This transcript features **Mayor Mary Fasbender** presiding over the meeting, with presentations from city staff and discussion among Councilmembers. *Note: While your provided list of officials was helpful, the transcript identifies several Councilmembers (Folch, Braucks, Vaughn, Lund, and Fox) who appear to be active during this specific session. I have used the names as they are identified within the dialogue and cross-referenced them with city staff roles.* *** [0:00] **Mayor Mary Fasbender:** The meeting is in order. Please stand for the Pledge of Allegiance. [0:22] **Mayor Mary Fasbender:** Welcome, everyone, and let the record reflect that all members are present and a quorum has been established. Today we have a proclamation to read for Make Music Day, which is actually tomorrow, Summer Solstice. And we will start with Councilmember Lund. [0:35] **Councilmember Trevor Lund:** Whereas the City of Hastings has declared Tuesday, June 21st, as Make Music Day; and whereas this is the sixth year the City of Hastings has celebrated Make Music Day. Make Music Day is a free celebration of music around the world on June 21st, beginning in 1982 in France, and is now held on the same day each year in more than one thousand cities in 120 countries. And whereas the purpose of Make Music Day is to encourage and invite Hastings residents and visitors to celebrate by enjoying free performances, cultivating civic pride and a sense of community... [1:08] **Councilmember Trevor Lund:** And whereas Make Music Day 2022 will be held 7:00 a.m. to 9:00 p.m. at various Hastings parks, and the full schedule can be found on the City of Hastings webpage and social media platforms; and whereas in case of inclement weather, Make Music Day will be held at the Hastings Civic Arena; and whereas local and metro area bands and soloists will be donating their performance and volunteers are donating their time to help coordinate the event, the City of Hastings is appreciative of these civic-minded performers and volunteers to help make this event possible. And now, therefore, be it resolved that the City Council of the City of Hastings hereby declares June 21st, 2022, as Make Music Day in Hastings, Minnesota. [Applause] [1:54] **Mayor Mary Fasbender:** Okay, tonight we have a presentation for a certification of appreciation for Commissioner Martha Sullivan. [2:12] **John Hinzman (Community Development Director):** Thank you, Mayor, City Council members. It's my honor today to present a certificate of appreciation to our outgoing HEDRA member Martha Sullivan. Martha's been serving on the HEDRA commission for the last six years. HEDRA is the Hastings Economic Development and Redevelopment Authority. [2:40] **John Hinzman:** As you all know, a lot of folks might not understand exactly what goes into serving on this board. This is a board that's really in charge of economic development and redevelopment throughout the city. They're the people that take on the projects that nobody wants to take on from an economic development standpoint. Martha's service to us and her background as an attorney has been invaluable as we've looked through development contracts and the minutia of what we have to do to make sure things are done the way they should be. So we wanted to thank Martha for her service over six years, wish her the best in the future. And Martha, if you'd like to come up here, please, I've got a certificate for you from the Mayor and from myself to thank you for your service. [Applause] [3:26] **Mayor Mary Fasbender:** Thank you, Martha. And tonight our Hastings Arts Task Force has a representative, Barb Hollenbeck, and she will give us an update. Welcome, Barb. [4:15] **Barb Hollenbeck (Chair, Arts and Culture Commission):** Good evening, Mayor and City Council. I'm Barb Hollenbeck, and I am the chair of the Hastings Art Task Force, and I thank you for this opportunity to bring our findings forward to you tonight. Before I get into our findings or recommendations, I'd like to give a little bit of background on the Arts Task Force itself. [5:01] **Barb Hollenbeck:** We were convened as the city put out a call for applicants. 17 applicants applied for seven positions, which is almost unheard of for a city commission. Among the members on our task force was a wide diverse group of people: medical people, educators, small business owners, and artists. [5:46] **Barb Hollenbeck:** Our task was to come up with a structural organization for an arts organization. We had a deadline; we had to get our budget proposal in so it could be included in this budget cycle. For the past five months, we have met twice a month. Our goal was to identify a form of organization or a structure and a work plan. [6:33] **Barb Hollenbeck:** Our task force decided early on that the City of Hastings really needed to adopt an Arts and Cultural Commission. The Arts and Cultural Commission would be relevant and helpful to grow the community, the commerce, and build the Hastings brand. [7:21] **Barb Hollenbeck:** So we did adopt a commission format. We drafted a series of documents, including the charter document and an ordinance document that's ready for inspection. We just feel that the role of the Arts and Culture Commission would be there to help promote the City of Hastings by elevating its image. [8:06] **Barb Hollenbeck:** We want to collaborate with different organizations. We saw the function as reviewing policies, such as having a role in the Highway 61 rebuild and the Vermillion Street corridor, making sure components are in there that identify the Hastings brand. [9:38] **Barb Hollenbeck:** On the cultural side, if a new group wants to create a festival, we thought the Arts and Culture Commission could be instrumental in the early stages of planning to make it a more smooth transition for both the city and the festival originator. [10:25] **Barb Hollenbeck:** We have a robust work plan. One collaborative adventure is to help promote art groups to have "meet and greets" so they can talk and know what each other is working on. [11:11] **Barb Hollenbeck:** Another idea is for the memorial benches. We have the technology called the QR code; we could add it to the plaque so people could scan it and read about the person the bench was dedicated to. [11:57] **Barb Hollenbeck:** We also have the idea to work with Ardent Mills to perhaps investigate opportunities to turn some of their large concrete facades into a mural. Mankato did it, and how cool would that be for Hastings along 61? Another idea is to help identify a use for the old Blue Bridge that's sitting in River Flats. [12:43] **Barb Hollenbeck:** To carry out these goals, we have identified the use of a percentage point—one percent—of the city’s Capital Improvement Plan (CIP), which in the 2022 budget equated to $58,000. [13:29] **Barb Hollenbeck:** We would like to identify and catalog all the art assets in the City of Hastings and develop a maintenance plan. We've put so much money into the riverfront; to provide new permanent pieces would be a feather in our cap. [15:00] **Barb Hollenbeck:** In addition to budgeting, we would need a staff liaison. We've written a job description with a stipend of $5,000 annually for a five-hour weekly work schedule. If no staff member wanted to take it, it could be for an independent contractor or a retired teacher. I can stand for any questions. [17:19] **Mayor Mary Fasbender:** Thank you, Barb. Great update. You've all worked really hard on this. Council discussion? Councilmember Folch. [17:33] **Councilmember Tina Folch:** Thank you, Barb, for stepping up and chairing the Arts Task Force. It's been such a pleasure to work with the group. This has been a huge commitment—at least 20 hours of meetings, not to mention research on the side. Barb, could you introduce the others that are here today? [18:28] **Barb Hollenbeck:** Steven Read, Travis Lockwood, and Katie Walt. [18:50] **Councilmember Tina Folch:** Thank you for coming. I truly believe this is an opportunity for us to leverage that one percent of the CIP. It's going to have a huge impact on tourism. I would ask for other thoughts from the rest of the council. I was considering sending this to a committee of the council for further conversation. [20:24] **Councilmember Lisa Leifeld:** Thank you, Your Honor. This one percent of the CIP stands a little bit different than our other commissions, right? We don't have a budget for our other commissions. I love the arts, but what would prevent the commission from bringing those ideas to the council for consideration as opposed to budgeting for ideas you're going to come up with? Sitting upstairs in the workshop, it's overwhelming looking at the money needed to run a city. [21:59] **Councilmember Lisa Leifeld:** We know there’s money to be made in the arts, but I’m looking at the pool of money. When we’re talking about roads needing to wait two or three years—roads aren’t just about being smooth; there’s infrastructure underneath for sewer and water. I’m trying to understand why we wouldn't just have this group bring specific requests to us. [23:32] **Councilmember Tina Folch:** I think, Your Honor, the intent is so the group has an operating budget to move forward. Steven, would you like to provide background on what other communities are doing? [24:17] **Steven Read (Vice Chair, Arts and Culture Commission):** The "one percent for the arts" is not a foreign concept; most large universities and many cities do it. We took our framework from Duluth. It creates an operation budget that acts as a starting point. It helps keep the ball rolling and gives the commission something they can rely on to build up the city. [25:04] **Mayor Mary Fasbender:** Thank you, Steven. Councilmember Vaughn. [25:10] **Councilmember Vaughn:** Thank you, Your Honor. Councilmember Leifeld, I know where you're coming from. It's a dedicated funding source. We don't get that from other commissions. I’m not ready to support a dedicated funding source today, because then every youth association or commission will want one. But let’s get it up and running. 17 applicants is fantastic. I think it should go to a committee to hash out details. [27:11] **Mayor Mary Fasbender:** Councilmember Folch? Councilmember Fox. [27:16] **Councilmember Jen Fox:** Your Honor, I absolutely agree with Councilmember Vaughn. This should move to a committee. Arts create such vitality and build up our tourism. I make a motion to move this to a committee of the council. [28:08] **Councilmember Lisa Leifeld:** Second, Your Honor. [28:08] **Mayor Mary Fasbender:** Discussion? Councilmember Braucks. [28:20] **Councilmember Jen Braucks:** Thank you. I support the overall work plan. But when we talk about the CIP, we’re typically talking about one-time expenses. This sounds like an ongoing commission. Is this an operational expense or a capital expense? And Dan, specifically, the last time we talked about this, there was no staff person available. What is the status of that? [30:06] **Dan Wietecha (City Administrator):** Really, I do not see ongoing staff available to take on something new right now. I anticipate nearly every department asking for additional staff in the budget, not additional projects. [30:56] **Councilmember Lisa Leifeld:** Thank you, Your Honor. I was clarifying with our City Attorney—they wouldn't be able to spend that money on their own anyway, it still has to come to the city. So if it sits there and they have to bring it to us anyway, that's where I was confused about the need for a set budget. [31:42] **Steven Read:** Can I make a point of clarity, please? The focus is that if any project came up, one percent of that project—like a new city building—would look at how the arts are considered in that building. It’s to have a dedicated fund for the arts aspect of projects. [32:29] **Councilmember Tina Folch:** Having that budget set aside allows them the flexibility to plan for the upcoming year. Parks has a budget of a million dollars a year. HEDRA is a percentage of the tax base. This is unique because no one is covering the arts. That’s why the blue piece of the old bridge has been sitting there for nine years—no one is planning for it. [34:00] **Councilmember Trevor Lund:** Thank you, Your Honor. Councilmember Folch, I think you point out something unique. But there isn't an "Art Department." The Parks Commission doesn't have a budget; the Parks Department has a budget and the commission is a resource. I don't foresee us adding another department. It may be better to have representation from Parks based on the agenda items. [36:17] **Councilmember Vaughn:** It’s got to be strategic to be effective. A question for Travis: you mentioned the one percent—is that only for public buildings, or did the group discuss asking developers to put one percent of private projects into the arts? [37:03] **Councilmember Tina Folch:** To clarify, it's not one percent of private development. Travis was giving an example of city facilities like a fire hall or ice arena. The task force is asking for a $5,000 stipend to bring in a retired teacher or someone similar. This group wants to get their hands dirty with grant writing and work, unlike other commissions that just vet ideas. [39:21] **Mayor Mary Fasbender:** There is a motion on the floor by Councilmember Fox and a second by Councilmember Leifeld to send this to the Planning Committee of the Council. All those in favor? [Ayes] Motion prevails. Councilmembers, any corrections to the minutes from June 6? [None]. [39:44] **Mayor Mary Fasbender:** Comments from the audience? If you'd like to speak, please step to the podium and give your name and address. Welcome. [40:31] **Brandon Spillman:** My name is Brandon Spillman, 125 West 18th Street. I’m here to talk about the KFC coming to town. I live off 18th Street. One thing I’m having trouble with is the traffic. Planning has approved a plan to allow traffic on residential streets. There’s no reason to put that much traffic on 18th Street. I hope you deny the motion and send it back to planning to put the traffic somewhere else. [42:09] **Marcy:** Hello Mayor and City Council. My name is Marcy, I live at 122 18th Street West, the yellow house that abuts the planned KFC. We do not oppose progress, but we agree with the dissenting vote at planning that KFC is not appropriate for the corridor. Hastings has always paid homage to its past. The proposed KFC building is a stark contrast from the design of the Vermillion Corridor plan. [46:44] **Marcy:** It is very difficult to run a business on that corner; the Freedom gas station is no longer there. We had a KFC in Hastings before and it closed. The proposal of a drive-through abutting a residential neighborhood onto an awful intersection doesn't make sense. It will block an emergency use street (18th Street). If KFC wants back in this market, they should choose a winning spot. I have a petition with 161 signatures. [49:50] **Tony Bingy:** We are Tony and Lynn Bingy, 115 17th Street West. We share 100 feet of property line with the site. We are concerned about dumpster odors and critters. But our major concern is health. With cars idling in the drive-through to keep cool or warm, all that carbon monoxide will come into our yard. We would have to limit time on our deck and it will lower our property value. We wish you would deny this. [53:02] **Mayor Mary Fasbender:** Thank you all for your comments. Council, I would accept a motion to approve the consent agenda. [Lund moves, Braucks seconds]. All in favor? [Ayes]. Motion prevails. We now have a presentation by our independent financial auditors. [54:16] **Chris Eitemiller (Finance Manager):** Mayor, members of the Council, I’d like to introduce Nancy Schulzetenberg from Bergen KDV. [54:40] **Nancy Schulzetenberg (Auditor):** Thank you. Regarding the audit for the year ended December 31, 2021, we are issuing an unmodified opinion—a clean opinion. We found one internal control finding: the lack of segregation of accounting duties. This is a common finding and is at a middle level. We had no findings related to Minnesota legal compliance. [57:18] **Nancy Schulzetenberg:** Overall, the general fund balance increased just over a million dollars. Your unassigned fund balance is at 53.4 percent, which is above your policy of 35 to 45 percent. Revenues increased about $1.7 million, mostly from taxes and licenses. Expenditures were up $1.8 million, driven by the Highway 316 project. [1:01:56] **Nancy Schulzetenberg:** Fire and ambulance revenues were down, fund balance decreased by $155,000. Parks and Rec fund balance increased by $220,000. In our enterprise funds (Water, Sewer, Storm Water), each is healthy and covering operating expenses and depreciation. [1:06:57] **Councilmember Vaughn:** I want to thank you. It's a credit to staff to get this report. Kudos to the finance and administration staff. [1:08:28] **John Hinzman:** Mayor, Council members, we have a variance for 707 East First Street. The property contains a historic building, the Hastings Foundry Iron Star Works building (1859). The owner, Mr. Hazelton, is asking to construct a 1,000-square-foot garage. Our code limits accessory buildings to 1,000 square feet total; since the historic building is already 3,000 square feet, a variance is needed. [1:13:04] **Councilmember Jen Braucks:** I have a question about the size. 1,000 square feet is large. What is the purpose of a garage that large? [1:13:31] **Terry Hazelton (Property Owner):** Terry Hazelton, 707 East First. It would be for my car and my motorcycles. [1:13:57] **Mayor Mary Fasbender:** Motion to accept? [Folch moves, Fox seconds]. All in favor? [Ayes]. Motion prevails. Tonight we have a resolution for the site plan for KFC on Vermillion Street. John. [1:14:42] **John Hinzman:** This is for a 3,100-square-foot KFC at 18th and Vermillion. Planning Commission recommended approval 6-1. The site is zoned commercial. The plan includes one right-in/right-out entrance on Vermillion and one full access on 18th Street. There would be an eight-foot vinyl fence along the property line where it meets residential homes. [1:19:17] **John Hinzman:** We looked at the Vermillion Street development plan. It wants restaurants and joint access between businesses. However, the plan is an aspirational document, not law. From a zoning code standpoint, this meets all requirements. [1:21:34] **Councilmember Lisa Leifeld:** John, where was the garbage located again? [John points to the map]. I grew up in this neighborhood. I remember Erickson’s and Gregory’s. This street isn't what it used to be, and it needs to develop. Development is important. I’m sympathetic to the neighbors, but business brings business. I am going to support this. [1:27:43] **Councilmember Jen Braucks:** John, how do we assess traffic impact on a neighborhood? [1:28:28] **John Hinzman:** We take a look at the capacity of adjacent roads. 61 is a major roadway. 18th Street is a "collector road" designed to carry more traffic than a standard residential street. Most traffic is expected to use the 18th and Vermillion intersection. [1:30:46] **Councilmember Trevor Lund:** I disagree with the 61 exit. I feel like the drive-through makes you go into 18th Street. What is the thought on someone wanting to go north after exiting? [1:32:41] **John Hinzman:** There is likely people that are going to go west on 18th to go north. We’ve been looking at that 18th Street intersection as a candidate for a stoplight with MnDOT for improvements coming in 2026. [1:33:54] **Councilmember Tina Folch:** I would feel a lot better about flipping this site plan so the building was closer to the highway and the drive-through wasn't up against someone's home. It’s a terrible intersection. What is our purview to deny this? [1:39:15] **John Hinzman:** Our options for denial are limited. This is an allowed use. Since it meets the requirements of the zoning code, we are generally compelled to approve it. [1:40:47] **Councilmember Jen Fox:** I too will be supporting this plan. I am curious about the intentionality with the people movement plan and making sure pedestrians are safe. [1:41:32] **Councilmember Vaughn:** I hear the neighbors. But I can tell you one thing: we need to make a stink about that stoplight. We need to stand up to MnDOT. Regarding the operation, I don't think it should be 24/7. [1:44:36] **Councilmember Lisa Leifeld:** Is KFC still on the phone? Can we inquire about the 24-hour location? Is that something we can regulate as a city? [1:46:54] **City Attorney (Korine Land):** It is a reasonable condition to control the hours when it's directly adjacent to residential property. 11:00 p.m. might be reasonable. [1:47:40] **John Hinzman:** Their general hours state 10:30 a.m. to 10:00 p.m. [1:49:28] **Shannon Smith (Polar Engineering):** Hello, my name is Shannon Smith. I prepared these plans. This is not planned to be a 24-hour establishment. We are installing an eight-foot vinyl fence and preserving as many trees as we can. [1:57:05] **Mayor Mary Fasbender:** I'd accept a motion to approve the resolution. [Braucks moves, Leifeld seconds]. All in favor? [Ayes]. Motion prevails. Under administration, we have the DBA music series. Dan Wietecha. [1:58:15] **Dan Wietecha (City Administrator):** The Downtown Business Association has their music series on Friday evenings. The question came up about expanding the footprint so people could consume alcohol in the closed block of the street. Staff's concern is that a setup like that requires a fenced-off beer garden. The recommendation is to refer this back to staff to meet with the DBA. [2:02:18] **Councilmember Jen Braucks:** I suggest we refer this to the Public Safety Committee to discuss the legal implications. [2:03:03] **Mayor Mary Fasbender:** I'll make that my motion. Discussion? [2:03:03] **Councilmember Vaughn:** I don't support it. Closing down a city street for bar owners creates a liability on the rest of the residents. Bring the music to the riverfront pavilion instead. [2:05:21] **City Attorney:** We can attempt to cover liability through an encroachment agreement, but it is fraught with legal issues regarding whose insurance covers an incident. [2:06:53] **Councilmember Lisa Leifeld:** This brings a really eclectic, family-friendly crowd down on Fridays. The issue is that the patios are full and there isn't space to grab a drink and listen to the music. I'd like to see what we can vet out. [2:08:24] **Mayor Mary Fasbender:** Motion prevails. Announcements? [The Mayor reads announcements regarding Make Music Day, movies in the park, and fireworks]. [2:11:27] **Councilmember Tina Folch:** I had an announcement regarding the Dakota Broadband Board. The Dakota County Board has decided to withdraw from the joint powers agreement. It shifts authority to the county and is very disturbing. Staff advice was disregarded for ideological purposes. It’s going to be a mess unraveling that group. [2:16:02] **Mayor Mary Fasbender:** Thank you, Councilmember Folch. Motion to adjourn? [Lund moves, Braucks seconds]. Meeting adjourned.