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HomeMy WebLinkAbout2026.06.01 CC Packet A. CALL TO ORDER B. ROLL CALL C. PLEDGE OF ALLEGIANCE D. APPROVAL OF MINUTES 1. May 18, 2026, Minutes for City Administrator Performance Review 2. May 18, 2026, City Council Meeting E. APPROVAL OF AGENDA F. APPOINTMENTS/PRESENTATIONS 1. Hugo Yellow Ribbon Network Annual Report - Chair Chuck Haas G. CONSENT AGENDA All matters listed under the Consent Agenda are considered to be routine by the City Council and will be enacted by one motion and a roll call vote. If a member of the City Council or the public wishes to discuss an item, that item will be removed from the Consent Agenda and will be considered separately. 1. Approve Claims Roster 2. Approve Annual Performance Review for Public Works Mechanic Steven Garcia 3. Approve Annual Performance Review for Public Works Worker Riley Hollerback 4. Approve Annual Performance Review for Public Works Streets Lead Worker Tom Smith 5. Approve Donation to the Hugo Fire Department from the Hugo American Legion 6. Approve Special Event Permit for North Star Gay Rodeo on July 25-26, 2026 7. Approve Temporary Liquor License for the North Star Gay Rodeo on July 25- 26, 2026 8. Approve Special Event Permit for Tough Mudder on June 27, 2026 Mayor: Tom Weidt Councilmembers: Becky Petryk, Ward 1 Ben Krull, Ward 2 Dave Strub, Ward 3 Mike Miron, At Large City Council Agenda Monday, June 1, 2026 Address: 14669 Fitzgerald Ave. N. Hugo, MN 55038 Phone: 651-762-6300 Website: www.ci.hugo.mn.us H. PUBLIC HEARING 1. Renewal of IUP for 17627 Henna Avenue North (Ludeke) I. UNFINISHED BUSINESS 1. Nothing Scheduled J. NEW BUSINESS 1. Nothing Scheduled K. VISITOR PRESENTATIONS 1. Nothing Scheduled L. COUNCIL PRESENTATIONS 1. Nothing Scheduled M. ADMINISTRATIVE PRESENTATIONS 1. Nothing Scheduled N. ADJOURNMENT BACKGROUND MEMO FOR THE CITY COUNCIL MEETING ON JUNE 1, 2026 D.1 May 18, 2026, Minutes for City Administrator Performance Review D.2 May18, 2026, City Council Meeting Staff recommends Council approve the above minutes as presented. F.1 Hugo Yellow Ribbon Network Annual Report - Chair Chuck Haas Chair Chuck Haas will update Council on the Hugo Yellow Ribbon Network and present certificates of appreciation to Burger Night Sponsors. G. 1 Approve Claims Roster Staff recommends Council approve the Claims Roster as presented. G.2 Approve Annual Performance Review for Public Works Mechanic Steven Garcia At its June 6, 2023, meeting, Council approved the hiring of Steve Garcia as the new Public Works Mechanic beginning June 7, 2023. Public Works Director Scott Anderson recommends Council approve the Annual Performance Review for Public Works Mechanic Steve Garcia. G.3 Approve Annual Performance Review for Public Works Worker Riley Hollerback At its June 6, 2022, meeting, Council approved the hiring of Riley Hollerback as a Public Works Worker beginning on June 30, 2022. Public Works Director Scott Anderson recommends Council approve the Annual Performance Review for Public Works Worker Riley Hollerback. G.4 Approve Annual Performance Review for Public Works Streets Lead Worker Tom Smith Tom Smith was hired by the City of Hugo on June 26, 2000, as a Worker in Public Works Department and promoted to Streets Lead Worker on April 17, 2023. Public Works Director Scott Anderson recommends Council approve the annual performance review for Public Works Worker Tom Smith. G.5 Approve Donation to the Hugo Fire Department from the Hugo American Legion The Hugo American Legion would like to donate $1,000 to the Hugo Fire Department from pull- tab proceeds for equipment and training. All donations to the Fire Department must be approved by the Council. Staff recommends Council approve the donation of $1,000 to the Hugo Fire Department. G.6 Approve Special Event Permit for North Star Gay Rodeo on July 25-26, 2026 The North Star Gay Rodeo has applied for a Special Event Permit to hold a regional rodeo at the Dead Broke Arena site at 5676 170th Street North on July 25-26, 2026. Setup for the event will take place on July 24. A SEP is required because there will be amplified sound and alcohol served outside. Staff recommends Council approve the SEP for the North Star Gay Rodeo as outlined in their application and subject to the conditions in the staff memo. G.7 Approve Temporary Liquor License for the North Star Gay Rodeo on July 24- 26, 2026 North Star Gay Rodeo Association has applied for a Temporary On-Sale Liquor License to serve alcohol at their rodeo event on July 24-26, 2026, at the Dead Broke Arena, 5676 170th Street North. Staff has received the completed application, fee, and proof of liquor liability insurance. Staff recommends Council approve the Temporary On-Sale Liquor License for the North Star Gay Rodeo. G.8 Approve Special Event Permit for Tough Mudder on June 27, 2026 Tough Mudder has applied for a Special Event Permit to hold a one-day endurance sport event at Wild Wings Game Farm on Saturday, June 27, 2026. Tough Mudder is a for-profit company that has held events in the US since 2010 and elsewhere in the world since 2016. This will be the tenth year the event has been held at Wild Wings. A Special Event Permit approved by Council is necessary because there will be over 200 people in attendance, impacts to public streets, use of an amplified sound system, and alcohol served. Staff recommends Council approve the Special Event Permit for the Tough Mudder on June 27, 2026, subject to the conditions in the staff memo. H.1 Renewal of IUP for 17627 Henna Avenue North (Ludeke) Terry Luedeke has submitted an application for renewal of a home occupation IUP for Terry’s Auto Repair located at 17627 Henna Avenue. The home occupation IUP was initially approved in 2011 and administratively approved for 5-year terms after that. The IUP is set to expire on June 24, 2026. We have received complaints over the last few years that the homeowner has not been complying with the IUP conditions. Notice of the renewal application was provided to property owners within 300 feet of the property where the home occupation is conducted, and it has been determined that a public hearing is necessary. Staff recommends Council hold the public hearing and approve the resolution approving the IUP renewal for Terry Luedeke at 17627 Henna Avenue North. N. Adjournment Performance Review Summary On May 18, 2026, the Hugo City Council met in Executive Session for a routine annual performance evaluation of the City Administrator, Bryan Bear. Pursuant to Minn. Stat. 13d.05 Sub.3 the Council is to summarize its conclusions following the performance review. The Council’s conclusions are that Mr. Bear has, and is requested to, continue to provide excellent service to the citizens of the City of Hugo and to continue to deliver operations in a cost- effective and responsive way by continuing to plan for growth and services carefully, deliver service and amenities cost-effectively and well, and continue to work closely with an excellent staff, residents of the City and the Council. MINUTES City Council Meeting City Hall Council Chambers Monday, May 18, 2026 7:00 p.m. Call to Order Mayor Weidt called the meeting to order at 7:00 p.m. Roll Call and Pledge of Allegiance COUNCIL PRESENT: Krull, Miron, Petryk, Strub, Weidt COUNCIL ABSENT: None OTHERS PRESENT: City Administrator Bryan Bear, City Engineer Mark Erichson, City Attorney Dave Snyder, Community Development Director Rachel Juba, City Clerk Michele Lindau Approve Minutes for the May 4, 2026, City Council Meeting Petryk made motion, Strub seconded, to approve the minutes for the City Council meeting held on May 4, 2026, as presented. All Ayes. Motion carried. Approval of Agenda Weidt made motion, Miron seconded, to approve the agenda as presented All Ayes. Motion carried. Hugo Good Neighbor Days June 5-7, 2026 The Hugo Lions Club will hold its annual Hugo Good Neighbor Days Community Festival June 5–7, 2026, at Lions Volunteer Park. The Club requested the City co-sponsor the event by waiving the Special Event Permit fee and providing Washington County deputies during the event, consistent with past practice. Lions Club member Jason Schwieger and President John Kelly provided an overview of the event. Mr. Kelly noted the festival has been held for approximately 50 years and that the Club has raised over $1 million, with a focus on keeping 80 percent of funds within the community. The festival will include live bands on Friday and Saturday, a vendor fair (currently at capacity), and events throughout the weekend. Shuttle service will be provided from the Blue Heron and Schweiters parking areas. Jason and John reported that Good Neighbor Days is the Lions largest annual fundraiser. They noted recent donations to the Hopkins Schoolhouse, Veterans’ Camp, a fishing tournament, fire victims, and White Bear Lake Area seniors through scholarships. They also reported receiving inquiries from potential new members and outlined the membership process. Council Meeting Minutes for May 18, 2026 Page 2 of 6 The Mayor was invited to serve as a judge for the rib competition. The RibFest is expected to include approximately 20 teams and 240 racks of ribs, with prizes awarded for first, second, and third place, as well as People’s Choice. Ribs will be supplied by Grundhofer’s Old Fashioned Meats and the Bald Eagle Sportsmen’s Association. Council members inquired about additional event information and RibFest details. More information is available at www.goodneighbordays.com. Miron made motion, Krull seconded, to cosponsor Good Neighbor Days by waiving the special event and providing deputies as needed. All Ayes. Motion carried. Washington County Sheriff’s Department Annual Report – Sheriff Dan Starry Sheriff Dan Starry began by stating this would be his last formal yearly presentation to Hugo. Starry plans to retire when his term is up at the end of the year. The Sheriff introduced Sarah Halverson, Commander of Patrol, who has been with the County for 26 years, and Hugo Sergeant Matt Wieland, who introduced the Hugo deputies: Mike Nunan, Jeff Workman, Garrett Zakrzewski, Alec Zachrison, Andrew Schommer, Tyler Jarrett, Greg Rieter, and Isaac Robbins. Jarrett is the new Hugo detective and shared that he has been with the County for nine years. Deputy Schommer shared that he started in 2020, left to work with the State Patrol for a period of time, and was excited to be back in Hugo, where he grew up. Starry presented a PowerPoint showing the past year’s activities and Hugo’s 2026 service cost at over $1.7 million. The majority of the expense is for employee wages and benefits to remain competitive. The cost per capita is $102.56 for 24/7 coverage, which includes support from the entire Sheriff’s Office. Citations nearly doubled in 2025 from 555 issued in 2017. Most were traffic violations that resulted in education and warnings. Excessive violators are ticketed. In 2025, there were 265 cases investigated and over 10,000 calls for service, equating to approximately 27 calls per day. Starry reviewed call-by-hour data, showing that the most calls came in between 6 p.m. and 7 p.m., with 699 calls, and the fewest occurred at 5 a.m., with 82 calls. He encouraged residents to call immediately if they see something instead of waiting. Arrests increased from 158 in 2024 to 170 in 2025. Motor vehicle accidents, mostly car versus deer, increased from 151 to 170, and mental health-related calls showed a small decrease from 131 in 2025 to 128 in 2026. Starry provided information on how the department is responding to trends. He discussed the new Community Impact Unit, e-bike safety, the increase in mental health professionals, and fraud tactics. He also discussed the department’s relationship with school districts and the DARE program led by Deputies Isaac Robbins and Cassie Rice. Starry thanked the Mayor, Council, and staff for supporting the Sheriff’s Office. Weidt commented that he appreciated having Washington County as the City’s law enforcement provider and wished Starry well in his retirement. Council Meeting Minutes for May 18, 2026 Page 3 of 6 Petryk shared her experience dealing with a resident’s mental health issue and thanked the department for the way it handled the situation. Starry noted that it is National EMS Week and described the department’s relationship with the Hugo Fire Department as excellent. Recess The Mayor called for a five-minute recess. The meeting reconvened at 7:42 p.m. Approval of Consent Agenda Petryk made motion, Krull seconded, to approve the following Consent Agenda: 1. Approve Claims Roster 2. Approve Quote for Gravel Contract 3. Approve Amended State Building Code Agreement with Scandia 4. Approve Special Event Permit for Blacksmith Lounge for 2026 Events 5. Approve Temporary Liquor License for Hugo Lions Club for Tough Mudder on June 27, 2026 All Ayes. Motion carried. Approve Claims Roster Adoption of the Consent Agenda approved the Claims Roster as presented. Approve Quote for Gravel Contract Staff received quotes for Class 5 modified gravel to be placed on our rural gravel roads. Staff received two out of the three quotes requested. The City will need approximately 5,280 tons for a total contract of $77,563.20. The roads included in this year’s re-graveling project are Ingersoll Avenue, 175th Street, Inwood Avenue, and 180th Street. Adoption of the Consent Agenda approved the contract with Dresel Contracting to provide Class 5 modified gravel at $14.69 per ton. Approve Amended Agreement with Scandia for Administration of the State Building Code In February 2015, the City Council approved a contract with the City of Scandia for the administration of the State Building Code. Under this agreement, the City of Hugo has provided plan review, inspection, scheduling, and reporting services for all building permits issued by Scandia. Revisions to the agreement have been prepared to remove plan review and inspection services for state-licensed facilities, as the City of Hugo no longer maintains state delegation for these activities. Additionally, the agreement has been updated to reflect the mileage rate to follow the current IRS mileage rate for business. Adoption of the Consent Agenda approved the amended agreement with the City of Scandia for administration of the State Building Code. Council Meeting Minutes for May 18, 2026 Page 4 of 6 Approve Special Event Permit for Blacksmith Lounge for 2026 Events The Blacksmith Lounge, 17205 Forest Boulevard North, has applied for a Special Event Permit for their 2026 events to be held between Memorial Day and end of September. Events include four auctions, seven car shows, one motorcycle swap meet, and one White Bear Lake Hockey fundraising event. A Special Event Permit approved by Council is required because there will be alcohol served outside and there may be up to 200 people in attendance. Adoption of the Consent Agenda approved the Special Event Permit for the Blacksmith Lounge. Approve Temporary Liquor License for Hugo Lions Club for Tough Mudder on June 27, 2026 The Hugo Lions Club submitted a temporary liquor license application to serve beer and seltzers at the Tough Mudder event to be held at Wild Wings Game Farm on June 27, 2026. The request for approval of a Special Event Permit for the event will be on the next Council agenda. Adoption of the Consent Agenda approved the temporary liquor license for the Lions Club for the Tough Mudder on June 27, 2026, subject to approval of the Special Event Permit. Discussion of Equipment CIP and Approve Purchase of Brush/Rescue Combination Truck As part of the City's 2026 Focus Goals, the City Council set a goal to evaluate the equipment CIP to accommodate future Fire Department trucks. Fire Chief Jim Compton Jr. has appointed a truck committee that has completed a thorough review of the Fire Department's fleet. They have advised that certain vehicles should be phased out and replaced with new vehicles with different capabilities, due to the changing needs of the Department. They also believe this new strategy should equate to long-term cost savings for the City. The Fire Chief will present recommendations concerning the City's equipment CIP. At the end of his presentation, the Chief will recommend the purchase of a new brush/rescue combination truck to replace the aging brush truck that is currently scheduled for replacement in 2026. A truck committee was formed to evaluate the CIP to accommodate future fire trucks. The committee consisted of Deputy Chief Dave Jensen, Chief Engineer Tom Kaspszak, Lieutenants Ryan Nadeau and Bob Bieniek, and Firefighter Tom Robinson. Replacement years are this year for Brush Truck 1, 2032 for Tender 1, and 2034 for Rescue 1. Compton explained that the equipment CIP is on a five-year cycle. The lifespan of their trucks is 30 years for large apparatus, 20 years for small apparatus, and 10 years for the chief squad trucks. The truck committee analyzed the incorporation of a re-chassis strategy for their four large fire trucks. This can be done once during the life of the truck if it is purchased new. They proposed a 25-year re-chassis cycle and a 50-year new build resulting in a savings of 30-40% compared to building a new truck, lowering replacement costs in the CIP. He presented a truck consolidation model, similar to what has been done in the past. The committee proposed consolidating three trucks into two and reducing the fleet by one large apparatus. This would result in annual and long-term savings of up to $1.5 million, but the expense would come earlier than expected. Compton talked about the maintenance issues with the aging trucks saying City Mechanic Steve Garcia does an annual vehicle assessment inspection and has seen them decline. Council Meeting Minutes for May 18, 2026 Page 5 of 6 Garcia had proposed a 25-year replacement for the large apparatus instead of 30 years, which is expected to lower maintenance costs. Compton summarized by saying the department would like to reschedule the large apparatus to a 25-year life by adding re-chassis model (if allowed), replace Rescue 1 and Tender 1 with a pumper/tanker in 2029, sell Rescue 1 and Brush 2 this summer, sell Tender 1 in 2029, and replace Brush 2 with a brush/light rescue now. Miron asked which current apparatus would be eligible for re-chassis. Compton explained Engine 1 was due to be replaced in 2038 and would be eligible for a re-chassis in 2033. The 2019 ladder truck was scheduled to be replaced in 2049, and a re-chassis could save 30-40%. Strub was concerned about planning for a re-chassis and having the truck be unavailable during that time. He questioned how long the vehicle would be out of service and how the department would cover the need for the unit. Compton replied that he hoped for less than a year, and they have auto aid contracts to assist in coverage. Jensen added that downtime would depend on whether other modifications were needed to the truck. Council Member Miron questioned the risk if the re-chassis could not be completed when due. He expressed concern about the financial risk of potentially needing to replace a truck without sufficient funds allocated in the CIP. City Administrator Bryan Bear responded that it is always a moving system, and adjustments may need to be made. If the re-chassis could not be completed at 25 years, the City would revert to the 30-year replacement schedule and make the necessary financial preparations. Petryk asked whether the vehicle would be evaluated prior to the work being done and inquired about warranty coverage. Compton replied that the truck would need to be taken to their facility for a full assessment, noting that multiple individuals review the vehicle before a final determination is made. Compton further explained that the main body is covered under the manufacturer’s warranty. Pumps are inspected to ensure they meet standards and are repaired if necessary. The existing department body would be installed on the new truck. He noted that concerns are typically related to the truck frame rather than the body, and no issues are anticipated with the body. Weidt questioned whether they would have the ability to get all personnel to a scene. Compton replied that, without doing the math, he believed they would, and that a utility vehicle would be relatively inexpensive if the need arose. Jensen added that they can currently seat 38 personnel, not including the chief’s vehicles, which would allow for three additional seats. Four additional seats would come with the new Tender. Weidt asked about selling the old trucks, noting that the rescue is a relatively new truck. Compton pointed out that it was already 22 years old but still has a lot of life left in the engine. Weidt said getting 50 years out of the body would be incredible but noted that technology evolves and could change things. He also stated that vehicles perform best when they are regularly operated, and he was concerned about purchasing a truck that has been sitting unused since 2024. He wanted to have an inspection completed prior to purchase and suggested having the City Mechanic inspect the chassis. He added that combining the other two trucks made sense. Compton said he could work Council Meeting Minutes for May 18, 2026 Page 6 of 6 with the City Attorney to add an addendum to the contract for the City’s inspection. Jensen said they would go through the same process used in the past by reviewing the specifications line by line. Bear outlined the recommendations. Miron asked a question about the new build for a pumper/tanker scheduled for delivery in 2029 and whether the estimate could prompt a change in the CIP. Bear replied that adjustments have been made to the CIP to accommodate it, and that the purchase would need to be authorized by the Council soon in order for delivery to occur in 2029. Weidt made motion, Petryk seconded, to approve staff’s recommendations to: authorize the purchase of a “demo” brush/light rescue from Fire Safety USA; direct staff to return to the Council with a recommended plan to advertise and sell Rescue 1, unit ID 7102-04 and Brush 2, unit ID 6103-06; authorize staff to adjust the CIP for future large Fire Department apparatus to include a re-chassis after a 25-year interval with full replacement at 50 years; and authorize the Hugo Fire Department truck committee to create a formal specification for a new build pumper/tanker for delivery in 2029, with the addition of the inspection of the fire truck prior to purchasing. All Ayes. Motion carried. League of MN Cities Annual Conference June 24-26, 2026 City Administrator Bryan Bear informed Council that the League of MN cities will be holding their 2026 annual conference in Rochester on June 24-26, 2026. Adjournment Miron made motion, Krull seconded, to adjourn at 8:21 p.m. All Ayes. Motion carried. Respectfully Submitted, Michele Lindau, City Clerk 1 Special Event Permit - Memorandum To: Hugo City Council From: City Clerk Michele Lindau Date: May 28, 2026, for City Council Meeting on June 1, 2026 Re: Special Event Permit for Tough Mudder at Wild Wings on June 27, 2026 1. BACKGROUND: Tough Mudder has submitted an application for a Special Event Permit to hold a one- day endurance sports event at Wild Wings Game Farm on Saturday, June 27, 2026. Tough Mudder has held an annual two-day event there since 2016, with the exception of 2020 due to COVID-19. This event requires a Special Event Permit approved by the Council because there will be an estimated 4,321 participants and 1,569 spectators on site. There will be impacts to public streets, use of an amplified sound system, and alcohol served. 2. DESCRIPTION OF EVENT: There will be 15K and 5K courses with 20+ military-style obstacles. Setup for the event will begin on Friday, June 19, and the event will take place the following weekend on June 27. All required information has been submitted as part of the operations plan. 3. REQUIREMENTS: The applicant has provided the City with the completed permit application. In accordance with this permit, the applicant shall conduct the event as described in the application materials, in addition to the following: Prior to the Event 1. The applicant will mail notices to residents on Irish Avenue, Hyde Avenue, Homestead Avenue, and 147th Street informing them of the event. The notice will be approved by City staff prior to mailing. 2 2. Signs will be located in the rinsing area to alert participants that the water is nonpotable and unsafe for drinking. 3. No construction that generates lights or noise audible off the property will take place after 7 p.m. or before 7 a.m. 4. The applicant shall obtain an electrical permit and pay all permit fees. 5. The applicant shall comply with the City’s sign ordinance. 6. The applicant will submit drawings and specifications for all obstacles for Building Department review. 7. A pre-event walkthrough of the site will be conducted by City staff, Fire Department personnel, and the Electrical Inspector. 8. Emergency Action Plans will be reviewed, and Tough Mudder will comply with any recommendations made by the City, the Washington County Sheriff’s Department, and/or the Hugo Fire Department. 9. The applicant shall meet with the City’s wetland specialists to determine impacts to wetlands on the site and identify any necessary permits. 10. All tents, inflatables, and structures will be securely staked. 11. The applicant shall comply with all requirements of the City’s Building Official regarding obstacles used as part of the event. 12. The applicant shall secure the specified number of Washington County deputies to be present during the event. 13. Payment to the Washington County Sheriff’s Department shall be prepared prior to the event, and checks shall be delivered to the supervising officer on duty the day of the event. 14. The applicant shall consult with the Lions Club regarding the arrangement of the workspace for liquor sales, parking for Lions volunteers, and payment to the Lions Club. During the Event 15. The applicant shall conduct the event in accordance with the approved plans submitted with the application. 16. The applicant and all on-site vendors shall comply with all applicable federal, state, and local laws, rules, regulations, and ordinances related to the Tough Mudder event. 17. Wristbands will be used to identify individuals of legal drinking age. 18. All roads will remain open to local traffic, with the exception of 147th Street between the parking area on the Atkinson property and Irish Avenue. 19. Parking and traffic procedures will take place as indicated in the operations plan. 3 20. The applicant shall comply with all recommendations from the Hugo Fire Department and the Washington County Sheriff’s Office regarding security and safety. 21. Weather conditions will be monitored during the event, and delays or cancellations will be determined based on the recommendations of medical, security, and/or police staff. 22. Vehicle access to all areas of the event shall be maintained for emergency response purposes. 23. Garbage receptacles will be regularly emptied, and the event site, streets, and parking areas will be kept clear of debris. 24. No alcohol may be brought onto or removed from the site. After the Event 25. All affected wetland areas will be restored. 26. All garbage shall be removed from the event property, streets, and parking areas and properly disposed of at the close of the event. 27. All temporary structures placed on the event property specifically for the Tough Mudder event shall be removed no later than the end of the day on June 30, 2026. 28. All signage visible from a public street will be removed immediately following the close of the event. 4. CONCLUSION/RECOMMENDATION: Staff has worked with the event organizers, who have agreed to the above requirements. Staff believes that, although there may be minor traffic delays, the event is well organized and can be held with minimal impact on the health, safety, and welfare of Hugo residents and visitors. Staff recommends that the Council approve the Special Event Permit for Tough Mudder, subject to the application materials and the conditions outlined in this memorandum. Minor changes to this permit may be approved by City staff. Changes deemed significant by staff will require Council review and approval. This permit was approved by the City Council on June 1, 2026. City Clerk Signature Tough Mudder Twin Cities 2026 Event Operations Plan Wild Wings of Oneka 14733 Irish Avenue North, Hugo, MN 55038 Saturday June 27th, 2026 Recipients shall hold and treat the Confidential Information in strict confidence and shall not, without the prior written consent of the Tough Mudder Inc, disclose or permit disclosure of Confidential Information by their Representatives. Recipients agree not to use or derive benefit from the Confidential Information in any manner whatsoever, in whole or in part, other than in connection with the Transaction.  Moreover, Recipients agree to disclose Confidential Information only to those Representatives who have a need to know the Confidential Information in order to assist in evaluating a possible Transaction, and who are informed of the strictly confidential nature of the Confidential Information.  Recipients shall be responsible for any breach of this Agreement by their Representatives. 1 Tough Mudder Twin Cities 2026 Event Operations Plan Introduction Tough Mudder is an obstacle course challenge featuring 20+ military style obstacles designed to test participants’ all around strength, stamina, and mental grit. Tough Mudder is not a timed race - we stress the importance of camaraderie and teamwork, encouraging everyone to help each other complete all obstacles and finish the course. We offer a choice of 15k, 5k, and select endurance events that test to see how far competitors can run in an allocated timeframe. Our events have been taking place since 2010 in the United States. In 2019, Tough Mudder held over 60 events throughout the United States, Canada, the United Kingdom, Australia, Mexico and Asia. The number of events and locations will continue to grow in 2026. Contact List Role Name Organization Phone Event Director Leah Thomas Tough Mudder 386-562-1367 Event Project Manager Julia Bryson Tough Mudder 617-653-7808 Construction Manager Chris Matcke Tough Mudder 480-217-6507 Festival Manager Max Collins Tough Mudder 513-835-6806 Delivery Inventory Manager Derrick Garrett Tough Mudder 717-701-1840 Volunteer Coordinator Sabrina Buhagiar Tough Mudder 304-886-1764 Venue Jeff Hugher Wild Wings of Oneka 612-590-2641 Venue Tyler Scott Wild Wings of Oneka 651-249-6390 City of Hugo Michele Lindau City of Hugo 651-762-6315 Police Sergeant Matt Wieland Washington County Sheriff 651-430-7883 Medical Operations Manager Ian Starkey Event Medics 704-562-8850 Ambulance Kevin Kane mHealth Fairview 612-270-0542 Tough Mudder Twin Cities 2026 Event Operations Plan Event Attendance and Timeline Below is a brief overview of the event timeline and attendance: Saturday Date June 27, 2026 First Start Wave 7:45 AM Last Start Wave 1:45 PM Event Operating Hours 7:00 AM – 7:00 PM Participants ~4,231 Total On-Site (Inc Spectators) ~1,569 Event Distances 8hr Infinity, 15k, 5k Venue Summary Name Wild Wings of Oneka Address 14733 Irish Avenue North, Hugo, MN 55038 Size Approx. 300 Acres for Course Approx. 2 Acres for Festival Area Primary Contact Tyler Scott Phone Number 651-249-6390 Relevant Event Permits City of Hugo Special Events Application, Alcohol Beverage License, City of Hugo Wetland Services, Right of Way Permits with MNDOT and Washington County Phases of Operation The planning process for the Tough Mudder Event Operations team begins approximately three to four months prior to the event weekend. The following table outlines the phases in which the team executes the event. Phase Description Date Load In Period in which the venue will receive deliveries, set up temporary infrastructure, mark the course route, load in vendors/sponsors, construct Festival Area and course obstacles. June 19, 2026 Event Operations Event weekend when all participants, spectators, and workforce are on-site. Saturday, June 27th, 6:00 AM - 7:00 PM Load Out Monday and Tuesday following the event, the Event Operations Team will break down temporary infrastructure and oversee removal of rental equipment and trash. June 28, 2026 - June 30, 2026 Site Restoration Period in which obstacles are removed and site restoration work is carried out. Timeline TBD with venue and Construction Manager *Between June 28, 2026 - June 30, 2026 Tough Mudder Twin Cities 2026 Event Operations Plan Event Stakeholders Participants All patrons running the Tough Mudder course. All participants must be 18 or older, or 14 - 17 with a chaperone to take part in the event. Spectators All patrons viewing the Tough Mudder course. Spectator routes are marked with wayfinding signs to watch obstacles and take photographs of those participating in the event. Workforce All volunteers, independent contractors, temporary labor, and Tough Mudder staff on-site during the event week and weekend to support the operation of the event. Venue Tyler Scott will act as Tough Mudder’s main point of contact for all venue related questions. Vendors Contractors and suppliers that provide services/equipment for the event. Partner Activations Official Tough Mudder Partners on both the local and national level will be present in the Festival Area. Police Tough Mudder has informed Washington County Sheriff’s Dept of the Parking and Traffic Management Plan and will refine it to ensure compliance by all parties. Emergency Service Providers Tough Mudder will contact local EMS regarding the weekend’s medical operation to ensure they are kept in the loop of our operation. Community Groups Tough Mudder has worked with the CVB/local community to help with volunteer recruitment and local marketing opportunities. Radio Communication Well established and tested radio communication structures are being implemented to ensure that Tough Mudder Twin Cities 2026 runs smoothly, and that any issues and/or incidents which do arise can be dealt with efficiently and effectively. ● Channel 1: Course Staff & Volunteers (primary) ● Channel 2: Medical Dispatch (primary) ● Channel 3: Sidebar (long conversations) ● Channel 4: Film Crew (if applicable) ● Channel 5: Festival Staff ● Channel 6: Medical Dispatch (backup) ● Channel 7: N/A ● Channel 8: Parking ● This Tough Mudder will be delivered by an integrated event team, led by the Event Director. Key event operations roles have been identified and will be filled by experienced individuals. Position descriptions for these roles clearly outline responsibilities and reporting channels. A similar staffing model has been used successfully at many previous Tough Mudder events. ● All staff in a management or supervisory role will be issued a radio. A number of radio channels will be used, with radio users logically assigned to one of these channels according to their role. The Event Director, Festival Manager, Construction Manager, and Medical Team will each carry a second radio, and will monitor additional channels. Tough Mudder Twin Cities 2026 Event Operations Plan ● A comprehensive contact list containing contact details for all relevant stakeholders and emergency service providers has been compiled and distributed to the event team. Safety The health and safety of all participants, spectators, staff and others on-site throughout Tough Mudder Twin Cities 2026 is a priority of the Event Team. Responsibility for managing incidents across the event site rests with the Tough Mudder Event Team, led by the Event Director. Occupational Health and Safety Tough Mudder uses the following protocol to make sure the event site is as safe as possible and to minimize the risk of harm to any individual: ● Guidelines have been developed and will be implemented at the event, including: o Loading and Unloading Vehicles o Setting Up and Packing Down Infrastructure o Use of Utility Terrain Vehicles (UTVs) ● In the event of an incident, one or more experienced team members have been designated as ‘safety officer’ to assist in the management of the incident. ● A series of checks are carried out to ensure the site is safe before gates are opened to participants and spectators. Power and Fuel Approximate power usage: 2 x 10000W generators, 2 x 2000W generators, 8 x 3000W generators and 1 x 6500W generator. Said generators will be gas or diesel powered. All fuel cells will be stored on/in leak proof containment pans or storage. Medical Arrangements Tough Mudder events attract large numbers of people and are physically challenging by their nature. Tough Mudder maintains an International Safety Committee, which is responsible for assessing risks and establishing mitigation measures at all obstacles on the course. On-site medical care at Tough Mudder events is conducted by Event Medic Services (EMS), who are responsible for recruitment and dispatch of EMTs, paramedics, lifeguards, and other medical professionals involved in the event. While participants and spectators are on site, a consistent medical presence is maintained. Every Tough Mudder event will include a fully staffed and fully stocked medical tent, which will provide basic lifesaving care. Medical personnel ranging from first responders to paramedics are stationed at various locations around the course. Every event will have five medical rover teams with two EMTs each. These rovers will circulate the course in pre-identified zones to provide emergency care, transport Tough Mudder Twin Cities 2026 Event Operations Plan injured participants, and otherwise monitor the safety of the course. Every rover is equipped with a backboard, stoke basket, and automated external defibrillator. Tough Mudder will contract with local ambulance providers at each venue to ensure ALS-level coverage for significant injuries or medical emergencies. The ambulance contracts are typically executed about 30 days before the event date. Information about each event's ambulance provider, the event Incident Action Plan, and further details can be provided on request 30 days from the event. Tough Mudder will is contracting with mHealth Fairview to have 2 ALS units onsite during its events on June 29th and 30th. Incident Management The following measures have been put in place to ensure that any incident that does occur is quickly identified and responded to in an efficient and effective manner: ● Emergency Action Plans (EAPs) have been developed for a number of specific scenarios, and event team staff have been briefed on how to respond if such incidents occur. ● Key Event Operations Roles have been identified for the event, responsibilities for each role have been clearly defined, and each role will be filled by an experienced Tough Mudder staff member. ● Details of all major incidents will be logged in an Event Medics Incident Report by the medical team on a real-time basis, ensuring an up-to-date record of what has occurred, actions taken in response, and relevant timings. ● A number of medical staff as well as 2 ambulances will be on site throughout the event. ● Washington County Sheriff’s Dept has been informed about the event and appropriate contacts will be identified should additional assistance be required on site. ● Emergency vehicle access points and a helicopter landing area will be identified for the site and included in plans, should these be required. ● Incident Report Forms are available on site and all staff will be instructed to complete these for any incidents they witness/report. ● A member, or members, of the Tough Mudder Leadership team will be on-duty at all times during the event (potentially off-site), and will be available to assist in arranging additional support for and providing guidance to the Event Director if required. Further details about incident management arrangements will be available in the following documents upon request: ● Emergency Action Plans o Death or Serious Injury; o Obstacle Failure or Collapse; o Major Traffic Incident; o Severe Weather; Tough Mudder Twin Cities 2026 Event Operations Plan o Evacuation; o Emergency Vehicle Access and Helicopter Landing Area Plan Parking and Traffic The means by which participants, spectators and staff travel to and from the venue is a key element of planning for all Tough Mudder events. A comprehensive Parking and Traffic Plan* has been developed for Tough Mudder Twin Cities 2026, addressing on-site parking, the flow of vehicles into and out of the venue, required signage and traffic management, contingency plans, and staffing requirements. The following tables outline key information regarding Tough Mudder Twin Cities 2026’s Parking and Traffic plans: Saturday Participant Start Waves 7:45 AM – 1:45 PM ~200 every 15 minutes Total Cars Expected 1,950 Cars ● 1,700 Participants & Spectators ● 100 Staff, Vendors & ADA ● 150 Volunteer Spaces Available 3,220 On-Site Shuttles Not needed Ingress Hours 6:00 AM – 1:30 PM Avg 260 cars/hour Egress Hours 10:30 AM – 7:00 PM Avg 230 cars/hour Washington County Sheriff’s Dept 6 officers Road Closure - Hyde Ave (Residents Only) Closed from 6:00am - 7:00 pm Road Closure - Irish Ave (Medical and Residents Only) Closed for the duration of the event (Approx 6am - 7pm) Parking/Traffic Staff 8-10 staff *Full Parking and Traffic Plan is available upon request. Parking Map is available in Appendix A Tough Mudder Twin Cities 2026 Event Operations Plan Course The following table provides a summary of the course for Twin Cities 2026: Length Saturday June 27th ● 8hr Infinity, 15k, 5k Obstacles/Features 15k: 20+ Obstacles, 5k: 12+ obstacles Water Stations 6 on 15k course & 2 on 5k course Terrain Open fields, wooded areas, some wetlands, and elevation changes Estimated Completion Time 15k ● First finisher expected to take 2 hours ● Average finisher expected to take 3.5 hours ● Slowest finisher expected to take up to 7 hours 5k ● First finisher expected to take 1 hour ● Average finisher expected to take 2 hours ● Slowest finisher expected to take up to 4 hours For a full course map, including obstacles, see Appendix B. Festival Area and Services The area in which participants start and finish the course is referred to as “Festival Area”. This area is also where a range of services will be available to all patrons throughout the event weekend. The following table provides a summary of the key services being provided: Check-In All participants and spectators will enter the Festival Area area through the check-in tent. All patrons must have a paid ticket accompanied by a signed waiver upon entry and will be given a wristband once processed. Ticket Sales/Information A Tough Mudder HQ employee and volunteers will staff the “Mudder Services” tent which handles day-of admissions, customer service questions, and lost and found. Bag Drop Participants will be able to check their belongings. Food & Beverage There will be a variety of food and non-alcoholic beverages for sale to all event attendees. There will also be beer for sale in the beer garden for those 21+. The Hugo Lions Club has been contracted to handle beer operations for the event. Merchandise There will be a tent setup with Tough Mudder apparel for sale. Giveaways Upon crossing the finish line, participants will receive giveaways such as product samples, t-shirt, and headband. Partner Activations Within the Festival Area, there will be a number of features sponsored by our local and national partners. Rinse Stations A rinse area will be available in the Festival Area. Entertainment Music will be played throughout the Festival Area via speakers for the duration of the event. There will also be an emcee at the Start Line and Finish Line. For a full Festival Area map, see Appendix C. Tough Mudder Twin Cities 2026 Event Operations Plan Food and Alcohol Services Tough Mudder Twin Cities 2026 will have food, non-alcoholic beverages, and beer for sale to all patrons on-site during the event weekend. In addition to purchased items, there will be a number of samples and water available for participants on course. Food Concessionaire Local Food Trucks Alcohol Concessionaire Hugo Lions Club Alcohol Service Hours Saturday: 9:00 AM – 7:00 PM Product Sampling (Course and Finish Line) Nutrition bar, Electrolytes, Bananas Identification Checks: All participants and spectators wishing to enter the event area will be required to show ID at the registration tents prior to entering the Festival Area. They’ll be given an identifiable wristband indicating they are over 21, and this wristband will be checked at any point of sale. Roughly 87% of participants are 21+ years of age. Additional Checkpoints: In the event that a participant wearing a wristband may appear to be under the age of 21, an escort will be provided to allow the participant to retrieve his/her ID from the Bag Drop tent, and then return if age has been appropriately validated. All bartenders serving beer have the right to question and re-check identification for those who may look to be under age. Security and Credentials Tough Mudder has contracted with Washington County Sheriff’s Department to provide event security for Tough Mudder Twin Cities 2026. In addition to traffic control Tough Mudder will have 1 officer from Washington County Sheriff’s Department for event day security. This officer will be roaming the festival area. We will work with the local Police Department to determine additional event security requirements based on venue and permit requirements. *A full Security Plan is available upon request. Waste Management and Disposal Tough Mudder is committed to keeping event sites clean at all times. All waste generated by the event will be appropriately stored and removed from the site. Trash bins and dumpsters will be sourced for placement around the event site. These will be strategically positioned in areas where large amounts of waste are likely to be generated. Contract cleaning staff will be scoped and will be present on site throughout the weekend to perform litter picking and to empty trash bins. Dumpsters will be emptied at the conclusion of the event. The following is a summary of the Waste Management arrangements for the event: Waste Management Staffing Provider Professional Event Services Waste Management Staff* 2-3 Saturday Dumpster Provider TBD Dumpsters On-Site 2 – 40 yd. Dumpsters for Festival Area 1 – 40 yd. Dumpster for Staff Basecamp Tough Mudder Twin Cities 2026 Event Operations Plan 2 – 40 yd. Dumpsters for Course Portable Toilet Provider United Site Services (TBD) Portable Toilets On-Site 2 - Staff Basecamp 28 - Festival 6 - Water Stations 7 - Onsite Lot(s) 6 - Course 1 - TM Infinity 1 ADA - Medical 3 ADA - Festival 1 ADA - Onsite Lot 1 ADA - Volunteer *A full Waste Management Staffing Plan is available upon request. Logistics A logistics compound and staff basecamp area will be established on site. All equipment and product required for the event will be delivered to the basecamp area. Receipt, distribution and recovery of all equipment/product will be managed by a dedicated logistics coordinator. Technology Laptops will be set-up in the Event Command Center for use by Tough Mudder staff. Internet access will be available through Tough Mudder owned technology equipment in order to service our Registration Platform. Scanners will be used to check in participants and spectators and to assign participant numbers to the runners. This information is available in real time to those in the Event Command Center so information about all participants on course, including Emergency Contact Information, is readily available based on bib number. Staff working at the Mudder Services Tent in the Base Area will also have iPads in order to check in participants and troubleshoot any registration issues. Tough Mudder Twin Cities 2026 Event Operations Plan Appendix A: Parking Map Tough Mudder Twin Cities 2026 Event Operations Plan Appendix B: Course Map COURSE MAP SUBJECT TO CHANGE Tough Mudder Twin Cities 2026 Event Operations Plan Appendix C: Festival Area Map FESTIVAL MAP SUBJECT TO CHANGE Tough Mudder Twin Cities 2026 Event Operations Plan Appendix D: Event Schedule Saturday, June 29, 2026 6:00am Parking Opens 6:00am Police Arrive 6:00am Parking Staff Arrive 6:30am Volunteers Arrive Onsite and Check-In 7:00am Registration Opens 7:00am Festival and Merchandise Opens 7:30am ALS (2 Units) Arrive Onsite 7:45am 8hr Infinity Event Begins 8:00am 15k Event Begins 9:00am Beer Service Begins 9:00am Food Trucks Arrive 10:00am 5k Event Begins 11:45am Last 15k Heat 1:45pm Last 5k Heat 1:45pm Registration Closes 8:00pm Festival/ Event Closes Agenda Number H.1 CITY OF HUGO COMMUNITY DEVELOPMENT DEPARTMENT PLANNING AND ZONING APPLICATION STAFF REPORT TO: Bryan Bear, City Administrator FROM: Rachel Juba, Community Development Director SUBJECT: Terry Luedeke. Renewal of an Interim Use Permit for a Motor Vehicle Repair Home Occupation – 17627 Henna Avenue North DATE: May 28, 2026 for the City Council meeting of June 1, 2026 COMPREHENSIVE PLAN: Low Density Residential / Agricultural ZONING: Future Urban Service (FUS) REVIEW DEADLINE (60-days): June 9, 2026 1. DESCRIPTION OF REQUEST: The applicant is requesting approval to renew an interim use permit (IUP) for a home occupation for a motor vehicle repair business at the property located at 17627 Henna Avenue North. Mr. Luedeke is requesting approval to renew the exact same IUP conditions as was approved on October 21, 2013. However, he is requesting approval of a site plan for the relocation of the existing driveway and installation of a fence. This will be discussed further in the staff report. 2. LEVEL OF CITY DISCRETION IN DECISION-MAKING: The City’s discretion in approving or denying an interim use permit use permit is limited to whether or not the permit meets the standards outlined in the Comprehensive Land Use Regulations. If it meets these standards, the City must approve the interim use permit. 3. BACKGROUND: On July 18, 2011, the City Council approved a home occupation interim use permit for an auto repair business to be conducted on the property. Discussion at the City Council meeting included concerns about future growth of the business and the potential impact to the neighbors because of the use and the shared driveway. The approval was for a duration of one year, with a six month informal review. The review was to ensure the compliance with the conditions listed within the permit. The home occupation ordinance does not outline a process for informal Luedeke IUP Renewal 060126 Page 2 2 reviews; staff simply visits the property and evaluated the business as it complies with the approved permit. Staff reported to the City Council on January 23, 2012, on the six month review. During inspection of the property for the review staff found that there were more business related vehicles than allowed by the IUP and vehicles not stored in the designated location. A neighbor also made complaints on the hours of operation, business traffic, and the condition of the shared driveway. During the meeting the Council stated that Mr. Luedeke provided an important service in Hugo; however, the business was having an effect on the neighbors and something needed to change with the way he was conducting the business. They added that Mr. Luedeke needed to be aware of his IUP conditions and comply with them. No formal action was taken at the City Council meeting on January 23, 2012. Mr. Luedeke applied for IUP renewal at the year expiration of the permit. There was a public hearing conducted at the City Council meeting of July 16, 2012. There were several people including property owners in the area that spoke during the public hearing in favor of renewal of the IUP for the home occupation and that the business did not impact them. There was a neighbor directly to the north that stated the business is still having an impact in regard to noise and traffic. At that time, staff found that Mr. Luedeke was complying with the IUP on the items that could be verified by staff at the time of the inspection. Mr. Luedeke has stated that it is his intention to operate with the IUP limitations. The City Council approved the renewal of the home occupation IUP on July 16, 2012 for six months. Over the next six months following the renewal, staff conducted reviewed and monitored the impact with several inspections. At that time, the IUP conditions were being followed. On January 7, 2013, the City Council approved the renewal of the IUP for two years. On October 21, 2013, the City Council approved an IUP amendment for the home occupation for a building addition to the accessory building that is used for the business. This allowed more work to be completed indoors. The home occupation ordinance outlines the process for renewal of a IUP. This includes an administrative process to be approved by staff up to five years at a time. Notices are sent to the City Council, Planning Commission, and properties within 300 feet of the property. If a public hearing is requested by any of the parties, staff schedules the public hearing and sends notices of the meeting date. Mr. Luedeke applied for renewal of the IUP each time it expired. Over several years, staff did not receive complaints, concluded that the IUP conditions were met, and the IUP renewals have been approved administratively. Staff has received three formal complaints on the business starting in 2023. The complaints state the business is not meeting the conditions of the IUP related to hours of operations, vehicles not stored in the designated location, exceeding number of business related trips, and business related vehicles driving north on the neighbor’s driveway. The complaints included photos of some of the violations. After receiving complaints, staff conducted site visits. During the site Luedeke IUP Renewal 060126 Page 3 3 visits staff did find that Mr. Luedeke was out of compliance in regards to the storage of vehicles and business related equipment. After site visits and letters sent to Mr. Luedeke the site was cleaned up. The business related vehicles driving north on the share driveway still remains an issue. The IUP is set to expire June 24, 2026, therefore Mr. Luedeke has requested a renewal. Notices were sent to the City Council, Planning Commission, and surrounding properties. A public hearing was requested for this IUP renewal. 4. ANALYSIS: Home occupations are allowed in the Future Urban Service (FUS) zoning district as an accessory use. Section (o) of the Home Occupation ordinance (section 90-232) recognizes that certain home occupations in the rural area of the City are less likely to negatively impact adjacent property owners and character of the neighborhood than in the urban residential areas of the City. Specifically it lists minor or major vehicle and engine repair and other similar business that could be allowed as home occupations in rural areas. The applicant has previously installed landscaping of evergreen trees on his property to screen the accessory building and area where the business is being conducted. The most recent complaint was in March 2026. The complaints are generally related to vehicles and business-related equipment being stored in the wrong location and maneuvering of large trucks on the neighbor’s driveway to the north. We have completed site inspections and sent letters to Mr. Luedeke. Mr. Luedeke does clean up the property when we send letters, however, the maneuvering of the large trucks on the neighbor’s driveway remains an issue. Mr. Luedeke has submitted a site plan to relocate his driveway access to the business to eliminate home occupation related traffic from going on the neighbor’s driveway. The site plan includes the installation of a privacy fence going east to west to block the existing driveway to the business. It is in staffs opinion that the site plan to relocate the main driveway to the business will reduce the impact on the surrounding properties, could eliminate the issue of maneuvering of the large trucks on the neighbor’s driveway, and further screen the business operations. Additional landscaping would also help screen the business. Mr. Luedeke is requesting that the site plan be added to the IUP as an exhibit. A. Criteria for approval of a home occupation interim use permit renewal: The City Council shall renew an interim use permit if the following criteria are met: (1)The interim home occupation satisfies the performance standards for interim home occupations and the conditions of the home occupation interim use permit. All of the home occupation performance standards are outlined in Mr. Luedeke’s IUP, as well as additional conditions for the business. After compliance letters are provided and during most recent inspections staff has found that the home occupation satisfies the performance standards for home occupations and the conditions IUP for the business, except the maneuvering of large Luedeke IUP Renewal 060126 Page 4 4 vehicles on the neighbor’s driveway to the north remains an issue. It is in staffs opinion that the site plan to relocate the main driveway to the business will reduce the impact on the surrounding properties, could eliminate the issue of maneuvering of the large trucks on the neighbor’s driveway, and further screen the business operations. Mr. Luedeke has stated that it is his intention to operate with the IUP limitations from now and into the future. (2)The interim home occupation has been operating without violation of city ordinances or significant impact on surrounding neighbors. The home occupation has not violated city ordinances. The complaints have stated that there is am impact to the surrounding properties, most significant being the maneuvering of large vehicles on the neighbor’s driveway. Mr. Luedeke has a plan to reduce the impact on the surrounding properties by installing a new driveway access to the business to eliminate the issue of maneuvering of the large trucks on the neighbor’s driveway and installing a fence to further screen the business. He has agreed to install additional landscaping as well. (3)The interim home occupation is operating as the same type of business at the same scale and intensity as originally approved. If the home occupation has significantly changed, the applicant shall apply for a new home occupation interim use permit. Mr. Luedeke is requesting approval to renew the exact same IUP as was approved on October 21, 2013. He did not proposed changes to be made to the IUP, however Mr. Luedeke is requesting the plan for the driveway relocation and installation of the fence be added as an exhibit. The home occupation has not significantly changed since originally approved. 6. CONCLUSION/RECOMMENDATION: Staff finds that the intent of the criteria for approval of the renewal will be met if plans to relocate the driveway access to the business and the installation of the fence are completed. Staff generally likes plan as proposed, but changes are likely to be recommended upon further review. The City Council can approve a home occupation IUP for a period up to five years. Staff recommends the driveway be relocated and the fence installed by August 1, 2026. Staff recommends additional landscaping be incorporated in the plan. The final site plan shall be reviewed and approved by staff. With the recommendations, staff has made minor changes to the IUP. Staff recommends the City Council approve the resolution approving the renewal of the home occupation IUP for a duration of one year with continued site inspections every three months. Luedeke IUP Renewal 060126 Page 5 5 ATTACHMENTS: 1. Location Map 2. Resolution 3. Home occupation ordinance 4. Existing IUP 5. Proposed IUP 6. Proposed Site Plan 7. Proposed Fence RESOLUTION 2026-____ APPROVING A RENEWAL OF AN INTERIM USE PERMIT TO ALLOW FOR THE OPERATION OF A HOME OCCUPATION AS AN ACCESSORY USE, ON PROPERTY LOCATED AT 17627 HENNA AVENUE NORTH WHEREAS, Terry Luedeke has requested approval of a renewal of an interim use permit to allow for the operation of a home occupation as an accessory use on the property legally described as follows: (See Attached) WHEREAS, the City Council has reviewed the request at a duly called Public Hearing and recommends approval, and; NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUGO, MINNESOTA, that it should and hereby does approve the request by Terry Luedeke for renewal of an interim use permit to allow for the operation of a home occupation as an accessory use, subject to the following findings and conditions: 1. A site plan to reduce the impact on the surrounding properties by installing a new driveway access to the business and installing a fence to further screen the business shall be submitted for review and approval by staff. Landscaping shall be incorporated into the plan. The plan shall be constructed by August 1, 2026. 2. The applicant shall meet all conditions listed in the interim use permit. 3. The permit shall be approved for duration of one year, subject to reviews every three months by staff. ADOPTED by the City Council this 1st day of June, 2026 ______________________________ Tom Weidt, Mayor ATTEST: __________________________________ Michele Lindau, City Clerk (a) (b) (c) (1) (2) (3) (4) (5) (6) (7) (8) Sec. 90-232. - Home occupations. Unlawful unless conditions met. It is unlawful to conduct or operate a business from a home in any zoning district of the city, except under the conditions contained in this chapter. Purpose and intent. The purpose of this section is to maintain the character and integrity of residential areas, prevent unfair competition with commercial districts, encourage the existing entrepreneurial spirit in the city, and provide a means through the establishment of specific standards and procedures by which home occupations can be conducted without jeopardizing the health, safety, and general welfare of the surrounding neighborhood. The intent is to provide a mechanism enabling the distinction between those home occupations having minimal or no secondary impact, and those which have potential to adversely affect surrounding properties. General standards for all home occupations. Home occupations, which conform to all of the following standards, may be permitted without obtaining a home occupation interim use permit: Any home occupation shall be clearly incidental and secondary to the residential use of the premises and shall not change the residential character thereof. The existence of the home occupation shall not be apparent beyond the boundaries of the site, except a nameplate, not to exceed two square feet in size, identifying the business or service conducted on the premises, affixed directly to the building. All home occupations shall be conducted entirely within the principal dwelling, except that up to 50 percent of the total floor area of accessory structures (e.g., attached garages, detached garages, and other outbuildings) on a site may be used for the storage of equipment, trailers, or materials related to the home occupation, provided that no assembly, display, manufacturing, repair, or other business operations are conducted within an accessory structure. In no event shall the storage of materials related to a home occupation result in fewer parking spaces than required by this code. The business or occupation shall not create any radio or television interference beyond the boundaries of the site. The area set aside for home occupations shall not exceed 25 percent of the total floor area of such residence. No home occupation shall permit light, glare, noise, odor, smoke, dust, or vibration that will in any way have an objectionable effect upon adjacent or nearby property owners. No home occupation shall generate customer or vehicle trips to the site earlier than 7:00 a.m. and later than 9:00 p.m., Monday through Saturday, or earlier than 8:00 a.m. and later than 8:00 p.m. on Sunday. No commodities shall be sold on the premises except incidental materials or agriculture products. (9) (10) a. (11) (12) (13) (14) (d) (e) No home occupations shall generate on average more than eight vehicle trips per day, including no more than one delivery vehicle of a type that customarily serves a residential area. Vehicle trips related to the home occupation from customers and clients should generally be by appointment only. There shall be no exterior storage of business equipment, merchandise, inventory, heavy equipment, or other materials and miscellaneous items used in the home occupation except for one business related automobile, truck, or van not exceeding 25 feet in length or a gross vehicle weight rating of 9,200 pounds may be parked on the premises. In addition to the above, in the Agricultural, Long Term Agricultural, Rural Residential and Future Urban Service zoning districts, or within any urban residential district on property ten acres or greater in size, one additional business-related vehicle shall be allowed. Said vehicle may exceed the weight and length limitations outlined above. One business related trailer shall be allowed provided the trailer is attached to a vehicle and the combined length of the vehicle and trailer does not exceed 46 feet. No alteration of the exterior of the dwelling or the accessory structure that changes the residential character of the premises shall be permitted, except where required to comply with local and state fire and police regulations. No more than one person, other than those who reside on the premises, shall engage in business activities on the premises. The business may employ others only if their work activities are performed off the premises. On-street parking facilities shall not be utilized to accommodate parking demand. No home occupation shall involve the use of hazardous materials or activities that require a hazardous waste generator's license. Home occupations not requiring interim use permit. The following uses, subject to the above performance standards, are examples of home occupations that may be permitted without a home occupation interim use permit: home office facilities, music and art studios, tutoring services with no more than two pupils per session, dressmaking and tailoring, and home craft production such as rug weaving and model making. Home occupation interim use permits. Home occupations which do not conform to the above standards may be conducted by a home occupation interim use permit. The information required and the procedure to be followed for all home occupation interim use permit applications shall be the same as that required for a conditional use permit set forth in subsections 90-37(a) and (b). In addition, the applicant may be required to submit supplementary information pertaining to the nature of the home occupation, the equipment used, days and hours that the home occupation will be conducted, and a plan showing the portion of the dwelling or site to be used for the home occupation. (f) (1) (2) (3) (4) (5) (6) (7) (g) (1) (2) (3) (h) Criteria for approval of a home occupation interim use permit. An application for a home occupation interim use permit may be granted only upon a finding that all the following criteria have been met: The applicant owns the property and resides at the principal residential address associated with the home occupation, unless the council determines that unique conditions or circumstances warrant special arrangements. The proposed home occupation is allowed as an accessory use in the respective zoning district and conforms to this chapter. The proposed home occupation is in keeping with the spirit and intent of this chapter. The proposed home occupation is compatible with the present character of the surrounding area. The proposed home occupation shall have a set date in which the permit shall be reviewed and extended through the renewal process or terminated. The home occupation will not impose additional unreasonable costs on the public. The proposed home occupation shall be subject to, by agreement with the property owner, any conditions that the city council deems appropriate for permission of the use. Conditions of approval. In permitting a new home occupation interim use permit or amending an existing home occupation interim use permit, the planning commission may recommend and the city council may impose, additional conditions and requirements to protect the health, safety, and welfare of the surrounding area and the community at whole, mitigate unfavorable consequences of activities resulting from issuing the permit, enforce laws and regulations, and ensure compliance with the conditions of the permit. These conditions may include, but are not limited to, the following: Limitations on period of use, occupancy, and operation. Buffering and screening measures. Renewal periods between one to five years. Renewal of a home occupation interim use permit. A home occupation interim use permit shall be issued for an initial period of up to two years, after which the permit may be renewed for periods of up to five years each. Notice of the permit renewal application must be provided to the property owners of record for properties located within 300 feet of the lot or parcel to which the home occupation interim use application applies and the property owners shall be allowed a period of ten days in which to respond. Notice of the permit renewal application should also be provided to the planning commission and the city council. If no parties wish to be heard at a public meeting to consider the application within ten days of the notice the application can be approved administratively. A public hearing shall also be required if deemed necessary by the community development director, or a majority of the planning commission or the city council. If (1) (2) (3) (i) (1) (2) (j) (k) (1) (2) (3) a public hearing is deemed necessary, the community development director shall schedule the item for consideration by the city council and shall notify the surrounding property owners of the hearing date. The city council shall renew an interim use permit if the following criteria are met: The interim home occupation satisfies the performance standards for interim home occupations and the conditions of the home occupation interim use permit. The interim home occupation has been operating without violation of city ordinances or significant impact on surrounding neighbors. The interim home occupation is operating as the same type of business at the same scale and intensity as originally approved. If the home occupation has significantly changed, the applicant shall apply for a new home occupation interim use permit. Interim use permit nontransferable. Home occupation interim use permits do not run with the land. The permit is not transferable from person-to-person, and shall expire if there is a change in ownership of the property, unless the following conditions are met: The new permit holder must own the property and reside at the principal residential dwelling address. In the event that the permit holder is not the owner of the property or the principal resident, the city council may approve a transfer of the permit if unusual conditions warrant a transfer. The transfer of the permit must be approved by the city and filed accordingly. Renewal of transferred permits. Transferred permits shall be renewed within two years of the date that the permit transfer was recorded or by the original renewal date, whichever is sooner. If the permit expires, the current principal owner of the property may reapply for a home occupation interim use permit and shall follow the information submittal and procedural requirements outlined in this section. Urban residential home occupations. A home occupation interim use permit may be granted for home occupations in the R-1, R-3, R-4, R-5, and CR-3 zoning districts that meet all the requirements of subsection (c) of this section except subsections (c)(9), (12), or (13), provided that the home occupations conform to the following standards: Interim home occupation may employee more than one nonresident if the applicant can satisfactorily prove unusual or unique conditions or need for additional nonresident assistance and that this exception would not compromise the intent of this chapter. Interim home occupations may be allowed to accommodate their parking demand through utilization of on-street parking. In such cases where on-street parking facilities are necessary, the city council reserves the right to establish the maximum number of on-street parking spaces permitted. (l) (m) (n) (1) (2) (o) Interim home occupations that generate more than eight vehicle trips on average per day or are served by delivery vehicles which do not customarily service residential areas, may be allowed by the council on a case-by-case basis. Home occupations for which permits may be issued. The following uses, subject to the performance standards of this section, are examples of home occupations that are permitted with a home occupation interim use permit: barber or beauty shops with a single chair, tutoring services with no more than six pupils per session, domestic animal grooming, and photography studios. Home occupations not permitted in certain zones. The following uses by the nature of the investment or operation are not compatible with the use and value of an area zoned for residential purposes or have a pronounced tendency, once started, to rapidly increase beyond the limits permitted for home occupations. Therefore, the uses specified below are prohibited home occupations in the R-1, R-3, R-4, R-5, and CR-3 zoning districts: minor or major vehicle and engine repair and painting of vehicles, woodworking and cabinet making, medical or dental clinics, welding or machine shops, massage or tattoo parlors, animal hospitals, rental businesses, restaurants, and contractor's yards where construction materials and supplies commonly used by building, excavation, roadway construction, landscaping, and similar contractors are stored or serviced. Rural residential home occupations. A home occupation interim use permit may be granted for home occupations within the LA, AG, and RR zoning districts, or within any urban residential district on property greater than ten acres in size. The interim use permit must meet all the requirements of subsection (c) of this section except subsections (c)(3), (7), (9), (10), (12), or (13), provided that the home occupations conform to the standards for home occupation interim use permits in any other districts and the following standards: A home occupation may be conducted in an accessory building provided that the home occupation is contained entirely within one building. Exterior storage of materials, equipment, and permitted vehicles used for the home occupation may be allowed provided that the storage area is screened from the view of adjacent property owners and public rights-of-way using fencing, landscaping, berms, or other methods approved by the City, except that any business-related vehicles or trailers allowed under subsection (c)(10), above may be parked on the driveway of the residence without being screened. In no case shall the exterior storage area, on parcels of land less than ten acres, exceed half the size of the largest accessory building on the property. Up to 500 square feet of exterior storage area may be allowed per acre of property on parcels of land exceeding ten acres. Home occupations, rural versus urban areas. The city recognizes that certain home occupations in the rural area of the city are less likely to negatively impact adjacent property owners and the character of the neighborhood than in the urban residential areas of the city. Therefore, the following uses that are prohibited in all other residential districts as home occupations may be permitted with a home occupation interim use permit in the LA, AG, RR, and FUS districts, provided that the home occupations meet the above standards: minor or major vehicle and engine repair or painting of vehicles, welding or machine shops, woodworking and cabinet making, and contractor's yards where construction materials and supplies commonly used by building, excavation, roadway construction, landscaping, and similar contractors are stored or serviced. All other home occupation uses that are prohibited in the urban residential districts shall be prohibited in the LA, AG, RR, and FUS districts. (Prior Code, § 1195-330.1; Ord. No.2008-421, § 1(1195.330.1(Subd. 2(J)), 1(1195.330.1(Subd. 13(B)), 7-7-2008; Ord. No. 2015-470, § 4, 5-4-2015) Existing IUP INTERIM USE PERMIT DATE OF APPROVAL: June 24, 2021June 1, 2026 OWNER: Terry Luedeke DURATION: The permit shall be approved for duration of one year, with reviews every three months.five years. Continued review by staff of the impacts to surrounding properties shall be conducted as recommended by the City Attorney. This permit, if not renewed, shall expire after one five years or if there is a change in ownership of the property. ADDRESS FOR WHICH INTERIM USE PERMIT IS GRANTED: 17627 Henna Avenue North LEGAL DESCRIPTION: See attached ZONING DISTRICT: Future Urban Service (FUS) THIS INTERIM USE PERMIT ALLOWS FOR THE FOLLOWING: A Home Occupation for the property located at 17627 Henna Avenue North subject to the following conditions: 1.The home occupation shall operate in a manner that is consistent with Exhibit A and Exhibit C attached to this permit. 2.The home occupation shall be secondary to the residential use of the premises and shall not change the character of the area. 3.The existence of the home occupation shall not be apparent beyond the boundaries of the site. 4.The home occupation shall not create any radio or television interference beyond the boundaries of the site. 5.The home occupation shall not permit light, glare, noise, odor, smoke, dust, or vibration that will in any way have an objectionable effect upon adjacent or nearby property owners. 6.No commodities shall be sold on the premises except incidental materials or agricultural products. 7.No alterations to the exterior of the dwelling or the accessory structure that changes the residential character of the premises shall be permitted, except where required to comply with local and state fire and police recommendations. 8.No on street parking shall be permitted related to the home occupation. 9.The home occupation shall not involve the use of hazardous materials or the activities that require a Hazardous Waste Generator’s License. 10.There shall be no more than 16 business related vehicle trips per day. In addition, there shall be no more than 10 delivery trips to the property per week. 11.The applicant shall provide an area for semis and large vehicles to adequately maneuver and turn around without going north on the shared driveway. 12.No more than 1 person, other than those who reside on the premises, shall engage in business activities from the premises. 13.Exterior Storage on the site shall be limited to one F-350 pick-up truck, a 24 foot gooseneck trailer, a 25 foot enclosed trailer and 12 customer vehicles parked on the property at any one time. All customer vehicles and pieces of large equipment Proposed IUP whether they are for personal or business use shall be stored in the exterior storage area south of the accessory building. 14. A site plan to reduce the impact on the surrounding properties by installing a new driveway access to the business and installing a fence to further screen the business shall be submitted for review and approval by staff. Landscaping shall be incorporated into the plan. The plan shall be constructed by August 1, 2026. 14.15. The exterior storage area shall be fully screened from adjacent properties and the public right-of-way. All landscaping and screening used to screen this area must be installed prior to the ground freezing in fall of 2011.August 1, 2026. Prior to installation, all landscaping and screening is subject to further review and approval by the staff. The landscaping shall be maintained as shown on the landscape plan. 15.16. Hours of operation shall be from 8:00 am to 8:00 pm, Monday through Sunday. 16.17. There shall be a two square foot directional sign at the end of the applicant’s driveway. Prior installation, the sign shall be reviewed and approved by staff. 17.18. The business shall follow Exhibit A, B, and C and B. ADOPTED by the City Council this 1st day of June, 2026 ______________________________ Tom Weidt, Mayor STATE OF MINNESOTA ) ) ss. COUNTY OF WASHINGTON) On this _____ day of __________________, 2013, before me, a Notary Public, personally appeared Tom Weidt, Mayor of the City of Hugo, a Minnesota municipality within the State of Minnesota, and that said instrument was signed on behalf of the City of Hugo by the authority of the City Council of the City of Hugo, and Tom Weidt acknowledge said instrument to be the free act and deed of said City of Hugo. __________________________________________ Notary Public _____________________________________________ Terry Luedeke, Owner STATE OF MINNESOTA ) ) ss. (Individual Notary) COUNTY OF WASHINGTON) On this ____ day of ___________, 2021, before me, a Notary Public within and for said County, personally appeared Terry Luedeke, property owner, to me known as the person described in and who executed the foregoing instrument, who stated that they are the owners of the property this permit applies to, and acknowledged that they executed the same as their free act and deed. ______________________________ Notary Public THIS INSTRUMENT WAS DRAFTED BY: THE CITY OF HUGO 14669 Fitzgerald Avenue North Hugo, MN 55038 Concept for Proposed Fence Design