The proposal to construct Atlas Villa’s Memory Care on a 4.36-acre site along Ulyses Street was a key agenda item. The facility, designed to accommodate seven or more residents, required a conditional use permit under the B3 zoning designation. The council reviewed the site plan and conditional use permit application, which included plans for a 26-room facility with dining, kitchen spaces, activity areas, and a secure outdoor yard. The planning commission had previously recommended approval, noting no opposition during the public hearing.

A resident raised concerns about the potential impact of the future expansion of Highway 65 on the project, particularly regarding visibility and access. The planning staff clarified that the proposed site is within a dedicated right-of-way, distant from any planned highway expansion. They assured that the highway’s right-of-way would remain unchanged unless extraordinary circumstances occurred. Parking for the facility would be located on the western side of the property, accessible from Ulyses Street, with stormwater management systems in place.

Questions about vacating a utility easement for the developer were addressed, with staff explaining that vacating the easement is standard when properties are combined, as the easement becomes impractical for development. The site would maintain perimeter drainage and utility easements to ensure compliance with city codes. The developer, Amber Gian, justified the location choice, citing high traffic volume on Highway 65 as beneficial for visibility and plans for a prominent sign. Gian emphasized commitment to establishing a reputable facility with an appealing architectural design.

The council approved the motion to vacate the drainage and utility easement, with the understanding that it was unnecessary due to the lot combination. This decision aligned with the council’s support for the development, provided all conditions were met before issuing a building permit.

In other matters, the council discussed an ordinance change regarding compensation for the mayor and council members. This change, stemming from a directive in a prior work session, proposed a 10% increase in compensation with an automatic escalator for future adjustments. Concerns were raised about potential conflicts with labor agreements and Minnesota state statute 415.11, which requires an election before salary increases can be implemented. It was noted that there had been no raises since 2005, and the suggested compensation was comparable to other cities. The council passed a motion to modify ordinance number 2025-05.

Zoning issues were also on the agenda, particularly the rezoning of four properties along Johnson Street, which were discovered to have a zoning discrepancy. The properties were previously zoned light industrial but guided for low-density residential use. The rezoning aimed to align the zoning map with the comprehensive plan, allowing property owners more flexibility in enhancing their properties. Following a public hearing and unanimous recommendation from the planning commission, the council approved the rezoning to single-family and townhome residential.

The council also deliberated on increasing the city’s liability coverage from $1 million to $1.5 million. Questions were raised about the necessity of this increase, with references to past cases where liability claims exceeded set limits. The finance director explained the additional coverage was recommended to protect against potential liabilities exceeding the standard cap, such as claims involving injuries or city operations. The council emphasized understanding the financial implications before making a decision.

Additionally, the council addressed infrastructure planning, with updates on a Senate bonding tour rescheduled to the 28th. The city had requested $10.5 million from the state for a project to improve water services, including installing wells, a water tower, and a treatment plant. The council expressed optimism for a positive response to their funding request.