for how they’d pay for them.

Here is how the candidates responded to three key questions people are asking:

Which plan do you support? All four incumbents said they support the LRFP now underway. Johnston and Stromgren support Let Duluth Vote’s Plan B. Kasper said he supports aspects of the LRFP, but would keep Nettleton and Morgan Park schools open. Booth said she could not answer because she had not seen details of the LRFP.
If elected, would you stop all work on the facilities plan? – Booth, Kasper and Johnston said they would stop work on the plan. The four incumbents said they would not stop work on the plan. Stromgren chose to not answer this question.
Would you vote to keep more schools open than the LRFP currently includes? – Booth and the four incumbents said they would not vote to keep more schools open. Stromgren again chose to not answer at all.

Those who answered yes were asked if they would pay for the extra schools by seeking an operating levy, cutting teachers, freezing employee pay, cutting existing education programs, cutting extracurricular activities, or something else.

Johnston and Kasper said they would indeed keep more schools open. However, they would use steps other than the five options suggested. They did not provide specific ways to pay for the extra schools.

Johnston also said he’d like the community to have more discussion about Plan B, and we agree with him. We believe it’s vitally important for voters to realize the financial, educational, environmental and safety implications of Plan B versus the approved Long Range Facilities Plan.

This blog and Tuesday’s well-attended FORVM are tangible indications of the Chamber’s commitment to help voters go to the polls on November 3 with accurate information on which to base their important decisions.

In support,
David Ross

Keeping Crime Down in Downtown

2009-09-14T13:09:00.000-07:00

Earlier this summer, my Chamber colleagues and I completed a walking tour of First Street during which we stopped in every business located between City Hall (on the west end) and SMDC (on the east end). We queried each of the fifty-four business owners and operators regarding their view of crime in the Downtown area.

We did so because we had heard from a few of our members who did business in the Downtown section of First Street and who believed crime was becoming a growing problem. Our tour clearly illustrated that although there were a few isolated areas of concern - especially at certain times of the day - First Street remains a safe and vibrant place to do business and enjoy visiting.

After completing the tour, we shared our findings with Police Chief Gordon Ramsey. He, in turn, was gracious in sharing with us the plans he was even then (May, 2009) implementing to intensify the City's crime fighting efforts in the Downtown.

Four months have now passed since the completion of our tour and the increase of crime fighting efforts. This is a list of those efforts which have been implemented:

Two new, energetic officers now routinely walk or bike through the Downtown.
Seven additional seasonal officers are now patrolling Downtown and Canal Park. This is the largest police presence in many years in these areas.
A new skateboard ordinance has been implemented in Canal Park. (There have been positive reports on the ordinance from business owners in Canal Park.)
Two additional plain clothes undercover officers have been patrolling the problem areas of Downtown.
Officers are working with the Downtown bars that have excess police calls and have placed the bars on police calls reduction plans.

The cumulative impact of these initiatives has resulted in a safer, friendlier Downtown Duluth. As a result, there are more people visiting and enjoying Downtown than in many past years. More arts and entertainment venues are drawing greater numbers of patrons. More people are residing in the increasing number of condominiums and apartments available in the Downtown, and greater numbers of tourists are concurrently making their way from Canal Park into our historic Downtown.

There has never been a better, safer time to enjoy the sights, sounds, and energy of our community's meeting place. I look forward to seeing you there.

Yours in support,

David Ross

President & CEO

Extending Progress Through a Skywalk Extension

2009-08-14T13:46:00.000-07:00

Downtown Duluth has enjoyed a transforming revitalization. The Technology Village, located at the corner of Lake Avenue and Superior Street, was an extraordinarily bold project that sparked this revitalization. In one monumental effort it transformed a dilapidated and unsightly block of decaying buildings into a triumphant centerpiece for our downtown. In doing so, it heralded a new and positive era for Duluthians fortunate enough to live and work in our beloved downtown.

A&L Properties, which built the Tech Village in 1999, invested over $26 million in this highly visible landmark. The City of Duluth, as their part of the building project, promised to build a skywalk connecting the Tech Village to the existing skywalk system. The skywalk was planned to span Lake Avenue. The City assured A&L Properties that the skywalk would be completed by the time the Tech Village opened in 1999.

That's right, 1999. Unlike the music icon, Prince, the leadership of A&L Properties could not - Party Like It's 1999. They are still waiting to celebrate the completion of the promised skywalk connection over Lake Avenue. Thankfully, the City of Duluth finally approved and financed the skywalk extension. It is being constructed at the cost of $2.35 million. It is scheduled to be completed by October. It is difficult for us to fully appreciate the difficulties A&L Properties endured while waiting ten years for the City to fulfill its part of the Technology Village bargain. The City's disappointing performance, at a minimum, does not engender confidence in their ability to fund and build future skywalk extensions.

This is one understandable reason why A&L Properties is willing to privately fund and build the next skywalk originating from the Technology Village. Rob Link, of A&L Properties, is hoping to build a skywalk linking the Technology Village and the recently completed Wieland Block development. The Wieland Block is another bold and beautiful showpiece within our downtown - also developed by A&L Properties. It is bringing additional private investment, character and optimism to our downtown. The proposed skywalk would pass over Superior Street just east of Lake Avenue. It was part of the original Master Plan and vision for the Technology Village, approved by the City of Duluth.

Construction of the Wieland Block skywalk will be friendly to downtown motorists. It will be designed in a way that will not require Superior Street to be closed for an extended period. It will be installed in sections during nighttime hours. Its floor-to-ceiling glass and compelling design will enhance the beauty of our downtown.

All that is required to make this needed, tax-free addition to the downtown a reality are some approvals within City Hall. A&L has filed a request for a building and a concurrent use permit from the City of Duluth. The Duluth Planning Commission is scheduled to take action on the requested permit August 11. The Planning Commission's recommendation will be forwarded to the Duluth City Council, which will act to approve or deny the permit.

Please join me in encouraging the Planning Commission and the City Council to approve the permits. It would be wise to allow A&L Properties to continue investing resources and spirit in the welcome renewal of our historic downtown.

In support and advocacy,
David Ross
President & CEO

Perspective on Duluth’s Population

2009-07-08T06:13:00.001-07:00

In 1960, the population of our beloved Emerald City on the Hill’s population peaked at 106,884, and our city’s future looked bright. A thriving port city, Duluth was still riding on a post-war manufacturing high.

Fast forward to July 2009. The U.S. Census Bureau reported that Duluth’s population declined by 2,634 people between the years 2000 and 2008 – to a population of 84,284. Can a community lose 22,600 members (21%) within 48 years and still remain vibrant? Can we do something to reverse our population’s downward spiral? Does our beloved community’s future still look bright?

Each of us has his own perspective on the situation. Nevertheless, the recent census figures vividly illustrate that we cannot achieve the goal voiced by many Duluthians to “keep Duluth just the way it is.” Communities either grow or decline; it is impossible to maintain a community in a static condition. Attempts to “keep Duluth just the way it is” will only end in frustration.

My strong conviction is that no community can shrink to greatness. Declining numbers lead to under-funded and under-utilized school systems and to oversized municipalities which demand each taxpayer pay an ever larger share of the bill for government. It means fewer opportunities for young people and less investment in community services. A declining city population inevitably loses political clout in the State Legislature and Congress.

My friend, Tony Barrett, Ph.D., professor of economics at the College of St. Scholastica, shared in a Chamber publication his view of why people promoting economic development in Duluth are often frustrated by opposition. He points out that developers may fail to realize that large numbers of Duluthians simply do not want growth. Dr. Barrett identifies this “no growth” bloc of voters as: 1) older citizens who believe expansion will raise taxes; 2) native Duluthians who have remained in Duluth because they like the status quo; 3) people who choose to live here because they like the environment; and 4) business people who wish to avoid further competition.

Barrett admits these are generalizations. However, they offer a rationale for the intense scrutiny and frequent objections to which we subject many economic development projects. Ironically, it will be the jobs created by these often bitterly opposed development proposals that will be the catalysts for the reversal of our population decline. It is these development projects that infuse our community with private investment, funding for our city services, such as police and fire protection, and employment options for members of our workforce.

The challenge of population decline warrants lively debate. It constitutes a pressing issue that should be publicly aired in the media, in neighborhood associations, within City Hall, in political discussions, and at the dinner table. Our children’s future in Duluth depends on our response to the issue. College students and young talent have a special interest in the discussion.

The Duluth Area Chamber’s leadership is actively engaged in the dialogue. I am confident that within our community and within ourselves, we will find the answers and the motivation to strengthen this city we all cherish.

The Research Results Are In

2009-06-11T11:27:00.000-07:00

The Duluth Area Chamber of Commerce recently hosted a luncheon event to release research findings regarding the economic impact Independent School District 709’s Long Range Facilities Plan will have on the region. More than 160 interested community members gathered in the lower level ballroom of the Radisson Hotel to learn how the school district’s plan will affect the local economy in terms of job creation and dollars generated.

Motivated by the belief that residents of our beloved community would benefit from fully understanding the comprehensive impact of the Facilities Plan, the Chamber’s leadership funded the research and hosted the community gathering. We were excited to engage the services of the Labovitz School of Business and Economics – Bureau of Business and Economic Research, a highly regarded research organization, to provide members of our community unbiased information regarding this controversial initiative.

We were delighted when the Bureau’s research clearly illustrated the specific impact the Facilities Plan has had and will continue to have on Duluth and the surrounding region. Those in attendance learned that the Facilities Plan will, from its outset in 2008 until its conclusion in 2012, provide work for up to 1,600 people and have a $442 million economic impact within our region. After providing a detailed description of where the jobs will occur and where the dollars will be generated, Jim Skurla, the Bureau’s director, stated, “After studying the many economic ramifications, it’s clear that the timing of the Facilities Plan could not have been better for our region. This project has become our local stimulus package for the construction, real estate and many other industries.”

For too long, misinformation about the Facilities Plan has been swirling around our Emerald City on the Hill. The Chamber is pleased and proud to be a positive force in putting an end to the speculation and misinformation by providing community members with unbiased, objective and thoroughly researched information. The research results are available on the Chamber’s website at www.duluthchamber.com. You can download the entire report or a summary press release of the report.

Ending Speculation by Initiating Research:Duluth Public Schools Long Range Facilities Plan

2009-04-17T08:34:00.000-07:00

The Chamber's leadership believes residents of our beloved community would benefit from fully understanding the comprehensive impact of the Duluth School District's Long Range Facilities Plan. With this as our motivation, the Chamber has contracted with the Labovitz School of Business and Economics - Bureau of Business and Economic Research to conduct research that will clearly illustrate the specific economic impact the Facilities Plan will have in Duluth and the surrounding region. This welcome information will help us fully understand what the Facilities Plan means to our community.

The research will be completed by May 29, 2009. We are motivated to share the research results with you, our valued Chamber members, as soon possible. That is why we have arranged for an initial presentation of the results at a luncheon scheduled for: Monday, June 1, at 11:30 a.m., at the Radisson Hotel. Registration and lunch will begin at 11:30 a.m. The program and presentation of research results will begin at noon. The cost for members is $20, with a $35 cost for non-members. You can register by calling 722-5501 or by emailing inquiry@duluthchamber.com or by visiting www.duluthchamber.com.

The Chamber's leadership is excited to engage the services of a respected research organization to provide you unbiased information regarding this controversial initiative. We are pleased and proud to bring the speculation to an end and replace it with timely, useful researched findings. I value and welcome your feedback on this issue. I can be reached at dross@dul uthchamber.com or 740- 3751.

Embracing the Challenge of Change

2009-03-12T08:38:00.000-07:00

Every community has its unique, ongoing challenges. Concurrently, our nation's economic struggle is causing an increasing number of communities to experience amplified financial duress, family poverty and business failure. How we, as Duluthians, respond to these combined national and Duluth- specific challenges will determine the vibrancy of our shared future. Rising above these challenges will require us to become increasingly effective at handling change. I am optimistic that we are positioned well to rise above these shared challenges and these shared changes.

History teaches us that we too often behave wisely when we have exhausted all other alternatives. Thankfully, our community leaders are increasingly exhibiting wise behavior. The future of our beloved Emerald City on the Hill is being fortified because of it.

It is undeniable that dealing with community change is oftentimes disruptive, and always demanding. The intelligent solutions being generated by Mayor Ness and our business and civic leaders have included thoughtful dialogue. We are making positive strides, but have not yet reached the highest level of discourse. Certainly, heated debate continues within city council meetings, local newspapers, and local interest groups. It is paramount that we not become discouraged in the midst of this discord.

In the midst of this spirited debate lies hope. Change causes resistance, which in turn causes tension and tension generates energy. We can all agree that energy is better than apathy. Where there is energy there is hope for the future. The Chamber's leadership is actively engaged in determining how the business community can most effectively partner with our elected officials to adapt to our nation's, our state's and our community's challenges.

American philosopher William James said, "A great many people believe they are thinking, when they are simply rearranging their prejudices." It is essential that we rise above this likelihood when considering our response to a person proposing change within our community. We can do so by engaging in unthreatening dialogue. When we understand the almost inevitable factor of resistance to change, we begin to see things from a fresh perspective. We begin to see the positive possibilities.

The Chamber is deeply involved in a sincere effort to better understand the views of our members and of our elected officials, while we fashion our positions on local issues. We recently surveyed our members to better understand the challenges they face and the importance they place on various local, state and national issues.

When we speak on behalf of the Duluth Area Chamber of Commerce, we intend to speak with a strong, unified voice that resonates with positive potential for our city and its future. We pledge ourselves to move Duluth forward in a spirit of openness and optimism, and we invite all citizens to do the same.

Positioning Duluth for Prosperity

2009-02-02T12:15:00.000-08:00

For Duluth to be competitive in the new economy, we must be willing to bring all of our human, social and cultural capital to the table. This challenge, thankfully, presents us with some exciting advantages.

Drew Digby, regional labor market analyst for the Minnesota Department of Employment and Economic Development, recently shared his interpretation of these advantages with a Chamber audience. He also indicated how we can put these advantages to work in positioning our beloved community for prosperity.

Our nation’s current recession is causing people to contemplate what is important to them and to their families. This introspection may lead many to conclude that acquiring material possessions will not breed happiness. Likewise, people may begin to question the value of living in increasingly congested megalopolises. Hour-plus commutes, increasing crime rates, and diminishing air and water quality, combined with less available recreational opportunities, may have more and more people deciding that a happy life is more likely in a community the size of Duluth. In coming years, the Emerald City on the Hill will look increasingly compelling. Most of the qualities that attract people to Duluth would be lost in a city of 500,000 citizens, or in a town of 25,000.

Duluth, at 85,000, and the neighboring communities of Superior, Hermantown and Proctor, bringing the area to 125,000, is an ideally sized city – if we can create the economic, social and cultural opportunities that are attractive to people.

More workers are making a living from occupations considered to be within the creative professions. The creative professions include far more than artists, writers and computer programmers – they include doctors, teachers, architects, engineers and bankers, as well. Many of those in the creative professions want to live in places that respect the value of diversity, creativity, and social and cultural capital.

Duluth is well along the right path. Higher education is now one of our major employers, and it continues to grow at a significant rate. Health care is also on the rise. In fact, health care wages accounted for 30.6% of all dollars in paychecks given to Duluth workers.
And, despite an outdated stereotype, Duluth’s citizenry is, on average, younger than most think. In 2000, the median age in Duluth was 35.4. Recent estimates indicate the age has dropped to 33.6.

It gets even more encouraging. The Northland Works initiative recently identified that there will be 75,000 job openings in the next 10 years in Northeastern Minnesota and Northwestern Wisconsin. Many of those jobs will be filled by people already in the region, by young people who already live here, and by the college students who are planning to stay. Though these statistics are encouraging, we will still need about 22,000 new people to fill the jobs over the next 10 years. And we will need to attract these new workers to our beloved community if we are going to remain a vibrant city.

Fortunately, the Duluth Area Chamber of Commerce and other community leadership organizations are actively engaged in attracting and retaining young professionals within Duluth. The Chamber’s Fuse Duluth initiative’s mission is: to inform, network and connect young people so they can engage and influence their community. We are also working to provide the creation of jobs that will attract and retain workers of every age within our community.

Drew Digby ended his presentation with a call to action. He asked us to support new ideas, support thoughtful and environmentally sensitive development, support the arts, and support and trust the new people coming to our community. Drew was optimistic that we will do these things. I am equally optimistic.

Duluthians are known for being resilient and hardworking. Let’s ensure that we are also recognized by these other descriptors: welcoming, creative, supportive and optimistic. We must be so. Our city’s future depends on it.

Rising to Defend Governor Pawlenty

2008-12-15T09:19:00.000-08:00

I admire and respect Governor Tim Pawlenty, and I appreciate the restraint, the discipline and the self-sufficiency he encourages Minnesota’s state and city governments to embrace. Governor Pawlenty has asked us to do what he has done himself: exhibit restraint, discipline, and self sufficiency as we work through our city’s challenges.

I have had the opportunity to introduce Governor Pawlenty on several occasions. As a result, I have learned a great deal about him and have come to admire his approach to politics and to life.

Tim Pawlenty has known and overcome adversity. The youngest of five children, he has a blue-collar background that includes a childhood close to the meat-packing plants of South St. Paul and a family that lost its livelihood when those plants closed, leaving his father – a truck driver – without work. At the age of sixteen, Tim experienced the death of his mother and began to work delivering newspapers and stocking shelves at the neighborhood grocery store. These challenges inspired him to do better and reach higher. He worked his way through the University of Minnesota, where he achieved top academic honors, and went on to the University Law School, again working his way through and again earning high honors.

Knowing these facts may help us understand why he recently indicated that he may respectfully decline the proposed additional Federal Government support directed to the states. His position may be summed up as “Thanks, but no thanks. We will take care of these monetary challenges at the State level.” Governor Pawlenty believes that taxes should not increase when businesses are already weighed down by the burden of local, county, and state taxes and fees. He believes, as well, that city financial challenges should be handled by the city. His support lessened among many Duluth area elected officials when he singled out Duluth for what he understands to be a double-digit tax increase even though the economy is in recession and is not expected to grow by more than one percent before the end of 2009. He stated: “Taxes should not increase when the economy and people’s paychecks are not growing.”

I agree. And I believe the great majority of the Duluth Area Chamber of Commerce members also agree with Governor Pawlenty. This is no time to increase taxes.

Governor Pawlenty should not be vilified for voicing opposition to Duluth’s proposed increase in property taxes. Rather, he should be applauded. I stand in his defense and support his efforts.

Electing to Support our Elected Officials

2008-11-17T10:30:00.000-08:00

Today is a time for optimism within our beloved community. I trust the reelection of our local incumbents has them fortified and reenergized. The concurrent election of new public officials brings promise and heightened opportunity for invention and daring. The synergy generated by this combination of renewed and emergent leaders promises to bring out the best for our community by bringing out the best in every community member – if we allow it to happen.

We would be wise to choose to stay involved in bettering our community, regardless of whether or not the individuals we supported were successful in being elected. I hope we can recommit ourselves to advancing our civic goals regardless of the disappointment or jubilation we may have experienced during this recent election season. The future of our Emerald City on the Hill depends on it.

If we are to capitalize on the reconfiguration of Duluth’s political leadership, it will require us to unite in uplifting those whom our community members elected. The Duluth Area Chamber of Commerce’s leadership is prepared to harness its energy, insight and optimism in an effort to support our elected officials as they work to make our community a better place in which to work and reside. We are committed to motivate even more of our 1,170 members to become involved in initiatives that will enable our political leaders to meet the challenges before them. Moreover, the Chamber intends, as always, to strengthen our business community through the support we supply local business initiatives.

The Chamber’s leadership understands how we cannot sustain healthy businesses in an unhealthy community. Chamber businesses will be successful only if our community remains a vibrant, healthy, safe and empowering place in which to live.

Please consider this article a public announcement that the Chamber’s leadership will marshal our resources to assist our political leaders in their efforts to make the coming years a time of unprecedented success for our community members. Our goal is to build successful businesses within a healthy community.

Advocating for the Arena

2008-10-21T06:24:00.000-07:00

Three years after Duluthians voted overwhelmingly to help fund it, the long-anticipated expansion of the Duluth Entertainment and Convention Center (DECC) has begun. The expansions first phase, the construction of a 475-spot parking ramp, is underway. Construction of the expansion’s centerpiece, the Duluth Arena, will begin in April 2009. The Arena will open in December 2010. The dream has become reality.

The Duluth Area Chamber of Commerce has been an unwavering advocate for the DECC expansion. Three years ago, the Chamber partnered with the Duluth Construction and Building Trades to champion the DECC expansion at the Minnesota State Legislature. We also partnered with the DECC’s leadership, UMD’s leadership, and Duluth’s elected officials to make a strong case for the State of Minnesota to fund $38 million of the $80 million investment.

Our appeal for support was eventually embraced by all. Governor Pawlenty, the State House of Representatives and the State Senate were favorably impressed by Duluthians’ decision to help fund the expansion by approving an increase in the city food and beverage tax. As well, these decision-makers were impressed with the University of Minnesota Duluth’s plan to fund 12% of the DECC expansion and the DECC’s plan to fund 11% of the expansion. These State decision-makers eventually voted to approve the State’s $38 million contribution.

Those of us who reside in and around our Emerald City on the Hill will be the beneficiaries of the DECC expansion. The new activities that will occur within the expanded DECC will bring millions of dollars each year into our economy through shopping, lodging, dining and other purchases. The new Arena, alone, will dramatically increase the more than $750,000 in sales tax the DECC currently collects each year.

Additionally, the expansion will provide needed construction jobs. It will employ 300 full-time, union jobs at the peak of construction. It will also provide us hardy walkers a new skywalk link connecting the new parking ramp and the Northwest Passage from Downtown to the new Arena. The additional skywalk will provide more convenient access to the DECC, as well as additional protection from the Gales of November (and December, January, February, and March) for DECC visitors.

There is much to celebrate as the long-held dream of building one of the best convention and entertainment facilities in the world here in Duluth comes to fruition. The Chamber is pleased and proud to have played a small part in making the dream become reality.

Celebrating a Victory Within City Hall

2008-09-24T07:15:00.000-07:00

It is important that individuals and communities celebrate their accomplishments and victories. A victory has occurred within City Hall. The Duluth Building Safety Office has been revitalized. The office has transitioned into a positive and enabling resource for citizens, and the Duluth Area Chamber of Commerce celebrates the revitalization.

The office is responsible for issuing building permits and reviewing construction plans. When it comes to building something in Duluth, all paths lead to the Building Safety Office. This office is where Duluthians hoping to build, expand or otherwise improve a structure, must first seek and gain approval.

Prior to this recent revitalization, the office was viewed by many in the business community as a primary source of aggravation and frustration. When a person's money, time, energy and, sometimes, livelihood is placed at risk to build, expand or improve a building, that person wants to enter a predictable and enabling review and approval process. Oftentimes, the office was neither predictable nor enabling.

Mayor Ness made the revitalization of the Building Safety Office one of his initial priorities. The Chamber encouraged him to do exactly that. Moreover, the Chamber encouraged every candidate running for mayor and for the city council to commit to improving operations within the Building Safety Office. In an effort to keep our elected officials attention focused on the safety office, we held public forums on the issue. We wrote several editorials and blogs which encouraged service improvements within the office. Additionally, the Chamber encouraged the local media to keep the issue at a high profile within our beloved community.

The Chamber also facilitated a fundraising effort which generated private funding for a professional operational assessment of the office. The assessment led to many of the positive changes that have occurred within the office.

Yet, in the end, it was Mayor Ness and his administration that had the authority and the conviction to make the necessary improvement to the office. Mayor Ness was the one who, months ago, placed Deputy Fire Chief Bryan Bushey in charge of the office. Bryan Bushey has been a positive, powerful instrument of change for the office. Mayor Ness was the one who had the insight to contract with an operations expert to evaluate the office and make recommendations for efficiencies. Most importantly, the hard working and dedicated city employees working in the office embraced the challenge of bringing additional efficiency and improved service to the office.

The Chamber applauds the improvement within the City's Building Safety Office. We celebrate the accomplishments realized within this vital community resource. We congratulate Mayor Ness, Bryan Bushey and his colleagues working in the office as they are bringing heightened service and efficiency to the office.

It is an exciting time to be a part of our business community within our Emerald City on the Hill.

In support and advocacy,

David RossPresident & CEO

Is Your City Councilor Helping or Hindering the Mayor?

2008-08-25T06:13:00.000-07:00

Mayor Ness displays courage as he sets out to balance the City of Duluth's budget prior to the end of the year. He has risen to the challenge of effectively addressing the City's compounding difficulties. Thankfully, he has not become discouraged. Instead, Ness demonstrates a resolve that is more powerful than outside circumstances, including intense opposition from the City's largest employees union: the American Federation of State, County and Municipal Employees (AFSCME). In doing so, he exhibits the kind of leadership we elected him to provide our beloved community.

We are fortunate that Mayor Ness is leading this bold effort to balance the City's operating expenses with its annual income. Balancing the budget is simply what thousands of Duluth business owners do every year. To do otherwise is not sustainable, nor responsible to those involved in the business.

Yet, it appears AFSCME's leadership finds the mayor's budget balancing initiatives nothing short of "ultimatums." They have publicly labeled the mayor's recent actions as "threatening and irresponsible." Mayor Ness rightly called the question: "Will the relationship (city and union) follow that all-too-predictable path of conflict to the point of breaking down discussion, or can we set a new model in which we set forth our positions and our interests and our needs, and at times agree to disagree?" Let us, as community members, hope for a new and less predictable response from AFSCME's representatives.

Let us, as well, call for stronger and more decisive leadership from our city councilors. Thus far, only a few of the councilors have displayed the courage necessary to stand with Mayor Ness and do what needs to be done. Regrettably, Councilor Greg Gilbert has gone so far as to publicly label Mayor Ness' staffing reductions "unnecessary and unwise." Councilor Gilbert called the financial crisis that Mayor Ness has portrayed as "rhetoric."

Gilbert's comments and position are frightening. I am scared. You should be, too.

If Councilor Gilbert's view on this seminal issue is shared by the majority of city councilors, we are in serious trouble.

We can assume the councilors and the mayor are receiving candid feedback on this issue from those interested in blocking the mayor's budget repair initiative. It is time these same elected officials heard from those of us who applaud and support the mayor's efforts. The councilors can be reached at council@duluthmn.gov. The mayor can be reached at dness@duluthmn.gov.
Please make your voice heard on this critically important issue.

Applauding Mayor Ness' Leadership

2008-06-30T12:22:00.000-07:00

Mayor Ness is immersed in a valuable educational growth experience. He can appreciate and take comfort in former British Prime Minister Benjamin Disraeli's view that, "Prosperity is a great teacher; adversity is a greater." There is no education like adversity.

In his first six months as mayor, Don Ness has been buffeted by the City's unfolding and compounding financial and operational challenges. The most recent of which is the realization that, unless he takes immediate corrective action, the City's will experience an operating deficit in 2008 of $4.4 million.

To his credit, Mayor Ness quickly developed, and is implementing, a comprehensive budget repair strategy to eliminate the deficit within the next six months. It includes 120 different strategies, from closing city departments, eliminating staffing, cutting services and finding operational efficiencies. It is a bold, ambitious - and necessary - plan.

Here is where we, as chamber members and citizens of our beloved Zenith City, would do well to support Mayor Ness and his plan - all of it. Our community can overcome this challenge if we have the courage and the discipline to allow our mayor and city councilors to implement the budget repair strategies.

Our most effective call to action may well be to not take action against the repair plan, and to allow the mayor to proceed with his repair strategies. Ideally, we will also articulate to the mayor that we look with favor upon his bold beginning. Mayor Ness can be reached at dness@ci.duluth.mn.us.

Mayor Ness would be delighted if we simply allow him to do the work we elected and entrusted him to do. He is challenging the status quo. He is rising to meet the City's multiple challenges. I, for one, support and applaud him. I encourage you to do the same.

Seeing opportunity in this challenge,

David Ross

Help Us Ignite the Fuse

2008-04-09T14:19:00.000-07:00

Our young people are a precious community resource - and too many of them are leaving the area. When other communities are the recipients of our highly educated and ambitious family members, our community loses.

This self-defeating situation has gone on far too long. Someone had to do something about it. The Duluth Area Chamber of Commerce accepted the challenge. The Chamber's young professional initiative, called Fuse Duluth, has evolved over the last three years into a thriving group of individuals who are motivated to attract and retain young people within our beloved Emerald City on the Hill. The word "Fuse" has two meanings: 1) to blend or mix (young people into our business community); and 2) to ignite (young talent's interest in remaining in our Zenith City).

Moreover, the Chamber is reaching beyond our current citizenry to those Duluthians who have sought and found work elsewhere. An encouraging number of those individuals wish to return to this panoramic city they consider "home." The Chamber is working to make their return more likely.

Creating attractive jobs is one way we can retain our young people and facilitate the return of former Duluthians. Yet, creating jobs is no longer enough to meet our goals. We must also determine, embrace and articulate what makes Duluth unique. Doing so will allow us to identify and market what gives Duluth its competitive advantage. Our success in this effort will enable our Port City to attract and retain the best of the generation that is now entering the workforce.

Fortunately for Duluth, a recent national study pertaining to our nation's new economy confirmed that amenities and environmental quality are paramount in attracting talent to a community. "Quality-of-Place" is a new term used to represent the natural, recreational, and lifestyle amenities vital to attracting talent. The report contends that quality of place is as important as traditional economic factors such as jobs and career opportunities.

The Chamber is transitioning with the times. We get it. We are on it. We have come to understand and appreciate that Duluth's competitive advantage is increasingly contingent upon the quality of recreational amenities we offer, safety, clean air and accessibility to clean water for consumption and recreation. How fortunate we are to be on the shores of the Greatest of the Great Lakes. We also understand that our attractiveness as a community will increase as we cultivate our arts and music scenes and as we embrace our increasing diversity.

With this new insight in mind, the Chamber is actively looking to partner with our elected officials and other groups and organizations to make quality of place enhancements and the creation of jobs a combined, Fused, and powerful initiative. We welcome you sharing your ideas and suggestions with us by contacting Breanne DeFoe, director of Fuse Duluth, at bdefoe@duluthchamber.com or 740-3758.These collaborative efforts will allow our Christmas City of the North to protect and enhance the things that make Duluth unique and compelling, including its pool of young talent.

Having Our Voice Heard at the Capitol

2008-02-12T15:07:00.000-08:00

Duluth and Saint Louis County at the Capitol remains the largest, boldest and most effective community gathering at the State Capitol. The largest citizen lobbying event in Minnesota, Duluth and St. Louis County at the Capitol brings more than six hundred voters to the Capitol annually, voters who advocate for initiatives and capital projects that will improve the quality of life for residents of our region.

Started in 1997 as a vehicle to focus state legislators' attention on our region's needs, the annual event requires months of planning; financial support from dozens of local businesses and organizations; and the energy and enthusiasm of hundreds of Duluth and Saint Louis County residents. Duluth and St. Louis County at the Capitol is one of only a few Minnesota lobbying events that is successful in bringing together a coalition of business and labor leaders, city councilors, county commissioners, school board members and private citizens in a coordinated advocacy effort.

Months of planning, at the local level, have allowed us to generate a list of 2008 Minnesota State Legislative Funding Priorities for our region. We will advocate for the funding of these priorities when we gather at the Capitol on February 25 and 26.

Our funding requests include: the DECC Arena at $40 million; the UMD Civil Engineering Building at $10 million; the WLSSD Sanitary Sewer Overflow Storage Basins at $12.7 million; the Airport Authority's New Airport Terminal at $5.7 million; Lake Superior College's New Health and Science Building at $11 million; St. Louis County Water Line and Sewer improvements at $2.5 million; and the Fond du Lac Tribal and Community College's Land Acquisition at $1.8 million.

We have our work cut out for us. Many other communities are also asking the State of Minnesota to fund their proposed building projects. There is over $3.4 billion in state bonding requests this year. In response to these funding requests, Governor Pawlenty recently announced a $965 million bonding proposal, which would fund only 23% of the requests.

Our success in gaining State funding for our projects will depend on: the efficacy of our area elected officials; the health of the State's economy; the Governor's advocacy for our projects; and our efficacy in making our collective voice heard at the Capitol. Be assured, the Duluth Area Chamber of Commerce will continue to partner with our brothers and sisters in labor, education, government and business to advance our region's funding requests at the State's 2008 Legislative Session. I encourage you to take an active interest in the growth and development of our region by joining us at Duluth & St. Louis County at the Capitol and helping our collective voice be heard. For additional information or to register for the event go to www.duluthandstlouiscounty.com.

Let's Rebuild the Building Safety Office

2007-12-17T11:20:00.000-08:00

The Duluth Area Chamber of Commerce works to identify business-related issues and trends. Once these issues are identified, we seek to advocate for business-friendly trends and change the course of trends that will impact business negatively. With the best interest of business as motivation, the Chamber is strongly advocating for improvement in how the City of Duluth's Building Safety Office handles its approval and permitting process.

When it comes to building something in Duluth, all paths lead to the Building Safety Office. It is where Duluthians, hoping to build, expand, or otherwise improve and change a structure, must seek and gain approval.

Our community's shared challenge is simple: the demand for service has outstripped the office's ability to meet the demand. At a recently held Forvm, a Chamber of Commerce member meeting, eighty interested business persons discussed the Building Safety Office's status. Duane Lasley, who leads the office, made it plain: his office is struggling to keep up with the vastly increased amount of permit requests. He shared how the amount of construction in Duluth has increased from $69 million in 1996 to $233 million in 2006.

During this same time period, the Building Safety Office appears to have suffered from a lack of adequate resources necessary to match the demand. The office suffers with an ancient computer system, and, Duane Lasley contends, understaffing. In preparation for The Forvm, Chamber staff members researched other building safety offices from similar sized communities. We found that other offices have utilized technology to a far greater degree than has Duluth. In Rochester, MN, you can apply for a permit online at any time, thus avoiding finding a parking spot in front of City Hall and standing in line at the desk of the Building Safety Office. This is one of several examples of how technology has made the permitting process most customer-friendly and more efficient.

Duluth's Building Safety Office is woefully behind the times in utilizing technology to smooth the permit process. Yet, technology takes money. The City of Duluth is broke. Herein lies the problem. The new mayor will have to reallocate existing resources, from elsewhere within City Hall, to the Building Safety Office. Will it be easy. No. Can it be done. Yes – if Mayor-Elect Ness makes doing so a priority.

Don Ness has indicated he will make the tackling of this chronic concern a priority. I believe he has the volition, the energy and the talent to provide the Building Safety Office the direction and support it needs to improve the office's customer service while concurrently making the office more efficient.

When the pressure is on, great leaders are at their best. Let's encourage Mayor-elect Don Ness and Building Safety Office Leader, Duane Lasley, to be great leaders by keeping the pressure on.

Yours in advocacy,
David Ross
President & CEO

Participate in the Primary

2007-09-10T13:40:00.000-07:00

The stage is set. The Chamber has done what it promised to do…provide you credible and timely information regarding the candidates and their positions on business-related issues. It is time we, as business community members, did our part by voting in the Tuesday, September 11 primary election.

Your September issue of the Chamber's Xpress Newsletter included a 12 page special supplement called Election 2007. It contained a comprehensive presentation of the candidates' positions related to economic development within our community. Election 2007 also included a presentation of the survey results generated by the 299 members who chose to make their voices heard within the survey.

Additionally, throughout last week, the Chamber hosted several forums called Candid Conversations with Candidates. These conversations enabled the Chamber to record the candidates' thoughts on issues facing our business community. These conversations are available via the web at www.duluthchamber.com/community/government.htm.

Please use the Election 2007 insert or the Candid Conversations web presentations as a resource when deciding who you will support. The Chamber's Board of Directors and staff members respectfully encourage the Chamber's 1,259 members to vote in this primary. Voting is a privilege and a hard earned right which we honor when we take the time to cast our vote.

Make sure your voice is heard.

Yours in support,

David Ross

Engaging in the Upcoming Elections

2007-08-02T07:30:00.000-07:00

As the political season starts to heat up, we thought it was important to find out how our 1,251 members wanted us to treat the upcoming elections, particularly in regard to candidate endorsements. Our members indicated, loudly and clearly, that the Chamber's Political Action Committee (PAC) should not issue candidate endorsements. Instead, our members asked us to provide them with credible, timely and reliable information regarding the candidates and their positions on business-related issues.

In response, the Duluth Area Chamber of Commerce is implementing a candidate-neutral education initiative designed to provide our members and the greater community the insight and information they need to cast business savvy, educated votes.

This year, Chamber members can expect the following: 1) member surveys regarding their support for various candidates; 2) access to the most comprehensive candidate information regarding their positions on business-related issues; and 3) the opportunity to attend Chamber hosted, disciplined and respectful candidate forums. The Chamber will endeavor to get this information into the hands of our members prior to both the primary and general elections.

Our work is underway. Now that the filing deadline for candidates has passed, we are distributing questionnaires to the candidates asking for their positions on issues related to: the business climate in Duluth; their specific ideas regarding how to move business forward in Duluth; and their detailed plans to make city government more efficient. You can count on the Chamber to ask direct questions pertaining to: retiree healthcare; core city services; public safety; and the city's review and approval process for development projects.

Additionally, we will host at least two mayor / city council candidate forums, both of which will be made available via the internet.

Finally, the Chamber's monthly newsletter, the Xpress, will include an educational insert in September (prior to the primary election) and again in November (prior to the general election). These inserts will highlight business issues, candidate responses, and hard hitting questions designed to get specific candidate information into the hands of our members and other Duluthians in a way that will aid in their decision making at the polls.

Because of our members' feedback, we are poised to help them vote for the candidates who will best serve their interests in what might be considered the most exciting election Duluth has seen in years.

Yours in service,
David Ross
President and CEO

Avoiding a Fall at the Finish Line: a Call to Action

2007-06-07T07:43:00.000-07:00

Led by the District's superintendent and consummate leader, Keith Dixon, ISD#709 is bringing to a close the most comprehensive, inclusive and supportable planning effort ever accomplished by the District. Yet, when the plan was officially presented to the Duluth School Board for consideration two weeks ago, there were community members who rose to speak in opposition to the plan which advocates a transition from three to two high schools.

Those opposing the two-high school plan voiced their concern that the proposed boundaries between the proposed schools would deepen the disparity between students from high and low income families. In addition, some listeners predicted an increase of tension among students of varied racial backgrounds. School Board members, as well as the superintendent, were - and will continue to be - sensitive to these issues. In addition, the Chamber's leadership has asked school board members to openly address such fears while simultaneously proceeding with an endorsement of the present plan of action. This constitutes a leadership opportunity for the School Board and calls for decisiveness in word and action.

The present plan offers too many gains to be allowed to stall in its final hour. For the first time in several years, students and their parents could have a long-range view of the education available to Duluth's student population. Moreover, the action taken now will quickly prove to be a cost-effective investment. Let us, as community members, urge the members of the School Board to move ahead with boldness and conviction as they take care of some long overdue business.

A final school board vote on the plan is set for June 19 at the meeting of the Board. Those who hope to delay the vote are working towards that end. We who support the proposed plan and its implementation must speak now with a compelling voice and a will to achieve our goal, benefiting both students and our city.

School Board members may be reached at schoolboard@duluth.k12.mn.us.

Yours in advocacy,

David Ross

It's Time to Retire the City's Retiree Healthcare Liability

2007-05-07T07:41:00.000-07:00

It is difficult to lead a community - or a union - during challenging times. Nevertheless, as community members we have a right to expect the best of both our city and union leaders during a seminal moment of unprecedented challenge within our beloved community. Duluth is still confronted by a shared, but ominous situation: i.e., the City of Duluth's employee and retiree unfunded healthcare liability. Some of those persons whom we have called on for bold leadership have risen to the challenge, while others have been a disappointment. Let's review the situation, starting with the positive factors.

Mayor Bergson has provided strong leadership in addressing the unfunded healthcare liability. Early on, he announced that he would forego the possibility of reelection in order to deal unflinchingly with this civic problem. Consequently, he was instrumental in moving an initiative for an irrevocable trust fund - i.e., an enhanced investment vehicle which will allow Duluth to generate a far better return on its investments - through the State Legislature. For this achievement, the mayor, area legislators, and ultimately the governor deserve our admiration and respect. The trust fund initiative constitutes one-third of the solution needed to resolve the unfunded retiree healthcare liability.

Another one-third of the solution has been attained by funding, at least partially, the liability through the transfer of Community Trust Fund monies (a.k.a. the Street Improvement Fund and the Casino Fund) into a fund that can be used only to pay for the city's healthcare liability. The mayor and our city councilors displayed bold leadership by transferring $12 million into this restricted account. The City Council has also set in place an automatic annual transfer of Community Trust Fund monies into this restricted account. It is clear that our city councilors have done their part to address the city's unfunded healthcare liability.

We, as Duluthians, have not been inactive. Indeed, we are doing our part in finding a solution to this dilemma. We are paying increased utility rates (e.g., for gas, water, sewer, and storm water) that will help to pay off the unfunded healthcare liability. In addition, we are paying an increase in our property taxes that will help in the same cause. The combination of the Street Improvement Fund allocation with the increased property and utility will provide for the second third of the city's unfunded liability. But what about the one remaining third?

Scant attention has been given to this remaining third, and two of the city's five unions are hoping that no community attention will be given to this as yet resolved problem. Over a year ago, the mayor and the city council appealed to the leadership of the city's five unions to transcend old stereotypes and break from the traditional practice of holding on to employee benefits despite the cost and regardless of the devastation. Three - the supervisory group, the confidential workers, and the firefighters - of the five unions rose to the occasion. I applaud and respect their leadership.

Unfortunately, however, two of the five unions have not become part of the solution. Apparently habit is stronger than reason for the local leadership of the American Federation of State, County and Municipal Employees (AFSCME), who represent the majority of city of Duluth workers. Surprisingly, the union representing Duluth's police officers has also refrained from affirming the proposed solution to the city's problem. The lack of needed concessions from these two unions should be of increasing concern to every Duluth taxpayer. Should home owners pay more taxes so these union members can continue to enjoy a healthcare benefit package that far exceeds what the city can afford and non-city employees can access? Increasingly, Duluthians are balking at the injustice, while, at the same time, Mayor Bergson is doing his best to wrestle the necessary concessions from these remaining unions. In fact, the Mayor has become so resolute in this matter of concessions and cooperation that the leadership of these unions is likely to delay serious contract discussions until a new mayor is elected in November.

Duluthians deserve better from the leadership of AFSCME and the police officers. The mayor has done his work well. The city council has also done all they can do. Taxpayers, too, are digging deeper in their pockets to do their part in resolving this difficult issue. And three of the city's five unions have demonstrated leadership in becoming part of the solution. Only two unions are preventing this community from a responsible resolution of this problem.

A panel discussion will be held to discuss this issue on Thursday, May 17, at 8:00 a.m. The panel will feature city councilors, the chairperson of the Post Employment Healthcare Benefits Task Force, the city's chief administrative officer, and a spokesperson for the city retirees. For more information, contact the Duluth Area Chamber of Commerce at 218.722.5501.

Chamber’s Board Supports Investment in Duluth Public Schools

2007-04-06T06:46:00.001-07:00

Our beloved community is experiencing a brief, shining moment of opportunity. This opportunity is made possible through the Long Range Facilities Plan, recently released by the Duluth Public School system. The Duluth Area Chamber of Commerce’s leadership strongly endorses and will actively advocate for the implementation of the Duluth Public Schools Long Range Facilities Plan.

The Chamber’s endorsement of the plan includes an affirmation of the three options presented within the plan. Further, the Chamber wishes to convey its full confidence in the Duluth Public Schools Board’s ability to select the best solution from the options presented in the plan. We encourage the School Board to accept this leadership opportunity afforded them through the plan.

Superintendent Keith Dixon plans to present the school board with the recommended option, chosen from the three options detailed, at the May school board meeting. The Chamber’s leadership encourages the school board to accept the recommended option presented to them at that time.

Seizing this opportunity will require decisiveness. This is no time to elongate the process by belaboring over modifying the options contained in the plan. The options presented in the plan are based on data-driven and expert analysis, coupled with community member input generated through over one-hundred meetings with organizations and groups.

Our school buildings are, on average, 54 years old. These school buildings house 1,600 deficiencies related to accessibility, air and water quality, and safety standard compliance. It could be another 54 years before we have another opportunity to provide such a comprehensive solution to our school district’s challenges.

The Chamber’s leadership believes the plan effectively addresses the need to address the district’s aging infrastructure and to improve the educational adequacy of school buildings, while addressing the district’s declining enrollment and its concurrent overcapacity. For the first time in several years, students and their parents would experience the stability that comes from knowing what will occur within the district for years to come. Now is the time for a needed, belated cost effective investment in the future of our public schools.

This is the right plan for our school district. Superintendent Keith Dixon is the ideal leader for this opportunity. Once the plan is implemented, all students in the district will be educated in brand new or like new schools.

The Chamber encourages the school board and superintendent Dixon to proceed with boldness and conviction as they select the best option for our school district and for our community.

Accentuating the Positive

2007-01-15T13:14:00.000-08:00

A few members of the local media recently focused our community’s attention on two Duluth businesses that, together, were relocating a few dozen jobs out of our beloved community. This news was dramatically heralded by one of our television news channels. The news was conveyed as ominous. How could this be happening... tune in at 6:00 and 10:00 p.m. for the details!

While the loss of a single job in Duluth is disconcerting and an event the Duluth Area Chamber tries to combat, the media needlessly amplified the angst associated with the loss of these jobs.
Regrettably, in doing so, the media also did something our community can ill afford: it accentuated the negative.

I feel compelled to provide my fellow Duluthians a broader perspective of Duluth’s jobs situation. By doing so, I hope to combat the sour news recently conveyed on the evening news. Let’s start with the broader view. Duluth enjoys being home to 2,871 businesses. These businesses provide 58,541 jobs.

There are several reasons for optimism when considering Duluth’s status as a center for jobs. But, let’s not simply take my word for it. Let’s go to some of the authorities. The Minnesota Department of Employment and Economic Development’s (DEED) research of Duluth’s 2006 employment shows:

Hospital services grew by 4.8%, or 281 jobs for a total of 7,028 positions,
Ambulatory health services grew by 4.8%, or 291 jobs, amounting to 6,344 positions,
Leisure and hospitality grew 2.1%, or 280 jobs for a total of 13,312,
Service producing industries grew by 1.3%, or just over 100 positions,
The Minnesota Job Bank has over 340 job openings posted for the Duluth area.

Manpower Inc. recently completed an Employment Outlook Survey. The results are in:

During the first quarter of 2007, Duluth and Superior will be the area’s hiring leaders.
Of the companies interviewed, 23% expect to hire more employees and only 7% expect to
reduce their payrolls. (The state average is 16% for hiring and 17% for payroll reduction.)

In his State of the City Address, Mayor Herb Bergson shared the following:

Northstar Aerospace is expanding and planning to double its workforce from 90 to 180.
Cirrus Design is planning to add another 250 jobs
A & L Properties is embarking on a Downtown Renaissance project that will bring 120 construction jobs and 200 retail jobs.
The new Sheraton Hotel, 311 Superior, is providing another 150 construction job.
Canal Park Lodge is under construction. It is providing 100 building trade jobs and will provide 30 permanent hospitality jobs.
Housing development is booming. Beacon Point, 311 Superior, Matterhorn Development, Harbor Highlights, Village Place, Cedar Ridge, Northridge Estates, Bridgemen Russell Apartments, Lester River Condos, Superior Vista Condos, and Duluth Water
and Gas Condos are some of the housing developments that are bringing jobs and investment to our community.
In the last three years, over 1,000 new single family home and family units have been built in Duluth – totaling $492 million in construction. (I recall when, in the 1980s, an average of 35 homes would be built each year.)
The value of all building permits, including electrical, mechanical and plumbing improvements, is a staggering $592 million in the last three years.

Other reasons for optimism include:

A new commercial airline, Allegiant Air Service, commenced air service in Duluth in 2006.
Another commercial carrier, Midwest Airlines, recently announced its arrival in our
region.
Monaco Air Duluth is revitalizing Duluth’s private airport.
SMDC and St. Luke’s Hospital are hiring physicians and technical staff as a part of their
expanding operations.

In summary, Duluth’s employment situation is bright. Duluth is poised for even greater economic success in future years. Duluth is a vibrant community, filled with people and ideas that have brought us to this position of strength.

We are a city that supports, cares for and creates opportunities for all our citizens. With a fascinating history and heritage as a hard-working industrial town, we have balanced and diversified our industrial roots with retail, healthcare, tourism, aviation and education.

Duluthians can also take pride in our city’s abundant natural beauty and cultural resources. Our emerald city on the hill, overlooking the greatest of the Great Lakes, is our competitive advantage. It affords us a quality of life that is unsurpassed.

I hope you will partner with the Chamber in heralding the abundant good news emanating from our Zenith City.

An Opportunity to Better Understand the Business Community

2007-01-11T12:58:00.000-08:00

The Chamber recently completed one of the most expansive and inclusive surveys ever conducted involving the Duluth area business community. The results are in…and we want to share them with you. Join us Thursday, January 18 at 7:30 a.m. in the Technology Village’s Playground Theatre to review the results.

By attending, you will see what we have learned from our members and from the community. The Zenith Research Group will present a concise overview of this ambitious research effort which ascertained the common values that bind the Chamber’s membership.

Using a random selection process, 384 Chamber members accepted an opportunity to participate in a telephone survey. The individual survey responses were kept confidential. Every response was appreciated. In addition, 200 non-members were surveyed to provide insight into the perceptions non-members have about the Chamber. We are indebted to these 584 individuals who took the time to share their views regarding the Chamber and the business community.

During the presentation, you will see if the membership believes that political and public policy advocacy are warranted; what the advocacy should look like; and how the Chamber can best serve as an advocate, as defined by members. The Chamber’s board is already using the research to evaluate future programs and determine the efficacy of the political action committee (PAC). We can now more effectively make policy decisions that reflect the real interests of our membership and develop programs and services that speak more directly to our members’ needs.

You can gain the same insight from the survey and incorporate it into your business decisions. I encourage you to access these seminal research findings. I hope you can join us January 18. Let’s make the most of this valuable learning opportunity. Click here to register for the event.

Yours in service,
David Ross
dross@duluthchamber.com

City Challenges Require Shared Resolution

2006-12-27T11:42:00.000-08:00

In 2005, the Duluth City Council formed a Retiree Health Benefits Task Force to address the city’s unfunded retiree healthcare liability. The task force generated its formal report in December 2005. The report contains 14 recommended steps to avert a financial implosion within our beloved city. The task force strongly encouraged the city and its unions to begin implementing the 14 recommendations within the following year. In other words, the task force urged the parties involved to implement the recommendations by December 31, 2006.

The task force report declares: “Settlement beyond 2006 should be considered unacceptable by all parties, and not being in the best interest of the city, its employees or taxpayers.”
Although all of the 14 recommendations have not yet been implemented, significant progress has indeed been made.

The fifth of the task force’s recommendations is to raise, our utility rates (city gas, sewer and water) by 5%. Earlier this month, the City Council raised utility rates by $2.3 million a year to go toward paying the city’s retiree health care liability.

The fourteenth recommendation is to raise property taxes to pay for the liability. Earlier this month, the City Council approved a 15.3% property tax levy increase for 2007, including $600,000 annually to help pay for the retiree health care liability.

The first recommendation (the recommendation that has been the most contentious) addresses city union contract concessions. Specifically, the recommendation is to negotiate more health care cost-sharing with city employees; put all employees on one health care plan (that includes higher premiums, co-pays and deductibles); and move toward a defined contribution plan for future retirees. Task force members calculated that such concessions could reduce the city’s liability and required annual contribution for health care by 20%.

There is exciting news to share related to attaining these needed union contract concessions: four of the city’s five unions have reached tentative agreements containing the concessions. Only the city’s largest union – the American Federation of State, County and Municipal Employees (AFSCME) - has not reached an accord.

I applaud the leadership representing the four union groups that have reached tentative contract agreements: the police, fire fighters, supervisory and confidential unions.
At the same time, I encourage AFSCME’s leadership to become a part of the solution. The current AFSCME contract expires on December 31, 2006 – just 4 days from now. City and AFSCME leaders are involved in contract negotiations being facilitated by the State Bureau of Mediation.

The business community and home owners have accepted their share of the bitter medicine needed to heal the city’s finances. This has been done, as promised by the community’s business leaders, without a whimper. One year ago, we assured the mayor and the task force members that we would not contest the utility rate increases or the property tax increases that were needed to contribute toward resolving the unfunded health care liability.

We are pleased that four of the five city unions have concurrently done their share in bringing resolution to the city’s financial challenges. We applaud them for honoring their part of the deal. It is now time for AFSCME to do its part in bringing resolution to this crisis. The Chamber’s leaders join with every other tax payer in Duluth in urging the city and AFSCME to reach an agreement.

In service,
David

And the survey says …

2006-12-01T06:59:00.000-08:00

Advocate for the development of the Kroc Community Center!

The majority of Duluth Area Chamber of Commerce members support the City of Duluth’s involvement in developing the Kroc Center, including using the Community Trust Fund (also known as the Casino Fund and the Street Improvement Fund) to help fund the project. Members also support selling a portion of Wheeler Field to the Salvation Army to provide the needed building site for the Center.

Earlier this week, the Chamber distributed a survey to our members to find out their opinions about the Kroc Center project. 346 members took the time to let the Chamber’s staff and board of directors know how they feel about this important community issue. I applaud each of these members who made their voice heard.

Specific survey results are: 83% of survey respondents believe the Chamber should advocate for the project. 79% of the respondents are confident of the Salvation Army’s ability to separate its religious activities from those of the city. 70% supported using the Community Trust Fund to provide the city’s funding of the development. Finally, 84% supported selling city property to the Salvation Army to provide the building site.

The Chamber’s board of directors is listening to our members’ voices. As a result, the Chamber will publicly advocate for the Duluth City Council to approve the city’s funding of the Center and the corresponding sale of city property to the Salvation Army.

The Salvation Army is poised to proceed with a $40 million investment in the Center - $20 million for ongoing operations and maintenance and $20 million for the building of the 85,000 square foot facility. The city’s investment will combine with the Kroc monies to infuse the beautiful and proud West Duluth neighborhood with new energy and optimism. The Center will bring private investment, construction jobs, and recreational offerings to a part of our community that deserves our community-wide support.

The city council will vote on the proposed Kroc Center Monday evening, December 4, during a 7:00 p.m. council meeting.

This is no time for us to be shy about having our voice heard. It would be a welcome sight to see the council chambers filled with community members interested in sharing their views about the proposed Center. If you choose not to attend, I hope you will let the city councilors know of your view on this important decision. Councilors can be reached at council@ci.duluth.mn.us. You can listen to the council proceedings on radio at 103.3 FM or by tuning into the Public Access Community Television (PACT) cable station.

This council vote will be one for the record books. It will be a decision that has been three years in the making. I hope you will be a part of the culmination of this great community effort.

Help Hold AFSCME Accountable

2006-10-23T09:35:00.000-07:00

Habit is oftentimes stronger than reason. Apparently, such is the case with the local leadership of the American Federation of State, County and Municipal Employees (AFSCME), who represent the majority of city of Duluth workers.

Months ago, the mayor and the city council appealed to AFSCME’s leadership to transcend old stereotypes and break from their traditional role of holding on to employee benefits with a white-knuckled death grip. The Duluth Area Chamber of Commerce also encouraged AFSCME’s leadership to take an educated risk and join in the effort to resolve the city’s unfunded retiree healthcare liability.

Our appeal apparently went unnoticed or was disregarded by the city’s largest bargaining group.

Shortly thereafter, union leaders representing AFSCME informed the mayor of their contract demand: an almost 30 percent pay increase for their members over the next three years.

A 30 percent increase does not exhibit a union leadership that is in touch with reality. It represents a tired, old-school approach to an atypical, unprecedented challenge: the potential bankruptcy of Duluth. Not surprisingly, negotiations between the union officials and the city’s administration have reached an impasse.

Thankfully, Mayor Bergson sees the union demand for what it is: unrealistic and unwelcome. Duluthians are slowly coming to realize that AFSCME — the city’s largest bargaining group — is also becoming the city’s largest liability.

More specifically, Duluthians are awakening to the realization that AFSCME’s union leadership is increasingly a cause for concern for every city taxpayer. Duluthians are coming to understand how AFSCME’s leadership has its hands in our collective pocketbooks, and they want to dig deeper. If you own a home in Duluth, AFSCME’s leadership would like more of your money so they can continue to enjoy their excessively attractive healthcare benefits. Beware, the tax man or woman cometh … and he or she is probably an AFSCME union official. Katie, bar the door.

If you own a home in Duluth, your property taxes go to pay for the healthcare benefits of current and retired city employees. Notice, I didn’t say “a part” of your property taxes; I said “all” of your property taxes. What will become of the 70-year-old widow who is struggling to remain in her modest house on Dodge Street? How can she meet her increasing expenses while her property taxes rise? Should she pay more taxes so city employees and city retirees can continue to enjoy a healthcare benefit package that far exceeds what the city can afford and far exceeds what non-city employees have access to?

Increasingly, Duluthians are balking at this injustice.

For too long, the city’s administration and the union’s leadership kept the ominous and compounding cost of city employee healthcare benefits to themselves. Now the brutal, unattractive truth is out. Minnesota State Auditor Pat Anderson helped us understand the situation. Members of the Post Employment Healthcare Benefits Task Force informed us of this threatening expense.

Simply stated, union concessions are needed if we are to resolve the city’s unfunded retiree health care benefit challenge. Tax paying Duluthians have unknowingly funded the excessiveness of AFSCME’s union leadership for too long. Now that the painful secret is out, it is time for taxpayers to make their collective voice heard.

Mayor Bergson is doing his best to wrestle the necessary concessions from AFSCME’s leadership. Yet, AFSCME is the largest of the city’s five bargaining units. They are the bully on the block. And they have been taking our lunch money for too long.

Remember, bullies will continue to bully only if we remain passive. Please join me in letting the mayor know you support his efforts to resist the union’s demands. Let him know you applaud his concurrent efforts to resolve the city’s unfunded liability. You can contact the mayor at hbergson@ci.duluth.mn.us.

Please also let Duluth city councilors know how you feel about this issue. They can be reached at council@ci.duluth.mn.us.

AFSCME’s leadership is not shy about letting the mayor know how they feel. We should not be shy of doing the same.

Asking AFSCME to do Better

2006-08-31T12:26:00.000-07:00

Last month, the Chamber publicly announced it was willing to go against intuition and experience to offer a new solution to our city’s unfunded retiree health care benefit liability challenge. We recognized how it will take unconventional leadership, along with educated risk-taking and a break from traditional roles, to resolve the city’s financial dilemma. We acknowledged that what got our beloved city into this unfunded retiree liability predicament won’t get us out of it. The Chamber heralded that we are prepared to think and do differently.

Our unnatural response to the city’s Post Employment Healthcare Benefits Task Force recommendation to increase utility fees and property taxes (to help fund the retiree healthcare liability) is to not oppose the increases. Our unprecedented response was our way of being a part of the solution.

In announcing our support of the recommendation, the Chamber was also hopeful that city employees, their union representatives, and city retirees would seek to be part of the solution, as well. At the same time the Chamber announced its support for the task force recommendations, it appealed to city employees, city retirees and their union representatives to bring uncommon leadership to this shared challenge. We knew it would require all of the players involved to do what is unnatural: to transcend old stereotypes and willingly agree to needed contract and benefit concessions.

Our appeal apparently went unnoticed or was disregarded by the city’s largest bargaining group: the American Federation of State, County and Municipal Employees (AFSCME). Union leaders representing AFSCME recently informed the mayor of their latest contract demand: an almost 30% pay increase for their members over the next three years.

What a disappointment.

A 30% wage increase demand does not exhibit the union’s readiness to break from its history of fighting employee benefit reductions. Nor does it illustrate a willingness to transcend old union stereotypes. Nor does it convey sensitivity for the ominous financial challenges facing the city.

In contrast, the 30% wage increase demand runs the risk of presenting AFSCME’s union leaders as unrealistic and outdated. Additionally, the demand apparently disregards the task force recommendations that AFSCME previously endorsed. Finally, the wage increase demand should be nothing short of alarming to Duluth tax payers, who fund the city’s operations and pay city employee wages and benefits.

Duluthians should keep a close watch on this critically important union contract negotiation. How AFSCME’s union leaders conduct themselves within these negotiations should be closely scrutinized by every Duluth taxpayer. Let’s hope this initial demand for a 30% wage increase proves to be nothing more than an initial, momentary lapse in good judgment. Let us further hope that it will be followed by the union’s reevaluation of this demand. There is still time for AFSCME to use unconventional leadership to think and do differently.

Going Against Intuition and Experience to Develop New Solutions to our Community's Challenges

2006-07-27T08:51:00.000-07:00

The Duluth Area Chamber of Commerce remains an unwavering advocate for implementing the Task Force’s fourteen recommendations. This is why we are concerned with the apparent lack of progress realized in implementing the recommendations. We encourage Duluthians to stay apprized of the unfolding concern. Implementation deadlines are fast approaching. As Task Force members stated in their recent Report on Implementation of Recommendations (July 17, 2006): “Time is of the essence!”

We also recognize how it will take unconventional leadership, along with educated risk-taking and a break from traditional roles, to resolve the city’s financial challenges. Said differently, what got us here won’t get us out of this mess. The Chamber is prepared to think and do differently.

Historically, the Chamber could be counted on to contest any and all local property tax increases. In recent years, we have become increasingly effective at opposing these tax increases. Opposing tax increases has become an almost routine decision for the Chamber’s leadership. To support our anti-tax stance, we applauded and uplifted local officials who joined us in opposing tax increases. Conversely, we challenged and contested local officials who showed a propensity to increase taxes.

The vast majority of our members affirmed these actions. The Chamber’s popularity within our membership would rise each time we took a public stand against an increase in property taxes. These actions produced a predictable surge in enthusiasm for the Chamber and an increase in our members’ participation in our tax fighting efforts.

Our opposition to the annual proposal for increased property taxes could be an expected response. That is, until this year.

The city’s unfunded retiree healthcare liability, and the ominous financial collapse it may precipitate, has changed everything. Life as we know it in our tax opposing world is changing. The Post Employment Healthcare Benefits Task Force recommendations (approved by the Duluth City Council on December 19, 2005) call upon all of us, including the Chamber, to rethink everything. Predictable actions and reactions no longer will work. All bets are off.

All fourteen of the task force’s recommendation must be implemented to avoid the city’s financial ruin. If any of the recommendations are not implemented, the financial gains generated by the remaining recommendations will not suffice to correct the financial problem. It’s an all-or-none deal.

Two of the fourteen recommendations are a particularity bitter pill for the business community:

Recommendation # 5: Increase all utility rates (gas, water, sewer, and storm water) to fully fund the Annual Required Contribution attributable to utility operations, beginning not later than July 2006 or earlier if possible, amounting to a rate increase of 4-5%.

Recommendation # 14: Phase in an increase in the City’s portion of property taxes over a 4-year period, as the last piece of the funding puzzle.

Overall property taxes, related to the task force recommendations, would be increased modestly. Increases would be in the range of 2% on the overall property tax bill for Duluth residents for 2007, with follow-on increases of similar size in years 2008, 2009 and 2010.

Here is the unnatural response from the Chamber: we will not oppose the recommended utility rate increases or the property tax increases proposed by the task force. We accept these increases as our dose of the bitter medicine needed to heal the city’s financial woes.

The Chamber’s board of directors fully supports implementing all fourteen of the task force recommendations. Now is not the time to shy from this difficult implementation. We encourage city administration, the city council, city employees and city retirees to also support the implementation of all fourteen recommendations.

Recommendations to have city employees assume additional cost sharing for their health care and insurance expenses need to be implemented. City retirees need to agree to have their retiree health care eligibility and benefits reduced. Just as this is the time for the Chamber to rethink and reevaluate its historical approach to opposing utility and property tax increases: it is time for the city employee’s union representation to break from its history of fighting employee benefit reductions with all its might.

We are hopeful city employees, city retirees and their union representation can bring uncommon leadership to this shared challenge. It will require them to do what is unnatural: to transcend old stereotypes and willingly agree to contract and benefit concessions.

These concessions, along with the implementation of utility rate and property increases, are the unnatural cure for the financial crisis facing our beloved city. These are exceptional times requiring unconventional leadership.

The Chamber welcomes suggestions on how we can serve as a positive force for change in encouraging decision makers to resolve the city’s financial dilemma.

And the Survey Says ...

2006-06-28T05:52:00.000-07:00

The challenge any business faces is knowing (and understanding) what its customer wants and how much he or she will pay for it. Similarly, the Chamber seeks to better serve its members, by knowing what they want and what it will take to meet their needs. The Chamber recently did the serious work of asking for insight from our members and from the community.

We recently contracted with Zenith Research Group to conduct an expansive and ambitious research effort to ascertain the common values that bind the Chamber’s membership. Further, the research set out to investigate the following: if the membership believes that political and public policy advocacy are warranted; what the advocacy should look like; and how the Chamber can best serve as an advocate, as defined by members. Now that the research is completed, the board can use the research to evaluate future programs, the efficacy of the political action committee (PAC), and the common thrust of advocacy with the Chamber.

Using a random selection process, 384 Chamber members accepted an opportunity to participate in a telephone survey. The individual survey responses were kept confidential. Every response was appreciated. In addition, 200 non-members were surveyed to provide insight into the perceptions non-members have about the Chamber.

Prior to the research, there were various opinions as to the benefit of the Chamber’s political action committee. However, not one opinion was based on hard data. The entire debate was emotional and based on anecdotal evidence. The Chamber could no longer afford to continue to guess about something which has been as controversial as the Chamber PAC. Now there is hard data on which to make future decisions regarding the PAC.

The results of this survey will guide the Chamber in determining future direction and will become a benchmark for future comparisons. With these survey results, we can more effectively make policy decisions that reflect the real interests of our membership and develop programs and services that speak more directly to our members’ needs.
I encourage you to access these seminal research findings. It was made possible by the 584 individuals who took the time to share their views regarding the Chamber. Accessing the information is as simple as going to our website at www.duluthchamber.com and pressing on the member research icon. As always, feel free to let me know what you think about the research or about anything else pertaining to the Chamber. My email address is dross@duluthchamber.com. Let’s make the most of this valuable research.

Should Duluth be Bracing for Bankruptcy? Find out at the June 19 Luncheon

2006-06-12T07:47:00.000-07:00

Mentioning the possibility of it invites the label of “negative.” Seeking to understand more about the ramifications of it makes one an “alarmist.” Bringing the leading authority on it to our community, who will detail the difficulties associated with it, is being “politically motivated.”

The Duluth Area Chamber of Commerce has been called and labeled all of these things. Why? Simply because we seek to understand the possibility of, and the ramifications of, the City of Duluth declaring municipal bankruptcy. The Chamber believes community members should have the opportunity to better understand this possibility. It is understandable that community members may be confused regarding the likelihood of bankruptcy.

Mayor Bergson and other elected officials have repeatedly and publicly stated that there is no chance the city of Duluth is going to file bankruptcy. Conversely, the State of Minnesota’s leading authority on the subject, State Auditor Patricia Anderson, has publicly stated: “If Duluth does not act now, it is a matter of time before Duluth will be forced to significantly raise its property taxes, dramatically cut its budget, or go bankrupt.”

For over a decade, the state auditor’s office has advised Duluth city officials to take corrective action regarding its unfunded post-retirement health benefit for city employees. Yet, no decisive action has been taken and the problem continues to escalate. The city of Duluth has an estimated $290 million-plus unfunded obligation. Moreover, it is projected that the liability could grow to over $400 million in the next ten years.

The Chamber has arranged to have the state’s leading financial authority, State Auditor Patricia Anderson, address Duluth’s financial crisis in a presentation she will give at a luncheon Monday, June 19, in the Great Lakes Ballroom of the Holiday Inn Hotel & Suites, located at 200 West First Street. The luncheon begins at 11:30 a.m. with registration and lunch. Auditor Anderson’s keynote address will begin at noon.

Reservations for the June 19 luncheon can be made by calling the Chamber at 218.722.5501. Reservations are required for attendance and must be made by Thursday, June 15. Members of the media are welcome to attend the event.

Insightful Duluthians will understand that the Chamber’s effort to keep this issue before the community is a positive thing. The Chamber’s leadership believes our community will be better served if it is better informed. It is apparent that we can no longer ignore the challenge before us. Attend the June 19 luncheon to learn more about what declaring bankruptcy might mean for Duluth. Once educated, we will all be better equipped to encourage our elected officials to do what needs to be done to effectively address this concern.

An Unordinary Approach to Ordinance 60

2006-04-27T13:07:00.000-07:00

The business community is a minority voice within the greater Duluth community. We are a thin slice of our community’s collective pie. When business community members publicly differ on a business related issue, we lessen our already limited influence and muffle the voice of business.
The city council’s proposed Ordinance 60 has, unfortunately, caused us few business types to quarrel amongst ourselves.

The ordinance is intended to expand the regulation of development agreements and business subsidies. Its initial author, Councilor Russ Stewart, intends to use the ordinance to limit the city’s financial risk when participating in development projects. Councilor Jim Stauber has updated the proposed ordinance and is now advocating for its implementation. Many business types applaud the ordinance’s intent and are publicly pressing for its passage.

Others within the business community oppose the ordinance, believing it will inordinately transfer the financial risks associated with development projects from the city to the private developer. They believe the end result will be less development in our beloved community.

Local radio shows, blogs, and newspapers have called attention to the ordinance and to the differing opinions within the business community. Battle lines are being drawn. City council votes are being lobbied and counted. The sleeves on many a dark business suit are being turned up and clinched fists are being formed.

Thankfully, we recently got a grip on our collective selves and agreed to meet and discuss our differences related to ordinance 60. The meeting occurred at the Chamber just hours before the ordinance was scheduled to be voted on Monday, April 24. The meeting resulted in the ordinance being tabled at that night’s city council meeting. We now have time to work out our differences and to modify the ordinance in a way that will allow the business community to find common ground on this important initiative.

The Chamber’s leadership is pleased and proud to be a part of this effort to move business forward in this beautiful city. Besides, I don’t like to see business men and women scuffle. It’s hard on the business wardrobe.

A Tax worth Paying

2006-02-24T08:04:00.000-08:00

A Tax worth Paying

You and I have heard the opposition to the proposed DECC Arena expansion. Some business-savvy residents of Duluth have let it be known they are voting against the Arena because they are against any tax increase. No new taxes – for anything, for any reason, at any time - is their mantra. While I respect these individuals and can understand their view, I respectfully disagree with their logic.

If Arena opponents are successful and the referendum is voted down, then what? Will there be reason for celebration? No. We will have simply returned to where we were prior to the referendum: trying to compete in the big-time with a small rink. UMD will be forced to continue playing in the oldest and smallest rink in the WCHA. We will continue to lose out on opportunities to attract larger national entertainment to our too-small DECC. Two years of construction jobs, for up to 200 of our brothers and sisters in labor, will lay dormant. Our local economy will forgo the millions of dollars that would have been gained through the shopping, lodging and dining activities generated by attendees at a larger DECC.

Ian Sinclair, a British author, said it well: “An involuntary return to the point of departure is, without doubt, the most disturbing of all journeys.” If the referendum is voted down, the DECC’s leadership will involuntarily return to the point of their departure: to an outdated, undersized Arena. For them, it will be the most disturbing of journeys. Opponents of the DECC Arena will get what they deserve – 6 cents more in change from their lunch tab. Enjoy it.

You won. Keep the change. Spend it wisely. Do the right thing: add the 6 cents to your tip.

In contrast, the Chamber’s board of directors hopes the referendum is passed. The board voted unanimously to support the proposed DECC Arena expansion. It did so because it understands how the DECC contributes to the local economy. It understands how the DECC contributes to our community’s tax base by virtue of attracting visitors (and their money) to Duluth. The merits of an expanded DECC are detailed on the web site: www.arenayes.com.

The Chamber’s board of directors encourages you to vote yes for the Arena on Tuesday, February 28.

Yours in support,
David

Stay Apprized of City’s Unfolding Comprehensive Plan – If You Snooze, You Lose

2006-02-08T11:12:00.000-08:00

Irish poet Brendan Kennelly said it well: “To go fast, row slowly.” I was a member of the Duluth Rowing Club one summer, long ago, so I fully appreciate Kennelly’s statement. What appears to be a contradiction is, in fact, true – to go fast, one must row slowly. I would offer some additional advice: pull hard on the oar, never hesitate, and establish an unwavering cadence.

I am convinced that what works well in rowing also works well in advancing the City’s comprehensive planning process.

Those of us serving on the City’s Comprehensive Planning Committee have been rowing slowly, effectively, in cadence and without pause for the past eleven months. In that relatively short amount of time, we have made swift and noteworthy progress. Now we are convinced that the completion of our work will come at an ideal time: our community urgently needs the direction the comprehensive plan will provide.

As change places greater demands on our beloved community, we must ensure that Duluth remains – and expands on – all that is good here. The comprehensive plan provides a policy framework to guide both development and land use activity (e.g., housing, transportation [commercial and industrial], and recreation, in addition to the use of open space, natural resources and public facilities). Plans of this nature are generally valid for about twenty years. Duluthians will now have an opportunity to have their voices heard regarding issues that will affect not only today’s adults, but their children as well.

Specifically, the plan will be the fundamental tool used to provide guidance regarding such activities as overhauling the city’s outdated Zoning Ordinance; permanently protecting open space; prioritizing transportation and utility improvements; and locating areas suitable for development.

The time is soon approaching for Duluthians to review the status of our progress. Duluthians can determine if we have been doing a good job at the oar. The comprehensive plan will be completed this June, just five months from now. Before the plan is submitted to the Planning Commission and the City Council for approval, the Comprehensive Planning Committee members welcome citizens’ perspective and feedback.

Committee members are preparing drafts of our work. Goals, policies, and maps will be ready for dissemination at community forums scheduled for late February and early March. Citizens will soon be made aware of when and where to attend one of the community gatherings. Until then, they can stay apprized of the process by attending one of the Comprehensive Planning Committee meetings. Meetings are open to the public, and meeting dates are posted on the City of Duluth’s web site at www.duluthplan.com.

As a service to our Chamber members, we have arranged to have Bob Bruce, the city’s director of planning & development, present an overview of the comprehensive planning process at the Chamber’s March Economic Development Member Meeting. The meeting will be held on Wednesday, March 1 from 7:30am to 8:30am in the Technology Village’s Playground Theater, located on the Village’s lower level. Bob Bruce will illustrate how the business community will be impacted by the comprehensive plan. You will be glad you took the time to attend this timely and informative meeting. You can register by emailing inquiry@duluthchamber.com or by calling 722-5501.

In summary, I encourage all Duluthians to pay attention to the comprehensive planning process as it unfolds. Duluth is one of the most beautiful, panoramic cities in America. We enjoy an enviable combination of people, businesses, neighborhoods, woods, water and vitality. Moreover, Duluth is the regional hub for health care, higher education, tourism, retail and other industries. We must treasure what we have, while we carefully plan together for the future of our Zenith City.

We must not miss the opportunity to have our voices heard in this moment of decision.

Supporting our Superintendent

2006-01-24T13:05:00.000-08:00

Duluth Public School District #709 is undergoing a transformation. A renewed sense of optimism abounds within the district. Hope and purpose fill the administrative offices at Old Central. Community members are re-committed to helping move the district forward. This optimism, hope, purpose, and commitment are the direct result of Keith Dixon’s appointment to the position of superintendent of schools.

Since being appointed to the superintendent position in March of 2005, Keith Dixon has been a high-profile, decisive and collaborative leader. Positive breakthroughs are occurring in the district. Communication among school officials is strong. The district’s strategic direction is becoming clearer and more compelling. Each of these advancements indicates that this former public school teacher, this former school councilor and principal and experienced superintendent of schools is a strong and capable leader.

A few weeks ago, Keith Dixon was the keynote presenter at a Duluth Area Chamber of Commerce luncheon. His presentation attracted a capacity crowd of 120 attendees from the Chamber’s membership. This was the first time that many of these individuals had met Keith Dixon. It was the first time they witnessed Keith’s quiet confidence, his resolve, and his compelling perspective on education. And these community and business leaders were impressed.

Chamber members left the interaction with confidence that the challenges facing the district will be addressed and overcome by this experienced, talented leader and his administration.

Two days after Keith’s presentation to the Chamber’s membership, our community learned that a contract between the Duluth School District and its largest union was reached without the help of a state mediator – the first time in a quarter-century such an agreement has been reached. The 120 Chamber members who attended Keith’s presentation are not surprised to see Keith’s leadership put into action. We expect good things to occur within the district and know that positive district news will become routine.

It is an exciting time to be a Duluthian. Our public school district is in capable hands. Our public schools are effectively preparing students for success in the workplace, success at home, and success in the community. Our public and private schools offer an attractive incentive for families to relocate to Duluth. For those of us who already make Duluth our home, our schools affirm our decision to make this Emerald City on the Hill the community in which we reside.

Accepting a Large Dose of Bitter Medicine – Resolving the City’s Health Care Liability

2005-12-16T07:45:00.000-08:00

The first step toward resolving a problem is recognizing that there is a problem. Thanks to the City’s Post Employment Health Care Benefits Task Force, every adult member of our community should realize that Duluth has a problem - a problem of titanic, Olympian proportions. This shared problem is the City’s employee and retiree unfunded healthcare benefit liability.

Benjamin Disraeli wisely said: “To be conscious that you are ignorant of the facts is a great step to knowledge.” Until the task force reported its findings at Monday night’s city council meeting, Duluthians were largely ignorant of the facts. At that meeting, we took a great step forward to knowledge.

Boxing champion Smokin’ Joe Frazier said it in colloquial terms when he pointed out: “The punch that knocks you out is the one you didn’t see.” I attended the city council meeting and listened to the two hour report delivered by members of the Post Employment Health Care Benefits Committee. While I saw this punch coming for months, its impact was, nonetheless, jarring.

The city needs to find a way to fund its $280 million health care benefits liability to the tune of $26 million each year for the next thirty years. To accomplish this goal, the task force offered a detailed, fourteen-step correction plan. The plan combines cost saving measures; an increase in utility rates (gas, water, sewer and storm water) paid by Duluthians; and an increase in the City’s portion of our local property taxes.

Ouch.

The correction plan calls upon city employees, city retirees, and residents to share the burden in resolving this problem. As City Council President Donny Ness said: “There are a lot of tough decisions and sacrifices outlined in this report. But in light of the severity of the problem that we face and the historic nature of Duluth’s financial stability, it’s the only way this problem can be resolved.”

Utility rate increases and property tax increases are painful for most home owners. They are extraordinarily painful and upsetting to business owners and operators who may use these utilities to a far greater extent than the average home owner. This is why news of the proposed utility rate and property tax increases will generate an immediate negative reaction to the task force recommendation from many in the business community.

My appeal to business community members is to seek to fully understand the city’s financial dilemma by thoroughly reading the task force’s recommendations. The task force’s report is available on the City’s web site at: www.ci.duluth.mn.us/city/mainpage. The report clearly illustrates how all of the task force’s fourteen recommendations must be implemented to resolve the problem. This is not a situation where a 90% solution will work. Every interest group - city employees, city retirees, elected officials, home owners, and the business community - should encourage city council members to fully implement the recommendations.

To do anything less will likely lead the City to face bankruptcy. Bankruptcy will inflict more financial pain on every citizen of Duluth than will implementing the task force’s recommendations. For this reason, I respectfully recommend that business community members encourage the mayor and the city council to fully endorse and implement the recommendations suggested by the task force. City councilors can be reached at council@ci.duluth.mn.us.

It is important for the mayor and the city councilors to fully realize that the Duluth Area Chamber of Commerce’s advocacy for supporting and implementing the task force recommendations comes in the form of “conditional support.” That is to say, Chamber support will remain only if every interest group - city employees, city retirees, union leadership, and elected officials - fully embrace all of the fourteen recommendations. If this “shared pain and shared solution” approach unravels and other interest groups begin to lobby for a reduced level of pain, the Chamber will reconsider its support for the tax and utility rate increase imbedded in the recommendations.

Moving forward with the task force recommendations will take discipline and resolve – for everyone. Strong leadership from Mayor Bergson and city councilors will be required to head this corrective effort. And elected officials must be vigilant to ensure that Duluthians never find themselves in such a difficult position again.

Response Requested - Make Your Voice Heard on Proposed Duluth Arena

2005-11-10T08:10:00.000-08:00

It is not often a community gets to build a new sports and entertainment venue – but that is exactly what the leadership at the DECC is hoping will happen. And the DECC’s leadership is hopeful the Chamber will publicly support the proposed new arena.

College hockey programs from coast to coast have passed Duluth by because of its lack of adequate facilities. UMD’s rink, which is now 40 years old, is the oldest in the Western Collegiate Hockey Association. The Duluth Arena is also the smallest. UMD’s leadership believes Duluth must provide a more competitive venue for hockey or risk the likelihood of losing top hockey prospects to other colleges – and its hard-earned reputation as one of the country’s elite programs.

The new arena will include 1,000 additional seats, providing 6,630 seats for hockey and more than 8,200 seats for concerts. If funding is approved, construction will begin in early 2007 and be completed by late 2008.

The new arena will cost $67 million. $33.5 million will be sought from the state of Minnesota; the other half of the funding coming from the DECC and UMD communities, as well as from a .75% sales tax increase on food and drink in the city of Duluth. This tax means consumers will pay 6 more cents on an $8 dollar lunch order. This funding translates to local annual funding for the arena as follows: UMD will contribute $455,000; the DECC will contribute $461,000; and the City of Duluth entertainment tax (food and drink) will generate $1,300,000. These amounts will increase each year by approximately 4.25% for the 25 year payment period.

During the arena’s two years of construction, there will be 300 full-time jobs at the peak of the project – 90% of the jobs will be staffed by local workers. On average, there will be 200 full-time jobs for local building and construction trade workers.

The DECC is a popular sight for conventions and trade shows – more space will mean even larger events for the DECC and the Duluth community. Each convention held in the new spaces has the potential to attract thousands more people to Duluth, generating millions of new dollars each year to the area’s economy from shopping, lodging, dining and other purchases.

For these reasons, The Chamber’s staff is inclined to recommend to the board of directors that the Chamber support the arena. However, before a recommendation is provided, the Chamber’s staff members are interested in gaining your perspective on the proposed arena. We especially want to hear from our Chamber members who are in the hospitality business.

Only after we gain your perspective will we make a recommendation to the board.

Here is your chance to make your voice heard. Let us know what you think about the proposed arena by sending me an email at dross@duluthchamber.com. I will compile your responses into a report for the board. Please respond by the end of the day Monday, November 14.

Your opinion is important to us. We look forward to hearing from you.

Yours in support,

David

Sweet on Sugarloaf

2005-10-24T13:08:00.000-07:00

By a seven to two vote, the Duluth City Council recently approved Sugarloaf Enterprises’ rezoning petition, allowing residential development on sixty-five acres of property above beautiful Skyline Parkway. The development will accommodate 72 houses.

The Duluth Area Chamber of Commerce strongly supported and advocated for the necessary rezoning and the subsequent development it will make possible. Consequently, we applaud the seven city councilors who supported this needed development. These councilors apparently agreed that Duluth would benefit from: additional market rate housing; increased property tax revenue generated by the new neighborhood; and the construction jobs provided by the building of 72 houses.

The development becomes even more attractive when one realizes how the developer will install and pay for the streets, sewers, water and gas connections necessary to service the new housing development. Additionally, the city will benefit from the property taxes it will collect on 72 houses estimated to be in the value range of $400,000 to $600,000.

The development becomes almost ideal when one learns of the environmental protections that have been incorporated into the development plan. The new neighborhood will be set back from Skyline Parkway by a winding road that will provide a visual and sound barrier between the Parkway and the new houses. There will be a limited clearing of vegetation on each building lot. Long stretches of forest will be protected. There will be multiple storm-water collection pools.

Councilor Greg Gilbert was one of the seven councilors supporting this environmentally sensitive development. He was quoted as stating: “My sense is that you can’t do development any more environmentally sensitive than what we are talking about here.” He also heralded Sugarloaf’s willingness to refashion the development into a more environmentally sensitive site as “a watershed moment in Duluth’s history of real estate developments.”

I applaud Councilor Gilbert’s vote and expression of support for this kind of development. I also congratulate Councilor Roger Reinert for facilitating the dialogue that allowed the parties involved in this project to refashion the planning process into a new and improved way to do development. Councilors Little, Stauber, Atkins, Stewart, and Ness also supported the development. They should be commended.

However, Councilors Johnson and Stover voted against this development - which, as I shared earlier, was described as the most environmentally sensitive development that Councilor Gilbert has seen in his eight years on the council. Councilors Johnson and Stover voted against this development that, as I mentioned, was heralded as a watershed moment in Duluth’s history of real estate developments. How can this be?

In defense of Councilor Johnson and Councilor Stover, it must be noted that they articulated their reasons for opposition. Councilor Johnson indicated she believes the project will trigger sprawling growth, similar to that associated with big-box retail stores. She also said that development drawings offered up by developers aren’t always what really ends up on the land. Councilor Stover was concerned about what he believes will be a lack of emergency service vehicle access to the development. He also was concerned with the traffic generated by the 72 families who will live in this new neighborhood.

I respectfully disagree with Councilor Johnson’s and Councilor Stover’s votes and with their logic. Frankly stated, if they could not find a way to support this development, is there any development they can support? Are these the kinds of votes and the kind of councilors you want representing you? You decide.

Enough Already: Contesting the Council's Tax Increase

2005-09-21T12:46:00.000-07:00

Last year, the City of Superior did not increase its portion of the local property tax levy – nor did St. Louis County. In contrast, the City of Duluth raised its portion of the local property tax levy by 5.7%. Duluth’s increase was dangerously close to being even more painful. Encouraged by Mayor Bergson, councilors Greg Gilbert, Laurie Johnson, Donny Ness and Russ Stover advocated hiking the city’s portion of the local tax levy by 20%. These councilors indicated that mandating a 20% increase would create fewer problems than would the cutting of government services. Thankfully, the remaining five Duluth city councilors disagreed with councilors Johnson, Ness, Gilbert and Stover and voted down the 20% increase. They settled on the 5.7% increase - 5.7% more, remember, than in either Superior or St. Louis County.

Fast forward to today. The City of Superior is proposing to raise its portion of the local property tax levy by 1.6% in 2006. St. Louis County is proposing a 5.2% increase for 2006. In contrast, the Duluth City Council is proposing an 11.5% increase in 2006.

Let’s do the math. If things go as planned, the City of Superior will have a total increase of 1.6% in its portion of local property taxes over a two year period (2005 – 2006). St. Louis County will have a total increase of 5.2% over two years. In contrast, the City of Duluth will have a 17.2% increase. The only comfort to be found in this potentially numbing 17.2% increase is the fact that it could have been worse! If councilors Gilbert, Johnson, Ness and Stover were not outvoted last year, their proposed tax increase of 20% would have combined with this year’s proposed increase of 11.5% for an alarmingly high, jaw-dropping combined increase of 31.5% over a two-year period.

I am frightened. You should be, too.

If you own a home or business in Duluth, the tax collector will soon be banging on your door. He wants more of your money – and he is getting bigger and nastier. The majority of Duluth’s city councilors apparently truly believe that hiking the taxes on your home would be better than looking for additional efficiencies within city government.

What are the City of Superior and St. Louis County doing right and Duluth doing wrong? They are exhibiting leadership, restraint and discipline. They are asking themselves: “What city and county services are essential to citizens?” They are also asking themselves the difficult but necessary question: “What city and county services are not essential and, as a result, can be reduced or eliminated?” They are asking themselves: “Have we exhausted all other options before reaching into the taxpayers’ pockets for more money?” They are asking: “Can some city services be more effectively provided through the private sector?” The majority of Duluth’s city councilors and our mayor have shirked this responsibility.

Fellow Duluthians, we are being led astray. The majority of Duluth city councilors apparently believes – and would have us believe – that the city simply cannot add the police officers and fire fighters we want without increasing taxes by 11.5% in 2006. This is a potentially costly falsehood. Thankfully, two city councilors are the voice of reason and clarity on this issue. These councilors know the city can add to our police and fire protection without a concurrent increase in taxes. Last week, Councilors Tim Little and Jim Stauber were the only councilors who voted against increasing the city’s maximum levy limit increase of 11.5%. Tim Little and Jim Stauber should be applauded for exhibiting the restraint, discipline and insight that precludes their becoming unwitting transmitters of the falsehood. These councilors realize that the most effective way to bring more resources to public safety is to reallocate resources within city hall.

It is time for a call to action. Fellow Duluthians, there is still an opportunity to contest the proposed 11.5% increase. The city council will not finalize the city’s 2006 operating budget until December 16, 2005. If you disagree with the plan to increase the city’s portion of the local tax levy by 11.5%, make your voice heard. If you believe the city’s plan to add the 11.5% to last year’s increase of 5.7%, totaling 17.2% is too onerous – make your voice heard. If you believe there is room for efficiency within city services – make your voice heard. Unless there is a collective outcry against the tax increase, you can bet it will occur, and we will all be the more burdened because of it. Email the councilors at council@ci.duluth.mn.us.

Make your voice heard.

Getting Caught Prepared: Saving the Base

2005-06-30T11:04:00.000-07:00

1981 was a challenging year for Duluth. It marked the closing of the Duluth Air Base and heralded the end of Duluth’s frantic, last minute “Save the Airbase” campaign. Sadly, the decision to close the base was irreversible. Our community’s belated attempt to save the base was ineffectual primarily because the campaign came long after both the initial decision to close the base was reached in 1976 and the concurrent public announcement was made.

The time between that 1976 announcement and the departure of the final base personnel in 1981 was a dispiriting time for Duluth. Unemployment reached a record high of 15% when civilian jobs that supported the base were lost (I graduated from college in 1978 and can personally testify that for any college graduate, prospects for employment in Duluth were indeed bleak).

Fast forward to 2005.

Personnel in Duluth’s Minnesota Air National Guard 148th Fighter Wing recently learned that the Air Force had recommended the retirement of the 148th’s airplanes – the F-16s – by 2007. Losing the F-16s would result in the elimination of 583 of the 148th’s 1,100 jobs.

Fortunately, this time our community was ready to successfully challenge the Air Force’s decision-makers. The Duluth Area Chamber of Commerce had been leading a four- year-long effort to prepare a comprehensive defense against such a proposed closure of the 148th. Now, that defense would be tested.

We traveled to Washington, DC and appealed to our elected officials to join us in our “Save the Base” initiative. Representatives in Washington responded with enthusiasm and action. Last week, the Chamber’s leadership also went to Grand Forks, North Dakota to challenge the Department of Defense decision-makers, who had recommended the removal of the 148th’s airplanes. They, too, listened to our appeal.

Duluth’s “Save the Base” initiative was rewarded when Governor Pawlenty recently received official assurance from Pentagon officials that a new mission will be given to the 148th that will involve an equal, or greater, number of Air National Guard members. The F-16s will not be retired until another plane is reassigned to Duluth’s 148th.

This is great news for our community. The 148th generates an economic impact of $85 million each year. The base supports over 100 local and regional venders who supply contracted and direct services and products to the base.

The Chamber is proud of its unwavering support for the 148th. That support contributed to the collective, positive voice that was heard in Washington DC, as well as within the Base Realignment and Closure Commission and in the Department of Defense.

This time we were ready – and our preparation paid off.

Partnering for Progress

2005-06-13T12:59:00.000-07:00

I am often asked the question: “How’s the mayor doing?” When I receive these inquiries, I readily respond by sharing my belief that Mayor Bergson is a good person who is working hard to improve our city. Affirming the mayor in this manner generates a myriad of responses, almost always based on each questioner’s own assessment of the mayor’s performance. I find myself fascinated with those who believe that I, as a representative of the Duluth Area Chamber of Commerce, am not demanding enough of the mayor. Others, however, agree with and affirm my position.

Regardless of any assessment – mine or yours – of the mayor’s effectiveness, I suspect we can agree that when individuals and organizations enjoy a collaborative relationship and a shared work effort, the entire community benefits. It seems prudent that the mayor and the Chamber president, in particular, maintain that effective, trusting working relationship. We all win when the mayor’s administrative team and the Chamber’s leadership work in partnership for the good of the community. It is certainly to everyone’s advantage when we coordinate our efforts to advance economic development, legislative initiatives, and develop public policy.

It is disconcerting, therefore, when I hear criticism directed at Mayor Bergson or me for the supportive working relationship we enjoy. The implication is that such a relationship is in someway counterproductive or undesirable. The truth, however, lies in exactly the contrary view: there would be valid grounds for concern if the mayor and the Chamber president did not encourage a healthy relationship between our organizations.

Questioning citizens should know that our constructive working relationship does not preclude our intense disagreement on some intense issues (e.g., taxation). We are unequivocal in the expression of our organizations’ views and concerns. However, the disagreement is confined to issues and initiatives, and, to the greatest extent possible, it remains impersonal and private.

Other individuals, organizations, and interest groups appear to take pride in publicly challenging the mayor and his administration. The challenge sometimes goes so far as to take on a tone of chastisement. True, this approach can generate attention, affirmation and support within the community. Yet, I believe these gains are short-lived. They cannot be sustained and can work to polarize both the issues and the people involved.

The Chamber has been in the business of advocating public policy for 135 years. We intend to remain in this business of building collaborative relationships designed to move our community forward. Maintaining a positive working relationship with this and future mayors will affirm our good intentions, make civic progress possible, and enrich the future of our city and our citizens.

Bringing More than Attention to the City’s Financial Challenges

2005-05-27T11:48:00.000-07:00

Community members are becoming increasingly aware of the City of Duluth’s ominous, expanding financial dilemma being fueled by the City’s employee retirement benefit package liability. Simply defined, it is an unfunded, compounding debt that will soon come due. The retirement benefit package liability is the single greatest financial challenge confronting Mayor Bergson and the city councilors.

Individuals and various interest groups are drawing more and more attention to the liability. There is a growing drumbeat calling for the Mayor and the Council to address and correct the situation. Exasperated voices – voices that are becoming less patient, more demanding, and shrill – ask: “Why doesn’t the Mayor take care of the problem?” At a minimum, community members are perplexed by the apparent lack of progress in addressing and resolving the concern.

I understand and appreciate the challenge. The Duluth Area Chamber of Commerce fully comprehends the issue and the need for action. Yet, we also understand the monumental challenge the Mayor faces in addressing the problem.

Change means movement. Movement means friction. Margaret Atwood, a Canadian poet and novelist said it well: “Better never means better for everyone…It always means worse for some.” The existing retiree benefit was negotiated into the city employee contract several years ago. The city’s leadership must now negotiate with five separate bargaining groups in order to make a change in this package. Yet, the union’s leadership will not give up an employee benefit unless it is in the union’s best interest to do so.

Clearly, the Mayor has his hands full.

The Chamber understands the challenge confronting the mayor and the city council. I recently read the book Changing for Good. The title is telling, as it implies that change might occur for the better or the long-term. While change may be necessary and lead to a positive outcome, it does not often come about easily. On the inside cover of the book is a simple quotation, which reads, “For every complex problem there is a simple solution…and it is wrong.”

There is no simple solution to the retiree benefit liability.

The Chamber’s leadership has offered to assist the Mayor and the Council in addressing the problem. We are willing to make the business community’s finest leaders available to the mayor and the council, volunteers who will invest their time and talent to review the City’s retiree benefit liability and develop proposals for addressing the concern. The offer was extended to the Mayor early after he assumed his mayoral duties. The same offer was made to Council President Donny Ness shortly after his recent election to the president position.
We stand prepared to be a part of the solution. I hope we are called into service.

Influence Motivates Volunteers

2005-05-10T07:03:00.000-07:00

The boss says, “Jump” and the employees say, “How high?” This old quip may once have been funny – but no longer. It implies that a business owner needs only one tool in the toolbox: power over employees. Thankfully, times are changing, particularly in the world of volunteer-led organizations.

Volunteer-led organizations like the Duluth Area Chamber of Commerce are the most leadership-intensive enterprises in modern society. True, many business owners and operators may question that assertion, but the more one considers its rationale, the more evident it becomes. Simply put: this belief rests on the understanding that positional power does not work in volunteer organizations.
In a typical private business, the owner or operator has the position and thus the power to direct employees to do things, and to do them in a certain way. Business owners have tremendous leverage in the form of salary, benefits, and perks. Most followers are cooperative when their livelihood is at stake. In the military, leaders can use rank and the threat of discharge to get things moving.

In strong contrast, the major motivating force in voluntary organizations is the purest form of leadership: influence. Leaders have only influence to aid them. The ability to motivate others to participate is the essence of the power to influence. Participants in voluntary organizations cannot be forced to do anything. If a volunteer leader lacks influence with other volunteers, he or she will be ineffective. If a businessperson truly wants to find out whether his or her colleagues are capable of leading, he or she has only to encourage them to invest their time in a volunteer leadership role. (By the way, the Chamber will soon be looking for new board members.)

I interact with business owners who are accustomed to getting things accomplished by deciding what has to be done and then simply doing the task themselves or directing their employees to do it. There is efficiency is this approach, but it doesn’t work well outside that businessperson’s work environment. The more directive the style of the business owner the more frustration he or she experiences in trying to lead volunteers. (These same leaders have, on more than one occasion, voiced frustration and concern with the length of time involved in working an initiative through the Chamber. I have been asked: “Does this issue really have to go through these committees and the board of directors before we can proceed?” The procedure was a point of concern, as well as an education, for some of our members.)

Other volunteer organizations (e.g., The Duluth Public Policy Alliance, The Northland Sustainable Business Alliance, Connect Duluth, The Bridge Syndicate or Duluth First) face an amplified challenge in that they are entirely volunteer-led. Theses organizations do not have a professional staff to support their volunteer leadership. Their only power lies in motivating volunteers to participate in their various causes; and volunteers must be encouraged, educated, humored, empowered, appealed to, applauded and otherwise influenced into action. I have respect and admiration for the leaders of these volunteer organizations. In summary, I encourage Duluthians to put their leadership skills to the test within a volunteer organization like the Chamber. Doing so will demand that they develop these skills in a manner that can only increase their leadership ability and influence.

Finding Fault with City Fees

2005-05-03T08:36:00.000-07:00

Relative to Duluth’s population, few Duluthians own businesses and/or commercial buildings. Consequently, few Duluthians are aware of the Duluth City Council’s intention to charge business owners a fire inspection fee. To date, fire safety inspections have been standard procedure – at no cost to the business owner. If you are not a business owner, your interest in this issue may be casual at best.

For the first time this year, the Duluth Fire Department is issuing three-year operational permits to each of Duluth’s 1,200 businesses that are subject to the inspections. 400 businesses will be inspected annually. To obtain the permit, the business owner must pay $220 to $2,000 for the Fire Department safety inspection. This inspection and the corresponding fee are in addition to the business’ safety inspections required by the business insurance provider. Business owners will now have to pay three times (taxes, fees and insurance premiums) for what may be duplicative inspections.

The new inspection fee will be a burdensome, additional cost to business owners. These business owners believe the City is using the fee to help address its financial challenges. Moreover, these business owners feel they already give the City enough of their money in the form of property taxes. They feel they are taking on an inordinate burden as their taxes rise while this concurrent fee is charged. Many of these business owners are members of the Duluth Chamber of Commerce, which explains why the Chamber plans to challenge the City’s planned implementation of the inspection fee. As an advocate for our members, we are compelled to contest this double-dipping by the City. Our members feel the inspection is already being paid in the form of commercial property taxes. We agree.

The Chamber contends that business owners should not be required to pay multiple times for overlapping inspections. City Councilor Tim Little agrees. He plans to sponsor an amendment to a city ordinance adopted last fall that would allow a business owner to hire the Fire Department or a private firm to perform the inspections. Representatives from the Chamber will be contacting city councilors to encourage them to eliminate the inspection fee. I encourage you to join us in contesting the City’s inspection fee.

You can contact the city councilors by emailing: council@ci.duluth.mn.us

Comprehensive Plan helps Move Duluth Forward

2005-04-26T09:32:00.000-07:00

The Comprehensive Planning Committee has quickly illustrated it can be decisive and collaborative. A consulting group has been selected to lead the planning effort. As a result, Duluth’s Comprehensive Planning process has been reinvigorated and there is reason for optimism in Duluth.

The Duluth Comprehensive Planning Committee is comprised of individuals representing special interest groups. It is my responsibility and honor to serve as the business community’s representative. My particular purpose on the committee is to ensure business owners and operators have a voice in the process. I will work to make certain the plan identifies what land is available for commercial and industrial use. Additionally, I will encourage the consultants to develop a plan that will foster and facilitate private investment in our community.

Last week, the committee was engaged in its most important work: selecting the consulting firm that will lead the planning process. We interviewed four consulting groups before forwarding our selection to Bob Bruce, Duluth Planning Director. I am delighted to announce that CR Planning, Inc. of Minneapolis was selected to complete Duluth’s comprehensive plan during the next year. The firm will contract with Duluth area based partners, including the Natural Resources Research Institute and Ayres Associates. CR Planning, Inc.’s founder and principal, Brian Ross (no relation), effectively illustrated how his group possessed the most effective blend of technical expertise and local awareness of issues and concerns. Pete Weidman, of Ayres Associates, was particularly impressive at conveying a healthy blend of local acumen and technical knowledge in his presentation to the committee.

Duluth’s comprehensive plan will be a detailed document intended to guide Duluth’s physical, social and economic development. It will include specific plans for transportation, land use, community facilities, along with recommendations on how to implement the plan. CR Planning, Inc. conveyed an expertise in urban and regional land use planning, natural resources planning, process facilitation, and geographic information systems.

The contract with CR Planning, Inc. details that the planning process must be completed within one year - a welcome discipline. I will be a strong advocate for adhering to the one year timeframe. I encourage you to keep apprized of the planning process. You can do so by visiting www.ci.duluth.mn.us/city/mainpage/ and clicking on the Comprehensive Plan link located at on the right side of the page. I will also welcome your feedback and perspective on the plan as it unfolds. I can be reached at dross@duluthchamber.com or at 740-3751.

Duluth Housing 1000

2005-04-14T13:10:00.000-07:00

Duluthians are fortunate to live in a dramatically beautiful city: a storybook Emerald City on the hill. At the foot of our beloved city are the rugged shores of the greatest of the Great Lakes. Beyond our city borders is the edge of a wilderness that serves as our playground for an endless panorama of activities.

Yet, there is still work to be done. Duluth can become an even more vibrant and compelling place to live, attracting additional individuals and families, if we can find a way to provide adequate housing options for our community members.

Our community’s lack of housing is becoming an increasing cause for concern as people choose to purchase homes in markets that offer more housing choices and more attractive prices – markets that exist in neighboring communities and elsewhere in the state and nation. Providing more housing options is paramount to Duluth’s future success.

People need jobs and homes if they are to remain in a community. It is that simple. If we, as a community, cannot provide these jobs and homes, people will inevitably relocate to where they can find them. The Duluth Area Chamber of Commerce understands this reality. We embrace the challenge of working to bring more jobs and more housing options to our community.

For this reason, the Chamber’s leadership recently agreed to advocate for a bold new housing initiative: Duluth Housing 1000. The goal of this initiative is to facilitate an increase in Duluth’s housing unit construction rate from its historic rate of a net gain of 100 new units a year to 200 units a year (1000 units in five years). That does not mean, of course, that we can build only those 200 new units. Each year, many old and otherwise uninhabitable housing units are torn down or taken off the market, and we must compensate for this additional loss as well. We would do well to consider the fact that without significant maintenance, the average lifespan of a house is approximately 50 years, and almost half of Duluth’s present housing structures are over 60 years old.

Necessary private, state and federal resources are available to build the additional housing units we seek. However, our community itself must first generate funding to qualify for the attractive private, state, and federal monies. The Duluth Housing 1000 collaboration leaders are requesting the Duluth City Council’s approval of a proposal to access the Community Investment Trust – also known as the Fond-du-Luth Casino revenue and the Street Improvement Fund – in the amount of $600,000 each year for five years. This $600,000 has the potential to attract fifteen times that amount in private, state and federal monies to build housing units in Duluth each year.

Accessing the Community Investment Trust, for other than the street improvement program, may be a hotly contested initiative. Yet, the Chamber believes doing so will bring the greater benefit to our city. I encourage all citizens to follow this issue as it is decided upon by the City Council. The Duluth Housing 1000 proposal will be voted on by the City Council Monday, April 25, at 6:00 p.m. in the City Council Chambers at City Hall.