The establishment of Development District Number 2 was a focal point of the meeting, with Community Development Director Troy Klecker presenting a detailed program aimed at boosting the construction of single-family homes. The initiative includes a financing scheme that covers hard surfacing, curb, gutter, and sidewalk costs. The city plans to offer loans equivalent to these costs, with a maximum cap of $20,000 per lot. These loans, repayable as lots are developed and sold, carry an interest rate of two percent above the city’s bond rate. The council unanimously passed resolutions to establish the district and approve the incentive program, which is designed to run through 2026, contingent upon available funds.

Following this decision, the council shifted its focus to infrastructure, approving a five-year street construction plan with a proposed budget of $1.8 million. Finance Director Emily Burns, along with Todd Hagen from Ehlers and Associates, outlined the necessity of a public hearing to authorize bond issuance for financing these street repairs. With no public objections, the plan was approved.

In parallel with these initiatives, the council also deliberated on the Mineral Springs development project, receiving positive feedback from the developer, Stephen, who highlighted the project’s potential to pave the way for future developments. The first phase of Mineral Springs aims to introduce a diverse range of housing units to meet local demands, particularly for workers unable to find housing in Owatonna. The council unanimously approved the initial stage of the development, further advancing the city’s housing objectives.

Continuing with the theme of housing development, the council approved a land development agreement linked to a newly established incentive program. This agreement, the first of its kind under the new program, involves financing infrastructure costs related to residential development, with a total loan amount of $704,724.30 recommended. The repayment is structured over five years, tied to lot sales.

The meeting also addressed various resolutions and proposals aimed at enhancing local infrastructure and services. A significant resolution involved the approval of a final plat for Mineral Springs Estates, which will add 36 new lots and 13 outlots, extending services from Seventh Avenue. This development aligns with the city’s broader strategic goals of expanding its housing inventory.

Another noteworthy approval involved a land development agreement for Culligan, consolidating multiple parcels into a single lot for a storage facility. Despite some neighbor objections during the Planning Commission’s public hearing, the council approved the resolution.

The council also tackled a request from Larry Schultz of LSO Farms to construct an 11,520 square foot accessory building in the industrial park. This addition is expected to support local industrial growth.

Additionally, the council approved transferring local assessment duties to Steele County, streamlining the property assessment appeal process and aligning Owatonna with neighboring communities. This transition will simplify administrative processes and improve efficiency in property assessments.

The meeting concluded with updates from the fire department, including staffing changes and community engagement efforts. Three new paid-on-call firefighters have completed their basic training, and three more recruits are undergoing initial training. Fire Chief Ed Hoffman highlighted the department’s extensive training hours and community involvement, emphasizing the importance of safety and preparedness.

In response to a severe windstorm on July 28 that caused extensive tree damage, the fire department reported an estimated $919,000 in damages, with a request for state disaster assistance underway. The council received this update without debate, acknowledging the department’s efforts in addressing the aftermath.