This transcript features **Mayor Thomas J. Spooner** presiding, with reports from City Administrator **Jessica Kinser**, Community & Economic Development Director **David Wanberg**, and City Attorney **Scott Riggs**. Council members **Royal Ross**, **Adama Youhn Doumbouya**, **Peter van Sluis**, **John Rowan**, and **Chuck Thiele** are active in motions and discussion. [0:15] **Mayor Thomas J. Spooner**: All right, I need a motion and a second to approve tonight's agenda if there aren't any changes. **John Rowan**: So moved. **Adama Youhn Doumbouya**: Second. **Mayor Thomas J. Spooner**: Motion by Rowan, second by Doumbouya. All in favor say aye. (Group: Aye). Opposed? We have no presentations or introductions tonight. We'll move on to item number four: approve the minutes of the October 8th, 2024 city council meeting and the October 8th, 2024 special city council meeting closed session. Anybody have any changes or corrections needed? Hearing none, I would take a motion and second to approve. **Peter van Sluis**: Moved. **Adama Youhn Doumbouya**: Second. **Mayor Thomas J. Spooner**: Motion by Council Member van Sluis, second by Council Member Doumbouya. All in favor say aye. (Group: Aye). Opposed? All right. Request to be heard: we have one message on the clipboard. Would you come forward, please? State your name and address at the microphone for the record. [1:00] **Jane Egardoll**: I have to be close to me? No. I am Jane Egardoll and I live on 14th Street at 103. I go with my three minutes now? No? Okay. I got it to two minutes and 45 seconds to be clear. So, you all know things about city leadership that I do not know, and I want to acknowledge this. I just ask you to hear me out and have some openness to my perspective and experience. You are welcome to respectfully disagree. I believe all of us in this room are here because we care about the well-being of Faribault and its residents. I personally love living in this town. I received a seven-page citation 10 days ago about a few minor repairs on my garage coming out of your new city policy. I do not have an issue with the citation. My questions are about the packaging of it, and I want the Council to know how it affected me and how I feel it might affect my fellow citizens. This is not about the person who signed it; I believe it took a village to write this letter and it was sent with the best intentions to help Faribault. It felt assumed that I did not want to clean up or fix up my property. This is not true. I bought this structurally sound, 100-year-old house 25 years ago in hopes of rehabbing it. My dad, a college professor, had built a house as a hobby. He started helping me, but shortly after, he unexpectedly died. A few years later, my handyman brother started helping me and he unexpectedly died. I ran out of people to help me and I just kind of stopped working on it. The pain of these deaths started showing outwardly in me becoming clutter-challenged. Hoarding behavior comes out of a trauma and loss. [2:32] **Jane Egardoll**: I had been an organized person, but my brain had secretly changed on me without asking for my permission. I understand this policy works for Hopkins, but I think there are some differences here in Faribault. I know a lot of you personally; we are a smaller community. If you don't directly know a person getting one of these citation letters, you will probably know somebody they know. To me, we are a Faribault family. Professional and nonprofessional friends read this letter; they had the same response as I did. It came across as confusing, very unnecessarily threatening, and paralyzing to the recipient. If this is sent out to people who do not have the mental, physical, financial, or language capacities to do what is required, or to even understand this letter, is this truly helpful for Faribault? I'm guessing that you all care about some law-abiding person who is a senior citizen or not, lives alone, and gets stressed easily. How would you feel if they received a long letter for a few small repairs stating that now they are being processed by the county prosecuting attorney for legal action in court, and that they are strongly threatened that their house will be seized by eminent domain if they don't do whatever is confusing to understand? It truly left me feeling that the Faribault I love wanted to kick me out of my house and into the streets. As for the neighbors who feel they are helping Faribault not only by having a perfect place but also for reporting little things wrong in everyone else's place around them—is there a way the city can buffer some of these complaints so that a few houses aren't always being targeted by the same people when there are homes throughout our town with the same or worse issues that are never ticketed? I care about my fellow citizens. I don't want anyone else to get a letter like this again. My main request today is that you each read this letter and rethink if you want to use this method of fear enforcement in our community. Thank you for your time and hearing me out. Yes, I do still love Faribault, and I would like to hand out the letter to each of you if I may. **Mayor Thomas J. Spooner**: Sure. It wasn't so bad; you were under your three minutes. [5:12] **Mayor Thomas J. Spooner**: Terrific. So we'll review this at a later time and have staff follow up with you. Thanks, Jane. Right, that was only the one on the request to be heard. We'll move on to Consent Agenda items 6A through 6M. Can we leave or stay too? [Laughter] Yes. All right. Anybody have anything they want pulled for discussion on here? **Royal Ross**: I want to thank the anonymous $10,000 donor to Park and Rec. That'll help out with programs to whoever you are. Okay, that's all I want to bring up. Also is to thank that person. So I will make a move to approve the consent agenda items 6A through 6M. **John Rowan**: Second. **Mayor Thomas J. Spooner**: Got a motion by Council Member Ross, second by Council Member Rowan. All in favor say aye. (Group: Aye). Opposed? That passes. We have no public hearings tonight, so we move on to items for discussion. Ordinance 2024-16: amend Chapter 28, Division 4 of the Code of Ordinances regarding disconnection of water for non-payment—second reading. Over to Administrator Kinser. [6:30] **Jessica Kinser**: Thank you, Mayor. This is the second reading of an ordinance that would remove the language that basically says on a monthly basis we'll prepare a disconnection list and disconnect water for non-payment. However, we still do reserve the right to do that; there would be certain situations where that still might be a necessary thing. In order to supplement what would happen typically with the disconnect process, we will be using existing language in that same code section and Chapter 28, Division 4 that provides the Council the ability to provide a special assessment in place of disconnect. And so that is how we will treat things moving forward, except for those special circumstances that still might require a disconnect. **Mayor Thomas J. Spooner**: Administrator Kinser, any questions on that? Councilman Royal Ross. [7:25] **Royal Ross**: Thank you, Administrator Kinser. I just got a question from the public. So, if we understand this correctly, an amount will build up, it's assessed to the property owner, and then from that point forward do we start billing again normally? How does the cycle work? **Jessica Kinser**: Basically, the next time there's usage that runs through the meter that gets picked up on a reading, it would be billed out in the normal billing cycle. Assuming it's an occupied property, then that's what you would continue to see—is that we would essentially clear what's due as a special assessment if not paid. But I should say that both tenant and landlord can get the notices, and so there should still be notification along the way where there would hopefully be some conversation between a tenant and landlord about what's going on with the non-payment of the water. We think that there's still that opportunity there, but essentially, once a balance was cleared off as a special assessment, as long as there was continuing usage, there'd be a bill the next month for whatever amount was there. **Royal Ross**: And once that amount is put on special assessment, it starts at zero again effectively and builds back up? **Jessica Kinser**: Correct. **Royal Ross**: It could end up being a second assessment. **Jessica Kinser**: Correct. **Royal Ross**: Okay. I think I can answer the question now. Thank you. **Mayor Thomas J. Spooner**: Any other questions on this item? If not, I would take a motion. **Chuck Thiele**: Moved. **Peter van Sluis**: Second. **Mayor Thomas J. Spooner**: A motion for approval by Council Member Thiele, seconded by Council Member van Sluis. This is a roll call. Council Member Rowan? **John Rowan**: Aye. **Mayor Thomas J. Spooner**: Doumbouya? **Adama Youhn Doumbouya**: Aye. **Mayor Thomas J. Spooner**: Ross? **Royal Ross**: Aye. **Mayor Thomas J. Spooner**: van Sluis? **Peter van Sluis**: Aye. **Mayor Thomas J. Spooner**: Thiele? **Chuck Thiele**: Aye. **Mayor Thomas J. Spooner**: Mayor Spooner, Aye. That passes the second reading. Now I need a motion and second to approve summary publication of Ordinance 2024-16. **Thomas J. Spooner**: Moved. **John Rowan**: Second. **Mayor Thomas J. Spooner**: Motion by Council Member Spooner, second by Council Member Rowan. All in favor say aye. (Group: Aye). Opposed? That passes. Move on to Resolution 2024-209: approve the assignment of an additional investor, restructuring the ownership entity, and mortgage subordination related to the property at 311 Central Avenue. Over to Director Wanberg. [9:35] **David Wanberg**: Mayor and Council, last year the Council authorized the transfer of $500,000 from the general fund over to the EDA, or the Economic Development Authority, to administer a special commercial rehabilitation loan for Faribault Downtown Central, or FDC. The loan agreement follows the city's business subsidy policy, which requires the recipient—in this case, FDC—to own the properties associated with that loan for five years. In this case, 311 Central is one of the properties that FDC has that could benefit from that $500,000 loan from the city to be administered by the EDA. So at this point, we need to take action before that change in ownership could happen. FDC is looking to sell a part of 311 to three additional investors called PIO Partners LLC. PIO Partners LLC would have 67% of the ownership in 311, and FDC would remain with 33%. But again, because of the business subsidy policy that says you need to hold on to that property for five years, we are asking that you consider action on FDC's request to restructure the ownership to allow this ownership group to come in. The attached resolution before you is similar to one that went to the EDA last week. The EDA did approve that resolution to allow for that restructuring, but again, the Council provided additional funding, so we're asking that you consider that action tonight. If you were to approve that and then the ownership were to change in the next five years, that would again have to come forward. The resolution before you basically recognizes the importance of improving the downtown and recognizes that restructuring this would facilitate improvements to 311. The property located at 311 would be exempted from those terms of the loan agreements that would prevent the sale, transfer, or conveyance of the property, but again, it would only be for this transaction only. With that, I'm happy to answer any questions and our attorney is here as well to be able to speak to this matter. **Mayor Thomas J. Spooner**: Council Member Ross. [12:20] **Royal Ross**: Thank you, Mayor. I have two questions, Director Wanberg. The first one is: this does not interrupt the five-year period that they have to own property, correct? In other words, we're almost through one full year, so it doesn't interrupt that and make it start over, right? **David Wanberg**: The original agreement was for five years. This would exempt them for that five-year period—does that make sense? It continues; the five-year period does not go away. It's still there. One year into it, they have four years left. The original agreement stays. **Royal Ross**: Okay. And then does PIO Partners—are they now on the hook with the other partners for the city loan? **David Wanberg**: That's correct. They're assuming it; they're joining in with FDC and all those parties are responsible then. **Royal Ross**: I'm good with it. Thank you. **Mayor Thomas J. Spooner**: Other questions on this? There was good conversation at the EDA about it. I need a motion. **Royal Ross**: I'll make a motion to approve Resolution 2024-209. **Peter van Sluis**: Second. **Mayor Thomas J. Spooner**: Got a motion by Ross, seconded by Council Member van Sluis. All in favor say aye. (Group: Aye). Opposed? That passes. We'll move on to Resolution 2024-211: Approve a development agreement for the property at 203 3rd Avenue Southwest, or the former Mercy Catholic Elementary School, to allow for the operation of the business Urban Flea Market at the subject property to open. Over to Director Wanberg. [14:35] **David Wanberg**: Mayor and Council, the attached resolution before you authorizes the City to execute a development agreement with the developer to be able to get in there, with the understanding that there are still a number of things that need to be done. There are a couple of items here in that developers' agreement—we could call it an early start agreement—something that the City would be clear on, as these are things that normally get done before we issue a building permit. We're in a position right now where there are a number of things like improvements to the parking lot, putting in curbing, and doing bituminous that are not going to happen this year. Putting in landscaping... Cory Newbie, as you know, at the last meeting you had a discussion, is feeling pressure to open as soon as possible and would like to move forward. The best way that we can figure to move that forward is to have some sort of an agreement that very clearly states the things that we expect from you related to this. Cory Newbie is here today. There are a number of things that he does have concerns about with the agreement. We have our attorney here to talk a little bit about that. Scott can get into more detail, but the things that you see in the agreement before you tonight are basically the same things that you see in virtually every early start agreement or every subdivision agreement that we have. [16:40] **David Wanberg**: There are a couple of things that we left blank in there, one of which is dealing with an escrow. Typically, our ordinance says that we can consider issuing a temporary certificate of occupancy to let someone in there, particularly if because of weather—like if sod is not put in and it's January—someone wants to move into their house. We require by our ordinance 110%. We've left that blank because we don't know exactly what it is going to take to put in the curbing and all the things that would be required for this project to get a temporary certificate of occupancy. But let's roughly say $50,000. Mr. Newbie is feeling like right now that's not possible to do that, but you could put something else in. If you want to take 10% of that and say $5,000, you would have the option to state that. Mr. Newbie does not have to sign it, but at this point, we're not able to move forward with a certificate of occupancy until we have this issue resolved. Depending on where you're at tonight, you have the option of either looking at the resolution and moving forward, maybe giving us some direction on that escrow amount, which could be anywhere from zero to 110%. **Scott Riggs (City Attorney)**: Thank you, Mayor. Obviously, after the last work session, we tried to find a solution to get Mr. Newbie into his property while staff still has control to make sure improvements happen. Working with staff, we could have called this a temporary occupancy development agreement, but we call it a development agreement. We've done this in other situations like businesses or assisted living places that have all wanted to get access inside. This agreement is the same agreement we use in those terms. Typically, you do have an escrow amount in there for enforcement and a recruitment of cost mechanism. What we did is simplify the agreement but included the applications that Mr. Newbie has submitted. Those dictate the items that have not been completed at this point. I think it matches what I tried to explain at the session. I understand Mr. Newbie has some concerns, but it is the solution we've used in the past. [21:00] **David Wanberg**: If I could just add one other thing—in your packet are letters from the City Planner with site plan review saying we need additional information. Those letters were prepared as part of the packet before we had some changes that Mr. Newbie has made. He is showing on his site plan that he submitted meeting 10-foot setbacks and having the curbing in. Mr. Newbie does have concerns with the language, but it is fairly standard in terms of how we've done practice with these similar situations. **John Rowan**: We all received an email about this. So what about that? **Scott Riggs**: The concern is about the typical development agreement having the right to access the site and look at it to make sure things are getting done the way they're supposed to. That would be standard in any kind of building permit or action that we issue to verify. We have the right to go on the property for those purposes; it essentially is part and parcel of our building permit and the building inspection. There are provisions in here I could have deleted, but it wouldn't matter; they're still in our code or they're still in State Statute. It looks a little more burdensome than the agreement really is because a lot of these provisions would apply whether we had an agreement or not. **Adama Youhn Doumbouya**: I know you said it could be anywhere from zero—is there a standard? **Scott Riggs**: Our standard is 110%. That's what the city code requires. If you had zero dollars, you still have the ability to enforce using the other provisions we have, but typically you do have an escrow. It is really up to you as a discretionary decision. **Adama Youhn Doumbouya**: I can understand that Mr. Newbie has some issue with 110% escrow because I can just imagine how much money needs to be raised to just get everything started. If there are enforcement options available, then I would say just with a symbolic $5,000 or maybe zero even, just to help Mr. Newbie out on that particular item. **John Rowan**: I was thinking 10. 10,000 gets it back provided it's finished. **Mayor Thomas J. Spooner**: Let's ask Mr. Newbie if he has any comments on this item. [27:00] **Cory Newbie**: One of my big concerns... [Discusses legal language and requirements]. I'm not a developer; I'm trying to open a small business. The language about inspections and the timeline feels very restrictive when I'm already dealing with weather and contractors. [29:56] **Mayor Thomas J. Spooner**: Everybody not sick of seeing you guys? Well, we are trying to work to your benefit here. I mean, if you look at this, this is a temporary certificate, so it means that we're not holding you to everything for you to move into your building. This is a standard developer agreement. You're a developer at this point. You're not just an entrepreneur; you're not just a flea market runner; you're a developer. This is the same thing that every developer goes through in the city of Faribault. We're trying our best to work with you. We know things come up; there have been buildings downtown where people have been cited because they can't get stone cut for six months. It happens. But at some point, you have to put your John Hancock down so that you can get moving. I understand that you don't like the wording on some of this formal language, but you need to put a John Hancock to it so that you can get moving. Also, this is standard boilerplate stuff. If you can't get your grass in in nine months because we've got a torrential downpour like we did last year, then you come back to us and say, "Hey, wait a second here, can I get an extension on this?" There's wording that we can work with, but at some point, you need to put it down and get moving. And that's where we're at. So either you need to work with staff and get this figured out so that you can get open, or we're not going to get anywhere and you're going to lose more and more time. Other comments or questions? [31:28] **Mayor Thomas J. Spooner**: All right, well, I think we're probably going to approve this agreement. Anybody not approving it? Then you'll just need to work with staff. **Royal Ross**: Do we need to put in a term or is that the only blank? **Mayor Thomas J. Spooner**: Mr. Newbie asked for more than nine months. We could do a 12-month summer cycle if you want. Nine months would put it into July. I don't care if we extend it out a month or two. We should probably put something in for an escrow. We've had 5,000 recommended; we've had 10,000 recommended. Let's start there. Which one would you like to see? **Adama Youhn Doumbouya**: I'd be willing to go with five. **Mayor Thomas J. Spooner**: I'm willing to go with five and give him another three months. So 5,000 and 12 months. **John Rowan**: I'll make a motion to approve Resolution 2024-211 with those changes. **Chuck Thiele**: Second. **Mayor Thomas J. Spooner**: Motion by Council Member Rowan, second by Council Member Thiele. All in favor say aye. (Group: Aye). Opposed? That passes. Move on to Resolution 2024-210: Approve a restructuring of the ownership entity related to the redevelopment of Lot 1 and Lot 2, Block 1, Midwest First Addition. Back over to Director Wanberg. [34:15] **David Wanberg**: Thank you, Mayor and Council. Lot 1 and Lot 2 is really the former Farmer Seed and Nursery site. KK&G is the developer of that site. They have the approved PUD and approved plans for the apartment building. If you recall, the applicant received significant DEED funding through the Redevelopment Fund as well as the Cleanup Fund, but there is a time limit associated with that. We are getting very close to where, if that apartment building does not go up, DEED is going to claw that money back. They have a plan; they just need to get it built. Now they have brought in another investor. KK&G would remain with a 78% ownership stake, but 22% of it will be with TLS Companies, which is the contractor that will construct the apartment building. The resolution before you restructures the ownership related to that redevelopment. They have submitted for a building permit; their full intention is to get that foundation in by November 1st. We have a lot of work that we have to do in a short period of time, but if we don't get something done soon, there is going to be the issue with that DEED funding. We are recommending that you approve the resolution. **Royal Ross**: Thank you, Mayor. If I remember correctly, this is still just one big basically square property and it's not split into two? **David Wanberg**: It is split into two. The apartment is on one plot and the storage is on the other plot. **Royal Ross**: Okay, so TLS would be a 22% owner of the apartment plot? **David Wanberg**: That's correct. One thing I do want to clear up is that was a PUD, and if you recall, they could not fit all the parking on one lot, so it spills across the property line. Those are things the City Attorney and planning department have to work through to make sure all of this is understood. **Mayor Thomas J. Spooner**: Any other questions? I'll take a motion and a second. **John Rowan**: I'll make a motion to approve Resolution 2024-210. **Chuck Thiele**: Second. **Mayor Thomas J. Spooner**: All in favor say aye. (Group: Aye). Opposed? That passes. We're on to Commission reports, announcements, and project updates. Anything exciting coming up? **Adama Youhn Doumbouya**: Faribault "Booo-Crawl" before our next one. We also have to remember that we will not be back for November 5th—remember to vote. And I know Buckham West, known as the senior center, does have their annual meeting coming up the week of November. **Royal Ross**: The Rice County Fair also has their annual meeting coming up November 6th, which is a public meeting. **Mayor Thomas J. Spooner**: Our next meeting will be November 12th. I want to thank the Girl Scouts for hanging out with us tonight. I know this was really exciting, but it's nice to be able to learn a little bit about local government. Although it'll take years to learn what we actually do. Thanks for hanging out with us. Anything else? A motion and a second to adjourn. **Royal Ross**: So moved. **Adama Youhn Doumbouya**: Second. **Mayor Thomas J. Spooner**: All in favor say aye. (Group: Aye). Opposed? Good night and good luck. Personally, I decorated the Christmas tree last year... [Tape ends].