Here is the transcribed townhall meeting with speaker names added based on the context and officials provided. [0:02] [music] [0:16] [music] [1:01] **Mayor Luke Hellier:** Okay. [1:27] [Pledge of Allegiance] [1:40] **Mayor Luke Hellier:** Okay, roll call, please. **City Clerk Ann Orlofsky:** Michelle Volk? **Councilmember Michelle Volk:** Here. **City Clerk Ann Orlofsky:** Luke Hellier? **Mayor Luke Hellier:** Here. **City Clerk Ann Orlofsky:** John Bermel? **Councilmember John Bermel:** Here. **City Clerk Ann Orlofsky:** Dan Wolter? **Councilmember Dan Wolter:** Here. **City Clerk Ann Orlofsky:** Joshua Lee? **Councilmember Joshua Lee:** Here. [1:55] **Mayor Luke Hellier:** Okay, I keep turning my microphone off. Sorry. Citizens comments; opportunity for those to address the council for up to three minutes. [2:16] **Beth Loden:** Good evening. Beth Loden. I live at 12330 210th Street West, Lakeville. [2:23] **Mayor Luke Hellier:** Good evening. [2:25] **Beth Loden:** Um, so I’m—is this an appropriate time? I know you have a lot going on to talk to you about the final order on the southwest study area for the alternative urban AUAR study. [2:33] **Mayor Luke Hellier:** Sure. [2:35] **Beth Loden:** Okay. So, back in August, and I’ll give you a copy of this as well, we handed out and met with the city planning committee. I’m not sure that you were given a copy of this. Um, based on the report that I just read, um, it indicates that there was not any citizen comments. That’s probably true between October 21st and November 20th, but there were many comments to the city planning committee as well as um, written documents and statements from the citizens. So, with that said, the report I found that um, several different things I want to bring to your attention. Uh, and it’ll be real quick. The first one is why is the study referring to 390.3 acres? The developer doesn’t own 390.3 acres at this time. So, I know you won’t be able to answer these questions now, but I would hope that Tina [Goodroad] in her time can answer these questions. The second question is that the city indicated in their proposed action document that they reached out to the state department but they do not reach out to the United States Fish and Wildlife Services. So we'd like that to be considered because Solberg um is under that control and they border that property. The third thing is the traffic control. It talks about in the future the city and the county will need to work together regarding the traffic and the issues on County Road 70. Um, but it was not addressed in this report. So, it doesn’t really give it a conclusion. The fourth thing is that the document states on page 52 on the response that there wasn’t any citizen comments during that period of time. That’s probably true, but I would hope that all of our other comments were brought forward. Number five, the wetlands and the watershed. It talks about it being under the jurisdiction of the um Vermillion um waterway, but it also um from our properties going west, it actually flows west into the Credit River um water stream as well. So, I would think that that study would need to include both wetlands studies. Um, the habitat. It talks quite a bit regarding the habitat back there, which supports what we have been brought up in August. Um, I learned a few things that I didn’t realize—there are turtles back there, as well as the uh rusty patched bumblebees that are on the historical endangered species list. So, those are things. And in the report, it recommends that you don’t um disturb the land between April 15th and September 15th. So I would hope that as you do your planning that you would look to that and would request those timelines to be considered. In addition on the trees, they talk a lot about the trees and again recommend not to um disturb the trees between June 1 and August 15th. So I’m hoping that those considerations will be looked at. And then the school district, again, right now the school district’s trying to um put together a 10-year facilities plan, looking at asking the taxpayers to support a $250 million bond referendum in order to be able to keep up with what the city’s been doing and approving homes. Um, this is a tall order. And then after that, we’d have to follow an operating levy to operate those buildings for those additions. So again, I just ask—the city of Lakeville has been very proud about how fast you're growing, but the infrastructure hasn't caught up to you yet. So again, I just like to caution you; you had a great 2040 plan. You’re trying to push it forward. Um, and it’s causing a lot of issues. Um, we've overbuilt on the east side of I-35 and now we’re trying to push the west side and we haven’t caught up on the east side yet. So thank you and I’ll give you each a copy. [6:28] **Mayor Luke Hellier:** Thank you, Miss Loden. [6:52] **Beth Loden:** Yep. Oh, I've got two. Good to see you. [6:57] **Mayor Luke Hellier:** He ended up with two. [7:15] **Mayor Luke Hellier:** Okay. Any other public comment? [7:57] **Bob Erickson:** Mayor and city council. Good evening. I’m uh Bob Erickson, 19081 Indale Drive. Uh, I’m here this evening after learning uh on short, very short notice where we're at in the AUAR process. And um very quickly the handout I’ve just given each of you this evening um first of all it identifies the agenda which is tonight on consent—I want to emphasize on consent—the final order for the southwest study area alternative urban area review AUAR. So very quickly I’m going to just cover the things that I think are uh deficient in the document. Um, deficient meaning they might be in process but some of the items in fact have not been accurately or correctly addressed. First of which is the natural resource areas; that document does not identify Solberg Waterfowl Production Area. That was a huge gap in the document. It is not identified—114 acres—with any map in this document. So it’s not identified and I think that’s a significant natural resource that the community has enjoyed uh since 1994. Um, the DNR has identified Blanding's turtles and rusty patched bumblebees. I’m familiar with those. And in that context, the document states that they’re going to start grading in the spring of 2027 and the DNR may be uh not in favor of that based on the sensitivity for the Blanding's turtles and the rusty patched bumblebee. Scott County: I referenced Credit River. There are three stream flows out of the area that go directly to Credit River. One is along County Road 70. One is behind the property owned by Mark Webber um and the Lodens. And the third is very interesting: the water that comes from uh the natural resource area Solberg Waterfowl Production Area and portions of the Leonards runs straight to the west into the again into the Credit River watershed. So we have three areas from this area that run directly into Credit River watershed and not as denoted by the Vermillion River watershed. Transportation impact study would follow this process, but it’s significant in the context that it will also deal with and identify the access and ingress and egress points along County Road 70, which the residents brought up previously at the planning commission and the city council back in August. Met Council: it’s somewhat confusing, but many of the residents, including myself, reached out to the Met Council in the first week of October and were informed that they were not approving the comprehensive plan amendment. There are indications within this document that it's in process, but there's other elements in here that say it's been approved but that the next comprehensive plan amendment would have to meet a new standard. It’s not clear and it needs to be clarified for the residents. Wetland delineation is— [12:15] **Mayor Luke Hellier:** One minute, Bob. [12:16] **Bob Erickson:** Wetland delineation is in progress and has not been completed. The DNR and the city of Lakeville have tree preservation recommended plans and ordinances in effect. And the last comment is it’s very disheartening for all of us who presented information and provided verbal comments with concerns—not in opposition, but with concerns—and now it says that there was no citizens comment. Um, I’m just—we’re disheartened by that and I’m hoping that this document this evening will become part of the official record and that the minutes will indicate that. I’m hoping Beth Loden would expect the same. Thank you. [12:54] **Mayor Luke Hellier:** Thank you. Any other citizen comments? Okay, we'll now move on to uh additional agenda information, Mr. Miller. [13:08] **City Administrator Justin Miller:** Thank you, Mayor. Uh, item 6D on the consent agenda. This is approval for the purchase of an outdoor video display and scoreboard at Grand Prairie Park. Uh, staff is asking that that be withdrawn tonight and we'll bring that back at a future date. [13:16] **Mayor Luke Hellier:** Okie do. And with that, we'll move on to our first presentation: swearing-in and badging of firefighters. And we'll turn it over to our fire chief, Mike Meyer. Good evening. [13:31] **Fire Chief Mike Meyer:** Good evening, Mayor, council members. Uh, tonight we’re going to be recognizing the class of 2023 rookie group for their successful completion of two years of probation with the Lakeville Fire Department. And I’ll ask them and their family members to step forward as I call their names. Uh, they’re all from Fire Station 2. Cory Blanchard (apparently his wife and two kids left... Oh, they’re back), Malik Cam, and Brian Monahan. As they come up, just to successfully complete probation, each firefighter earned their Fire 2 certification, Hazmat Op certification, emergency medical certification, and emergency vehicle operation certification totaling about 450 hours of training over these past two years. Uh, obviously you’ve heard me in the past that we frontload that at the very beginning when we hire them; they go from training from roughly September all the way into March of the following year to complete all of that. And then we have additional training that we do internally as a department. So, uh, with that, uh, we’d like to do the oath of office and have their family members badge them. So, I’m gonna spin around and have you raise your right hand, firefighters, and repeat after me. [14:50] **Firefighters:** [Reciting Oath of Office] [15:25] **Fire Chief Mike Meyer:** And if your family member wants to pin your badge on. It's always a trick without drawing blood. Thank you for allowing us uh this time to acknowledge our members and their successful completion of all of their training and their probationary period. We’ll stand for any questions that you may have. [16:03] **Councilmember John Bermel:** I got no questions but uh just a comment. Congratulations. Um, listening to your training, you folks have worked really, really hard to get to the place you're at and uh the work is just beginning. Um, so you’ll have plenty of training and plenty of practical opportunities. But I just personally appreciate your commitment to our community. This is going above and beyond and you are going to be sacrificing a lot uh to be part of the fire service and uh it’s cool to see your families here and uh that support is so important. Um, so congratulations. Well done. [16:47] **Councilmember Joshua Lee:** Yeah, I’ll echo that, but also just say uh thank you for what you’re doing. Um, even outside of the firefighter role, Brian, getting involved with the fire relief right off the bat—um, I get to serve on that board with him—and so I just know that in addition to the work you’re doing as a firefighter, you’re serving the community in other ways. And so I also just want to second the thanks to the families for your service and to the kiddos, the service that you don't even know you're doing yet, but uh it’s very much appreciated. So thank you. And it’s a big night tonight. You have a big department meeting. So uh thanks to everyone for your extra time tonight. [17:29] **Mayor Luke Hellier:** Just to echo what my colleagues said, but we’re so grateful for your service to our community and also the support from your spouses and your families. So thank you. If you want to come up, we’d like to shake your hand before we send you off. [18:01] [applause] [18:16] **Fire Chief Mike Meyer:** You give us a couple minutes? [18:18] **Mayor Luke Hellier:** We will give you a couple minutes. Yep. No problem. [18:54] **Mayor Luke Hellier:** Okay, we’ll uh now move on to item B, our Park and Recreation quarterly report. And I’ll turn it over to our Parks and Rec Director, Joe Masiarchin. Good evening. [19:09] **Parks & Recreation Director Joe Masiarchin:** Welcome. Good evening, Mayor and uh city council. I’m here to give you the quarterly report for the Parks and Recreation department for the months of September through November. And uh we’ll start out with administration um and a picture of Grand Prairie Park. So, Grand Prairie Park construction continues to move along. Uh, we worked pretty uh quickly here this fall to get things wrapped up and get as much completed as we could before uh the winter weather set in. So steel work as well as concrete seating and the walkways are underway. Those are coming uh to completion here. Uh, grandstand construction will be continuing throughout the winter. Uh, but sod for the grandstand and uh the artificial turf were all installed. So those are put to bed for the season. Uh, our parking lots and curbs are approximately 90% complete. We left some of that unfinished just to complete some of the other construction on site to make sure nothing got dinged over winter with snow removal. Uh, the splash pad was fired up. Uh, Minnesota Department of Health was out to do an initial walkthrough. So that is uh shaping up to be uh in good shape here come this spring and the majority of the amenities will be opening here in the summer of uh 2026. So we’re excited to get that project wrapped up. East Community Park phase 2 continues to move along. Um, we’ve shared the master plan with the council, but I did just want to remind uh council of some of the amenities that we anticipate will be coming online next year as we start construction of that project. Uh, so East Community Park will include a large shelter and restroom building. It’ll include Lakeville’s first community garden plots. We’re building a trailhead in conjunction with Dakota County as well as a new dog park and new trails. Uh, that project will be going out to bid here in uh in winter and we would anticipate construction starting in 2026. Keep in mind that’s the final project tied to the 2021 park bond referendum. Uh, the Lake Marion Greenway planning continues to move forward. So plans are at approximately 90% complete at this point. Um, several open houses were held this summer, most recently in November. Uh, phase one of that project is slated to begin here in 2026 and again will run from downtown Lakeville into Ritter Farm Park. When complete, uh, the Lake Marion Greenway Trail would be approximately 20 miles long, connecting Savage, Farmington, and Murphy-Hanrehan parks. Spyglass Park phase 2 was one of the neighborhood parks that we worked on this year. That project is substantially complete. There’ll be a few finishing touches here coming in spring. Uh, but that project included uh new bocce ball courts that we use for a lot of our recreation programming, a Pre-K play element—uh, you actually see that in the picture there—a multi-purpose athletic deck as well as half basketball court with pickleball striping. The park system master plan continues to move forward as well. Uh, we recently wrapped the community-wide survey, which had over 1,300 responses. Uh, over the last few weeks, we’ve moved into our stakeholder meetings and some of those included uh some of our youth athletic associations, advisory committee members and staff, and as well as representatives from Dakota County Parks. And moving into park maintenance, uh, the park maintenance staff have been busy uh this uh fall. They actually were working on the replacement of the Dakota Heights hockey rink. Um, this is a new process for our rinks but a great product ultimately led by our staff. Um, and that included the replacement and full reconstruction of the rink boards, new netting, and then um we had the surfacing replaced as well as new trails installed. Juno Trail also received some uh repairs. Um, we did—staff repaired some of the stairs uh along Juno Trail and we’ll be doing some longer-term planning looking at some replacements coming to that um here in the future years. And as we run into fall, uh, staff is always busy putting the system back to bed and that includes um herbicidal and fertilizer applications, tree trimming, uh mowing and mulching, ice rink inspections, and then uh our park building winterization. And moving on to recreation, held several special events over the last quarter, including the Who Done It Hike that is done in conjunction with the South of the River Recreators. Uh, but 76 amateur detectives joined us for that to help solve this year’s mystery. Uh, we hosted the Haunted Forest Festival. That’s at Steve Michaud Park. That’s an annual event. Uh, this year over 1,400 wristbands were sold. We did a little bit of a different process with the wristbands this year to make it an easier process for the community to purchase and in turn increased revenue by about 44%. Fall programming recap for recreation: uh, we increased our programming this fall by 40%. Some of those new programs included cookie decorating, nature homeschool, the fall Music Together, and expanded RevSports offerings sitting at just under 300 participants in the last quarter. And our rentals: um, rentals actually increased over 12% over 2024. Uh, so a little over 57,000 in rental revenue, which is a 14% increase in revenue over '24. For our buildings, we’re sitting at over 85,000 in rental revenue for the buildings themselves, a 45% increase over 2024. That’s due in large part though to the longer season, our first full year with John Hennen Pavilion being online, but also due to the fact that we shifted to two rentals per day at the pavilion. We also now have a long-term renter over at Steve Michaud Park. Upcoming skating season: uh, as I said, staff is getting ready for that. Um, over 50 seasonal staff have been hired uh to help manage our 10 rink sites. That’s 20 rinks in total. Uh, and we look to—assuming things stay on track—we’ll be flooding starting here this week. Moving on to the Heritage Center. Heritage Center had several special events and trips in the last quarter. Uh, Lakeville Luncheons had 153 participants. Our offsite trips 39, and Bingo sitting at 59. [25:49] **Councilmember John Bermel:** Sorry, what's Polish Bingo? [25:51] **Parks & Recreation Director Joe Masiarchin:** You know, I actually had to ask. I knew you were going to ask. Uh, so card bingo essentially. Uh, membership status is sitting at uh, 1,615 current members. Uh, 54 new members uh signed up over the last two months. And uh two substantial facility upgrades happened over the last quarter at the Heritage Center. One being the installation of the same electronic locking system that we’ve installed throughout the rest of the system. That’s a more user-friendly, more secure process for us. And then also the installation of the new roof at the Heritage Center. Um, throughout all of that though, programming continued as normal and the Metro Dining Cards, which is the fundraiser that we do annually to help support the 50-plus community, is ongoing again. Uh, those Metro Dining Cards are available for purchase at the Heritage Center and at City Hall this year; $30 per box and you receive discounts to 138 restaurants. Moving on to the Art Center, fall program recap: uh, so over the last three months, 55 different program sessions were offered. Uh, 297 pottery spots were filled. Our painting classes filled to 71% capacity, and we had 49 special workshops uh that filled. And year-to-date program revenue sitting at over 338,000. In September, uh, the annual Lakeville Art Festival was held. Uh, this year, 207 juried artists, over 60 volunteers, 275 youth art participants, six artists held demonstrations with over 360 participants, and this year, an estimated 600 community members participated in this year’s community art project, which was titled Light Quilt. And for our performing arts, um, year-to-date though, sitting at almost 200,000 in ticket revenue. *Tuck Everlasting* sitting at almost 1,300 tickets sold. *A Hunting Shack Christmas*, which is our community theater program—um, that sold at 910. There was a shift in how we did tickets for that, though. So, it’s actually our second highest-grossing show at over 13,000 in revenue. And then *Mini Nutcracker* this year held three performances. Those always sell out. And uh the department-wide, we’ve got several upcoming events: Empty Bowl fundraiser which is this week Wednesday; Santa’s Secret Store December 6th; the holiday craft and bake sale December 6th; the Illumination Walk coming January 9th; the youth fishing contest February 7th; and Ritterfest February 21st. And with that, I’ll stand for any questions. [29:35] **Mayor Luke Hellier:** The Ritterfest, I think, is later this year, right? [29:38] **Parks & Recreation Director Joe Masiarchin:** It is a little later. [29:39] **Mayor Luke Hellier:** And hopefully we get some snow. That’s good. [29:41] **Parks & Recreation Director Joe Masiarchin:** Yeah, we spread those events out a little bit this year. [29:43] **Mayor Luke Hellier:** Questions, comments? [29:45] **Councilmember Joshua Lee:** Well, I just want to say it’s very good and fulfilling to see how many people are doing things at the Art Center and the parks. I mean, the numbers are very strong. So, uh, kudos to your team. Thank you. [29:58] **Parks & Recreation Director Joe Masiarchin:** Much appreciated. Thank you. [30:02] **Mayor Luke Hellier:** Okay, moving on to item six, our consent agenda. Anything you want to highlight, Mr. Miller? [30:08] **City Administrator Justin Miller:** Thank you, Mayor. Uh, just a reminder, item 6D is being withdrawn. And then item 6i is a new two-year uh labor agreement with our Teamsters union, which covers um public works staff: streets, fleet, utilities, and parks maintenance. [30:21] **Mayor Luke Hellier:** Very good. Council, anything um that you’d like to pull for further discussion or can I have a motion? [30:31] **Councilmember Dan Wolter:** Mr. Mayor, I would like to pull item H. [30:35] **Mayor Luke Hellier:** Item H. Okay. Anything else? Okay. Then I’ll take a motion to approve the consent agenda minus items D and H. [30:42] **Councilmember John Bermel:** I uh move to approve the consent agenda minus items D and H. [30:46] **Councilmember Joshua Lee:** Second. [30:48] **Mayor Luke Hellier:** All those in favor say Aye. **Council:** Aye. **Mayor Luke Hellier:** Opposed? Okay. Consent agenda passes. We’ll now take up item H, resolution abating the reassessment for removal of a hazardous building. And Councilmember Wolter, I’ll let you— [31:07] **Councilmember Dan Wolter:** Yeah, we don’t have to obviously go through the whole presentation again, but we um had this discussion at the last meeting. Um, we as a council were not able to come to an agreement on an amount for a reassessment. So, this is essentially then wiping that amount off. It’s basically forgiving the entire amount. Um, and I I would like to encourage some discussion on that and reconsideration if that’s at all possible, but if not, I just would like to vote against it. In my view, this is—we have a fiduciary responsibility. This is $50,000 of taxpayer money. Um, and at a night when we’re approving a levy uh increase. Um, and I I I don’t feel like it’s—I understand the circumstances and the purchaser had some issues, but in my view, that’s something that needs to be adjudicated um and is not for us to put up uh taxpayer dollars to resolve the situation. So, that’s my rationale here. [32:02] **Councilmember Michelle Volk:** I’m just unsure what he expects us to do from here because you came up with a motion. I came up with a motion. We went nowhere. So, I don’t know where we’re supposed to go. I agree in theory with what you’re saying, but I don’t know where to go when we had two motions that failed. So, I don’t know. Unless you want to put something else out there, I don’t know where to go with it. [32:26] **Councilmember Joshua Lee:** Council [Volk], I mean, where we sit right now is that the question is reimbursing funds that have already been spent. Um, and ethically, I don’t feel good about trying to come up with a plan that we did not come up with last week. Had we needed more time to come up with something, we should have tabled it at that point. It does not feel right to do that now. Secondly, um since that meeting, we have come up with a more transparent way to show what assessments are on the bill. Since then, we’ve been in conversation with the county and there are going to be some procedural changes that make it much more clear going forward what assessments may have been cleared prior to forfeiture to the state. So I think what this situation highlighted was some issues with the process which have been resolved, and while that is not necessarily fair to the city, I think it is unfair for the individual to go back and try to assess those funds at this point. So um I would vote no for any further discussion on this item. [33:56] **Councilmember John Bermel:** I uh—I mean, on the night that this came up, I held the uh the position that the city should be able to recoup those costs. Um, that motion was voted down. The other motion failed. I, though, I’m not sure what uh if there even is a next step or what that next step would be. Um, you know, and I understand what Councilmember Lee was talking about, that this did bring about some change. I think that’s good. Uh, but I still feel uh that the city should not have had to have borne the full financial burden of of the assessments. But I I just don’t know what the next—if there even is a next step. [34:52] **City Administrator Justin Miller:** Um, it’s honestly something I’d have to look into. I think you’d probably have to go through another hearing process, notice, um, and redo the whole process again if that is an option. Um, but I believe that the property owners have now made some decisions based on the actions before. So, this was intended to be a cleanup measure. [35:12] **Mayor Luke Hellier:** And do we—they at one point had a contract to sell it. Do we know when the closing for that was? And I’m guessing they didn’t disclose to new buyers because we didn’t take action. [35:24] **City Administrator Justin Miller:** Uh, Mayor, council, I don’t know of a closing date. I just know that they have asked us um after tonight to provide a copy of the action tonight so that they can provide it to their potential buyers so they can provide it. [35:37] **Mayor Luke Hellier:** They would like to be able to um make any buyer know that this assessment is not hanging on the property anymore. [35:46] **Councilmember Dan Wolter:** Any further discussion or any motions? [36:02] **Mayor Luke Hellier:** Well, the motion would be for the resolution as it stands, right? [36:04] **Councilmember Joshua Lee:** Yep. Um, I do not have that pulled up at the moment. So then I would move to approve the resolution abating the reassessment for removal of a hazardous building. [36:21] **Councilmember Michelle Volk:** Second. [36:24] **Mayor Luke Hellier:** Okay. Any further discussion on the motion? Okay. Seeing none. Roll call, please. **City Clerk Ann Orlofsky:** Bermel? **Councilmember John Bermel:** Yes. **City Clerk Ann Orlofsky:** Wolter? **Councilmember Dan Wolter:** No. **City Clerk Ann Orlofsky:** Lee? **Councilmember Joshua Lee:** Aye. **City Clerk Ann Orlofsky:** Volk? **Councilmember Michelle Volk:** Aye. **City Clerk Ann Orlofsky:** Hellier? **Mayor Luke Hellier:** Aye. Okay. [36:47] **Mayor Luke Hellier:** Moving on to item seven, item A: Kyla Crossing Second Edition preliminary plat, comprehensive plan, and zoning map amendments. And I don’t know if we’ve got the applicant here. Yep. Come on up. [37:05] **Rick Osberg:** Evening, Mayor and council. My name is Rick Osberg. I’m with Hill Engineering in Burnsville. I’m here this evening with Bill Ryan, owner of Ryan Real Estate and Topaz. And we brought the preliminary plat for Kyla Crossing Second Edition, um, 15 years after the first one. But uh I—it’s been—the neighboring property, after speaking to some of the residents last weekend, sounds like it’s like a flourishing network of homeowners over there. So we’re glad to bring this one before you for consideration and I’ll stand for questions after the report. [37:50] **Mayor Luke Hellier:** Okay. Very good. Thank you. Good evening, Miss Goodroad. [37:55] **Community Development Director Tina Goodroad:** Good evening. Um, yes, before you this evening is the Topaz LLC submittal of applications for Kyla Crossing Second Edition, which includes 18 um new single-family lots. The property is just west of Ipava and north of Kenwood Trail across the street from Ames Arena. Um, so there are a couple of actions regarding land use and zoning. So right now the property on the right side of your screen displays the land use. It’s currently guided Medium and High Density, and the applicant has requested that the property be reguided to Low-Density Residential to support the single-family proposal. With that, then we have a zoning text amendment to change it from RM2 to the proposed RST2 to support the single-family. There is property to the south—and you can see it on the plat—this is right-of-way that was then um—when County Road 50 was widened, there was right-of-way that was purchased by the county and also storm water ponding that was conducted. That area is guided for Public. When we update our 2050 plan, we’ll absorb that and indicate that as ponding area on the land use map, but it is owned by the city and will be used for ponding in perpetuity. The preliminary plat includes 18 single-family lots. It’s a very straightforward preliminary plat. It will extend Iris Way to Ipava with a sidewalk on the north, and there will be a stop sign that will be located on Iris Way as you’re approaching Ipava, and that was one of the things the residents requested. The applicant is providing a nice buffer of landscaping through a variety of trees planted along the south boundary abutting the ponding area just to provide a little bit of buffer to County Road 50 as well as along Ipava. Planning commission did hold their public hearing on November 20th and again there was one comment at the public hearing really asking about traffic control—is there a stop sign? The planning commission did unanimously recommend approval and I would stand for any questions. [40:43] **Mayor Luke Hellier:** Okay, very good. Council, any questions, comments? [40:47] **Councilmember Joshua Lee:** Quick question about the access to that uh new street. Is there any changes to full access to that point? Is it going to be 3/4 or right-in? [40:59] **Community Development Director Tina Goodroad:** It’ll remain full. [41:01] **Councilmember Joshua Lee:** Remain full. Yep. Thank you. [41:04] **Mayor Luke Hellier:** Okay. Any other comments, questions? [41:06] **Councilmember Dan Wolter:** Yep. Just one thing as I looked, and it’s that it’s that intersection, it’s that crossing. Um, as this becomes populated and you have kids, I could see I could see that uh becoming just a place where they want to cross. Um, and it’s more of a comment about just keeping an eye on the pedestrian traffic there and then applying our pedestrian policy uh if we reach thresholds. I think it’s something we need to pay attention to. [41:42] **Mayor Luke Hellier:** Good point. Thank you. I’d agree. Any other comments? If not, we’ll take a motion. [41:45] **Councilmember Michelle Volk:** Um, I move to approve: one, a resolution approving the Kyla Crossing Second Edition preliminary plat; two, a resolution approving comprehensive plan amendment; and three, an ordinance approving a zoning map amendment and adopt the findings of fact dated December 1st, 2025. [42:11] **Councilmember Joshua Lee:** Second. [42:12] **Mayor Luke Hellier:** Okay, any further discussion? I would just say I’m—I think this makes sense to kind of match the surrounding area. So, I’m happy to support it. With that, I’ll take uh roll call please. **City Clerk Ann Orlofsky:** Wolter? **Councilmember Dan Wolter:** Aye. **City Clerk Ann Orlofsky:** Lee? **Councilmember Joshua Lee:** Aye. **City Clerk Ann Orlofsky:** Volk? **Councilmember Michelle Volk:** Aye. **City Clerk Ann Orlofsky:** Hellier? **Mayor Luke Hellier:** Aye. **City Clerk Ann Orlofsky:** Bermel? **Councilmember John Bermel:** Aye. [42:35] **Mayor Luke Hellier:** Very good. Good luck. [42:43] **Mayor Luke Hellier:** Uh, we’ll now move on to item B, a public hearing on ordering improvements and preparation of the plans for the 2026 214th Street reconstruction project. [42:49] **Public Works Director Paul Oehme:** Good evening, Mayor, city council members. Get a little overview of the project. So tonight, uh we’d like to discuss the purpose and need for the project, review the project scope, talk about the financing, the proposed preliminary assessments, and the schedule. The project itself is 214th Street West, which is just east of Hamburg Avenue, north of County Road 70. It’s about a 600-foot long cul-de-sac. This street is rated on a frequent basis through our pavement management program. Um, the street is rated at a 25 OCI (Overall Condition Index) on a scale of 0 to 100. A street that’s 40 and below is considered in poor condition and considered in the reconstruction area. The feasibility report for this project was ordered on July 21st. We did have a business owner meeting on November 5th. The plan would be to reclaim the pavement. Unfortunately, the pavement section is very thin based upon the geotechnical report, so we’d like to add about a foot of sand section to this roadway to beef it up to more commercial standard. We would like to add curb and gutter to that east side as well. The water main out on 214th Street is in fairly good condition, but we would like to replace the bolts associated with the valves that are out there. We’d also like to add a new valve to the water that goes to the water tower. The storm sewer system out here is poor, so we would like to add some storm sewer enhancements. Current project estimate is at $577,000. Pavement management fund would fund $262,000; assessments to benefiting property owners are currently estimated at $158,000. Water operations would fund the water improvements, and the storm sewer infrastructure fund would fund the new storm sewer improvements. Under this case, the front footages are kind of all over the place, so staff is recommending that we use a per-unit basis method. Every unit would be assessed the same amount. There are five parcels in the assessment role, and actually, two of them are city-owned. We’re looking at about a $31,687.94 assessment at this time. The assessment hearing would be scheduled for March 2nd and then construction would start in April right after road restrictions. And we’d like to try to have this project done sometime in June before the first center opens. [50:56] **Councilmember Joshua Lee:** Thank you. Director Oehme, just one clarifying question about the parcels that will be assessed. You stated that there are five, two of which are city, which means that the city is being assessed that same equal portion, right? [51:16] **Public Works Director Paul Oehme:** On top of what the city is already financing for the project. Correct. [51:21] **Councilmember Joshua Lee:** That’s correct. Yeah. Thank you. [51:25] **Mayor Luke Hellier:** This is a public hearing, so I’ll now open the public hearing if there are any comments from the public about this project. [Pause] If not, I’ll take a motion to close the public hearing. [51:36] **Councilmember Dan Wolter:** I move to close the public hearing. [51:38] **Councilmember Joshua Lee:** Second. [51:39] **Mayor Luke Hellier:** All those in favor say Aye. **Council:** Aye. **Mayor Luke Hellier:** Opposed? Okay. The public hearing is now closed. With that, any further discussion? [51:50] **Councilmember John Bermel:** I uh make a motion. I move to approve a resolution ordering the improvements and authorizing the preparation of plans and specifications for the 2026 214th Street reconstruction project, city project 26-01. [52:09] **Councilmember Joshua Lee:** Second. [52:11] **Mayor Luke Hellier:** Any further discussion? Seeing none. Roll call, please. **City Clerk Ann Orlofsky:** Lee? **Councilmember Joshua Lee:** Aye. **City Clerk Ann Orlofsky:** Volk? **Councilmember Michelle Volk:** Aye. **City Clerk Ann Orlofsky:** Hellier? **Mayor Luke Hellier:** Aye. **City Clerk Ann Orlofsky:** Bermel? **Councilmember John Bermel:** Aye. **City Clerk Ann Orlofsky:** Wolter? **Councilmember Dan Wolter:** Aye. [52:25] **Mayor Luke Hellier:** Very good. Thank you. [52:35] **Mayor Luke Hellier:** Okay. We’ll now move on to item C, a public hearing on the adoption of a fee schedule by ordinance. And I’ll have our finance director kick this off. [52:45] **Finance Director Julie Stahl:** Thank you, Mr. Mayor and members of the council. Um, approval of this ordinance tonight will result in the approval of changes for our permits, planning, and engineering fees, and connection charges and other development fees. Approval of the summary publication of ordinance requires a four-fifths approval vote. State law does require that the establishment or modification of our fees to process land use applications must be established by ordinance after the public hearing is conducted. The proposed changes are consistent with the discussions that we had with council at the work session on October 27th. We had two minor changes since then. One of them was updating the park shelter rental fees based on direction from council to compare ours to other nearby cities. And then we discovered on the utility bill late payment charge that the statute had a limit on that, so we brought that one back down slightly. [54:17] **Mayor Luke Hellier:** Council, any questions? Okay, this is a public hearing, so I’ll open the public hearing. [Pause] I don't believe we’re going to have any comments. And so, with that, I will take a motion to close the public hearing. [54:30] **Councilmember Dan Wolter:** So moved. [54:31] **Councilmember John Bermel:** Second. [54:32] **Mayor Luke Hellier:** All those in favor say Aye. **Council:** Aye. **Mayor Luke Hellier:** Opposed? Okay. Any further discussion about the fee schedule? [54:40] **Councilmember Dan Wolter:** I’ll move to approve the ordinance adopting fees and summary publication of ordinance and move to approve the resolution adopting the fee schedule. [54:55] **Councilmember John Bermel:** Second. [54:57] **Mayor Luke Hellier:** Any further discussion? Roll call, please. **City Clerk Ann Orlofsky:** Volk? **Councilmember Michelle Volk:** Aye. **City Clerk Ann Orlofsky:** Hellier? **Mayor Luke Hellier:** Aye. **City Clerk Ann Orlofsky:** Bermel? **Councilmember John Bermel:** Aye. **City Clerk Ann Orlofsky:** Wolter? **Councilmember Dan Wolter:** Aye. **City Clerk Ann Orlofsky:** Lee? **Councilmember Joshua Lee:** Aye. [55:10] **Mayor Luke Hellier:** Very good. And now we will have you stay up there for our public hearing truth-in-taxation for the 2026 property tax levy and budget. [55:18] **Finance Director Julie Stahl:** Thank you, Mr. Mayor, and members of the council. Um, so this is the last step in our statute-guided process with our levy and our budget. Tonight’s purpose is to present the proposed budget to the public and receive public comment. A big thank you first to staff, council, and administration for all of your support and efforts in reviewing these budgets. Um, it’s a lot of work that goes into it. For Lakeville, the changes to our taxable market value: we had a 3.4% valuation increase across the board, and 2% new construction added to that, so a 5.4% increase in our taxable market value. Our city’s median value home increased by 3.9%. The community growth does account for roughly $257 million of the property valuation and it generates roughly 842,000 in property taxes. Total levy of $51,986,475. This is a 6.4% increase from our 2025 levy. We were able to bring it down from our preliminary September adoption which had a 7% increase. Dollar-wise, it’s roughly a $3 million increase and it is providing funding for our operations, our capital maintenance, and our debt service. What this means for our median value home ($467,000) is they would see a $75 annual increase for their city portion of their taxes. Lakeville continues to hold the lowest tax rate in the major cities in Dakota County. We are at the lowest at 33%. Some of the changes that happened since that preliminary adoption: we did reduce the general fund levy by 300,000. There were increases in fire and police aid. Expenditure changes: the fire aid that goes to the relief association increases by $143,000. In the 2026 budget, we did add three full-time positions: an information technology specialist, a facilities technician, and a park maintenance II. Liquor fund continues to do well and help offset and keep our property tax levies low. We’re looking at 2.3 million of transfers out of the liquor fund to help support those other city funds. [1:07:42] **Mayor Luke Hellier:** Council, any comments? This is a public hearing, so I’ll open the public hearing if there’s any comments. [Pause] Okay. With that, I’ll take a motion to close the public hearing. [1:07:58] **Councilmember Joshua Lee:** So moved. [1:08:00] **Councilmember Michelle Volk:** Second. [1:08:02] **Mayor Luke Hellier:** All those in favor say Aye. **Council:** Aye. **Mayor Luke Hellier:** Opposed? Okay. Council, any comments? [1:08:09] **Councilmember Joshua Lee:** Um, well, I would be remiss if I didn’t acknowledge the fact that this budget is the culmination of sound fiscal management by the whole organization. Um, and I think the only way we can get to the lowest increase in the county is through foresight—sound foresight, good use of the funds that are being provided to staff. And our finance committee who’s advising us and ensuring that we’re maintaining our financial sustainability policy. So, to the staff, to the committee, Director Stahl, just thank you for your work on this. I’m proud of where we’re at right now. I’m glad that we’re lower than the 7% that was in the preliminary budget and that we continue to be the lowest tax rate in the county and I believe still the lowest-taxed county in the state. [1:09:36] **Councilmember John Bermel:** I echo what Councilmember Lee said. I—one of our responsibilities is to set a reasonable levy and I think this really hits that mandate to be reasonable in our budgeting. I agree—thank you to staff, thank you Julie for your hard work on this. For you, it's almost the entire year and uh you're really paying close attention to the taxpayers's dollars. I look at this budget and there's no fluff there. I agree also the original 7% was better than I had expected, but this coming in even lower than that shows that um you're just looking at it right to the very finish. [1:10:46] **Councilmember Dan Wolter:** I don’t want to repeat what’s already been said, but I agree with both Councilmember Lee and Bermel’s comments. Just my appreciation to the staff um on all the work here. Um, you know, one of my frustrations since joining the council is—when you see it from this side, the property tax system—people get a mailer that has a percentage on it and that’s real money that comes out of their pocket. Um, but for me, trying to put this in context of the growth of government, you really have to use a per capita type model just to see are we—with the population growth—where does this levy stack up. My back-of-the-napkin calculations show that this actually is a modest decrease when you factor the population growth in. I applaud again the work that’s been done. [1:12:12] **Councilmember John Bermel:** Move to approve three resolutions: one, adopting the 2026 property tax levy; two, adopting the 2026 budget; and three, authorizing the 2026 purchase and disposal of vehicles and equipment. [1:12:23] **Councilmember Joshua Lee:** Second. [1:12:25] **Mayor Luke Hellier:** Okay. Very good. Any further discussion? Well, I’ll just close and just say again my gratitude to you and all the department heads for putting together the budget. I think one thing that stood out to me—obviously would echo what you guys said—but the fact that we’re investing in some infrastructure with cash instead of borrowing, I think is important. I think we’re really setting ourselves up for some long-term success. And with that, I’ll take a roll call. **City Clerk Ann Orlofsky:** Bermel? **Councilmember John Bermel:** Aye. **City Clerk Ann Orlofsky:** Wolter? **Councilmember Dan Wolter:** Aye. **City Clerk Ann Orlofsky:** Lee? **Councilmember Joshua Lee:** Aye. **City Clerk Ann Orlofsky:** Volk? **Councilmember Michelle Volk:** Aye. **City Clerk Ann Orlofsky:** Hellier? **Mayor Luke Hellier:** Aye. [1:13:09] **Mayor Luke Hellier:** Okay, very good. Thank you. Um, unfinished and new business? [Pause] Okay, seeing none. Announcements: Our next work session is next Monday, December 8th. That’s a change; typically we have that on the last week, but we changed it because of Christmas. Our next city council meeting is December 15th. And with that, I’ll take a motion to adjourn to a closed session. [1:13:35] **Councilmember Dan Wolter:** I move to close the meeting to conduct a performance evaluation of City Administrator Justin Miller pursuant to Minnesota statute 13D.05 subdivision 3A. [1:13:45] **Councilmember John Bermel:** Second. [1:13:46] **Mayor Luke Hellier:** Okay. All those in favor say Aye. **Council:** Aye. **Mayor Luke Hellier:** Opposed? Okay. We’ll adjourn into closed session. [1:13:58] [music] [1:14:33] [music]