The most debated topic of the meeting centered around the proposed sale of city-owned property located on Jacob Street to Land Haven Development LLC for a nominal sum of $1. The property, part of the Airport Industrial Park Third Edition, has a market value of $102,000. This sale would involve a significant business subsidy of $217,000, necessitating compliance with the Minnesota Business Subsidy Act. The council previously purchased the land from the Schultz family to expand the industrial park, and it has been subdivided into four lots. One lot was sold to Streams Edge Properties LLC, which later returned it to the city at no cost due to a change in their needs.

Tony Goan, representing Land Haven Development, expressed interest in subdividing the property into up to 29 smaller lots to construct storage facilities, potentially with residential units within the buildings. This aspect of the proposal sparked debate, as it raised concerns about compatibility with the industrial zone, primarily due to potential noise and traffic impacts from nearby facilities, such as Walmart and a trucking company. Council members sought clarification on whether allowing residential spaces in this development would set a precedent for future residential projects in industrial areas. It was clarified that the planned unit development designation would limit such residential options to this particular property unless the council chose to extend similar provisions to others.

A public hearing allowed community members to comment on the sale, with one resident highlighting the importance of exploring creative housing solutions to utilize underused land and meet community housing needs. However, the proposal raised questions about whether such developments would prioritize job creation, which Mr. Schnober clarified was not the case. Instead, the project would focus on road and utility improvements, requiring zoning changes. After discussions, a motion to close the public hearing was approved.

Another notable item on the council’s agenda was the interim use permit application for a business operating out of a residential property on South Minnesota Street. The applicant sought permission to run a facial release therapy business from an unused bedroom in their basement. The Planning Commission recommended approval, citing minimal traffic impact since the business would serve one customer at a time. The council noted that similar permits had been granted for other home-based businesses, such as hair salons and dog grooming services. The permit would be valid for five years, with an option to reapply for another five years. The council appeared supportive, recognizing the proposal’s compliance with interim use permit standards.

The meeting also addressed a plan amendment proposed by Keith Marty, seeking to change the land use designation for property on North Highland Avenue from low and medium density residential to high density residential. The proposed development includes four three-story apartment buildings, detached garages, a pool, a playground, and a dog park, totaling 144 residential units. During discussions, concerns arose about increased traffic, property values, and potential impacts on nearby developments. However, the council approved the petition to amend the comprehensive plan, emphasizing the benefits of additional residential units for the community.

In labor matters, the council reviewed a new collective bargaining agreement with Law Enforcement Services (LS Local 150) reached after mediation. The three-year agreement from 2025 to 2027 includes general wage increases and market adjustments. A key change is the removal of the residency requirement, which previously mandated a 30-minute response time for officers living outside city limits. This removal aims to address staffing challenges. The contract has been ratified by LS Local 150, and the council approved the agreement unanimously.

The meeting also involved discussions on financial matters, including year-end transfers and encumbrances and a professional services contract for slope and scour stabilization plans for bridge number 08520. The bridge, after an underwater inspection, was identified as needing significant scour stabilization, with Wirth Inc. engaged to develop plans and specifications for construction slated to begin in fall 2025. The council approved the contract, with state aid covering the costs.

Lastly, the council considered Ordinance Number 2025 regarding cannabis zoning regulations. This ordinance, undergoing its second consideration, received no public comments and passed without changes from its first reading. The ordinance permits cannabis businesses to operate in designated areas, with interest in specific locations yet to be detailed.