The most notable outcome of the meeting was the council’s approval of a tax abatement program aimed at facilitating the construction of a senior housing project by Garden Terrace Newm 2 LLC and Oak Hills Living Center. This project, located on North Garden Street, plans to construct a three-story apartment building specifically designed for seniors aged 55 and older. The building will feature 39 units, comprising studio, one-bedroom, and two-bedroom apartments, along with both enclosed and surface parking spaces. The tax abatement is important for the project’s viability, as it addresses economic feasibility issues stemming from high construction costs and challenging soil conditions.

The approved tax abatement program will rebate a portion of the property taxes over ten years, with a total proposed abatement amount of $585,176, averaging $58,517 annually. This strategy is intended to support site improvements and construction costs, with the first abatement revenue anticipated in 2028, contingent on project completion by 2026. An amendment to the agreement stipulates that the owner and operator cannot transfer the project without prior written approval from the city, and any financial deficiencies in tax abatement revenue must be covered by the operator. The Brown County Board of Commissioners had already expressed unanimous support for the tax abatement, with a public hearing scheduled for December 16.

Beyond the senior housing initiative, the council discussed the proposed 2026 capital improvement plan, which outlines infrastructure improvements over the next five years. The plan includes substantial investments in street and alley reconstructions, as well as pedestrian safety enhancements. The city engineer’s report highlighted the need for approximately $2.4 million in bonding, with the assessment percentage set at 24%, which meets the minimum requirement for bonding. The plansning includes surface reconstruction on Franklin Street, ravine stabilization, and various alley projects. Pedestrian safety is a priority, with improvements planned near MLC soccer fields and along State Street. The council adopted the proposed plan after the presentation, with no additional questions raised.

The meeting also covered the airport aircraft fueling system replacement project, where Minnesota Petroleum Services was awarded the contract. Their bid of $863,260 was 2% below the engineer’s estimate and will be funded by a 60/40 MDOT grant. This project aims to replace an aging fuel system installed in 1990. Additionally, the council addressed the 2025 MSAS improvement project, opting to reject the sole bid received, as it was higher than the estimate. The council agreed to readvertise the project with modifications to accommodate potential high water events near the river.

Further updates included a successful induction ceremony for new fire department members and the approval of various community-focused initiatives. The council approved a raffle and gambling permit for the Church of St. Mary and reviewed financials from the Convention and Visitors Bureau, approving their budget for 2026. Donations to the fire department, totaling $4,876.34, were accepted, reflecting contributions from local community events and organizations.