URGENT UPDATE: A local property owner in Duluth has launched a lawsuit against the city, claiming that its building permit fees are not only excessive but also illegal. Joe Kovich filed the lawsuit on January 2, 2024, highlighting that the issue extends far beyond his own commercial property located at 1105 E. Superior St..
Kovich’s complaint alleges that over the past six years, Duluth has unlawfully collected an astonishing $9.25 million more in building permit fees than it is entitled to, a figure that continues to rise. His suit asserts, “For years, Duluth has grossly overcharged applicants and has unlawfully collected and kept millions of dollars of taxpayer money.”
This issue is not just a personal grievance; Kovich argues that the fees are being misused to fund various unrelated city expenses, rather than reflecting the actual cost of the services provided. In 2024, Kovich faced a staggering fee of $1,292.71 when seeking permits for construction on his property, which he deemed unacceptable, prompting him to take legal action on behalf of himself and “all others similarly situated.”
City officials, including Public Information Officer Kelli Latuska, have declined to comment on the ongoing litigation. However, Kovich’s case may soon gain momentum as it appears poised to join two other significant lawsuits: Patrick Bollom v. St. Paul and Berney Salzer v. Minneapolis, which address similar concerns regarding building permit fees across Minnesota.
On December 23, 2025, Minnesota Supreme Court Chief Justice Natalie Hudson agreed to preliminarily consolidate these cases, stating, “It appears that these are related cases for which central or coordinated judicial management — at least as to pretrial matters including discovery — is desirable.”
As the litigation progresses, the number of affected parties may expand significantly, potentially impacting many property owners throughout Minnesota. Legal experts anticipate that additional lawsuits could arise from this ongoing issue, igniting a larger movement against what is perceived as unjust municipal revenue practices.
This developing situation is crucial for property owners and taxpayers alike, as the outcomes could redefine how cities manage building permit fees in the future. As Kovich and his legal team push forward, the spotlight remains on Duluth’s practices and the potential repercussions for municipal finance statewide.
Stay tuned for more updates as this case unfolds, affecting the pocketbooks of countless residents in Minnesota.
