The Lakeville City Council received updates on a major rail storage facility project and discussed new electric bike regulations during a work session Monday evening.

The rail storage project, which has been in development for 10 years, involves partnerships with Progressive Rail and Compass Rail Services to build a 225-car storage facility. The project has secured $750,000 in federal funding and $7 million in state funding, with the city providing a 20% match for the federal portion. Compass Rail has acquired approximately 22 acres south of Progressive Rail's offices on Kai View Avenue for the facility.

Justin Miller, city staff member, said the next step involves annexing the property into the city through a public hearing process expected in September, followed by land use applications in October. If approved, design work could begin by the end of this year, with construction potentially starting in 2026. The facility would address current public safety concerns and traffic delays caused by rail cars stored on existing tracks west of Dodd Boulevard.

The council also reviewed proposed electric bike ordinances that would establish a 15 mph speed limit on city trails and clarify regulations for the growing number of e-bikes in the community. The ordinance aims to address safety concerns while working with Dakota County Greenways to ensure consistent rules across trail systems.

Additionally, the council discussed short-term rental regulations, with staff recommending the creation of a separate ordinance section and clearer definitions. The Youth Advisory Commission presented their annual report, highlighting attendance challenges and recruitment needs as their terms conclude in August.