4.1 DRAFT MINUTES 06-17-2024City of
Elk.
Members Present:
Members Absent:
Meeting of the City Council
Held at the Elk River City Hall
Monday, June 3, 2024
Mayor Dietz, Councilmember Cory Grupa, Councilmember Matt Westgaard,
Councilmember Mike Beyer, and Councilmember Jennifer Wagner
None.
Staff Present: City Administrator Cal Portner, Economic Development Director Brent O'Neil,
Senior Planner Chris Leeseberg, City Clerk Tina Allard, Building Official Mark
Pistulka, Finance Manager Lori Stich, and Records Specialist Katie Porath
CALL MEETING TO ORDER
Pursuant to due call and notice thereof, the meeting was called to order at 6:30 PM.
2. PLEDGE OF ALLEGIANCE
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The Pledge of Allegiance was recited.
CONSIDER AGENDA
Mayor Dietz stated Items 8.4 and 8.6 would be moved before Item 8.1 on the agenda.
Moved by Councilmember Westgaard and seconded by Councilmember Grupa to approve
the agenda, as amended. Motion carried 4-0.
CONSENT AGENDA
Moved by Councilmember Beyer and seconded by Councilmember Westgaard to approve
the following consent items as outlined in their respective staff reports. Motion Carried 4-
0.
4.1 May 20, 2024, City Council Regular Minutes
4.2 Check Register
4.3 Executive Recruitment Contract Agreement 24-15
4.4 Hire Police Officer Magnuson
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4.5 Hire Police Officer Libor
4.6 Call Special Budget Meetings
4.7 2024-2025 Liquor License Renewals
4.8 Temporary Liquor License: Aegir Brewing Company
4.9 Resolution 24-27: Confirming Status of Lease Agreement with iBackCheck
4.10 Emerald Ash Borer Management Plan
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4.11 Ordinance Amendment 24-14: Boards and Commissions and Resolution 24-28 for Summary
Publication
4.12 Insurance Agent of Record
4.13 Resolution 24-29: Findings of Fact Approving a Variance Request for Ivan Foxcroft, 20055 Polk
Street NW
4.14 Purchase: Lion Fire Attack System
4.15 Purchase Class A Burn Trailer
4.16 Separation Agreement and Waiver of Claims
5. OPEN FORUM
No one appeared for Open Forum.
6. PRESENTATIONS, AWARDS, AND RECOGNITION
6.1 Planning Commission Interviews
Councilmember Wagner arrived at 6:32 p.m. following the HRA work session.
The Planning Commission applicant was not present. The Council asked to move the item to a future
meeting.
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6.2 Annual Comprehensive Financial Report for Year ended December 31, 2023
Ms. Stich introduced Andrew Grice, Bergan KDV, who presented the staff report. He reported
following Bergan's audit for the fiscal year ending December 3 I, 2023, they have issued a clean,
unmodified opinion, the best they can issue. There were no deficiencies or material weaknesses to
report.
Mayor Dietz asked if there was a difference if the city reserves were at 40% or 43%. Mr. Grice explained
that a higher percentage is better for bond ratings and provides more flexibility.
Mayor Dietz reviewed the balance of the liquor stores and stated Highway 169 construction had
affected 2023 revenue.
Mayor Dietz clarified the long-term debt amounts listed.
Mayor Dietz stated that the fire relief association may ask for an increase in their benefits for 2025.
Councilmember Westgaard asked why the expenditures in Parks and Recreation were less than
expected. Ms. Stich stated she would research.
Moved by Councilmember Westgaard and seconded by Councilmember Beyer to accept,
by motion, the Annual Comprehensive Financial Report for the City of Elk River for the
year ended December 31, 2023. Motion Carried 5-0.
7. PUBLIC HEARINGS
7.1 Resolution 24-30: Tax Increment Financing District and Plan for Heritage Millwork, Inc. (TIF No.
29)
Mr. O'Neil introduced Milcaela Huot, Baker Tilly, who presented the staff report. Ms. Huot provided
a financial review and needs analysis based on a TIF plan for the original 110,000 SF building and 40,000
SF expansion. The maximum term is nine years.
The Joint Finance Committee and EDA provided recommendations for approval.
Mayor Dietz asked what the proposed interest rate would be. Ms. Huot stated it would be 5%.
Mayor Dietz opened the public hearing. There being no one to speak to this matter, Mayor Dietz closed
the public hearing.
Moved by Councilmember Grupa and seconded by Councilmember Beyer to adopt, by
motion, Resolution 24-30 creating TIF District No. 29 and adopting the TIF plan. Motion
Carried 4-0. Councilmember Westgaard abstained, consistent with the city's conflict of
interest ordinance.
8. GENERAL BUSINESS
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8.1 Ordinance Amendment 24-15: Massage Therapist Exemption
The staff report was presented.
Moved by Councilmember Wagner and seconded by Councilmember Westgaard to adopt,
by motion, Ordinance 24-15 regarding exemptions from massage licensure. Motion
Carried 5-0.
8.2 Ordinance Amendment 24-16: Food Trucks
The staff report was presented.
The Council discussed whether or not to have food trucks at city events.
Councilmember Wagner will discuss this issue with the Downtown Elk River Business Association
(DERBA) at their June meeting and report back to the Council. The ordinance amendment will return at
a future council meeting.
8.3 Liquor License Renewal: The Confluence LLC dba Edge Bar & Boutique
The staff report was presented.
Moved by Councilmember Beyer and seconded by Councilmember Westgaard to approve,
by motion, the 2024-2025 liquor license renewal of an On -Sale 3.2% License with strong
beer permission and a Wine License to The Confluence LLC dba Edge Bar & Boutique
valid through June 30, 2025. Motion Carried 4-0. Councilmember Wagner abstained due to
conflict of interest.
8.4 Resolution 24-31: Sale of Property in Nature's Edge Business Park to PLM Properties, LLC
The staff report was presented.
Moved by Councilmember Wagner and seconded by Councilmember Beyer to adopt, by
motion, Resolution 24-31 authorizing the execution of a purchase agreement for the sale of
city -owned land to PLM Properties, LLC, an affiliate of Heritage Millwork. Motion Carried
4-0. Councilmember Westgaard abstained due to conflict of interest.
8.5 Discuss Work Session Items
The staff report was presented.
Councilmember Wagner asked for a discussion of zoning north of 197th Ave once construction on
Highway 169 wraps up including the gravel mining area.
Councilmember Beyer asked for an ongoing check -in on the expenditure of the Public Safety grant.
8.6 Extend Land Use Approvals: Plat, Conditional Use Permit, and Easement Vacation for ERX
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The staff report was presented.
Heidi Goodin, representing ERX, asked the council for an extension and stated the project was
almost completed.
Mayor Dietz stated he would not want to approve another extension.
Moved by Councilmember Beyer and seconded by Councilmember Westgaard to approve,
by motion, a 7-month extension of the date to complete the required conditions of
approval and record the following land use applications, CU 22-09, PE 22-01, and EV 22-01.
The approved completion date is May 16, 2024. If approved, the extended completion date
would be December 15, 2024. Motion Carried 5-0.
9. COUNCIL LIAISON UPDATES
9.1 Council Liaison Updates
The Councilmembers provided updates as outlined in the respective advisory board's minutes.
Mayor Dietz asked if ISD #728 withdrawing their sale of the elementary school would affect plans for
Oak Knoll. Mr. Portner stated there are currently no funds for the development of this area and things
may change in the next several years. Councilmember Westgaard added that changes to the school
superintendent and school board may also affect the plans.
Councilmember Wagner updated the Council that the downtown flower pots have been planted, and
new downtown banners will be installed once brackets have arrived.
Mayor Dietz stated that the theater building will have rentable bays of around 2,200 square feet.
Councilmember Beyer thanked staff for their efforts bringing the Memorial Day event indoors due to
the weather.
Councilmember Wagner added a congratulations to the graduating class of Elk River High School.
10. MOTION TO ADJOURN
Moved by Councilmember Westgaard and seconded by Councilmember Grupa to adjourn
the meeting.
The meeting adjourned at 7:33 PM
Minutes prepared by Katie Porath.
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John J. Dietz, Mayor
Tina Allard, City Clerk
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