[0:00] Mayor Wayne Boucher: ...America and to the republic for which it stands. One nation under God, indivisible, with liberty and justice for all. [0:16] Mayor Wayne Boucher: Roll call, please. [0:18] Alissa McClure (City Clerk): Councilor Geissler. [0:19] Councilor John Geissler: Here. [0:20] Alissa McClure: Councilor Hjelle. [0:21] Councilor Andy Hjelle: Here. [0:22] Alissa McClure: Councilor LeBlanc. [0:23] Councilor Brian LeBlanc: Here. [0:24] Alissa McClure: Councilor Peterson. [0:25] Councilor Joe Peterson: Here. [0:26] Alissa McClure: Mayor Boucher. [0:27] Mayor Wayne Boucher: Here. Wow. Turned up all of a sudden. Announcements. Do any council members have announcements? [0:35] Councilor Andy Hjelle: Um, just want to congratulate the Mirage on their Section 7 championship. Sixth year in a row they've done that. Uh, they'll be playing in the state tournament at 1:00 tomorrow afternoon against Dodge County. Best luck, girls. [0:50] Mayor Wayne Boucher: And uh, also we've got some nasty weather coming and I'd like to remind everybody of our winter parking ordinance. It's in effect until April 15th for parking. Is Chief—is it 2:00 to 6:00 or 2:00 to 10:00 a.m.? [1:05] Police Chief Jim Crace: Uh, 2:00 to 6:00. [1:07] Mayor Wayne Boucher: Okay. Um, this is to facilitate snow removal and maintenance. Communications: we have nothing to list this evening. Mr. Mulder, do we want to have the Chief give us a quick wrap-up on his pre-agenda or would you like to do that? [1:26] John Mulder (City Administrator): Well, I can try. I mean, basically, the Chief gave a detailed annual report that he does every year, talking about the number of staff, vehicles, and the number of incidents and calls that they've had to deal with. We review that every year, and so we presented that this year. [1:45] Mayor Wayne Boucher: Okay. And that is in a publication and is available at City Hall for people to look at. [1:53] John Mulder: I believe it'll be on the website. [1:54] Mayor Wayne Boucher: And on the website. Thank you. Public comment: This is time for anyone to address the council. Uh, looks like we have no one signed up for public comment this evening. Um, if someone is here and they decide that an item is coming on the agenda that they would like to comment, please go out to the hallway and sign up at that time. Um, you can sign up anytime right up until we call the item. Consent agenda: minutes or approval or correction of February 2nd, 2026, City Council continuation minutes; accounts payable; approve general city warrants from February 1st, 2026, through February 15, 2026, in the amount of $1,138,534.19; and Resolution 2026-22, resolution approving pay request number 21 for the Northstar Ford Arena to Kraus-Anderson Construction Company in the amount of $131,831.78. Do we have a motion for the consent agenda? [3:12] Councilor Andy Hjelle: Make a motion to approve. [3:13] Mayor Wayne Boucher: Motion by Councilor Hjelle. Is there a second? [3:15] Councilor Joe Peterson: I'll second. [3:16] Mayor Wayne Boucher: Second by Councilor Peterson. Roll call, please. [3:19] Alissa McClure: Councilor Geissler. [3:20] Councilor John Geissler: Aye. [3:21] Alissa McClure: Councilor Hjelle. [3:22] Councilor Andy Hjelle: Aye. [3:23] Alissa McClure: Councilor LeBlanc. [3:24] Councilor Brian LeBlanc: Aye. [3:25] Alissa McClure: Councilor Peterson. [3:26] Councilor Joe Peterson: Aye. [3:27] Alissa McClure: Mayor Boucher. [3:28] Mayor Wayne Boucher: Aye. Next is Resolution 2026-23, resolution authorizing the disposition of surplus fitness room equipment. Do we have a motion? [3:40] Councilor Brian LeBlanc: Move to approve. [3:42] Mayor Wayne Boucher: Motion by Councilor LeBlanc. Is there a second? [3:44] Councilor John Geissler: Second. [3:45] Mayor Wayne Boucher: Second by Councilor Geissler. Mr. Mulder, should we have the Chief address this? [3:49] John Mulder: Sure. [3:50] Mayor Wayne Boucher: Chief Crace. [4:02] Police Chief Jim Crace: The fitness room equipment that we are getting rid of, um, we've had for 25-plus years. We are going to be—my recommendation is to donate the free weight equipment to the Hermantown hockey program. Um, they reached out to the football program through Paul Senst and the gym that they have. They didn't need any of it; hockey is in need of some. The other equipment is past its useful life and it'll go on an auction. [4:39] Mayor Wayne Boucher: Thank you. Any questions or comments? Uh, no sign-up for public comment on this. We will move to a roll call. [4:47] Alissa McClure: Councilor Hjelle. [4:48] Councilor Andy Hjelle: Aye. [4:49] Alissa McClure: Councilor LeBlanc. [4:50] Councilor Brian LeBlanc: Aye. [4:51] Alissa McClure: Councilor Peterson. [4:52] Councilor Joe Peterson: Aye. [4:53] Alissa McClure: Councilor Geissler. [4:54] Councilor John Geissler: Aye. [4:55] Alissa McClure: Mayor Boucher. [4:56] Mayor Wayne Boucher: Aye. Next is Resolution 2026-24, resolution authorizing and directing Mayor and City Clerk to execute and deliver an amendment to the agreement for consulting services with Bolton & Menk, Inc., city engineering services for the road improvement of Lightning Drive and Thunder Chief Lane, including sanitary sewer extension, other infrastructure improvements, and trail extension in Section 14. Is there a motion? [5:31] Councilor John Geissler: Move to approve. [5:32] Mayor Wayne Boucher: Motion by Councilor Geissler to approve. Is there a second? [5:34] Councilor Andy Hjelle: I'll second. [5:35] Mayor Wayne Boucher: Second by Councilor Hjelle. Mr. Mulder. [5:37] John Mulder: So we have asked Bolton to do some additional work, particularly as it relates to connecting the trail from what would have been the termini of the trail on the easement on LaVaque south to Maple Grove Road. So that would just provide an additional length of trail. Um, so we're asking for an extension or an amendment to their contract for that purpose. [6:10] Mayor Wayne Boucher: Thank you. Do we have any questions or comments from Council? Uh, there is no one signed up for public input. If anyone would like to, please make your way to the lobby at this time. Seeing none, we'll have a roll call. [6:26] Alissa McClure: Councilor LeBlanc. [6:27] Councilor Brian LeBlanc: Aye. [6:28] Alissa McClure: Councilor Peterson. [6:29] Councilor Joe Peterson: Aye. [6:30] Alissa McClure: Councilor Geissler. [6:31] Councilor John Geissler: Aye. [6:32] Alissa McClure: Councilor Hjelle. [6:33] Councilor Andy Hjelle: Aye. [6:34] Alissa McClure: Mayor Boucher. [6:35] Mayor Wayne Boucher: Aye. Next, we come to the most riveting part of tonight's meeting. Resolution 2026-25, resolution authorizing and directing the Mayor and City Clerk to execute and deliver a termination of development contract amongst Villers Property Inc., the City of Hermantown, and the Hermantown Economic Development Authority. Is there a motion for that contract termination? [6:56] Councilor Brian LeBlanc: Move to approve. [6:57] Mayor Wayne Boucher: Motion by Councilor LeBlanc. Is there a second? [6:59] Councilor Joe Peterson: I'll second. [7:01] Mayor Wayne Boucher: Second by Councilor Peterson. Mr. Mulder, should we have Mr. Ronchetti give us a synopsis of this and the next four motions after it? [7:08] John Mulder: Yes. [7:09] Mayor Wayne Boucher: Mr. Ronchetti. [7:10] Chad Ronchetti (Economic Development Director): Uh, Mayor Boucher, Councilors, thank you. Before you tonight, what is summarized in these resolutions is about six years worth of effort on behalf of the staff, the landowner at Hawkline Development, along with other agencies including the state, the county, multiple agencies at the state, and several consultants. So there's a lot of work that goes into the bricks that are before you this evening. Um, you know, last council meeting, you approved the application to DEED, which updated that application to resemble the new and updated infrastructure plan in and around Hawkline. We made that application this morning. But we have a series of things that need to happen in order to implement the infrastructure development around that site and move things forward. That includes deal points within the development agreement, formal partnerships between the agencies and the landowners, as well as who's going to pay for what costs and who will own things at the end of the day. But I would like to take a moment and just mention to Council that none of the actions here tonight authorize any development specific to the site. So there is no actual proposed development on that site as of tonight. All of the actions tonight are related to who and how the public infrastructure, both city and county-owned, are going to feed the site and be built. The landowners are in negotiations with a specific developer, Scannell Development, but they have not yet sold the property. That Scannell Development is interested in constructing a build-to-suit distribution facility for a client on that site. They have mentioned that they plan to apply for permits as early as perhaps next month to build the building. But again, if that building were proposed to be built, nothing should come before this council again in terms of the development itself because that is an allowable land use by zoning. So only a commercial industrial development permit would be necessary because it's basically "by right" and an allowable use. So again, nothing before you tonight is approving any specific project. That said, there are four different "buckets" of items up for your consideration this evening. The first of the buckets is terminating previous agreements with the landowner. In 2024, those were approved by Council and by HEDA. [10:14] Mayor Wayne Boucher: Five items. [10:15] Chad Ronchetti: Five items. Five. Five items. Oh, yeah, four buckets, five items. Uh, two termination agreements. Two termination resolutions but one bucket. But you're right, there are five items. Those termination resolutions terminate development agreements that were approved in 2024. In order to make room for the next development agreement, which is at the base of the agenda, we need to terminate the previous ones so that we don't have conflicting agreements. The next bucket of items is the cooperative agreement with St. Louis County. That cooperative agreement details the mechanics of how the city will build and convey the county road assets as a part of this project. So, the city's going to design them, and then we will build them, and then once they're constructed, we'll hand them over to the county. And those details include things like who plays what role in construction such as construction inspection, construction engineering, design, who's paying for that, what the funding sources are, and then who has maintenance responsibilities afterward. So that is the details on the cooperative agreement with the county. The engineering agreement: there has been obviously a scope change with the engineering because the project has changed considerably and grown in size. And due to the scope change, we have to update the engineering agreement with Northland Consulting Engineers. The previous contract for the $4 million project that was previously approved and barely spent was about $530,000, which was approximately 13.3% of the construction costs in terms of engineering fees. The new project, which is estimated to be about $5.5 million in hard construction costs—the design cost on that is just shy of $700,000, which represents about 12.8% of the cost in engineering fees. The agreement, along with the cooperative agreement which I discussed just a second ago, has the city paying the design fees for this. Given that the county has stepped up considerably in their obligation to pay for the construction of the project, we thought it would be fair that we would take on some of the design costs for those improvements. It also makes contract management a little easier because we hold all the contracts at that point. And the fourth and final bucket is the development agreement. It's a little bit of a misnomer being called the development agreement; it's really a grant and utility agreement. But that agreement is largely the same as it was in 2024 in terms of deal points. It's just grown in scope and in partnership. What it does is it delineates the public improvements and which ones will be made, how the funding will be shared between the developer, the city, and the county, and with the state through their DEED grant once re-awarded. It also details some of the strings that come along with grant money from the state. Anything that gets built on that site is going to have some prevailing wage pieces associated with it along with some job posting requirements and those types of things. The public improvements are still inclusive of water and sewer extensions which would go under Miller Trunk, but they would be stubbed at the parcel boundary. And then there would be improvements to the road network which include both county and city roadway systems—the installation of a roundabout. The city would have a couple of cul-de-sacs on the east side and the south side. And then as well, some access closures from Highway 53, which is going to enhance the safety, especially given some of the traffic increases that will happen as a part of any future development there. And lastly, it delineates the funding and who's going to pay for what portion of the costs. The previous public improvements were budgeted to be about $4 million. The new budget is about 6.6 "all-in" between hard cost and design cost. The city's funding commitment is going to stay the same as it had in 2024, so we are in for $1 million, paid for by sales tax via the water fund. Our obligation is to water improvements only. The developer has increased their commitment and their obligation by three-quarters of a million; they had previously been at 1 million, so their new obligation is 1.75 million. And that 1.75 million will be assessed to the property and it will be paid back over the course of 20 years with a 4% interest rate. Of course, it can be paid back without penalty, but they are going to pay it through assessment. And then the county has committed $1.85 million and "takes the cake" for the most, but they've got the most assets as well. And then finally, that's for local commitments. The state of course has got $2 million in the pot, with $1 million going towards city improvements and $1 million going to county improvements. That's a total of about $6.6 million. It's a much bigger but I think better project in terms of roadway improvements and will really enhance the safety on Ugstad, on LaVaque Bypass, and on Highway 53. So, and at the same time, we get some private development out of it. So I think those are all wins. Um, I also have some comments, Mayor and Council, on some environmental concerns that were raised at the last meeting. I can either do that now, or I can ask if there are any questions on any of the project details before doing so. [16:32] Mayor Wayne Boucher: Uh, any questions from Councilors? I think that as far as the questions that were raised at the last meeting, we could forward those answers to the person that got up and asked them. So, we can contact them and get a hold of them unless anyone in the room has any questions. Uh, there is public comment so we could do that. [16:56] Chad Ronchetti: Certainly. Mayor and Council, I did reach out to the MPCA, who is the overseeing agency for the state on the environmental stuff given that it is a Superfund site. And I think the history on that site, and having it be inactive for the last 50 years due to some significant contamination, makes this project even more of a win. These sites are complicated, they're difficult, they're expensive. And in partnership with the landowner who has held this for a very, very long time with some very significant patience for this to be de-listed from the Superfund list—the National Priority List. Um, the MPCA did respond to those questions that were raised which I forwarded to them. That email was listed in correspondence but did not make this agenda, but it will be in the next agenda for the following meeting and is available to anyone who asks. [17:56] Mayor Wayne Boucher: Yes. Yes, Mayor. Any questions or comments from Council? Uh, is there anyone signed up for public comment? Uh, there's still time. Okay. With no public comment, we'll have a roll call. [18:10] Alissa McClure: Councilor Peterson. [18:11] Councilor Joe Peterson: Aye. [18:12] Alissa McClure: Councilor Geissler. [18:13] Councilor John Geissler: Aye. [18:14] Alissa McClure: Councilor Hjelle. [18:15] Councilor Andy Hjelle: Aye. [18:16] Alissa McClure: Councilor LeBlanc. [18:17] Councilor Brian LeBlanc: Aye. [18:18] Alissa McClure: Mayor Boucher. [18:19] Mayor Wayne Boucher: Aye. Next is 2026-26, resolution authorizing and directing the Mayor and City Clerk to execute and deliver a termination of development contract amongst Hawkline Development LLC, the City of Hermantown, and Hermantown Economic Development Authority. Do we have a motion for that resolution to approve? [18:41] Councilor John Geissler: Motion. [18:42] Mayor Wayne Boucher: Motion by Councilor Geissler. Is there a second? [18:43] Councilor Joe Peterson: I'll second. [18:44] Mayor Wayne Boucher: Second by Councilor Peterson. Um, Mr. Ronchetti, anything that stands apart that needs to be addressed at this time? [18:55] Chad Ronchetti: Uh, Mayor and Council, not that I can think of. [18:59] Mayor Wayne Boucher: Thank you. Any questions from Council? Any public input? No one signed up. Roll call, please. [19:05] Alissa McClure: Councilor Geissler. [19:06] Councilor John Geissler: Aye. [19:07] Alissa McClure: Councilor Hjelle. [19:08] Councilor Andy Hjelle: Aye. [19:09] Alissa McClure: Councilor LeBlanc. [19:10] Councilor Brian LeBlanc: Aye. [19:11] Alissa McClure: Councilor Peterson. [19:12] Councilor Joe Peterson: Aye. [19:13] Alissa McClure: Mayor Boucher. [19:14] Mayor Wayne Boucher: Aye. Next, Resolution 2026-27, resolution authorizing and directing Mayor and City Clerk to execute and deliver a cooperative agreement between the County of St. Louis and the City of Hermantown. Is there a motion regarding this resolution? [19:31] Councilor Brian LeBlanc: Move to approve. [19:33] Mayor Wayne Boucher: Motion by Councilor LeBlanc to approve. Is there a second? [19:35] Councilor Joe Peterson: I'll second. [19:37] Mayor Wayne Boucher: Second by Councilor Peterson. Anything to add, Mr. Ronchetti? [19:42] Chad Ronchetti: Uh, no, Mayor. [19:44] Mayor Wayne Boucher: Any questions or comments from Council? Anything public? No public input. Roll call, please. [19:54] Alissa McClure: Councilor Hjelle. [19:55] Councilor Andy Hjelle: Aye. [19:56] Alissa McClure: Councilor LeBlanc. [19:57] Councilor Brian LeBlanc: Aye. [19:58] Alissa McClure: Councilor Peterson. [19:59] Councilor Joe Peterson: Aye. [20:00] Alissa McClure: Councilor Geissler. [20:01] Councilor John Geissler: Aye. [20:02] Alissa McClure: Mayor Boucher. [20:03] Mayor Wayne Boucher: Aye. Next is Resolution 2026-28, resolution authorizing and directing Mayor and City Clerk to execute Amendment Number 1 to the agreement for engineering services for Road Improvement District Number 553 Hawkline Business Park with Northland Consulting Engineers to incorporate services required under the cooperative agreement with St. Louis County and increase the "not to exceed" contract amount to $699,800. Is there a motion? [20:31] Councilor Andy Hjelle: Motion to approve. [20:32] Mayor Wayne Boucher: Motion by Councilor Hjelle to approve. Is there a second? [20:34] Councilor Joe Peterson: I'll second again. [20:36] Mayor Wayne Boucher: Second by Councilor Peterson. Mr. Ronchetti, anything to add? [20:43] Chad Ronchetti: Mayor, Council—no. [20:45] Mayor Wayne Boucher: Any questions or comments from Council? Has anyone snuck in and signed up for public input? Roll call, please. [20:56] Alissa McClure: Councilor LeBlanc. [20:57] Councilor Brian LeBlanc: Aye. [20:58] Alissa McClure: Councilor Peterson. [20:59] Councilor Joe Peterson: Aye. [21:00] Alissa McClure: Councilor Geissler. [21:01] Councilor John Geissler: Aye. [21:02] Alissa McClure: Councilor Hjelle. [21:03] Councilor Andy Hjelle: Aye. [21:04] Alissa McClure: Mayor Boucher. [21:05] Mayor Wayne Boucher: Aye. Next is Resolution 2026-29, resolution authorizing and directing the Mayor and City Clerk to execute and deliver a development contract between Hawkline Development LLC and the City of Hermantown. Is there a motion? [21:19] Councilor John Geissler: Motion to approve. [21:20] Mayor Wayne Boucher: Motion by Councilor Geissler to approve. Is there a second? [21:22] Councilor Brian LeBlanc: Second. [21:23] Mayor Wayne Boucher: Second by Councilor LeBlanc. Mr. Ronchetti, anything to add? [21:30] Chad Ronchetti: No, Mayor. [21:32] Mayor Wayne Boucher: Thank you. Uh, I do want to point out that the reason that we're cancelling two contracts and only having one is the original two—one was to qualify for the state grant money and the other contract didn't. So, it was split into two contracts. Now, it's all back together in one. [21:50] Chad Ronchetti: Mayor, that is correct. Uh, both parcels—the site will be split into two parcels—both parcels will now be obligated to adhere to the grant requirements by the state. [22:04] Mayor Wayne Boucher: Thank you. Any public comment? No one has signed up. Roll call, please. [22:11] Alissa McClure: Councilor Peterson. [22:12] Councilor Joe Peterson: Aye. [22:13] Alissa McClure: Councilor Geissler. [22:14] Councilor John Geissler: Aye. [22:15] Alissa McClure: Councilor Hjelle. [22:16] Councilor Andy Hjelle: Aye. [22:17] Alissa McClure: Councilor LeBlanc. [22:18] Councilor Brian LeBlanc: Aye. [22:19] Alissa McClure: Mayor Boucher. [22:20] Mayor Wayne Boucher: Aye. Next, we have a motion to recess. [22:23] Councilor Andy Hjelle: Make a motion to recess. [22:24] Mayor Wayne Boucher: Um, I think Councilor Hjelle got you first, but Councilor Peterson, you can have a second. All in favor say Aye. [22:28] Multiple Councilors: Aye. [22:29] Mayor Wayne Boucher: Opposed.