The meeting’s most newsworthy development was the council’s approval of a tax abatement program for M & D Properties LLC, aimed at facilitating the construction of townhouse units on North Highland Avenue. This project, which will be developed in two phases on a single parcel, seeks to provide affordable rental housing by alleviating the high costs of construction. Phase one will include eight units—four three-bedroom and four two-bedroom—while phase two will consist of six units, with an equal split of two-bedroom and three-bedroom units. The tax abatement is estimated to amount to $164,251 over ten years, with anticipated annual payments of $16,425 to cover site improvements, exterior lighting, parking, and landscaping. This will ensure the project remains economically viable without the need to create new jobs. The council unanimously passed a resolution to approve the tax abatement program, following a presentation by Mr. Schnowick and a public hearing where no objections were raised.

In parallel, the council also approved a tax abatement for SLD Properties LLC, designed to aid the development of a commercial building on a vacant property at 318 to 326 North Broadway. The proposed structure, valued at approximately $1,524,700, will feature around 32 parking stalls and involves significant ground preparation due to unsuitable soil conditions. The tax abatement will provide $19,776 annually over 13 years, totaling a maximum of $256,958,000, to cover costs related to soil removal and replacement with structural fill, as recommended by Brown Intertech. The council’s approval followed a discussion about the typical duration of tax abatements, with this project requiring a longer term due to its unique challenges.

Beyond tax abatements, the council approved the 2025 MSAS improvement project, which focuses on bridge scour repair for the 20th South Bridge. After receiving bids that exceeded initial estimates, the project was rebid with clarified terms, and MR Paving and Excavating submitted the lowest bid of $339,196. Despite being 37% over the engineer’s estimate, the bid was accepted and is supported by a 50/50 cost share with Nicollay County and fully funded by state aid. This ensures the project will not impact the 2025 bond issuance.

The council also discussed the 18th South Street Storm Sewer Lift Station Project, confirming FEMA funding of $1.125 million. The engineer’s estimate for the project is $1.513 million, with the city’s share covered by the 2025 bond issuance. The council approved a resolution to proceed with plans and set a bid opening date for February 11, 2026. The lift station will include an underground vault structure with backup components for efficient water management.

The 2026 Budget and Property Tax Levy were presented, reflecting a 7.36% increase from 2025, totaling $11,238,592.

In other business, the council conducted a second reading and adopted Ordinance number 2025-11, amending zoning regulations for grid lots in the R3 district recorded before October 1, 1968. This amendment allows these lots to adhere to RT2 district standards.

The council also approved an amendment to a tax abatement agreement with Garden Terrace New 2 LLC and Oak Hills Living Center, following Brown County Board’s participation, contributing around $250,000 to the project.

Additionally, the meeting addressed a grant agreement amendment for the BLRR Drug Task Force, with the city serving as the fiscal agent for this initiative. The task force relies on a $288,000 grant, highlighting its important role in supporting regional law enforcement.

Lastly, the council approved a grant agreement with the Minnesota Department of Public Safety, designated as number A-VC-2026-New PD–007, providing $288,000 for the Violent Crimes Enforcement Teams and the Drug Task Enforcement initiative. This resolution passed unanimously.