Loading...
HomeMy WebLinkAboutSeptember 23, 2026 City Council Regular Meeting MinutesA. B. CITY OF FALCON HEIGHTS Regular Meeting of the City Council City Hall 2077 West Larpenteur Avenue MINUTES.AMENDED September 23,2026 at 7:00 P.M. C. CALL TO ORDER: 7:06P.M. ROLL CALL: GUSTAFSON X MAY X MOGEN X MIELKE X WASSENBERG X STAFF PRESENT: LINEHAN X APPROVAL OF AGENDA Linehan noted that the agenda had been amended to add Consent Item G-6, Resolution 26-79 accepting the resignation of Sarah Caflisch from the Community Engagement Commission, with all remaining items renumbered accordi.gly. Council Member Wassenberg motioned to approve the agenda as amended; Approved 5-0 D. PRESENTATION There were no presentations. E.APPROVAL OF MINUTES: 1. September 9,2026 City Council Workshop Meeting Minutes 2. September 9,2026 City Council Meeting Minutes Council Member Wassenberg motioned to approve the minutes; Approved 5-0 F. PUBLIC HEARINGS: There were no public hearings. CONSENT AGENDA: 1. General Disbursements tfuough 9/1.6/26: fi36,955.36 Payroll through 9 / 10 / 26: $33,563.5L Wire Payments through 9 / 18 / 26: 917,952.252. Approval of City Licenses I G. H: 3. Approval of Contract with Ramsey County to Provide Election Services from2027 to 2032 4. Approval of Resolution26-77 Authorizing the Acceptance of a Grant Agreement with the Metropolitan Council for $L00,000 for a Small Area Plan for the l,es Bolstad Golf Course Redevelopment 5. Approval of Resolution26-78 Authorizing the Acceptance of the 2026 Livable Communities Act (LCA) Development Grant from the Metropolitan Council for Fairway Commons 5. Approval of Resolution26-79 Accepting the Resignation of Sarah Caflisch from the Community Engagement Commission Mayor Gustafson motioned to approve the consent agenda; Approved 5-0 POLICY ITEMS: 1,. Adoption and Certification of the2027 Preliminary Levy City Administrator Linehan presented the proposed2027 preliminary levy, summarizing the budget process that brought the levy increase from an initial 13 percent down to a proposedT.42percent. Key drivers of the levy increase included a$182,606 increase in policing costs through the Saint Anthony Village Police Departrnent contract, a 3 percent cost-of-living adjustment for all employees, and annual step increases. Factors that helped reduce the levy included a $50,000 transfer from the Parking Management special revenue fund, an increase in fiscal disparities distribution, and more realistic investrnent interest revenue projections. The total proposed levy is $3,096,L46, representing an increase of fi213,738 from2026. Council Member Mielke asked what residents would notice from the additional policing costs. Linehan explained that the increase reflects ramping up to a full staffing level of 30 officers at the Saint Anthony Police Department, which would reduce overtime strain on officers and improve response times, particularly during light overnight hours. He noted that residents currently do have 24f 7 coverage, but that coverage would become more robust. Council Member Wassenberg noted that if the policing cost increase were excluded, the remainder of the levy increase would be approximately one percent which he characterized as "extremely reasonable" in a four percent inflation environment. Council Member Mogen observed that the median home value in Falcon Heights decreased approximately L.1 percent for 2027 to 9407,050, which reduced the tax capacity per property by $51. Despite the levy increase, the estimated net change in city taxes on a median-value home is approximately $41 per year, or $3.42 per month. Council Member May noted that the city had used multiple tools-parking program revenue, interest income, and sound budget management-to keep the levy as low as possible while maintaining services. 10 Council Member Mogen motioned to approve Resolution 26-80 Adopting the 2027 Tax Levyi Approved 5-0 2. Approval of Setting Truth in Taxation (TNT) Hearing Date of Wednesday, December 9n,2026 at 7:00 p.m. City Administrator Linehan presented the item, noting the statutory requirement to hold a Truth-in-Taxation public hearing in December to discuss the 2027 budget and levy with the public. Council Member Mielke motioned to approve Resolution 26-8L Setting the Truth-in-Taxation Hearing Date for Wednesday, December 9,2026 at 7:00 P.M.; Approved 5-0 3. Approval of Resolution26-# 82 Authorizing the Approval of the Loan Agreement for the Fairway Commons Project City Administrator Linehan explained that this item was the companion to the LCA grant acceptance approved under the consent agenda. To facilitate the use of low- income housing tax credits, the Metropolitan Council and the development community prefer that the grant funds be structured as a pass-through loan from the City to the developer, Fairway Commons, Limited Partrership (affiliated with Velair Development Company). The City receives the grant from the Met Council, loans those funds to the developer via a promissory note secured by a mortgage, and at the end of the 30-year term the funds are due back to the City for reinvestonent in affordable housing consistent with Met Council requirements. Mayor Gustafson asked for clarification on whether the City would be required to repay the grant funds to the Met Council after the loan is repaid. Linehan confirmed that the City would no! at the expiration of the promissory note, the City would work with the Met Council on appropriate reinvestment of the returned funds, such as redeploying them into other affordable housing opportunities. Council Member Wassenberg characterized the structure as providing the City with a "twofer"- supporting Fairway Commons now and creating capacity for,another affordable housing investrnent in the future. Council Member Mogen noted that the mortgage securing the loan gives the City an interest in the property in the event of default, meaning there is minimal financial risk to the City. Council Member Wassenberg motioned to approve Resolution 26-82 Authorizing the Approval of the Loan Agreement for the Fairway Commons Project.; Approved 5-0 11 4. Approval of Resolution26-983 Authorizing the Approval of the Master Disbursement and Master Subordination Agreement for the Fairway Commons Project City Administrator Linehan described the Master Disbursement Agreement (MDA) and Master Subordination Agreement (MSA) as documents that formalize the City's position within the broader financing package for Fairway Commons, which involves approximately $18 million in total financing from multiple lenders. The MDA establishes the order in which project funds are disbursed, with the City,'s LCDA loans listed as fifth and sixth in priority. The MSA establishes the relative lien priority among all lenders and includes provisions requiring compliance with the most restrictive affordability requirements, procedures for default notices and cure rights, and restrictions on commencing bankruptcy proceedings without consent of all parties. Linehan noted that the document was similar in structure to one previously approved in connection with the 2025LCA grant, with updates reflecting the expanded financing package. Staff noted a numerical correction to the MDA related to the 90 /10 disbursement split for City LCDA Loan 2, adjusting stated amounts to fi567,990.00 (90%) and$63,110.00 (10%). Linehan emphasized that all legal fees associated with these documents are paid by the developer, not the City, and that the documents had been reviewed by the City's bond counsel and city attorneys. Council Member Mogen motioned to approve Resolution 26-83 Authorizing the Approval of the Master Disbursement and Master Subordination Agreement for the Fairway Commons Project.; Approved 5-0 I: INFORMATION / ANNOUNCEMENTS: Wassenberg reported on his visit to the Community Park playground construction site, noting significantvisible progress. He also summarized a September 11 Ramsey County local govemment informational meeting on license plate reading (LPR) cameras/ noting it was very well attended. He characterized the meeting as informative regarding the legal framework for such cameras, while noting that extra-legal and privacy considerations remain relevant for the community. Mielke confirmed that, to her understanding, the Saint Anthony Police Departrnent does not use LPR cameras in Falcon Heights or Saint Anthony Village, though she noted a camera may be placed at the Snelling Avenue intersection during the State Fair. She requested clarification on whether data from that camera is shared with the department and under what policies. Mielke also reported that the Snelling Avenue task force held its first meeting, focused on very preliminary corridor planning with a reconstruction horizon of approximately 2034. She reported that the Community Engagement Commission finalized its mission statement and goals at its Monday meeting, and that staff are working with coordinator Megan Siddons on a newsletter article and a short resident survey to gather input on desired community activities. 12 May noted that the Environment Commission reviewed the lawn and garden tour, initiated a sustainable buildings initiative, and that commission members are attending the annual Institute on the Environment meeting, where Commission Chair Adam Keester will give a short presentation. She higtrlighted the upcoming Green Tree Summit on October 1"t and announced she plans to attend the Roseville Area Schools goverrunent entities meeting on October 7tL. May also expressed appreciation for Greenlee Dahle of Bolton and Menk, who has stepped in to support the commission following staff transitions. Gustafson reported that he had attended an Instifute on the Environment event focused on the University of Minnesota's research trip to Germany examining dishict heating systems and Germany's approach to reducing nafural gas dependency. He also noted that the Washington/Ramsey County waste management transfer station on Como is nearing completion and that the food scraps program is anticipated to come online by year's end, presenting at opportunity for Falcon Heights to potentially achieve 100 percent resident participation. Mogen reported that the Planning Commission met the previous evening and discussed zoning code review, which had lost momentum with recent staff changes. The commission also received an update from Jake Andersory chair of the Les Bolstad Community Advisory Committee. Mogen also announced a ribbon cutting he and Council Member Mielke recently attended for Miss Laos Papaya restaurant on Hamline and Hoyt, and encouraged residents to visit it and all businesses within the city. Mogen reminded residents that in-person early voting is now open at the Ramsey County Elections office at 90 West Plato Boulevard, and that full early voting locations including the Roseville Library open October 16th. He encouraged residents to verify their re gistration at mnvotes.org. Linehan provided staff updates. Community Park playground construction is progressing well, with slides installed and the rubberized surfacing pending weather conditions. The fencing is on backorder, but the playground is expected to be ready this fall. He reported that the Les Bolstad Community Advisory Committee meeting the previous week was canceled due to lack of quorum, but that outreach efforts continue, including a fall newsletter feature, a new project webpage, and a planned monthly communications update. Fall Fest is scheduled for October 10th, 1:00-3:00 PM at Falcon Heights Elementary. Linehan also briefed the Council on a complication with the State Fair paid parking fine notification system. The city's third-party vendor, T2 Systems, experienced a software timing issue in which approximately'1,65 of 189 first-notice letters were generated with the initial $35 fine amount rather than the escalated $85 amount applicable after day 1.4. The letters had already been sent before the error was discovered. Linehan presented options and sought informal Council guidance, noting that honoring the letters as written was above his spending authority to decide unilaterally. After discussion, the Council reached consensus that the city should honor the letters as issued, meaning recipients who received the $35 notice would have 14 days from the letter's mailing date to pay atthe $35 rate. 13 Council Member Mogen argued that consistency and fairness required a uniform approach, and that the circumstances warranted accepting the $35 amount for all affected letters rather than creating a two-tier situation. Council Member May raised that T2 should bear some financial responsibility for their error, and that the city should seek compensation rather than simply absorbing the estimated $9,000 revenue difference. Council Member Wassenberg agreed that the city should not incur additional out-of- pocket costs for mailers as a result of the vendor's error, but agreed that seeking compensation for unpaid fines would be extremely unlikely. Linehan confirmed that the city would follow up with T2 to seek partial restitution and ensure the fufure letter timing is corrected so notices go out on day L6 or later, after the fine escalation has taken effect. J: COMMUNITY FORUM: Please limit comments to 3 minutes per person. Items brought before the Council will be referred for consideration. Council may ask questions for clarifcation, but no council action or discussion will be held on these items. Chuck Long, 1717 Albertstreet, addressed the Council. He thanked the Council for the attention and resources being devoted to the L407 Larpenteur Avenue redevelopment process. He acknowledged that the issues involved are complex and nuanced, extending well beyond what can be captured in an online survey, and expressed his expectation- on behalf of himself and his neighbors-that the process will include in-person informational meetings and substantive dialogue on proposals. He indicated that affected residents look forward to meaningful participation. The Community Forum was closed K: ADJOURNMENT: 8:12 P.M. Council Member Mielke motioned to adjoum the meeting; Approved 5-0 Amendments to the agenda are noted in bolil for additions and strikth+aryjh for remwals 14 Dated this L4th day of October,2026 Randall C. J Mayor Administrator 15