One of the primary topics was the comprehensive update to the city’s business subsidy policy, which had not been revised since the early 2000s. A staff member presented a detailed PowerPoint, highlighting the changes and clarifying the purpose, goals, criteria, and evaluation methods for subsidy requests. The updated policy also introduced new pre-application and application forms to streamline inquiries from interested parties. A public hearing was held, but no comments were made, leading to the council’s unanimous approval of the revised policy without further discussion.

Another agenda item was the presentation by a Northland Securities representative on the city’s debt obligations and the issuance of the Series 2024A bonds. The representative explained the importance of using debt to finance capital improvements when other financing strategies are not feasible. The presentation included charts showing the projected increase in outstanding debt alongside the tax levy for debt service, emphasizing the city’s sound debt management practices. The city’s credit rating was noted as “double A minus” by S&P Global as of September 2023. Due to the small size of the Series 2024A bonds, they were not individually rated, but the representative assured that the existing favorable rating would mitigate any potential interest rate disadvantages. The council unanimously passed the resolution for the issuance and sale of the bonds, which would finance the city’s 2024 street improvements with a true interest cost of 4.55%.

The council also discussed an interim use permit requested by Knife River for a portable crushing operation for asphalt and concrete materials. The operation, set to last approximately three weeks during the construction season, will operate from 7:00 a.m. to 7:00 p.m., Monday through Saturday. Conditions attached to the permit include limits on stockpile size and location, minimum setbacks from wetland areas, and requirements for trash storage and lighting. The council approved the resolution unanimously, showing strong support for the project.

In addition, the American Legion proposed updating the materials on the western side of their building, replacing the existing concrete block with steel siding featuring exposed fasteners in red, white, and blue. The Planning Commission had already recommended the project with a 7-0 vote. Given the building’s location in the downtown district, the council needed to approve the use of steel siding beyond the code’s 15% limit for accent or entry design. The council unanimously voted in favor of the proposal, allowing the American Legion to proceed with their updates.

The council addressed a request for the deferment of assessments related to the 2024 project on the Grasier Trust property. The property, classified under Green Acres, allows for automatic deferment until it is sold or developed. The council discussed and ultimately supported a zero percent interest rate for the first 15 years of deferment, with market interest rates applying thereafter. This motion passed without opposition.

During department reports, members noted upcoming absences and highlighted a recent groundbreaking ceremony for Hall Food and Tap, which saw good attendance. The council also discussed traffic and pedestrian management on First Avenue, stressing the need for safe crossings and sidewalks due to anticipated increased volume from upcoming developments.

Finally, the council moved into a closed session under Minnesota State Statute 13D.05, subdivision 3C, to discuss counteroffers for the acquisition of several properties, including a last-minute addition of a property on Elm Street. The public portion of the meeting was concluded before addressing these matters privately.