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Council Meeting Minutes for May 4, 2026 <br />Page 3 of 6 <br />Approve Donation to the Hugo Fire Department from the Hugo American Legion <br /> <br />The Hugo American Legion would like to donate $1,000 to the Hugo Fire Department from pull- <br />tab proceeds for equipment. All donations to the Fire Department must be approved by the <br />Council. Approval of the Consent Agenda approved the donation of $1,000 to the Hugo Fire <br />Department. <br /> <br />Approve Resolution Approving Cannabis Microbusiness Registration for Mi Sota Essence <br />Cannabis, LLC. <br /> <br />The applicant, Mi Sota Essence Cannabis, LLC, had requested approval of a cannabis <br />microbusiness registration that would allow for cultivation, production of consumer products, and <br />retail operations. The business is proposed to operate under the name Carma Cannabis. The <br />microbusiness’ primary use would be cultivation of cannabis flower and production of consumer <br />products with cannabis flower, with an accessory use of retail sales of products manufactured on <br />site. The applicant had received preliminary license approval from the Minnesota Office of <br />Cannabis Management (OCM) and was requesting this registration to hold one of the two available <br />retail registrations within the City while they develop their final plans of record and apply for full <br />state license approval. The registration would not become effective until the applicant received full <br />state license approval. Approval of the Consent Agenda approved RESOLUTION 2026-11 <br />APPROVING A CANNABIS MICROBUSINESS REGISTRATION FOR MI SOTA ESSENCE <br />CANNABIS, LLC. <br /> <br />Approve Water Surface Use Permit for Slalom Course on Sunset Lake <br /> <br />Dave Strub made application to the City of Hugo for a Water Surface Use Permit to allow water <br />skiing on the slalom course on Sunset Lake. The Washington County Sheriff’s Department <br />issues the permit after City Council approval. Adoption of the Consent Agenda approved the <br />application for a Water Surface Use Permit for a slalom water skiing course on Sunset Lake. <br /> <br />Improvement Hearing for 2026 Bald Eagle Industrial Park Area Street Project <br /> <br />On February 27, 2025, the City Council authorized the preparation of a feasibility study for the <br />2026 Bald Eagle Industrial Park Area Street Improvement Project. City Council accepted the <br />completed study at the November 17, 2025, Council meeting. At the April 6, 2026, City Council <br />meeting, Council called for a Public Hearing to be held this evening, May 4, 2026. <br /> <br />City Engineer Mark Erichson reviewed the project location showing which streets and trails in <br />the Bald Eagle Industrial Park area were proposed to be improved and explained how roadways <br />are rated on their condition every three years. That information is used to develop the City’s <br />five-year Capital Improvement Plan (CIP). The project identified for this year includes the <br />streets in the BEIP area. He displayed photos of existing conditions showing deterioration of the <br />roadways and patching stating the desire to address the issues before they become too costly. <br />Mark explained the proposed improvements involve partial reconstruction for the majority of the <br />project noting that the lighting along Fenway Boulevard is not included in the bid because the <br />contract with Xcel Energy is still being worked on. He reviewed the proposed trail <br />improvements, which would not be included in the assessed cost. Other minor improvements