DULUTH — The Duluth City Council was unanimous Monday night in its vote on a resolution that would require specific definitive language on further subsidized housing developments — a direct response to recent news that the owners of Lincoln Park Flats planned to turn a floor of its apartment complex into a boutique hotel.

This resolution will shore up future agreements to make sure this doesn't happen in the future, said City Councilor Roz Randorf.

"When we move people out of their homes or when we're decreasing the amount of affordable units in a building that we subsidized, it's an issue," she said. "And when this landed in our laps, we were really taken by surprise."

With the resolution, businesses creating residential developments with the help of public money must clearly state what the building will be used for and the minimum time period that it would be used in that way.

P&R Companies gave notice to its second-floor residents in March that they would have to move out of their current residence at Lincoln Park Flats at the end of their yearlong rental. The complex has 74 rental units and received more than $2 million from the city. The development was built during the pandemic and its owners blame construction costs and high interests rates for the need to shift its business plan.

More than a handful of citizens addressed Duluth's housing crisis during the City Council meeting — including P&R CEO Dante Tomassoni, who said there has been a lot of misinformation spread about the company. He noted that the company is responsible for housing 1,000 families in the Twin Ports, employs 100 people and creates environmentally friendly, energy efficient spaces.

"There seems to be an image of developers that we are somehow living in an emerald tower in Minneapolis," he said. "But that couldn't be further from the truth."

During Monday's meeting, Duluth's chief administrative officer Noah Schuchman said the city is working with P&R to find a solution.