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HomeMy WebLinkAbout07-06-26 - City Council Work Session MinutesLINO LAKES CITY COUNCIL WORK SESSION MINUTES DATE: July 6, 2026 TIME STARTED: 6:00 PM TIME ENDED: 7:02 PM LOCATION: City Council Chambers MEMBERS PRESENT: Mayor Rafferty, Councilmembers Lyden, Nelson and Rennaker EXCUSED ABSENT: Councilmember Ruhland Staff Members Present: City Administrator Karen Anderson, City Clerk Roberta Colotti, Human Resources and Communications Manager Meg Sawyer, Community Development Director Mike Grochala and Chief of Police Curt Boehme. 1. CALL TO ORDER Mayor Rafferty called the meeting to order at 6:00 p.m. 2. SETTING THE AGENDA Councilmember Lyden requested to add a discussion of entrance signs to the agenda. The agenda was adopted as amended to include a discussion of entrance signs. 3. ECONOMIC DEVELOPMENT STRATEGIC PLAN The Community Development Director reported that as part of the City's economic development efforts, the Economic Development Advisory Committee (EDAC) is responsible for the preparation of a five-year Economic Development Strategic Plan. The plan was last updated in 2021. The 2026-2030 Plan identifies six priorities, which include: Develop Balance of Woods Edge Property, Business Retention, Expansion, and Workforce Development Plan, Identification of potential redevelopment areas and strategic acquisitions, Continue to promote development of the 1-35E/Main Street Corridor, Updating and expanding the city marketing materials, and Establish a Housing Maintenance Assistance Program. Council Consensus It was the consensus of the City Council to forward the Economic Development Strategic Plan, as prepared by the Economic Development Advisory Committee to the next regular City Council meeting for formal approval as presented. 4. PRELIMINARY DISCUSSION: DATA CENTERS IN COMMERCIAL AND INDUSTRIAL DISTRICTS The Community Development Director stated that in accordance with the City's policies a request was made and seconded to discuss Data Centers in Commercial and Industrial Districts. He asked if there was Council consensus to pursue this topic further. Councilmember Rennaker stated that he requested that this topic be discussed from a broad viewpoint. Councilmember Nelson stated that she also supported reviewing the zoning code and the City's legal authority to regulate data centers. She stated that to clarify for the residents, the City has not been approached by any companies seeking to build a data center. Council Consensus It was the consensus of the City Council to direct staff to prepare comparative information regarding area cities regulations for data centers and to review Lino Lakes current zoning and land use regulations related to data centers at a future meeting. 5. TAX-EXEMPT FINANCING FOR LYNGBLOMSTEN The Community Development Director reported that Minnesota Statutes Sections 469.152 to 469.1651 (the "Industrial Development Act") and Chapter 462C (the "Housing" act) authorize cities to issuance revenue bonds to finance eligible private development projects. These tools may be used for private activities that provide community benefit such as employment opportunities or affordable or elderly housing. The City adopted guidelines for private activity tax exempt financing in 2005 and amended them in 2019. The policy requires reimbursement of City's cost and establishes an administrative fee equal to 1 % of the bond amount. Part II, Section 9 of the policy allows the City Council to reduce the administrative fee when the borrower's request is related to a partnership with the City and/or provides a broad public service benefit. The Community Development Director stated that because the City has already issued non -bank qualified bonds in 2026, staff has expressed interest in serving as the issuer for Lyngblomsten's refinancing. The current issuer is charging a flat fee of $50,000, and staff recommends a fee closer to that amount, reflecting both the City's partnership with Lyngblomsten and the provision of senior housing within the community. Council Consensus It was the consensus of the City Council to direct staff to: 1. Authorize a reduced administrative fee for Lyngblomsten's tax-exempt financing; and 2. Proceed with the procedural steps necessary to provide tax-exempt financing 6. FRANCHISE AGREEMENTS The City Clerk reviewed that at the June 1, 2026 City Council Work Session, the Council reviewed the status of the current franchise and franchise fee agreements with gas and electric service providers. While the franchise fee enabling legislation is included in the draft franchise agreements a separate ordinance setting the franchise fee is proposed. The City has one existing utility franchisee fee set at 4%. At the meeting in June, the City Council considered adopting a 4% fee for the utilities that did not currently have a franchise fee agreement in place. It was requested that the Council provide further direction regarding the franchise agreements and franchise fee agreements. Status of Agreements • Circle Pines Utilities (DBA Centennial Utilities) — Gas Service, Current 20-year franchise adopted in 2012. o Franchise Fee established as part of franchise agreement: Collecting 4% Fee on Residential/Non-Interruptible Customers • CenterPoint Energy - Gas Service, Current 20-year franchise was adopted in 2013. o Agreement identifies that a franchise fee may be collected if established by a separate ordinance. The fee must be of the same or a substantially similar amount to that charged to other energy suppliers. • Xcel Energy - Gas & Electric Services, No current agreement • Connexus Energy - Electric Service, No current agreement Council Consensus It was the consensus of the City Council to advance the franchise agreement ordinance drafts as presented with the amendment requested by the utility company to be reviewed by the City Attorney. Furthermore, to continue the discussion on the franchise fee ordinance to a future meeting with no further action taken this evening. 7. BOARD APPOINTMENT The City Clerk reported that Planning and Zoning Board Member and Chair Michael Root submitted his resignation. His term ends December 31, 2027. She requested that the City Council review the current list of Board and Committee members for possible transfer to the Planning and Zoning Board, and any recent applications and provide direction to staff regarding the selection and appointment process. It was noted that the application to serve on the Planning and Zoning Board was posted to the City website. Mayor Rafferty recommended that Economic Development Advisory Board Member Blakely LaCroix be appointed to fill the vacancy. Council Consensus It was the consensus of the City Council to schedule the appointment of Blakely LaCroix to fill the vacant term on the Planning and Zoning Board, for the next City Council meeting. 8. OUTSIDE COMMITTEE REPORTS The representatives of the following committees that were present this evening provided an update on the committee work: North Metro Telecommunications Committee, Vadnais Lake Watershed District, Anoka Co. Joint Law Enforcement Council, Anoka Co. Fire Protection Council, Twin Cities Gateway, and Anoka Co./Blaine Airport Advisory Council. 9. CITY ADMINISTRATOR UPDATE The City Administrator provided an update on the Fire Department. She reported that the department was unable to fill the four part-time Fire Department Lieutenant positions that were budgeted to start in July 2026 and therefore revised the staffing model to instead utilize Paid -On -Call Duty Officers to provide supervision for the shifts previously designated for those positions. 10. NOTICES AND COMMUNICATIONS A. Announcement: Mayor Rafferty provided a summary of the June 22, 2026, Closed Meeting. He stated that the meeting was closed to conduct the annual performance review for the City Administrator and that the review was completed. B. There will be a City Council Special Closed Meeting, to Discuss Labor Negotiations Strategies, Immediately Following this Meeting in the Council Work Room 5. ADJOURNMENT Mayor Rafferty adjourned the meeting at 7:02 p.m. These minutes were approved at the City Council Meeting on July 27, 2026. Roberta Colotti, CIVIC R R fferty, City Clerk Mayor