[0:00] Mayor Wayne Boucher: Okay, it's 6:30. We'll call the meeting to order and stand for the pledge of allegiance. I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all. [0:26] City Clerk Alissa McClure: Please. Councelor Peterson? [0:27] Councilor Joe Peterson: Here. [0:28] City Clerk Alissa McClure: Councelor Geissler? [0:29] Councilor John Geissler: Here. [0:30] City Clerk Alissa McClure: Councelor Hjelle? [0:31] Councilor Andy Hjelle: Here. [0:32] City Clerk Alissa McClure: Councelor LeBlanc? [0:33] Councilor Brian LeBlanc: Here. [0:34] City Clerk Alissa McClure: Mayor Boucher? [0:35] Mayor Wayne Boucher: Here. Uh, any announcements from counselors this evening? I have just one. I'd like to congratulate the 163 members of the Hermantown class of 2025 and wish them the best as they go forth in the world. [0:48] Mayor Wayne Boucher: Um, we have several public hearings tonight. We will start with uh, item A on the public hearing portion of the agenda. public hearing regarded a proposed amended business subsidy policy for the city. Uh, Mr. Mulder, should we have Mr. Ronchetti describe this? [1:06] Chad Ronchetti: Yes. Um, Mayor Boucher, counselors, uh, before you is a proposed amendment to the business subsidy policy. Uh, the original policy was adopted in 2013 uh, with a small amendment being made in 2022 uh, to allow for housing uh, as one of the allowable uses. Uh, but other than that it has remain unchanged uh, for the last 10 plus years. Um, so before you uh, uh, in consideration of the fact that many things have changed both in this city of Hermantown but also in the way that economic development is practiced uh, we're bringing before you uh, a new and updated policy uh, to reflect some of those changes. Uh, the intent of a business subsidy policy is to create consistency and predictability for developers and for businesses. uh, and this updated policy modernizes our policy and consolidates uh, the old policy to a more concise version. [2:11] Chad Ronchetti: It also adds a specific addended policy uh, for TIFF and TAF. So those uh, so tax increment financing as well as tax abatement financing. Those two policies are intended to be subordinate to the overarching business subsidy policy uh, which is the which is the overarching guiding document. [2:30] Chad Ronchetti: Um, these both the increment and the abatement financing policies identify geographies in the city of Hermantown uh, where uh, these two types of public financing can be deployed. Uh, it shows the city's priority and it also works to align with the comprehensive plan on our density corridors for things like Maple Grove Road and Highway 53. They're slightly different uh, because a redevelopment district that is defined uh, for tax increment financing is slightly different than our priority areas. So some of the TIFF portions were cut out of where there's additional TAF portions. Uh, but those maps are included in the policy as well. Uh, and just as a note, a business subsidy policy is required by the state. uh, if if a city or municipality or a county is going to give uh, or provide public financing or subsidy to any project. Uh, the key changes for this policy uh, from 2013 to now is again it creates a TIFF and uh, tax abatement financing policy where one does not exist today. [3:36] Chad Ronchetti: Uh, it replaces what was the fast-track committee uh, with a review by HEDA staff. HEDA will then act as a recommending body for any application to the council. Um, similar to planning and zoning where planning applications are made. Uh, the EDA, the economic development authority, would then make a recommendation to council with council having the final authority over things like tax increment financing and tax abatement financing. [4:03] Chad Ronchetti: Uh, it does the business subsidy policy does allow for HEDA to uh, be a grantor themselves for small programs such as storefront loan programs or any business lending programs that the economic development authority would have expertise on. Uh, but for the large uh, subsidy and financing packages those would all come to council. Uh, further the new policy creates a focus on job quality uh, housing, economic diversification and specific community goals. The previous policy had very broad brush strokes on what was uh, considered community benefit. This puts a little bit more guards on it. Uh, and that list is found in the policy. One of the community uh, one of the community benefits is job creation. Uh, that is not a required. So in the list of uh, public subsidy purposes uh, you the any applicant will have to satisfy two uh, out of the entire list. So they'll uh, and they'll identify those in their application. If one of those is job creation uh, we've we've recommended a change to what uh, what would be tied to job creation. uh, and that includes uh, a minimum of five jobs uh, have to be created, not just one as it was in the previous policy. And then because we want uh, to to emphasize quality jobs um, and not just jobs for the sake of jobs, we uh, we recommend including a minimum wage requirement uh, for any subsidized projects be 135% of state minimum wage uh, effectively a $15 an hour minimum wage. Um, and those would only but again that's only for any job any any projects that apply and receive a subsidy. Uh, further um, the last thing it does is it requires a subsidy to meet the "but for" practice. Uh, so subsidy and financing will not be provided to a to a project unless it shows that the project could not move forward economically without public participation. And it also uh, the policy also states that the amount given by uh, the city or uh, participation of the finances will be the minimum amount needed to make the project successful. Uh, so that will put some guard rails on how much uh, will be asked for as well. So that's uh, the last thing I'll say is that uh, HEDA will hold a second or another public meeting because each grantor per the state has to have uh, a public meeting. So uh, because both the city and the economic development authorities under this policy can be grantors, HEDA will also conduct their own public hearing uh, on June 18th. [6:52] Mayor Wayne Boucher: Thank you. Any questions or comments from council? Hearing none. Is there any public input to the proposed business subsidy policy? If we have anyone that wishes to address the business subsidy policy, please step forward to the podium and state your name and address. [7:19] Mayor Wayne Boucher: It's the last opportunity for public comment to the business subsidy policy that's proposed for the city. [7:31] Mayor Wayne Boucher: Hearing none, we will move on to resolution 2025-85. resolution adopting and amending and restate a restated business subsidy policy. Is there a motion from council regarding this to approve? [7:47] Councilor John Geissler: Motion by Councilor Geissler to approve. [7:50] Mayor Wayne Boucher: Is there a second? [7:51] Councilor Andy Hjelle: Second. [7:52] Mayor Wayne Boucher: Second by Councilor Hjelle. Um, roll call, please. [7:58] City Clerk Alissa McClure: Councilor Hjelle? [7:59] Councilor Andy Hjelle: I. [8:00] City Clerk Alissa McClure: Councilor LeBlanc? [8:01] Councilor Brian LeBlanc: I. [8:02] City Clerk Alissa McClure: Councilor Peterson? [8:07] Councilor Joe Peterson: I. [8:08] City Clerk Alissa McClure: Councilor Geissler? [8:09] Councilor John Geissler: I. [8:10] City Clerk Alissa McClure: Mayor Boucher? [8:11] Mayor Wayne Boucher: I. Next item B. Public hearing to review the closure statement provided by Elevated Management LLC pursuant to Minnesota statutes 327C.095. Mr. Mulder. Uh, is there someone from staff we should have explain this? Are you okay doing that, John? [8:29] John Mulder: Sure. City Attorney, Mayor, counselors, um, tonight you have essentially two things that you're going to do with the Maple Fields uh, mobile home park which is in Hermantown. First, the the city has been notified um, by way of a closure statement that is in your packet that um, they intend to close the park by February 13, 2026. [9:04] John Mulder: This public hearing that you're holding tonight gives the public the opportunity to explain to the council the impact of the closure on them and the community. Um, and then the second item is to under the statute the city has to appoint a neutral third party to be the paymaster and arbitrator of the Minnesota manufactured home relocation trust fund. [9:34] John Mulder: Um, this is in conjunction with the Minnesota Housing Finance Agency. Um, the person that has been recommended for this position is a local attorney that works in the public housing arena. And that was those were that was the background that was recommended to the city um, by the Minnesota Housing Finance Agency. And so the council will be asked to appoint this individual to that position. [10:03] Mayor Wayne Boucher: Thank you. If there is anyone who wishes to address the council about these items, please step forward to the podium and start with your name and address. [10:24] Dennis Diet: My name is Dennis Diet. I've resided in Maple Park for over 20 years. That is my home. That's where I live. From what I understand, it is going to be closing. So, I have got an application here to submit to the third party. I believe it's for the uh, trust fund. Okay. I—how does that work? My trailer is too old to be moved, right, Mr. Johnson? How do we know how those work? [10:55] John Mulder: Yes, we we do know how those work. Um, and what we can do is you can submit your application to Eric Johnson tonight and he will forward that to the the the third party administrator once we have this person appointed. [11:13] Dennis Diet: So, we don't have a third party yet. [11:15] John Mulder: Not yet. We're going to do that. We'll come tonight. We'll start that process. [11:19] Mayor Wayne Boucher: Okay. But this is your opportunity to also explain the impact on you of the closure of the park. [11:28] Dennis Diet: Well, yes. It has been my home for over 20 years. I don't want to move, but and another thing is it closes in February of '26 and I do not want to move in—in the middle of winter. So, I was wondering if the relocation trust fund could be set up that we could obtain that ahead of time during a reasonable month for from relocate. Nobody wants to relocate in the winter. [11:52] John Mulder: I don't have an answer for your question. Yes, we will work with you and if you submit that paperwork to Eric Johnson before you leave, then if there is additional followup that is needed, we will the the third party administrator will follow up with you and and do our best to accommodate your need. [12:15] Dennis Diet: And I have all the paperwork for this that's that you would—whatever you ask. Okay. [12:21] John Mulder: Yeah, you'd like to leave that with Mr. Johnson. Actually, so if um, I'll just take it right now, that'd be great. [12:31] Dennis Diet: If there's any questions, just don't hesitate to ask. [12:34] John Mulder: Definitely do so. [12:38] Mayor Wayne Boucher: Great. Thank you. [12:41] Dennis Diet: Thank you, sir. [12:43] Mayor Wayne Boucher: Is there anyone else that wishes to speak to the council this evening about this subject? If so, please step forward to the podium and state your name and address for the record. [13:00] Ed Belleview: I am Ed Belleview. I've lived in the court since 1988. Um, I own my—the only question I have is are they going to help me relocate? I have found a place to move. The only question is who's going to pay for it. I cannot afford it. Um, I've tried finding people that'll transport it, but you can't find them around here. I've talked to one. He said he would do it and it'd be someplace between 10 and 20,000 to move it. Um, I say I'm—I'm with them. I really don't want to move. The only issue I have with them is the water line. Uh, the water line freezes in the winter. But since I have to move—yeah. Am I going to be helped financially? [13:58] Mayor Wayne Boucher: Uh, Mr. Johnson, do we have an answer for that question? [14:04] Eric Johnson: Those—these are good questions and that is why the council is moving tonight to appoint a neutral third party to administer this trust fund that helps finance the the costs that you are talking about. [14:18] Ed Belleview: Okay. So, um there there is some paperwork that is to be filled out. I—it's—it's not surprising if you don't have that filled out yet. Um, but I haven't received anything from anybody. The only one I've heard anything from is a lawyer from um, or is it um, Justice North. He's the only one that has contact me or I've talked to. Other than that, I haven't heard anything from the um, park owner. Nothing. [14:49] Eric Johnson: Okay. And and you're still living in the park? [14:51] Ed Belleview: Yes, I am right now. I have been looking. I have found a place. My only question right now is um, will somebody help me find somebody that will move me? I—I've looked all over the place. I can't find anybody. The other one is who's going to pay for it or help pay for it. [15:15] Eric Johnson: Yeah. And so we have your name and staff will follow up with you once this person is in place to start the process of getting the application for the relocation fund and trying to get you that funding to assist you with these costs. [15:32] Ed Belleview: Okay. No idea how long that's going to be. Um, um I was going to um sign a application to move into the new place, but I don't want to commit myself until I know somebody's going to help move me. [15:48] Eric Johnson: But we will push that forward as quickly as possible. [15:52] Ed Belleview: Okay. But I'll be hearing from you or somebody. [15:55] Eric Johnson: Okay. [15:56] Ed Belleview: Okay. Thank you. [16:11] Mayor Wayne Boucher: Is there anyone else that wishes to speak to the council at this time that wishes to provide input into the issues in front of the council at this time? With none, we will close the public hearing and move on to resolution 2025-86 resolution appointing Brandon M. Anglum as the qualified neutral third party for Maple Fields Mobile Home Park. Do we have a motion relating to this? [16:55] Councilor Brian LeBlanc: Move to approve. [16:57] Mayor Wayne Boucher: Motion by Councilor LeBlanc to approve. Is there a second? [17:00] Councilor Joe Peterson: I'll second. [17:02] Mayor Wayne Boucher: Second by Councilor Peterson. Could we have a roll call? [17:03] City Clerk Alissa McClure: Councilor Peterson? [17:04] Councilor Joe Peterson: I. [17:05] City Clerk Alissa McClure: Councilor Geissler? [17:06] Councilor John Geissler: I. [17:07] City Clerk Alissa McClure: Councilor Hjelle? [17:08] Councilor Andy Hjelle: I. [17:09] City Clerk Alissa McClure: Councilor LeBlanc? [17:10] Councilor Brian LeBlanc: I. [17:11] City Clerk Alissa McClure: Mayor Boucher? [17:12] Mayor Wayne Boucher: I. Motion passes. Next is a public hearing on road improvement district number 452, Lightning Drive and Thunder Chief Lane, including sanitary sewer extension and other infrastructure improvements in section 14. This is a public hearing. If anybody wishes to speak to this issue, please approach the podium and start with your name and address. [17:38] John Mulder: Mayor, before we uh, wait a second, Josh, we're going to we're going to have our city engineer do an explanation of the project. [17:54] John Mulder: Yeah, let's do—let's just do a brief um, kind of description of the project. Um, do you have that PowerPoint? We're um, Joe stepped out to help you... jumped out and we're getting it loaded here. Joe is doing double duties with uh, community engagement tonight. [18:21] David (Northland Consulting Engineers): There you go. Aha, you found it. How can you run it? Okay. Ready? Yeah. All right. Thank you, Mayor and Council. So, um, this is a a public hearing for what we're calling the Lightning Drive project. Um, this is a a project just, you know, straight to the east of us here at city hall. Go to the next slide. Um, this is part of our um, road improvement plan. So just a brief history of this. It started almost 10 years ago when we conducted a um, inventory of all the streets within within the city and we ranked the streets from um, one being a new street to five being a um, street that was in disarray. And the the first five years of this plan, we've been focusing on those uh, deteriorated streets. And this is this area of town um, is is one of the um, streets that we uh, ranked very low as far as the um, how—how the road was rode and potholes and such. So, um, we've—this has been on our radar for a number of years to—to reconstruct. And originally, we're planning to do this in 2018. And because of other funding opportunities and um, cooperative agreements with the county um, and grant opportunities, we've—we've pushed this—this project. And now that um, it's—it's come to a point where we've—we've studied it and we have um, the pieces in place to—to construct this. [20:37] David (Northland Consulting Engineers): So this—this is a map we've kind of seen before in some of our other projects. Um, as you can see we're on the—we're on the top bar of this—this graph. The circle there is the public hearing that you have this evening along with um, the ordering of—of the improvement. And then as—as we go through this process, there's some milestones that are on our our road map here to—to bring us to the closure of the project. So just in—in summary, we'd have a another um, some public information meetings and 30% plans that are prepared. Um, at our next council meeting, the administration is going to be bringing a uh, recommendation for to hire an engineer to do the work. And then we'll take the next six months to complete that work. And then in January of '26, um, we're going to ask you to approve the plans and um, authorize us to go out for bids. Um, then we review the bids in February and March of next year. We would award the construction contract. Um, we anticipate this to do to be a two-year construction period. So, we would construct in '26, put it on winter suspension, and then in '27, we would um, complete the project, have a final uh, public hearing for the assessments in the to fall of '27, and then at in the end of the year, you would uh, approve the assessment for the tax purposes. So, that's kind of a nutshell the the life cycle of—of this project. [22:00] John Mulder: So, this starts off with our financial management plan that looked at a multi-year fiscal plan for all of our supported programs. And we looked at debt, future debt, capital improvement, tax base growth, all of these things to—to—to kind of plan how we can um, take care of all of the various needs um, that the city is facing. And we want to try to help manage expectations, maintain our assets, um, and add clarity in—instead of reacting to budget, just be more proactive in doing so. Um, the next slide just shows a little bit of the history of how that financial management plan has shaped the road improvement plan. [23:08] John Mulder: Let's go to—we looked at different ways that we could pay for roads. uh, we can do road assessments and we can use the general tax levy but there's lots of other different types of funding that we have but for various reasons we can't do that. So we get municipal state aid but that can only used on state aid roads um, we can use local government aid um, but most of that has been dedicated to the Hermantown Fire Department. Sales tax allows us to do some work um, and in fact we're going to be spending some sales tax on some of the sewer and water upgrades on this project. Um, we do have some storm water utility fund and some sanitary sewer funds that we could use. There's street light and then we also have grant opportunities and we're using grant opportunities along with this project to cover the cost of the trail. Um, here's just previous iterations of the road improvement plan. So this the first one was done in 2020 2020 where we did Johnson Portland Carlson part of Hermantown Road. In '21 we did LeBaque Junction. '22 and '23 we did Ugstad Road um, from Maple Grove to Highway 53 and then in '24 and we're finishing up in '25 Hermantown Road between Highway 2 and Ugstad. So we've been using this process now for um, four or five different years. [24:09] David (Northland Consulting Engineers): Back to you, David. Okay so thank you, John. Um, so this map uh, I think we—we've seen it before. This is an excerpt from the preliminary engineering report that we prepared and presented at a previous council meeting. But to—to summarize this, we have four or excuse me, five segments of this project. One segment one would be the reconstruction of Lightning Drive. So that's the east-west portion there. Um, second is Thunder Chief Lane. That's the cul-de-sac that goes to the north, the dead end there. Um, section three is that green line and that's taking out two lift stations that are on Lightning Drive and then putting a new gravity sewer line from Stebner Road flowing west to the existing trunk line just north of um, the—the um, Pillars project. And then the uh, fourth piece of this is the reconstruction of Getchell Road. That's the quarter mile from Maple Grove north to Lightning Drive. And that um, includes um, water and sewer as well. And then the last piece of this project is a new multi-use trail which will start at LaBaque um, have two um, you know like access points through the woods uh, to Getchell Road and then along a Lightning Drive over to Stebner and then Stebner Road south to the light—the signals at um, Maple Grove and Stebner. [25:51] David (Northland Consulting Engineers): So, um, if we can back up one—one slide here, Joe. Thank you. So, the this map also there's two different colors. The the green are residential parcels that are have a road assessment attached to it. Um, at the current um, road assessment rate of $9,750 per parcel. And then the light blue are the commercial properties within the industrial park. And those properties, there's 19 of them. And on previous projects that have commercial properties, we've assessed $25,000 per parcel. [26:31] David (Northland Consulting Engineers): So if that—that total of the assessed value is $514,000. So as we get into the next slide, we'll—we'll look at the uh, little more in depth of that. So again, these are the 19 parcels within the um, industrial park. There's—there's some parcels that are not highlighted and those are ones that are owned by the city and we're—we're not assessing ourselves for—for a project. So, these are the 19. Um, we did two weeks ago or a week and a half ago, we had um, public information meetings. One specific to the business owners for the commercial piece and uh, we had one for the um, residents along road. So, these slides just kind of um, highlight those those areas. Go to the next slide. [27:40] David (Northland Consulting Engineers): So project cost again you I think most of us have seen this but we broke it down into costs per segment um, for the total cost of 9 million 844,000—just under $10 million—and these segments include all the soft costs which means engineering legal fees land acquisition permit fees. Um, so then how do—how do we fund this $10 million project? So the bottom table breaks that funding source down. So as John mentioned as part of the financial management plan, the use of sales tax um, we have uh, three different pieces of this project that are uh, we feel are sales tax eligible. The first being the sanitary trunk spur. So this is the sewer line from Stebner West to the trunk line. Similar to what we did in '18 and '19 when we—we built the the trunk spur through um, section 24. [28:41] David (Northland Consulting Engineers): Um, then the sales tax for the water main. So this is specific to the water main along from Maple Grove up to Lightning. And then uh, via the community recreation initiative referendum, we're able to use some sales tax dollars for the trail. Um, then the DNR grants um, Eric and his staff have um, secured two grants totaling 1.4 million—1.49 million. So that um, money is available for the use of the trail. And then the assessments from the previous slides, um, there's 23 parcels totaling $514,000. Then um, we have uh, storm water utility. That's our estimation is we have a close to $800,000 of eligible cost, but the there's not that much in the fund. So we're allocating about $100,000 towards that. And then the balance of the 9.88 minus everything else um, is where the general fund comes in at $3.2 million. [29:55] David (Northland Consulting Engineers): So that's how the cost breakdown and the the funding breakdown of the project. Then this is our typical section. Um, uh, the typical section is the—the makeup of the road. This is very similar to Stebner Road that we and Ugstad Road that we recently rebuilt. 32 feet wide. Um, we have some soil corrections in here. Have a—a pretty good section to support the truck traffic. And then this—this shows a sidewalk or a trail on either side that will be vetted out during the uh, 30% design phase of this project, but likely we'd have a—a—a trail and not a sidewalk. Um, so that's—that's the section we're proposing on um, the—the three road segments. And with that, are there any questions or comments on this project? [31:07] Mayor Wayne Boucher: I don't see any from council. Uh, there any questions or comments in chambers? If you wish to speak to the council, please step to the podium and start with your name and address. [31:20] Rachel Cobb: Rachel Cobb. I live at 4155 Getchell Road. I'm just above Lightning. So I just have a couple questions. My first is how long is the assessment for? Is it multiple years? Is it one year? What are we looking at that way? Um, and then my other question is beings we are above Lightning Drive. We recently within the last couple years put in a septic. So we're good that way. But we are interested in water. So what does that look like for us? [31:50] John Mulder: So, first question, um, the 9750 is usually spread out over 15 years, okay? And it works out to be about, um, $870 some dollars a year. Okay. Um, in terms of water and sewer, um, we would have water and sewer availability charges. Um, and the each person as they hook up would have to pay a, um, a portion of those costs into your home or what? [32:17] Rachel Cobb: Into our home or what? [32:19] John Mulder: Correct. But that would be available to us even though we are above Lightning Drive. We're the company that's like—we talked specifically about your parcel is that we would make it water and sewer available to you. [32:31] Rachel Cobb: Okay. Um, I know that we've talked in the past about sewer and it just the timing didn't work out. But at some point time in the future you want to hook up to sewer then that would be an option. [32:40] John Mulder: But you wouldn't have to do that until you were ready. [32:41] Rachel Cobb: Yeah. It should outlive me hopefully. [32:42] John Mulder: But the availability charge for that is in lieu of an assessment. [32:45] Rachel Cobb: Sure. Yeah. [32:46] John Mulder: So there wouldn't be an assessment, but if you hooked up to water, there's one—availance, right? And then if there's—if you hooked up to sewer later on, there'd be another availability for that. [32:57] Rachel Cobb: Okay. I just wanted to be sure it was available to us. So, okay. Thank you. [33:05] Josh Tom: Uh, Josh Tom, 4113 Getchell Road. Uh, just a couple questions. Uh, maybe one for the city engineer here. Uh, will the Getchell road be built up similar to Lightning Drive to hold truck traffic because now that the Lightning Drive and Getchell does go through, we do have a significant amount of truck traffic that does go down that road. [33:32] David (Northland Consulting Engineers): Now that is our intent is to design it towards a 10-ton road design. [33:37] Josh Tom: Okay. Uh, excuse me. Second question. Is the sidewalk and city sewer going down as well? Is that the intent? [33:40] David (Northland Consulting Engineers): the—the—the plan that we prepared in the study and the council uh, decided or may order the project this evening includes water and sanitary on Getchell Road from Maple Grove north to Lightning Drive as well as curb gutter and sidewalk on one side of Getchell Road. [33:57] Josh Tom: Perfect. Uh, and then final—final uh, thought, it's not really—I—I appreciate everything everybody does here. Um, but it'd be nice to encourage some public utilities for as far as high-speed internet to come down our road. Uh, we have had some uh, praises just to put uh, main from uh, you know one power pole down to our house and there's astronomical fees associated with it. So if we could and I know you can't force a private company to do so but if we could highly encourage them that would be amazing. So that is it. Thank you. [34:31] Mayor Wayne Boucher: Thank you. Thank you. [34:36] Mayor Wayne Boucher: Is there any other public comment on this project? Last opportunity for public comment on the Lightning Drive Thunder Chief Lane Getchell project. Okay, we will close the public hearing and move to resolution 2025-87. Resolution ordering improvement and directing preparation of final plans and specifications for 2024 road improvement district number 452, Lightning Drive, Thunder Chief Lane, including sanitary sewer extension and other infrastructure improvements in section 14. Do we have a motion regarding this? [35:22] Councilor John Geissler: Move to approve. [35:24] Mayor Wayne Boucher: Motion by Councilor Geissler to approve. Is there a second? [35:25] Councilor Brian LeBlanc: Second. [35:27] Mayor Wayne Boucher: Second by Councilor LeBlanc. Could we have a roll call? [35:28] City Clerk Alissa McClure: Councilor Hjelle? [35:29] Councilor Andy Hjelle: I. [35:30] City Clerk Alissa McClure: Councilor LeBlanc? [35:31] Councilor Brian LeBlanc: I. [35:32] City Clerk Alissa McClure: Councilor Peterson? [35:33] Councilor Joe Peterson: I. [35:34] City Clerk Alissa McClure: Councilor Geissler? [35:35] Councilor John Geissler: I. [35:36] City Clerk Alissa McClure: Mayor Boucher? [35:37] Mayor Wayne Boucher: I. And that ends our public hearings for this evening. Uh, we will move on to communications that are placed on file. And Mr. Mulder, could you give us a short synopsis of the report on our audit? [35:54] John Mulder: So, um, the auditors presented the audit for the year ending 12/31/2024. Um, it was a clean audit. There was only one um, item where we just needed to um, comply with getting a IC134 from a contractor that we missed. So, they did catch us on that. But generally, it was a clean audit. Um, it was a good year. Um, our fund balances increased significantly. Um, so that puts us in a very strong financial position when we go out to uh, borrow money. They did talk about our debt high—our debt is high but we also have a strong fund balance. So that helps us when we go out for rating but as a general rule 2024 was a good year financially for the city. [36:31] Mayor Wayne Boucher: Thank you. um, motions. Um, under number nine, I'm not going to read all of the addresses and the uh, days of the week that they are applicable to, but motion to approve or deny the renewal of liquor licenses for the following: AAD Shrine, Famous Dave's, Do North Pizzeria, Joe's QuickMarts, McKenzie's Bar and Grill, Adolf Store, China Star, Beacon Sports Bar, Kwik Trip number 26, Kwik Trip number 220, Kwik Trip number 572, Lake Cinema, The Social House, Outback Steakhouse, Foster's Bar and Grill, Valentini's, Sammy's Pizza, Sam's Club, Skyline Social and Games, The King of Creams, and Walmart number 1757. Do we have a motion relating to this? [37:33] Councilor Brian LeBlanc: Move to approve. [37:35] Mayor Wayne Boucher: Move to approve by Councilor LeBlanc. Is there a second? [37:36] Councilor Joe Peterson: I'll second. [37:38] Mayor Wayne Boucher: Second by Councilor Peterson. Is there any public input on this motion? Any public uh, input on the motion for the renewal of liquor licenses? Last opportunity for public input on the renewal of liquor licenses. Do we have a roll call? [38:00] City Clerk Alissa McClure: Councilor LeBlanc? [38:01] Councilor Brian LeBlanc: I. [38:02] City Clerk Alissa McClure: Councilor Peterson? [38:03] Councilor Joe Peterson: I. [38:04] City Clerk Alissa McClure: Councilor Geissler? [38:05] Councilor John Geissler: I. [38:06] City Clerk Alissa McClure: Councilor Hjelle? [38:07] Councilor Andy Hjelle: I. [38:08] City Clerk Alissa McClure: Mayor Boucher? [38:09] Mayor Wayne Boucher: I. Next is a motion to approve or deny the temporary service area expansion application and dance permit for the Beacon Sports Bar for Summerfest on July 18th and 19th, 2025 with proposed hours of sale from 10:00 a.m. to 1:00 a.m. Is there a motion relating to this? [38:33] Councilor John Geissler: Motion by Councilor Geissler to approve. [38:35] Mayor Wayne Boucher: Is there a second? [38:36] Councilor Andy Hjelle: Second. [38:36] Mayor Wayne Boucher: Second by Councilor Hjelle. Mr. Mulder. [38:38] John Mulder: Uh, this is an annual thing that we do every year. Um, Beacon Sports Bar has um, expands their um, where they can sell liquor. Um, in order to do that during Summerfest, they need this special permit. [38:54] Mayor Wayne Boucher: Thank you. Any questions or comments from council? There any public input on this motion? Any public input on the motion for a temporary service area expansion application for the Beacon Sports Bar? Any public input on the motion to approve a temporary service area for the Beacon Sports Bar for Summerfest? Roll call, please. [39:27] City Clerk Alissa McClure: Councilor Geissler? [39:28] Councilor John Geissler: I. [39:29] City Clerk Alissa McClure: Councilor Hjelle? [39:30] Councilor Andy Hjelle: I. [39:31] City Clerk Alissa McClure: Councilor LeBlanc? [39:32] Councilor Brian LeBlanc: I. [39:33] City Clerk Alissa McClure: Councilor Peterson? [39:34] Councilor Joe Peterson: I. [39:35] City Clerk Alissa McClure: Mayor Boucher? [39:36] Mayor Wayne Boucher: I. Um, motion to appoint Chris Kibler for a three-year term on the board of appeals. And do we have a motion? [39:48] Councilor Brian LeBlanc: Move to approve. [39:49] Mayor Wayne Boucher: Motion by Councilor LeBlanc. Is there a second? [39:50] Councilor Joe Peterson: I'll second. [39:52] Mayor Wayne Boucher: Second by Councilor Peterson. This is the appointment for a three-year term. Do we have any questions or comments from council? [39:58] Councilor Brian LeBlanc: Uh, I spoke with Chris before the meeting. I think he'll be a good fit. [40:04] Mayor Wayne Boucher: Thank you. Anything else from council? Is there any public input on this appointment? Any public input on the appointment of Chris Kibler to the board of appeals? Any public input on the appointment of Chris Kibler to our board of appeals? Could we have a roll call? [40:34] City Clerk Alissa McClure: Councilor Peterson? [40:35] Councilor Joe Peterson: I. [40:36] City Clerk Alissa McClure: Councilor Geissler? [40:37] Councilor John Geissler: I. [40:38] City Clerk Alissa McClure: Councilor Hjelle? [40:39] Councilor Andy Hjelle: I. [40:40] City Clerk Alissa McClure: Councilor LeBlanc? [40:41] Councilor Brian LeBlanc: I. [40:42] City Clerk Alissa McClure: Mayor Boucher? [40:43] Mayor Wayne Boucher: I. Next is the consent agenda. Approval or correction of the May 19th, 2025 city council continuation minutes and accounts payable. Do we have a motion? [40:52] Councilor John Geissler: Motion to approve. [40:53] Mayor Wayne Boucher: Motion by Councilor Geissler. Is there a second? [40:54] Councilor Joe Peterson: I'll second. [40:56] Mayor Wayne Boucher: Second by Councilor Peterson. Roll call, please. [41:00] City Clerk Alissa McClure: Councilor Hjelle? [41:01] Councilor Andy Hjelle: I. [41:02] City Clerk Alissa McClure: Councilor LeBlanc? [41:03] Councilor Brian LeBlanc: I. [41:04] City Clerk Alissa McClure: Councilor Peterson? [41:05] Councilor Joe Peterson: I. [41:06] City Clerk Alissa McClure: Councilor Geissler? [41:07] Councilor John Geissler: I. [41:08] City Clerk Alissa McClure: Mayor Boucher? [41:10] Mayor Wayne Boucher: I. Next ordinance is ordinance 2025-11. This is the first reading. An ordinance amending chapter 5 land use regulations. Mr. Mulder, should we have Mr. Johnson explain this? [41:21] John Mulder: Yes, please. [41:25] Eric Johnson: Great. Thank you very much, Mr. Mayor and Council. Um, so this is regarding chapter 5, section 535 of the business and light manufacturing. Uh, if you recall back in the April city council meeting, staff asked council to uh, table this ordinance at that time as staff felt that there was a need for some additional language clarifications associated with the uh, proposed uh, language changes. Uh, staff has since done this and has brought this back before planning and zoning uh, back at the May meeting. Uh, there were no comments associated with uh, that planning and zoning. So before you um, this is the update which addresses communication facilities within the BLM zoning district. Uh, some highlights including uh, changes that we—we modified between the two time periods was the defined setback area from property lines as opposed to nearest residential structures. Uh, we thought that that was a little bit vague. It would have necessitated that there were actually surveys completed to be able to really pin down how these distances played out. [42:31] Eric Johnson: So uh, staff believes that that actually by using the property lines that it's much easier to define these things that way for the setbacks. Uh, likewise we further define setbacks as they relate to residentially zoned properties as well as like uh, business like manufacturing type of properties. That way we have two different sets of setbacks associated with how those uh, abut each other that way. Uh, we define perimeter screening which now includes earthen berms as well as fencing and landscaping. Before we just had landscaping uh, we talked further about uh, defining noise and how to mitigate that with the use of walls, buffers, landscape and other dampening or mechanical type equipment that way. And it also uh, speaks to the ability to utilize a master plan, a phased master plan, showing how any project could develop and to be able to utilize uh, that master plan as a guide or framework for any future additions associated with uh, any sort of a building or proposed development at that point. So that really highlights the changes that we've uh, made between these um, that time period. [43:35] Mayor Wayne Boucher: Thank you. Are there any questions or comments from council? There any public input on this first reading of ordinance 2025-11? Any public input on the ordinance amending chapter 5 land use regulation? Do we have any public input on the ordinance amending chapter 5? We'll move on to ordinance 2025-13, an ordinance amending chapter 7, special use permit. Should we have Mr. Johnson over this also? [44:13] John Mulder: Yes, please. [44:17] Eric Johnson: Great. Thank you again. Uh, this is chapter 7, section 740 of special use permits. This actually addresses duration of permits. Uh, in the past, we have um, always considered that special use permits run with the land, but that language never actually appeared in our ordinance. So, what we're doing is we're adding that information or that language so we can uh, codify that the uh, special permits run with the land. Uh, as staff has been looking at uh, zoning districts and zoning code associated with our comprehensive plan, we realize that there's uh, going to be many other opportunities to address specific sections within our zoning code to provide some clarifying language or—or look at some new zoning districts. So, we anticipate you'll be seeing some of these other type of amendments coming forward in the future, but this is generally starting the process. [45:01] Mayor Wayne Boucher: Thank you. Any questions or comments from council? Any public input on this first reading of ordinance 2025-13? Do have any public input on an ordinance amending chapter 7 special use permit? Any public input on ordinance 2025-13? [45:33] Mayor Wayne Boucher: With no public input, we will move along to resolutions. Resolution 2025-88. Resolution approving an amended lease agreement with the Arrowhead Builders Association. Is there a motion regarding this? [45:48] Councilor Joe Peterson: I'll make a motion to approve. [45:51] Mayor Wayne Boucher: Motion by Councilor Peterson to approve. We—we have a second by Councilor Geissler. [45:52] Councilor John Geissler: Second. [45:53] Mayor Wayne Boucher: Mr. Mulder. [45:54] John Mulder: The Arrowhead Builders Association has rented a portion of Old City Hall uh, dating back to about 2010. Um, they are currently in the process of kind of reviewing their operations. Um, they currently do not have staff um, that are present there and so they wanted to reduce the amount of space they are using. So we basically reduced um, down to just two rooms. They're just using for storage. and we've uh, told them that um, the lease would end in—at the end of June of 2026 with the idea that we would look at the future of that building and you know look at other options regarding that building. [46:32] Mayor Wayne Boucher: Thank you. Any questions or comments from council or any public input on this resolution? Any public input on resolution 2025-88? Is there any public input on the resolution approving an amended lease agreement with the Arrowhead Builders Association? Roll call, please. [47:04] City Clerk Alissa McClure: Councilor LeBlanc? [47:05] Councilor Brian LeBlanc: I. [47:06] City Clerk Alissa McClure: Councilor Peterson? [47:07] Councilor Joe Peterson: I. [47:08] City Clerk Alissa McClure: Councilor Geissler? [47:09] Councilor John Geissler: I. [47:10] City Clerk Alissa McClure: Councilor Hjelle? [47:11] Councilor Andy Hjelle: I. [47:12] City Clerk Alissa McClure: Mayor Boucher? [47:13] Mayor Wayne Boucher: I. Next is resolution 2025-89. Resolution authorizing and directing mayor and city clerk to execute an acceptance of easement agreement to the city of Hermantown from Andrew and Bonita Chapen for the Hermantown Trail project. Is there a motion relating to this? [47:28] Councilor Brian LeBlanc: Move to approve. [47:32] Mayor Wayne Boucher: Motion to approve by Councilor LeBlanc. Is there a second? [47:33] Councilor Andy Hjelle: Second. [47:34] Mayor Wayne Boucher: Second by Councilor Hjelle. Mr. Mulder. [47:36] John Mulder: So, we are have been uh, working on acquiring uh, easements for the trail project that we hope to um, build in 2026. Um, along this stretch, this property is on Orchestra and on the backside we're acquiring 20 ft of easement which will abut 20 ft of easement on the neighbor's property as well that has been in existence for a number of years. And so, um, this would then allow us to a 40ft easement to build that trail. Um, that—that's in between if Portland and Carlson roads were extended in—in that section there off of Johnson. [48:13] Mayor Wayne Boucher: Thank you. Are there any questions or comments from council? Hearing none. Is there any public input on this resolution? Any public input on a resolution approving an easement agreement? Is there any public input on resolution 2025-89? Roll call, please. [48:47] City Clerk Alissa McClure: Councilor Geissler? [48:48] Councilor John Geissler: I. [48:49] City Clerk Alissa McClure: Councilor Hjelle? [48:50] Councilor Andy Hjelle: I. [48:51] City Clerk Alissa McClure: Councilor LeBlanc? [48:52] Councilor Brian LeBlanc: I. [48:53] City Clerk Alissa McClure: Councilor Peterson? [48:54] Councilor Joe Peterson: I. [48:55] City Clerk Alissa McClure: Mayor Boucher? [48:56] Mayor Wayne Boucher: I. Resolution 2025-90 resolution approving change order numbers 24, 25, and 26 for the Northstar Ford Arena in the amount of $5,793.97. Do we have a motion? [49:11] Councilor John Geissler: Motion to approve. [49:14] Mayor Wayne Boucher: Motion by Councilor Geissler to approve. Is there a second? [49:15] Councilor Andy Hjelle: Second. [49:16] Mayor Wayne Boucher: Second by Councilor Hjelle. Mr. Mulder. [49:18] John Mulder: These are three relatively small um, change orders um, that would be funded under the contingency. Uh, the first one is we're actually going to delete um, some protective netting along the sides of the rink um, to improve the kind of the view of the ice during games. Um, so that was a credit of just over $5,200. And then we're also adding some additional interior signage and new toilet partitions in the existing arena. So the total of that was for $5,700. [49:55] Mayor Wayne Boucher: Thank you. Any questions or comments from council? There any public input on this resolution? Any public input on resolution 2025-90? Is there any public input on the resolution approving change order numbers 24, 25, and 26 for the Northstar Ford Arena? Roll call, please. [50:23] City Clerk Alissa McClure: Councilor LeBlanc? [50:24] Councilor Brian LeBlanc: I. [50:25] City Clerk Alissa McClure: Councilor Peterson? [50:26] Councilor Joe Peterson: I. [50:27] City Clerk Alissa McClure: Councilor Geissler? [50:28] Councilor John Geissler: I. [50:29] City Clerk Alissa McClure: Councilor Hjelle? [50:30] Councilor Andy Hjelle: I. [50:31] City Clerk Alissa McClure: Mayor Boucher? [50:32] Mayor Wayne Boucher: I. Next is resolution 2025-91. Resolution approving change order numbers 27, 28, and 29 for the Northstar Ford Arena in the amount of $306,340.62. Do we have a motion? [50:51] Councilor Andy Hjelle: Move to approve. [50:53] Mayor Wayne Boucher: Motion by Councilor Hjelle. Is there a second? [50:54] Councilor Brian LeBlanc: Andy doesn't want his name tangled in all... Do I have a second? [50:56] Councilor Joe Peterson: I'll second. [50:58] Mayor Wayne Boucher: Second by Councilor Peterson. Mr. Mulder. [51:00] John Mulder: Again, these are three change orders that will come out of the city soft cost and its contingency. Um, um but then the Arena Legacy Fund has agreed to fund those costs if the contingency does not cover it. So the three changes are to add two end wall scoreboards. those scoreboards are at the end of the rinks above the uh, goals. That would allow the uh, synchronization of those two scoreboards with the main video board that's on the west wall there. Um, previously we had um, as part of the bid package scoreboards, but those were part of the construction uh, contracts and the purchase of the um, large video board was done out of FFN and the soft costs. Well, it turns out those scoreboards didn't talk to each other. And so um, the Arena Legacy Fund and the hockey people wanted those scoreboards to be able to sync. So they are recommending that we add two scoreboards um, at the end walls. The ones that we had already purchased will get moved to the existing arena. Um, then there's also a change order to add um, enhanced um, speakers um, audio equipment. Um, there'll be 23 speakers that will be hung throughout the arena and the lobby to improve sound quality. And then finally, they are expanding the video boards on the west wall for $112,000. That will increase the size of that video board from 10 ft x 22 feet to 10 ft by 34 ft. Um, and that's for $112,000. They have said that they will um, cover those costs to the extent that contingency cannot cover it. [53:11] Mayor Wayne Boucher: Thank you. Any questions or comments from council? As a—as a joke, I was going to ask if the netting would have protected the video screens. [53:19] John Mulder: Yes. Yes, that is true that—that would they've removed them on both sides. [53:23] Councilor John Geissler: Actually, Mr. Mayor, I do have a question. Um, there's probably quite a bit of effort to install these pieces of equipment. Is that included in these? [53:34] John Mulder: This price is installed including the two in the existing arena. Uh, that might be an additional amount. [53:42] Councilor John Geissler: Okay. So the—but KA said they didn't think it would be you know it wouldn't be astronomical but there would be some additional cost there. But so there should have been some price to install on the initial contract. Is that being reduced or is this 306 less than it would have been had that price not been included? [53:57] John Mulder: No, it—it—that's—that's a good point. Is that instead of installing in the new rink building just installed in the old one? There might be some minor fluctuation. [54:06] Councilor John Geissler: Oh, I—I—Okay. Yeah, but there there was a board—a scoreboard—not a score the center one the—Yeah, the advertising board essentially that there was a board being installed there. Correct. Is the co—Where was the cost to install that captured initially? [54:23] John Mulder: My understanding is in the original proposal for audio visual. So that was already included, but now we're adding um, an additional 12 ft of video board. [54:33] Councilor John Geissler: I will trust that it's all been worked out. I—I hope we don't need the nets back. [54:49] Mayor Wayne Boucher: Is there any public input on this resolution? Any public input on resolution 2025-91? [55:18] John Mulder: Mayor, I'll make one more comment is I—I expressed some of my concern to uh, the Arena Legacy Fund and I shared my memo with them so that they understood, you know, the implications of this relative to their fundraising. So they were well aware of the concerns that we had about use of contingency. [55:34] Mayor Wayne Boucher: So thank you. Any public input on resolution approving change order numbers 27, 28, and 29 for the Northstar Ford Arena? Roll call, please. [55:45] City Clerk Alissa McClure: Councilor Hjelle? [55:46] Councilor Andy Hjelle: I. [55:47] City Clerk Alissa McClure: Councilor Peterson? [55:48] Councilor Joe Peterson: I. [55:49] City Clerk Alissa McClure: Councilor Geissler? [55:50] Councilor John Geissler: I. [55:51] City Clerk Alissa McClure: Councilor LeBlanc? [55:52] Councilor Brian LeBlanc: I. [55:53] City Clerk Alissa McClure: Mayor Boucher? [55:54] Mayor Wayne Boucher: I. And since we can't just get up and walk out and leave the meeting open, is there a motion to recess? [55:58] Councilor Brian LeBlanc: Move to recess. [56:00] Mayor Wayne Boucher: Motion by Councilor LeBlanc. Is there a second? [56:01] Councilor John Geissler: Second. [56:02] Mayor Wayne Boucher: Second by Councilor Geissler. All in favor say I. [56:04] Councilors (Unison): I. [56:05] Mayor Wayne Boucher: Opposed? Same sign. [Meeting Adjourned]