In a development, the council engaged in a heated discussion over ongoing negotiations with BDM Construction and Firebird Land LLC regarding their use of city-owned facilities. The negotiations have been ongoing for two decades, and frustrations ran high as council members expressed dissatisfaction with the protracted process. One council member highlighted that an agreement had been reached after discussions, only to be unexpectedly altered by BDM. It was revealed that BDM’s owner threatened legal action against the city, claiming to have allocated $100,000 for this purpose. This revelation prompted concerns about the implications of a commercial entity threatening litigation against the city, especially when it had not charged BDM for utilizing city facilities.

The council underscored their commitment to equitable treatment for all businesses and the prudent use of taxpayer dollars. A motion had previously been made to initiate eviction proceedings if an agreement with BDM was not finalized by a specified deadline. Although eviction proceedings had not yet commenced, efforts were made to reach out to BDM for cooperation. Due to BDM’s inaction, the council proposed a new motion to evict them from certain rooms while allowing limited access to one office. This motion included directives to isolate electrical usage, calculate monthly costs, and change the internet password to prevent unauthorized access. Additionally, the council stipulated that any damages to the premises should be assessed to BDM, with potential recourse in small claims court, and mandated the removal of a sign placed on city property within 24 hours.

Debate ensued over the implications of the eviction motion, with one council member expressing reluctance to support it due to potential litigation costs. They argued that while honoring the contract was essential, the financial ramifications of pursuing eviction could outweigh the benefits. The council emphasized that BDM had been utilizing city resources without compensation for years, and it was deemed unacceptable for a business to threaten litigation over this issue. Ultimately, the motion was put to a vote, passing with some members in favor, one opposed, and one abstaining.

In addition to the BDM dispute, the council also focused on the 2026 preliminary budget and levy. A presentation from staff outlined a projected 7% increase in the general fund expenditure budget, amounting to an additional $479,400, necessitating a levy increase of 3.88%, or $246,100. Key cost drivers included an 8% cost-of-living adjustment for employees, a 7% increase in law enforcement contract costs, and a new Minnesota paid leave program. Several resolutions related to the budget and levy were presented and approved without opposition.

The council further addressed the probationary period for the city planner, Grace. A council member expressed confidence in Grace’s performance, noting her effective management of responsibilities and contributions to community development. However, another council member advocated for extending her probationary period by three months to ensure her independent operation. This motion to extend the probation was passed.

A new peer support program named Sento was introduced, aimed at providing emotional support for public safety personnel. The program, which incurs no financial cost for the city, connects employees with a network of 14,000 peer supporters nationally. The council unanimously approved the peer support service for the fire department, acknowledging its importance for mental health support.

The council also deliberated on two variance requests for a property owned by Troy and Lorie Slater. The variances sought to allow five accessory structures and a total accessory structure square footage exceeding zoning code limits. After assessing the proposal against the practical difficulties test, the council unanimously approved the variances.

Additionally, the council reviewed a request from Share Co-Construction for rezoning, a planned unit development (PUD) preliminary plan, and a preliminary plat for Cliffs Anderson Acres. The subdivision consists of three lots and complies with zoning regulations, with minimal environmental impact anticipated. The council approved the rezoning and PUD requests, following the planning commission’s recommendation.