Pine Island — Transcript
Sunday, October 12, 2025
Community Civility and Public Input Protocol
Project Skyway and Alternative Urban Area Wide Review (AUAR)
2026 Preliminary Budget and Levy
Business Subsidy Policy Update
North Zumbra Sanitary Sewer District Project
2026 Street Improvement Project
Votes (9)
Consent Agenda Approval
Dissent: None
Moved by Council Member [Timestamp] · Seconded by Council Member [Timestamp]
The consent agenda, which included approval of several meeting minutes, contracts, permits, and resolutions, was moved and seconded without extensive discussion on individual items, other than the roll call for the vote.
Resolution 25-42: Approving the Adoption of Final Alternative Urban Area Wide Review (AUAR)
Dissent: None
Moved by Council Member [Timestamp] · Seconded by Council Member [Timestamp]
The City Engineer presented the history and purpose of the AUAR for Project Skyway, explaining it as a planning tool for environmental assessment rather than a specific development application. He clarified that if future development plans deviate from the two scenarios studied (mixed light industrial/technology or technology center), the AUAR would need updating. Legal counsel reinforced that the AUAR does not grant permits, and further reviews by state and local agencies are required for specific development proposals. The Mayor also announced a public open house in October to provide more information on Project Skyway.
Resolution 25-43: Approving the Preliminary 2026 Budget
Dissent: None
Moved by Council Member [Timestamp] · Seconded by Council Member [Timestamp]
The City Administrator detailed the process of creating the preliminary budget, noting a proposed 4.25% levy increase, which is lower than the previous year and comparable area cities. She outlined key drivers for the increase, including staff compensation adjustments, public safety contracts, rising insurance premiums, and an increase in the street maintenance budget. She also explained that new construction in Pine Island helps to mitigate the impact of the levy increase on individual taxpayers.
Resolution 25-44: Approving the Preliminary 2026 Levy
Dissent: None
Moved by Council Member [Timestamp] · Seconded by Council Member [Timestamp]
This item followed the discussion of the preliminary budget and formally approved the preliminary levy amount for 2026, which is subject to finalization in December.
Public Hearing and Approval of Amended Business Subsidy Policy
Dissent: None
Moved by Council Member [Timestamp] · Seconded by Council Member [Timestamp]
The EDA representative introduced the updated Business Subsidy Policy, emphasizing its importance in providing clear guidelines for economic development incentives, replacing an outdated 2001 version. The policy defines various forms of subsidies, sets a minimum value for qualification, and outlines criteria such as public purpose, job creation, and land use compliance. It also establishes 'pay as you go' as the preferred method for tax abatement and TIF. Legal counsel praised the policy's clarity for incentivizing businesses. A public hearing was held with no public comments.
Resolution 25-45: Approving a New Liquor License for Los Reyes Kitchen
Dissent: None
Moved by Council Member [Timestamp] · Seconded by Council Member [Timestamp]
The City Administrator presented the application for a new liquor license for Los Reyes Kitchen, specifying that it included requests for intoxicating liquor sales, Sunday liquor sales, and 2 AM liquor sales, which are standard components of such licenses.
Resolution 25-47: Approving the North Zumbra Sanitary Sewer District Lobbying Contract Expense
Dissent: None
Moved by Council Member [Timestamp] · Seconded by Council Member [Timestamp]
The City Administrator provided an overview of the joint sanitary sewer district project with Zumbrota, Goodhue, and Wanamingo, detailing past funding successes ($10M in 2023 for land acquisition and design) and the current objective to secure construction dollars (targeting 50% state, 25% local, 25% other aid). She explained the continued need for a lobbying firm and noted the assistance of the Prairie Island Indian Community. Plans for using a potential $1 million in federal funds for road infrastructure were also discussed.
Resolution 25-46: Receiving Report and Study of Public Hearing for 2026 Street Improvement Project
Dissent: None
Moved by Council Member [Timestamp] · Seconded by Council Member [Timestamp]
The City Engineer presented the feasibility study for the 2026 street improvement project, which proposes total reconstruction for several street segments. He explained that the project would involve assessing abutting properties and identified potential collaborations with Goodhue and Olmsted Counties for shared costs related to Main Street resurfacing, a traffic circle, and extending sewer and water services to the Willow Court area. The overall project cost is estimated at just under $4 million, with approximately $665,000 to be covered by assessments, and the city covering the remainder. The council approved receiving the report and setting a public hearing for October.
Claims Approval
Dissent: None
Moved by Council Member [Timestamp] · Seconded by Council Member [Timestamp]
The council approved the presented claims for payment.
Notable Quotes (10)
So, um, the AU au is a well suited environmental document to review because uh this is uh proposed to be a largecale phase development and as we know uh developments don't um always unfold how we originally planned. So this is a good tool that uh we can use as a city to kind of guide the process for for development.
So whatever development is proposed, it has to be reflected in what was studied in the original AU.
So this 4.25% increase does have a potential to decrease. Uh last year just to compare we had a 5.5% increase. So this is less than that and that was at the final levy um in December.
Pine Island is very lucky in the fact that we are the fastest growing community in good county. Um we're one of the fastest in Homestead County. So the amount that we are adding to our levy and budget um is helped to offset by new builds.
In order for something to be considered a business subsidy, it must reach at least $150,000 or more in value. Um and during that time then we would consider that a subsidy and it would go through the subsidy policy that is before you today.
I think the point of this policy is to be clearer, more concrete about what you will consider and what you won't consider. And that really does in and of itself incentivize business to take a hardwood. Pine Island is a place to be.
However, we started this venture of creating a joint powers together for the sanitary district and we have been lobbying to receive state funding for this. Uh in 2023 we did receive $10 million that was unmatched funds from the state that was to finance the land acquisition which the um joint powers has purchased just outside of Zimroda.
And so essentially what we're trying to get is 50% of the construction costs. Um and then it would be about 25% would be local dollars between the four communities. And then about 25% we're looking for other state aid and grant programs um and federal aid.
In the FE feasibility study we um I can just kind of give you the highlights of of that and what we do is we look at um highle design elements um as part of the project and then um and then uh put some costs together uh for the uh estimate estimates of construction and then uh overall projects including engineering administration contingencies.
The overall project cost comes in just under $4 million. So 3,981 um 44,000 or $44.60. So um of that we we would look at um assessing close to 665,000 666,000 somewhere in there uh to the abuing properties which would be uh which would um result in the city picking up the cost of around $3.3 uh million of the over overall project.
Ordinances & Resolutions (21)
Minutes of a previous council meeting, approved as part of the consent agenda.
Minutes of a previous council workshop, approved as part of the consent agenda.
A contract approved as part of the consent agenda.
A request for after-hours rental and fee waiver, approved as part of the consent agenda.
A request to approve correction of utilities, approved as part of the consent agenda.
A permit approved as part of the consent agenda.
Accepting monthly donations, approved as part of the consent agenda.
A contract approved as part of the consent agenda.
A request to approve staffing changes, approved as part of the consent agenda.
A request for approval of fund for $280 for quotes, approved as part of the consent agenda.
Approving the Evergreen fund transfer, approved as part of the consent agenda.
Proposed large-scale data center development, subject of public concern and the AUAR.
An environmental planning tool used for Project Skyway, which reviews development scenarios.
Approving the adoption of the final Alternative Urban Area Wide Review for Project Skyway.
Approving the preliminary 2026 budget.
Approving the preliminary 2026 levy.
An amended policy defining business subsidies, criteria, and application processes.
Approving a new liquor license for Los Reyes Kitchen.
Approving the North Zumbra Sanitary Sewer District lobbying contract expense.
Proposed plan for total reconstruction of several street sections with associated assessments.
Receiving the report and study of public hearing for the 2026 street improvement project.