Okay, at this time we'll call the December 8th, 2025 council meeting to order. Please rise if you can for the pledge. I pledge algiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible for all. >> [clears throat] >> Make a motion to adopt tonight's agenda. >> Second. [cough and clears throat] Have a motion in a second. Any further discussion? Hearing none. All in favor? >> I >> I opposed presentations. Boring. All right. Thank you, Mr. Mayor and members of council. Um, I'm going to give a brief presentation on the 2026 budget and levy and then at the end of my presentation, we will invite the public up for comment or questions. So, again, the city of East Bethl has a year-long budget process that commences on January 2nd of each year when the budget model is created. The budget model chronicles the prior two years activity, the current year's budget, and the next year's budget that is being considered for approval. Embedded in the model are updates to salary, benefit line items, and debt service requirements for the 2026 budget. From there, the city has a series of meetings where the budget is discussed and modified. The objective of tonight's meeting is to provide a broad overview of the 2026 budget, allow for public input following the review, and then consider the adoption of the final budget and levies. Um, before we get into the budget, I wanted to go over some financial highlights. Looking at the city's most current year completed, we note that revenues came in at 102% of budget and expenditures came in at 95% of budget. Um, the variance in the revenue budget was mainly attributed to more than anticipated building inspection permit revenue. Again, this illustrates that our budget process and modeling does a good job in capturing actual activity that occurs. Uh the city has a formal fund balance policy that states the city should maintain a minimum of 40% of next year's budgeted general fund expenditures as its fund balance. The city had a fund balance of roughly 5.2 million at the end of 2024 or 75% of the 2025 budget. Given this strong fund balance, the city was able to continue to use 200,000 of that to minimize the levy increase for 2026. The city also has capital funds, which are essentially savings accounts set up for equipment, streets, parks, and buildings. So, when capital becomes depreciated, there are funds available for those items to be replaced without the need to borrow funds from external sources. And finally, the city has the fifth lowest tax rate in Anoka County out of 21 cities. Again, the components of the city budget are comprised of the general fund, special revenue funds, debt service funds, capital funds, and enterprise funds. Based upon inputs from the finance committee, department heads, and the city council, the budget model and budget book was prepared for the city council to review at tonight's meeting. Looking at the general fund budget from the macro viewpoint, we note that 2026 revenues, [clears throat] excuse me, and expenditures are budgeted increased by 7% or $479,400 from 6,976,300 in 2025 to 7,455,700 in 2026. And again, please note that in order to balance the 2026 revenues with expenditures, the city is using $200,000 in fund balance. That said, the city is still projected to maintain a healthy fund balance into 2027. So, what makes up that 7.5 million in general fund revenue? We have cable franchise fees, liquor and tobacco licenses, building inspection permit revenue, state aids for streets, fines and forfeits, intergovernmental charges, cemetery revenue, tower site lease revenue, gambling contribution revenue, interest earnings, and of course, property taxes. Again, the main objective of this slide is to emphasize that the city receives roughly 77% of their general fund revenue from property taxes and is by far the city's most important revenue source. Going into the expenditure side of things, there are two primary ways one can look at the city expenditure budget. One way is to look at it by object or what is actually being purchased. personnel costs for salaries and benefits, contracted services, supplies, etc. The city's personnel costs account for roughly 42% of the general fund budget. The city budgeted for 22 full-time employees in 2026, six in administration, five in community development, nine in public works, and two in the fire department. Of those employees, nine are represented by a union. For 2026, the union contract called for an 8% cost of living increase in salaries and the cafeteria contribution for benefits to increase from 1475 to,500 per month. For 2026, the mayor and council pay are budgeted to remain unchanged, but are scheduled to increase by 10% in 2027. The city also budgets for 35 paid on call firefighters, two summer seasonal public works employees, and roughly five winter seasonal public works employees that primarily work at the ice arena. Overall salaries and benefits reflect an increase of roughly 147,000 over 2025. A summary of the city's contracted service budgets for 2026 show that the Anoka County law enforcement contract is budgeted to increase by 110,000 or 7%. The city assessor contract is budgeted to remain the same. The city attorney contract is budgeted to increase by 5% or $10,000. The audit contract is budgeted increase by 4% or $1,000. And then the Metro Inet IT services agreement is scheduled to increase by 14% or $13,000 in 2026. Now the alternate way one can look at the city expenditure budget is by department. Okay. So the general government classification captures all expenses involved with city governance, city council, city administration, finance, assessing, legal, and elections. This classification is budgeted to increase by 11% from 1,373,800 in 2022 to 1,526,2206. The community development classification captures all expenses involved with planning, zoning, and building inspections. This classification is budgeted to decrease by 1% from 678,900 in 2025 to 674,200 in 2026. The public safety classification captures all expenses involved with police and fire protection. This classification is budgeted to increase by 7% from 2,452,100 in 2025 to 2,635,100 in 2026. Engineering expenses are budgeted to remain the same and are budgeted at two uh 20,000 for 2026. The public works classification captures all expenses involved with street maintenance and park maintenance. The public works classification is budgeted to increase by 5% from 1,685,000 in 2025 to 1,773,700 in 2026. Transfers to other funds include transfers to street building and park capital and is budgeted increased by 8% from 760,000 in 2025 to 800 820,000 in 2026. Now, we're going to shift gears into the city's debt service funds. Again, the city will have two outstanding bond issues at the end of 2025 with principal balances of roughly $14.4 million in total. Each year, the city pays interest and principal on each of these bonds. These annual principal and interest payments follow an amortization schedule that was determined when the initial bond sale occurred. The city also pays fiscal agent fees for each of these issues which is reflected in the budget. The budget reflects an increase from 2025 to 2026 from 940,500 to 993,000. So taking these into account, the general fund levy is projected to increase by 6% from 5,411,500 to 5,738,600. The debt service levy then is projected to decrease by 8% from 981,000 to 900,000 in 2026. So then we add those two levies up to see what the overall change in the levy will be for 2026. And we will see an increase of roughly 3.8% 8% going from 6,392,500 in 2025 to 6,638,600 in 2022. And again, this is um what is used to derive your tax amount on your [clears throat] 2026 tax statements. The other levying authorities within the city are its economic development authority and its housing redevelopment authority. The goals of the EDA are to encourage and redevelopment activities, achieve commercial development, and to en encourage development of housing within the city. The EDA levy is budgeted to remain unchanged at 136,200 in 2022. The East Bethl Housing and Redevelopment Authority's purpose is to provide a sufficient supply of adequate, safe, and sanitary dwellings and address substandard slum or blighted areas existing within the city. The HA levy is budgeted to remain unchanged at 77,000 in 2026. The city of East Bethl is a fullervice community located 30 mi north of downtown Minneapolis. The city is 48 square miles in total area and has a population of roughly 12,000 residents. The city delivers a variety of services including planning and zoning, code enforcement, building inspection, police protection, fire protection, park maintenance, street maintenance, and snowplowing. The city has the fifth lowest tax rate in Anoka County out of 21 cities. Again, then based on the 2005 tax rate, a house valued at roughly $400,000 would pay roughly $100 $106 per month for those services. All the stakeholders should have received their 2026 proposed tax statement in the mail from Anoka County. A couple of reminders that your overall tax increase decrease and is controlled by a number of factors including your taxable market value increase or decrease in relation to the entire city, the city levy, the county levy, and the school district levy. Staff recommends that council open the floor for public comment on the 2026 budget and tax levies and then consider the adoption of the general fund budget and levy, the EDA levy and the H levy with the resolutions presented in this report. With that, the city council will welcome any public input on the 2026 budget. So, I know Corey had some questions on this. So, [clears throat] this is aside from the public forum portion, so you don't need to sign up for this. [snorts] >> Uh, Cory Hy Jorgensson, 23190 Taylor Street. Uh, mayor council. I just wanted to uh talk about the amount like the assessor, you know, came to my house this year. We weren't there. He left a note. We use an Oka County. I understand we contract with them. And so, I called him to ask him to come to my house. He didn't. He said he didn't have to because I have just a slab on great home. He increased the value of my house $41,000. I can't understand. And how in God's green earth my house went up $41,000 in one year with zero changes since I built it eight years ago. So it's disturbing because you know 77% of your general fund comes from our property taxes. Anoka County, 50% approximately of their general fund comes from our taxes. And you have an Anoka County person come to your house and say your value is worth this much. It's one person's opinion. It's not a fact. It's a it's and of course he's going to make it go up because the money's got to go up. But we have to do better. And like I say, I'm pretty disappointed in the system to have my house go up that kind of money. and I spoke to the county and you know it it just I got nowhere and I we have to do better because as you know in my neighborhood with what we went through that garbage house 500 ft away of my from my house did not increase the value of my neighborhood and so I just really disappointed and I wanted to come and vent about it and and tell you guys that I'm disappointed that because at some point you're going to drive people away. I mean, I look at, you know, 8% increase. In fact, in Noa County said they're gonna they plan a 8% increase average over the next five years. My raise next year is already been told I'm getting $750. My company has to tighten the belt and get rid of fat. And how come the county and other entities aren't working as hard as other as the private sector? And that's what I had. Thanks for your time. Appreciate it. Thank you. >> Mitchell Web 60489 East Bethl. Uh seeing I'm not here for this reason, but seeing your guys' pie chart with 77% of um your guys' budget coming from property taxes is ridiculous. You see all the new commercial stuff that's going up and I own a full of commercial properties. What my tax rate is on buildings in like the city of Blaine compared to what I compared to commercial stuff in the city of East Bethl is not even comparable. You guys tax a lot. I'd recommend looking at like local tax because you're about to hear about all this cannabis and hemp and all this stuff. Why don't you guys tax that stuff? Get some of your budget out of this new cannabis. You know, they do that a lot of other states to collect more for their budgets. Um once you do that instead of the people that are supporting the community and live there and all that kind of stuff, try to look outside the box to get more money in your budget so you never cost living goes up. So >> thank you. >> Anybody else? >> At this time we'll close the public hearing. Uh [sighs] 41 2565 uh 11 resolution. Make a motion [clears throat] to approve resolution 2025-65 setting the final property tax levy and budget for 2026. Have a motion. >> Second that motion. >> Second. Any further discussion? >> Hearing none. All in favor? >> I >> opposed. None heard. The second resolution. Make a motion for approval of resolution 2025-66 setting the final 2026 EDA levy and budget. >> Second. I have a motion and a second. Any further discussion? Hearing none. All in favor? >> I opposed. None heard. Make a motion to approve resolution 2025-67 setting the 20 26 HR living budget. >> Second. I have a motion and a second. Any discussion? >> None heard. All in favor? >> I opposed. None. >> Excuse me one second. >> Okay. Matt, could we get something on next work meeting? I think um Mr. web has got some ideas and I think we should look uh very similar to what he's talking about in the next you know work session outside the box for property taxes. >> Thank you. >> Yep. Item 4B public hearing ordinance connecting street name. >> Okay. Okay. Uh, Mr. Mayor and Council, we have before you an approval of an ordinance correcting the Hidden Prairie Final Plat to rename the street from 198th Street Northeast to 198th Avenue Northeast. On November 19th, council approved resolution 2025-61 uh correcting a typo in the naming convention on the final plat for Hidden Prairie. The final plat of Hidden Prairie was originally approved on resolution 2025-37 and had been filed with an east west street named 198th Street Northeast. In line with the street naming conventions used by Enoka County, the city was directed to rename the street from 198th Street Northeast to 198th Avenue Northeast. So, no B building permits have been issued on this um or addresses assigned any of the parcels. So, we're still kind of in that beginning stage and uh according to Minnesota state statute, we do need a public hearing on this. And so, Mr. Mayor, we um recommend holding a public hearing um to see if there's any public comment on this. >> At this time, we'll open a public hearing on this if anyone wants to speak towards this. Seeing none, we'll close the public hearing. Move to voting. Make a motion for approval of ordinance 2025-08 renaming 198th Street Northeast to 198th Avenue within the Plat of Hidden Prairie. >> Second. We got a motion, a second. Any further discussion? >> Hearing none. All in favor? >> I I >> opposed. None heard. public forum. Uh reminder, public forum, you have about three minutes to present your deal. At time, I'll interject, tell you to wrap it up. So, starting off, we'll go with Dino. Mayor, councel, Dino Perfetti, 211034 Buchanan Street Northeast Bethl. Um I noticed you'll be um reviewing the uh garbage hauling license renewals today. I noticed that on your agenda. Um in the Hidden Haven estate area where I live, um we were fortunate enough to have all our roads resurfaced this past summer and they did an excellent job. Um everyone seems very happy with um the way everything turned out. Um, personally pulling into my house, it feels like I'm pulling into a brand new neighborhood and a new home. So, we enjoy that. But one of the biggest um issues uh the deterioration of our roads is the garbage hauling. You know, there's five companies that you currently have that are allowed to come through our neighborhoods. That's 10 very large vehicles um coming and going all week long. So I guess my question or comment would be why do we need so many um licenses for East Bethl. In comparison, Ham Lake has two um and they have, you know, more households than we do. U Forest Lake has one. I don't believe they should regulate everybody to have to use one company, but um I think two or three at the very most would all all be necessary and just help in uh hopefully keeping our public works budget more in check. That's all I have. >> All right. Thank you, Dean. Thank you, Dean. >> Joel Belch. >> Yes. Hello. >> Oh, I wasn't I only signed up because I last time I was here it was for a variance request. I don't have anything to say about this. I thought it was um I've got a a different subject coming up. >> Oh, that's fine. >> Sorry about that. >> No problem. >> Bruce Lawrence. All right, mayor, council, everybody attending. >> Um, are you looking for my comments on this specific thing that we just took place here? Because my interest is in sale of my property and a uh an ordinance that we have that I would like to petition for having it adjusted or abolished. uh if it's for something on the agenda. Um >> I believe it is but you haven't you haven't covered it yet. So it's for the cannabis license. >> We do not have a public hearing for the cannabis license. So I believe your comments apply more generally to the ordinance itself, not the item which we do not have a public hearing for tonight. >> All right. Well, in light of that, well, what would you like to hear about then that I'm interested in helping cover? because I I did have a meeting with Matt and so just trying to follow up here now that we are having this meeting here and looking to approve one of the conditional use cannabis licenses and the ordinance is no two licenses within 1,000 ft of each other. Well, >> I I believe that distinction was made at the planning meeting that uh Grace, if you want to chime in, that these are two distinct different cannabis relayed items. One is edible, one is cannabis, and those two do not conflict with each other. Is that correct, Grace? >> We have a hemp edible uh item up tonight. So, that is a hemp business. We also do have a cannabis business up for discussion tonight. Neither of these have a public hearing because that was handled at our planning commission meeting. Um I believe Bruce is talking about the thousand foot buffer distance between cannabis businesses. Um from my understanding his property is within a thousand feet of a business that is seeking a cannabis micro business license um or conditional use permit from the city so they can seek lensure from the state. Um that's I believe what this is about. >> Yeah. And I believe at the planning commission meeting that these two do not affect each other. Is that correct? The issuance of a cannabis uh license from the state or a cup from the city does put into effect that thousand foot buffer between properties. We do have to evaluate applications based on that. Um, so yes, if we approve a cannabis business tonight, there's a thousand foot buffer around that business. Um, I believe his comments were generally about our ordinance having that buffer. Um, not specifically about the business up for approval tonight. >> Well, it's killing my real estate deal, gentlemen. That's really the the crux of it all is I've been a business owner and a land owner here for 13 years and ultimately I'm have a sale pending. supposed to close on this December 18th. And the cannabis use license essentially was supposed to have and I'm not here to put Grace on trial, but ultimately uh it should be my business and my property that we're talking about tonight, uh not somebody else. But however, I want to advocate for uh for the business owner there. We've talked and the two businesses, even though they would be the same cannabis license, brand, uh, they're completely different vibe, if you will. Okay. She runs a wellness center. She's looking to incorporate some cannabis products, etc. We are, we hired a consultant that we paid $5,000 a month to come and tell us where the best place was in East Bethl to open a cannabis dispensary to actually make uh us a destination city because that's what it'll do. We have a significant investment on what it is that we are looking to do. So, in my discussion with with Matt, you know, I kind of told him, I'm bringing you the best of the worst, you know, because everybody's worried about compliance. But, you know, in Minnesota, they originally wanted four licenses here in East Bethl. I realize we don't have the population, but the state of Minnesota wants 382 dispensaries in order to, you know, come in line with the tax revenues that the governor was looking for when he made cannabis legal to begin with. So, Ultimately, um, you know, I I'm a big fan of Matts. Been a been a been a guy that's endorsed him as a conservative, uh, for many, many years. And, uh, you know, I I really appreciate, uh, you gentlemen considering this because I don't have anything against the other business owner. However, my property is sold for a $600,000 listing and ultimately if this buffer zone is is kept, I I lose that sale and you lose a construction company, two Mexican gentlemen that are out of country that are the actual partners and owners of of the building on the the deal that was made. And you know, I said this last week when I was here at the planning commission, and I I think it's something that very important, but East Bethl as a city, we're 93.7% white. You know, we need to welcome some affirmative action, if you will, some diversity. And these Mexican gentlemen, they also live in the area uh to boot. And so they own a construction company. They are here to be compliant and help create the best dispensary in the state and we've got the the council to do it. Now, last comments for your consideration would be the location here. This is not downtown East Bethl where my building is there on Highway 65 facing 65 with the liquor store and the Nace Food Shelf right there in that particular area on the frontage road. Okay. Ultimately, that is our I think you'd all agree that is our that's our commerce. That's our downtown East Bethl. That's as close as it gets to downtown East Bethl. Wouldn't you agree? That's where the restaurants are. That's where the movie theater is. That's where the liquor stores are. That's where the, you know, Route 65 Pub and Grub events. That's where people are congregated to spend their money to bring tax revenue to our city. And so ultimately I just don't want East Bethl to to lose two really fine businessmen, you know, ultimately just to have other people come in the future that wouldn't be as conscientious of our city and take emotional ownership of it. Uh you know, as well as somebody that's contributed to the community for 13 years. I am I am asking now for your assistance and certainly wish to advocate. Britney, can you raise your hand? >> Okay, >> pardon me. Please wrap it up. >> Yeah, Britney is uh the owner of the other business and I just want you gentlemen to know that we've we've talked on a couple of occasions now and we're willing to work in unison with one another because we believe it to be a synergy. I believe that her business will make more money. Having our dispensary there as opposed to not. It's a it makes us a destination city and that thousand foot buffer interrupts our commerce because ultimately you see if you have a McDonald's on one corner, right? Taco Bell across the street, Wendy's across the street from that, they make more money than they do if they're an isolated standalone business. So that's where the two and if later on they do look to have four licenses, I think we're going to have a difficult time with that buffer zone. And we don't have it in Minneapolis. We don't have it in St. Paul. We don't have it in Egan or any of the other uh cities that dwarf ours. So anyway, I appreciate the uh the time and the consideration, gentlemen. And like I say, a real estate deal and nine families kind of hang in the balance, but also what's good for the city hangs in the balance, too. >> Well, even if we were to do an ordinance change, you're looking at four to six months out. So, [clears throat] >> well, I don't know about timelines, but anyway, >> that obviously would >> kill, you know, the deal, but All right. Thank you. Mitchell Web. >> I don't have anything. >> Okay. Moving forward. >> Consent agenda. Make a motion to approve the consent agenda as presented. I'd like to pull item K. Anybody else? I'll second it. Got a motion. Second. I'll pull M. >> Yeah. A motion second for amend agenda without K and M. All in favor? >> I opposed. None. Item K. I'd just like to pull this just uh to get this so we can bring this to a work meeting possibly. >> Okay. >> For discussion because I I I looked into few of these. Dino called me this afternoon and I looked at a few of these. A lakes is it's unreal the pricing that they get for for rubbish service down there. It's unreal for all the residents. It's about 9/10 less than me. [laughter] So, >> and uh St. Francis just switched theirs here a few years back, too. So, I think we need to look into this and have a work meeting on it. With that said, I'll uh make a motion to approve it. >> Do you want to approve that or do you want to just table it? >> Well, we ain't going to change nothing for this coming year, >> right? >> So, for future. >> Okay. So, I'll make a motion to approve it. >> Second. >> Any further discussion? None heard. All in favor? >> I opposed? None. Item M. >> I'm just wondering, is uh Gerald here? They want to >> He's not here tonight. >> What's that? He's not here. >> He's not here. >> Okay. I guess I I read his bio and stuff like that and I'm okay with it. I just thought he'd be here. But since [snorts] he's not, I'll just make a motion to approve item M. >> Second. >> Have a motion, a second. Any further discussion? >> None being heard. All in favor? I >> opposed. None heard. Item 7 A1. >> Evening mayor, council. This is uh request for variances for a front end and or front and sideyard setbacks at 19511 East Front Boulevard. Joseph and Sherry Belche have applied for variances to allow the construction of a 1,250 square foot attached garage on their property located [snorts] at 1951 East Front Boulevard Northeast. This property is 32 acres. It is guided and zoned Lake Residential. The surrounding properties are guided and zoned the same. This property borders Lake to the east. It's also within the city's shoreland overlay district due to its proximity to Lake. Property is approximately 75 ft in width and 176 feet in length. There are two requests. The first is a variance from section 51 subdivision 7B of the zoning ordinance to allow a front yard setback of 19t 8.4 in where a setback of 25 ft is required. The second request is a variance from that same section of code to allow a sideyard setback of 5' 8.4 in where a sideyard setback of 7 ft is required. The sideyard variance is being sought because the current structure has the same setback that 5 foot 8.4 in setback, but the new structure would be expanding that area that is non-compliant with our code. The current garage is angled, so a small portion of it is that distance from the property line, whereas the proposed garage would have a straight wall with that entire wall being that distance from the property line. The council may approve both one or neither of the variances. These requests should be considered separately. When evaluating a variance, the burden of proof is on the applicant to show that they have a practical difficulty that can only be remedied through the granting of a variance. We evaluate these uh this uh standard using three standards known as the practical difficulties test. The first standard is that the request is reasonable. So, the applicant is proposing to use the property in a way that is sensible but not specifically authorized by the code. The second is that the request is due to unique circumstances on the property that are not caused by the land owner. Uh so this is something often like sloping topography or proximity to shoreline or wetland um that make it difficult for a property owner to use the property as they would like to. Um financial constraints do not alone constitute a unique circumstance. That's a practical difficulty. And our third standard is that the uh variance if granted will not have a negative impact on neighborhood character. So, we evaluate whether something will look out of place or out of scale in the area it is being proposed. Findings of fact for each of the three standards have been provided within your packet for each variance for approval. If denying the sideyard variance, the council must determine findings of fact as staff could not determine those for denial for that variance. This is a quick look at the elevations of the building. Um, as you can see that left side is the proposed attached garage and then the structure on the right is the existing home. Um, and then there's also the front elevation. Uh, this building meets our architecture and square footage standards for a lot of the size. The garage would be 50 feet in depth and 25 ft in width. It would have a 12 foot, uh, driveway extending off of it. 12 foot in, uh, width. This is a look at the survey of the site. You can see the existing home um the okay existing home proposed attached garage and then the septic area which is approximately 13 ft north of the proposed garage. Um and then the distances are also marked to property lines and other site features. Planning commission held a public hearing on this application on November 25th. A written public comment was received in support of both variances and a public comment was received at the meeting also supporting the variances. Planning Commission voted four to zero to recommend approval of both variances. And that written comment is included in your packet. Council is directed to open the discussion and consider adopting the resolution of approval for the front yard and sideyard variances at 19511 East Front Boulevard Northeast with conditions recommended by staff as recommended by the planning commission. Happy to answer any questions. Any questions, sir? >> I'll make a motion to approve 19511 East Front Boulevard Northeast. >> Second. I was over the property and I took a look at it and if you drive up and down East Front Boulevard, there are other garages too that are closer and there's some that are farther back. I don't see an issue with this at all. That's all I got. I have a motion second. Any further discussion? None being heard. All those in favor? I >> opposed. None heard. Motion passes. Item two, [clears throat and cough] >> a conditional use permit request for a lower potency hemp edibles retailer at 18429 Highway 65 Northeast. Ramadan Hussein has applied for a CUP or conditional use permit to allow the operation of a lower potency hemp edible retailer at this address. This property is guided commercial and zoned B3 highway commercial. Properties to the south and north are guided and zoned the same. Property to the east is zoned and guided mixeduse and to the west of the site is highway 65. This property or this business currently holds a canvoid license from the city of East Bethl. So this would be a continuation of this use. It is currently operating as a cannabonoid or lower potency hemp edibles retailer under a license from the city. The reason the applicant is seeking this uh conditional use permit is that during the 2025 legislative session, a state statute was established to require all cannabis and lower potency hemp edibles retailers uh to have their licensing be performed through the office of cannabis management instead of through the local government unit or the LGU. To obtain a license from the OCM, the LGU must verify that the business complies with lo the local zoning ordinance. City Ordinance 2024-05 established lower potency hemp edibles or a lower potency hemp edible retailer as a conditional use within the B3 zoning district for businesses that do not have an active liquor license. So to obtain a lower potency hemp edibles license from the OCM, the business must first receive a CUP from the city to allow the proposed use on the property. So this is just one step in a multi-step process for this business receiving its lensure from the state and its registration from the city. The request again is to allow a CUP for the operation of this business. A lower potency hemp edibles retailer is a conditional use within the B3 zoning district. I have the definition of a lower potency hemp edible retailer up on the screen and within your packet. Not going to read that. They are restricted from selling any cannabis product. So this is not a cannabis business. Our code distinguishes the difference between a hemp business and a cannabis business. And state statute also makes that distinction. I also want to emphasize that the granting of CUP by the city does not guarantee that the applicant will be granted the necessary lensure from the OCM or registration from the city. There are inspections and applications through the OCM that have have to happen for that license and then the city also has a separate uh registration process with an inspection that is done by our administrative department. Standards of review for a conditional use permit are included on the screen. Just going to provide you a quick overview of that. The applicant is proposing no alterations to the exterior of the site. Business description is included in your packet and includes a safety and security plan. Uh this request was reviewed by staff including the sheriff's office and the fire department and no comments of concern were provided from those entities. Uh this is business is also subject to regulations and inspections by the OCM and the city in order to obtain lenture and to be registered. This business must comply with local, state, and federal laws for hemp businesses in our city. Those include section 30 of the zoning ordinance and chapter 18 article 4 of the city code which has been included in your packet. Section 30 of our code include standards for noise, odors of operation, odor, and signage for a business of this type. You will notice that a condition uh within the resolution uh regards signage. Uh, this applicant does have at least one sign on the property that did not receive a sign permit and several electronic signs on the building interior which violate the standards for signage established within section 30 of the code for hemp and cannabis businesses. So, a condition has been added for the removal or the permitting of these signs. Staff did not believe this was a large enough violation to deny this uh request. Uh, so we just added a condition in the resolution noting what must occur before we can verify the zoning. The planning commission held a public hearing on this application on November 25th. A public comment was received regarding East Bethl's cannabis ordinance, though this comment was not specific to the conditional use permit requests we were discussing at the time. Planning Commission voted 4 to zero to recommend approval of the conditional use permit. The council is directed to open the discussion and consider adopting the resolution of approval for a conditional use permit for a lower potency hemp edibles retailer at 18429 Highway 65 Northeast with conditions recommended by staff as recommended by the pl planning commission. Uh before we get into this discussion, I do just want to give an overview since I know cannabis is a new topic for many of us. Um the state requires cities or the state allowed cities to adopt ordinances for the regulation of hemp and cannabis business for any local regulations that they would like to impose. The city adopted ordinance 2024-05 establishing the standards and regulations governing cannabis and hemp businesses in East Bethl. Those standards were in part intended to safeguard the health, safety, and welfare of East Bethl's residents. So that established things like buffer distances, standards for noise and odor, and a limit on the number of registrants required or allowed for each business type within the city. Tonight we are discussing whether the CUP application and the proposed ways in which this business will be operated are in violation of the CUP standards or would be in violation of those standards. not whether cannabis or hemp businesses can operate in the city as a whole. That was already established within ordinance 24 2024-05. So when we consider this, I highly advise that you evaluate the proposed operation of the business against the ordinance standards, not against something such as personal opinion on cannabis or similar products. Thank you. Happy to answer any questions. >> So one one of the things that was brought up, this is a hemp business, correct? Yes, it is a hemp business. >> And our other agenda item is a cannabis business. >> Yes. Yep. >> Uh though are those under two separate classifications? >> They are defined as different types of business in our code. Our code does make a distinction of a cannabis business and a hemp business. So that buffer distance does not apply. These businesses both up for consideration tonight are uh near each other. They are within that thousand feet that we would hold cannabis businesses to. Because this one is hemp, it is not under that of a cannabis business. >> Okay. So, both of these businesses as is can coexist. Yes. The sale that the gentleman was talking about can go forward without having anything affected. >> The sale that the gentleman was talking about was uh for a property that he wishes to use for a cannabis business from my understanding. Um >> but that is that what >> that is not that is a different item. Yeah. This wouldn't interfere with that that he was discussing. Okay. >> Not connected to none others. >> Okay. That's what I was trying to kind of figure out there. So, these businesses can be next to each other as is. >> It's both up for consideration tonight. Can be. Yes. >> Okay. I just wanted to clarify that >> they are literally 100 ft apart. >> Yeah. >> Any other questions for Grace? Entertain a motion for re resolution number 2025-75. >> Well, I would move that we approve it. [clears throat] >> I'll second. Motion in a second. Any further discussion? None being heard. All in favor? >> I >> opposed. None. Motion passes. >> Item three there, Grace. >> Yes. Uh, this is a request for a conditional use permit for a cannabis micro business at 18447 Highway 65 Northeast Sweet B. Britney Yares has applied for a cup to allow the operation of a cannabis business at 18447 Highway 65 Northeast Sweet B. This property is guided commercial and zoned V3 Highway commercial. The properties to the south and north are guided and zoned the same. The property to the east is zoned and guided mixed use and to the west of the site is Highway 65. Per this business's website, uh they currently operate as a holistic wellness uh product or a business that sells holistic wellness products. Um again, state statute requires that the state license cannabis businesses. Part [clears throat] of that licensing process is zoning zoning verification from the local government unit. Um in order to verify this zoning for this business, uh the city of East Bethl would need to grant a CUP. Uh because this use is a conditional use within the B3 zoning district. The request again is to allow CUP to allow the operation of this type of business at this property. Canvas business or micro business is a conditional use within the zoning district. I have the definition of cannabis micro business up on the screen. Uh this is a cannabis business. They are allowed to grow cannabis plant from seed and sell um some forms of cannabis product. Uh they are allowed to do cultivation though the applicants uh application materials have not disclosed that they plan to do any cultivation and conditions have been included in the resolution limiting them to retail. uh the granting of a cup again by the city does not guarantee that the applicant will be granted the necessary lensure from the OCM to operate the business. Again, there are a separate set of applications and inspections associated with that. The standards for a conditional use permit are included on the screen. Uh as a brief overview, the applicant is proposing no alterations to the site. The business description included in your packet does include a safety and security plan. A floor plan was also included by the applicant, but that has been redacted within your packet because that includes sensitive security information pertaining to the site. This was reviewed by staff, including the sheriff uh sheriff's department and fire department, and they provided no comments of concern. Uh this business is also subject to regulations and inspections by the OCM to obtain lensure in the city to obtain registration. Again, this business must comply with local, state, and federal laws for cannabis businesses. Those are the same section 30 and chapter 18 that I discussed before in the previous item. Uh conditions have been recommended by staff for this item and the city may impose additional conditions of of approval on the CUP. Uh many of the conditions proposed by staff involve maintaining um lensure uh and following local state and federal laws. Notifying the city of any burglaries, breakins of or any activity of that sort. um notifying the city of any change of ownership or lensure status and the use of the space in accordance with the submitted site plan. This also involves making sure that the license uh the CUP and the license are issued to the same entity and that that entity has the right to operate in that space or has the ability to operate in that space. The planning commission held a public hearing on this application on November 25th of 2025. A public comment was received regarding East Bethl's cannabis ordinance. Though this comment was not specific to the conditional use permit request itself, a public comment was also received in support of the of approval of the conditional use permit. The planning commission voted 4 to zero to recommend approval of the conditional use permit. Council is directed to uh to open the discussion and consider adopting the resolution of approval for a conditional use permit for a cannabis micro business at 18447 Highway 65 Northeast B with conditions recommended by staff as recommended by the planning commission. Happy to answer questions. Any questions for Grace? [clears throat] None being heard. I'll entertain a motion on resolution number 2025-76. make a resolution to approve or I'll make a motion to approve resolution number 2025-76 approving a commercial conditional use permit for cannabis micro business located at 18447 highway 65 Northeast Suite B with conditions as presented. >> Second. >> I have a motion and a second. Any further discussion? I do have a question for the city attorney. This cup um in the event say this business does not do well or goes down. Okay. Does that mean that building right there is going to be the cup is going to carry over to that building? Correct. Even if the business is there or not. So another business very similar would have to move in. I think so. >> Mr. Mayor, Council, uh, Council Member Miller to to um, so a conditional use permit runs with the land and to your point, yes. Um, if this business failed, another one could move into that same space. They would have to go through the regulatory process through OCM first, but they would be able to skip this step um, because they would already have zoning approval. Now in reality it may not happen along the timelines uh that that line up with state law and statute regarding cups and the termination of a conditional use permit. Um while they do run with the land they will terminate for non-use or abandonment. Those are very fact-specific questions and so at the you know in a theoretical question I can't answer whether or not one year from today the CUP would expire uh if if the applicant stopped pursuing their license because we don't know who would come next or how they would endeavor to continue a CU. >> Okay. The reason I asked is that Nexus for example when when one business went out of business basically no one could move in there unless it was another business very similar that's all. Yeah. So, I'll pick up on that and say any other business that would comply with zoning could move into that space. It wouldn't be limited to just a cannabis business. >> Okay. >> But a cannabis business upon granting of a cup would have zoning authority to move into that area. >> Okay. Thank you. >> Any other discussion? [clears throat] >> Okay. We have [snorts and clears throat] >> no uh hearing none. Uh, all those in favor? >> I I opposed. >> None. Motion passes. >> Item four. >> This is a site plan review of Amba East Bethl commercial building. AMA Holdings LLC has applied for a site plan review for a multi-tenant commercial building located along Ulysi Street Northeast. This property is 4.43 acres. Uh, this property is guided commercial and zoned B3 highway commercial. The proposed use of this building would be for a daycare and three retail storefronts with tenants that have not yet been identified. Uh, the building in total would be uh 2,00 or yeah 20,400 square ft. Uh 11,860 ft of that building would be devoted to the daycare space and 8,400 of those square feet would be devoted to the retail space. The front endage for this building would be along Ulysy Street. Properties to the south are guided and zoned B3 commercial and uh highway commercial. Um and the property to the north is guided and zoned mixed use. The properties to the west are guided and zoned industrial and to the east of the site borders Highway 65. The request is for a site plan review to allow the construction of a proposed 20,400 foot commercial building. When reviewing a site plan, the city's discretion is limited to whether the proposed site plan meets the standards outlined in the city code. Site plan review is required for all new commercial construction within the city of East Bethl. If the site plan meets the standards of the code, the city must approve the request. Staff has provided an analysis of these standards within your packet. The applicant has not requested any variances for the approval of the site plan. The standards of review are listed on the screen. Um staff again has provided analysis of these in your packet. The packet also includes the applicant site, civil, parking, lighting, landscape, and building plans. uh staff including the city engineer, city attorney, and uh community development staff has reviewed this item and provided comments. The applicant will need to update the the site plans to address these comments. Uh in summary, staff finds that this request does meet the standards for setbacks from property lines, lot coverage, landscaping, architecture, um and parking. And there are no significant concerns associated with the site um beyond uh wetland which will be mentioned later. comments have been included as conditions of approval. A memo received by the city at the end of November November disclosed the presence of wetlands to the northern edge of the property. The city engineer has advised that this project be allowed to proceed with review, but a condition be added that the applicant obtain a wetland delineation and revise the plans to comply with the wetland buffer and setback requirements established by the city code. This is unlikely to have an impact on the building itself, but will likely shrink the size of the outdoor play area for the daycare. uh no building can be issued before this condition or any other condition is satisfied. So this is a quick look at the survey of the site. You can see parking, proposed building, the play area, trash enclosure, all of that is included on this uh survey. This is a look at the elevations of the building. Uh one thing to note is that the applicant is proposed to use LP smart siding as the material for siding this building. Uh this is similar to materials like Hardy board which is a fiber cement board siding uh but it is not explicitly allowed within our code. Uh LP smart siding is typically seen as a more superior material to things like stucco which are allowed within our code. Section 28- A2 of the code does allow council to allow other comparable or superior materials as long as it is approved by the council. Uh staff would support approving this material to be used as siding on the structure. Planning Commission reviewed this request on November 25th and voted 40 to recommend approval of the conditional use or of the site plan review. Sorry, I forgot to change that. Uh, no public hearing was held for this as that is not required for site plan review. Council is directed to discuss this item and consider adopting the resolution of approval for a site plan review for a commercial building at 323323210012 with conditions recommended by staff as recommended by the planning commission. Happy to answer any questions. >> Anybody have any questions? >> So, Grace, so then is everything been addressed with Oakson Anderson with the city engineer? >> Any of the comments that have not been addressed are included in the resolution and will be addressed prior to issuing any building permits. Again, this is pretty standard with a project like this. Not everything is going to be immediately um correct on that first or second submission, and they work with our engineer to correct those things >> completely out of the ordinary. The only significant um thing is that wetland delineation that is still necessary, but that's been discussed with the applicant. >> Okay, that's all I got. >> Anything else? >> I got [clears throat] no issues with the LP smart side. That's generally considered an upgraded product. So, >> okay. I'll entertain a motion for resolution number 2025-77. Make a motion to approve resolution number 2025-77 approving the site plan for AMBA East Bethl commercial building located at lot 2 block one classic commercial park second edition uh with conditions recommended by staff. >> Second >> motion a second. Any further discussion? None being heard. All in favor? >> I >> I opposed. And heard motion passes. >> Item 8 A1. >> This is a development agreement for Viking Meadows second edition. Viking Meadows second edition was approved by the council on October 13th of 2025 in resolution 2025-58. A condition of approval was that the city and developer would execute a development agreement prior to the filing of the plat. So this plat has not yet been filed. Development agreement is a standard part of the development process. It requires the develop developer to furnish and construct and or pay for public improvements associated with their development. These public improvements are often things like street, storm water, infrastructure or utilities um in accordance with the plans and specifications of the plat approval. Development agreement generally protects the city and outlines standards uh for the work that is associated with the development. The full agreement has been included in your packet. This document was drafted by the city attorney with consultation from city staff including the city engineer. This was also worked on with the developer. Similar to the this agreement is similar to the agreement that the city entered into last year for the first edition of the Viking Meadows development. Uh the fees and costs associated and you'll find listed in this agreement were modeled off of the agreement that was reached uh with that first edition. The council is directed to discuss this item and consider adopting the resolution approving the development agreement for the final plat of Viking Meadows second edition. Happy to answer any questions. >> Take number three. >> Yeah, I got a question on this thing. Uh part that I'm not really agreeing on is the mayor actually on page 216 summary the mayor and the city administrator shall be authorized to approve minor changes. I don't agree with that because it's like what are the minor changes? They can be anything. >> Minor could be a major and we don't know that. So, I mean, just to cover it, I would be more comfortable with if council makes the decision on whatever it may be. That's my opinion on that. Mr. Mayor and Council, we can bring changes back as need be. >> Do we want to bring it back or do we just want it? >> I think we should take it out and change that. >> Okay. actually >> come to the speaker, please. >> Good evening, Mr. Mayor, members of the council, staff, and audience members. Um, council member Jim Smith, those minor changes that's reflected into the DEA, we've cleared all that up. We've already negotiated all everything that's in the developers agreement. We're not coming back to change anything. That's why it took from the final plat meeting to this meeting to get everything ironed out to make sure our this development agreement matched the first phase. So we are not looking to change anything further. >> Okay, that's fine then. Let's take that out of there completely. As long as you're comfortable with that. >> I'm okay with that as long as you can approve that tonight, >> not bring it back. >> Okay. Can we approve this by just removing this legally? Jacob, >> we can make a motion. I believe with that condition, can't we? >> Um, [clears throat] Mr. Mayor, council, yes, you can. >> Okay. I'll make a motion to approve [clears throat] city file 25-024 with uh uh correcting and removing the summary on page 23 uh 216 and also on page 217 number three >> and just adding council into it. >> Yeah. >> And adding the council if there's any changes. Thank you. I was remiss to introduce myself. I'm Tom Bri with Capstone Homes land project manager. So I appreciate it. Thank you. >> I'll second. We got a motion in a second. Any further discussion? None being heard. All in favor? >> I opposed. None heard. Uh staff report. >> Mr. Mayor, just a couple of updates. Um, like to report that the flooring project over at the fire station's going very well. Um, they're moving along quite nicely. The chief did send me a picture of that and I unfortunately he showed that to me on his cell phone. He didn't send it to me, so I can't show that to you at this point, but we can get those pictures to you as they as they finish up over there. That's the good news. Um the bad news is that um the HVAC units on top of fire station one are failing and uh and so we've uh kind of got them working here. Um but the heat exchangers are have holes in them and and if there's holes in heat exchangers, there's products of combustion that come into the airspace and CO2 and everything else. So, um, those will need replacement. Um, probably in the neighborhood of maybe 30 $40,000, something of that neighborhood. >> Yeah, there's four of them. >> And, uh, and so currently, right now, I know the fire chief has kept a pretty tight budget over there. There are um there are some tools that he'll be replacing before the end of the year that have reached their end of life. For example, um, gas detectors. um I think have a fouryear lifespan if I'm not mistaken. We've had them for over 10 years. So, uh we do need to replace items such as that. There's also saws that while they currently work, um as we all know, saws that are well used sometimes don't start and uh we can't really have that scenario happen in the field in an emergency scenario. So, some of those will be replaced. The what I'm getting at is that there'll still be some balance I think in that budget to be able to account for some of these HVAC units on the rooftops. Generally, we use our um our uh our uh facilities budget for that. However, the floors have essentially taken up that entire budget this year. So, we're going to try and find a creative way to pay for those HVAC units besides that fund. Um, so that's the fire department. Also, I just want to note that uh December 12th is Grace's last day. We want to thank Grace for her work here at the city. She's done a phenomenal job coming up to speed. It has not been easy and uh and we wish her well where she's going and I know she'll do well there. And you you're always welcome back here if you if you ultimately decide that was a huge mistake and uh you want to come back, you're certainly welcome. Um but uh we'll also be working then with landform as um as we're currently searching for another planer to fill that position. Uh so they'll be um kind of ratcheting up some of that work that we do with landform to ensure that we're meeting the deadlines for the applicants that are coming in and uh answering questions and that sort of thing for setbacks and everything else that's required uh in that capacity. And uh aside from that, that concludes my report, unless there are any questions. >> Council reports. [clears throat] I got one Saturday night. I was at the uh fire department appreciation and uh it went very well. I've been to a few of these and uh actually I seen a lot of [clears throat] firefighters that I had seen in the past. their attitudes, everything was great. People were sitting and laughing and talking and it was fantastic to see. So that tells me we did the right thing there. Actually, then Jill King, she did the presentation first time. She blew it away. She was perfect. It worked great. Thank you very much, Jill. That's what I got. >> We had a booster day meeting on Wednesday, 6:30 here at uh the chambers. Uh we're still looking for volunteers if anybody be interested in help plan booster days. Uh uh your involvement is as much or as little as you want, but uh it takes a lot of people to bring booster days together every year and every little bit helps. That's all I have. We attended a u a public advisory committee meeting this week uh last week over at Nexus. Interesting to find out that they've got 96 people employed there right now. So uh they're they're doing well with their employment. They're going to be expanding a little bit, adding uh some more residents. So we'll see what that that entails. Uh the parks commission meeting tomorrow night is canceled due to weather. So if you're watching, it's canled. That's all I have. Okay, I was at the uh tree lighting the other night and there was quite a crowd here. It worked out really nice. It looked like a fun time. A lot of cookies, a lot of hot chocolate and it was a really good time. I was glad to see the response from the residents. >> Susan did a good job coordinating it. >> Yeah, I I was there as well and uh I was surprised by compared to last year how many people were there. Lots of people were there before it started officially. And I just want to thank the seniors and the East Bethle Lions, uh, the Santa Claus that was there, uh, and the East Bethle Bandits for grouping together, put this on. It sounds like they have bigger and better plans for next year. So, uh, who knows, maybe 10 years we can have our own little Bentley bill as it grows. All right, with that being said, uh, the remaining item the remaining agenda items are now to be discussed by the city council in close sessions. Agenda item 9 C is for the performance evaluation of city man administrator Matt look and agenda 9D is discussion litigation subject to the attorney client privilege regarding Firebird land and whispering aspen Q community center. The council will now vote to enter into the close session for the formal items. Is there a motion to enter into the close session under Minnesota State Section 13D-05 subdivision 3A to evaluate the performance of the city administration? >> We'll make that motion. >> Second. Motion is second. All in favor? >> I. >> Just discussion. Item D. I will be abstaining from attending. >> Do I do both of these? Jacob, >> can you repeat that please, Mr. Mayor? Do I do both of these motions right now? >> Yes, please. Thank you. >> Or is it just one motion? >> No, >> we'll we'll take the two separately and we'll just clue into one. Um >> Okay. And second one is >> is there is a motion to enter a closed session under Minnesota State section 13D-05 subdivision 3B to discuss matters subject to attorney client privilege regarding Firebird land and whispering aspirin communities center. >> I'll make that motion. Second. Have a motion and a second. All in favor? I >> I >> I'll be abstaining from attending item D. >> City council will now close the meeting to enter into close session under Minnesota statute 13D-05 subdivision 3A to evaluate the warrants of city administrator and therefore proceed into close session under Minnesota statute sections 13D-05 subdivision 3B to discuss matters subject to attorney. Attorney privilege regarding Firebird lander whispering after sir. Thank you. Use scissors. Where >> [clears throat] >> are the mics? Okay. The city council has concluded the close sessions regarding number one the performance evaluation of the city administrator and number two discussion of matters subject to the attorney client privilege regarding Firebird Land and Whispering Aspen. Is there a motion to reopen the meeting? >> Make a motion to reopen the meeting. >> Second. We have a motion second. All in favor? I >> I uh upon item one, the evaluation of the city administrator has been tabled to the admin review until the next meeting. And as item two, >> uh Mr. Mayor, um if you could make a motion to table, okay, the city administrator review uh to be continued at the next meeting. >> Okay. I need a motion to table the administrator review until the next meeting >> to table the city administrative performance review until our next council meeting. >> Second. Have a motion and second. Any discussion? None heard. All in favor? >> I and Mr. Mayor, coming out of uh the closed session uh for item 9D, uh I I am seeking a motion from the body to continue with the eviction action that's been filed against Firebird Land uh and to pursue uh to to respond and for the city to respond in kind to the uh complaint filed by Firebird Land uh received by the city on December 3rd. Okay, we're seeking a motion. >> I'll make a motion to respond to Firebird Land LLC's uh paperwork against the city, >> continue the eviction process. >> To continue the eviction process. >> Second. Have a motion. Second. Any discussion? All in favor I >> opposed. >> Abstain. >> Motion passes. Motion to adjurnn. >> Make a motion journ. >> Second. >> A motion second. All in favor? All right. All right.