Pine Island — Transcript
Tuesday, September 16, 2025
Community Civility and Social Media Conduct
Project Skyway and Alternative Urban Areawide Review (AUR)
2026 Preliminary City Budget and Levy
Business Subsidy Policy Update
North Zumbro Sanitary Sewer District Funding
2026 Street Improvement Project Planning
Local Business Expansion and Land Purchase
City Facilities and Parks Updates
Votes (8)
Consent Agenda Approval
Dissent: None
Moved by Unknown [00:02:08] · Seconded by Unknown [00:02:12]
The consent agenda, which included approval of past meeting minutes, various contract approvals (Millia, SEDA), a rental fee waiver, utility corrections, a bingo permit, monthly donations (Resolution 25-40), staffing changes for the Van Horn Public Library, fund expenditure for masonry quotes, and an Evergreen fund transfer (Resolution 25-41), was moved and seconded without specific discussion beyond the Mayor confirming the items.
Resolution 25-42 Approving Adoption of Final Alternative Urban Areawide Review (AUR) for Project Skyway
Dissent: None
Moved by Elena [00:33:00] · Seconded by Holton [00:33:01]
City Engineer Craig Britain presented on the AUR process, emphasizing it as a planning tool for understanding environmental impacts of different development scenarios (light industrial/technology center vs. technology center). He clarified the AUR is a guide, not a development application, and will require updates if actual development deviates. Legal Counsel Bob emphasized that the AUR defines the environmental review scope and would need to be re-evaluated if a specific proposal doesn't match the studied alternatives. Public input prior to this item overwhelmingly voiced concerns about transparency, environmental impact, health, and economic costs of Project Skyway.
Resolution 25-43 Approving Preliminary 2026 Budget
Dissent: None
Moved by Holton [00:37:46] · Seconded by Vernon [00:37:47]
City Administrator Elizabeth detailed the preliminary 2026 budget, noting a proposed 4.25% levy increase, which is lower than the previous year and other area cities. She explained the primary drivers for the increase, including staff wage adjustments, fire department personnel raises, increases in the Goodhue County Sheriff's Office contract, Zimroa area ambulance service fees, estimated health and dental insurance premium increases, and a significant boost to the street maintenance budget.
Resolution 25-44 Approving Preliminary 2026 Levy
Dissent: None
Moved by Holton [00:38:23] · Seconded by Elena [00:38:24]
Following the approval of the preliminary budget, the corresponding preliminary 2026 levy was approved. No additional discussion beyond the budget item.
Business Subsidy Policy
Dissent: None
Moved by Holton [00:39:27] · Seconded by Elena [00:39:28]
EDA Director Mitch presented the amended Business Subsidy Policy, highlighting its update from 2001. He outlined the policy's definitions of business subsidies, criteria for eligibility (public purpose, tax base increase, job creation, 'but for' test), application process, and city considerations like land use and economic impact. A key addition specified a 'pay as you go' method for tax abatement or TIF. Legal Counsel Bob commended the policy for its clarity, noting that clear rules incentivize businesses to consider Pine Island.
Resolution 25-45 Approving New Liquor License
Dissent: None
Moved by Holton [00:39:53] · Seconded by Elena [00:39:54]
The Council considered and approved a new liquor license for Los Reyes Kitchen, covering intoxicating liquor sales, Sunday sales, and 2 a.m. sales. The Mayor noted the restaurant's quality.
Resolution 25-47 Approving North Zumbro Sanitary Sewer District Lobbying Contract Expense
Dissent: None
Moved by Holton [00:42:53] · Seconded by Vernon [00:42:54]
City Administrator Elizabeth provided an update on the North Zumbro Sanitary Sewer District project, a joint effort with Zumbrota, Goodhue, and Wanamingo. She detailed the successful securing of $10 million in unmatched state funds for land acquisition and design (65% complete) and the ongoing need to lobby for construction dollars (aiming for 50% state, 25% local, 25% other aid). The contract for continued lobbying was approved. Discussion also covered the involvement of Prairie Island Indian Community in lobbying efforts and the potential use of federal dollars for site infrastructure like roads.
Resolution 25-46 Receiving Report and Setting Public Hearing for 2026 Street Improvement Project
Dissent: None
Moved by Holton [00:43:40] · Seconded by Vernon [00:43:41]
City Engineer Craig Britain presented the feasibility study for the proposed 2026 street improvement project, outlining total reconstruction plans for Willow Court Southwest, Third Street Southwest, Second Street Southeast, and North Main Street. He detailed project costs approaching $4 million, with an estimated $665,000 to be assessed to abutting properties, and noted potential cost reductions through collaboration with Goodhue County on North Main Street resurfacing and County Road 3 bridge reconstruction. Legal Counsel Bob confirmed the accuracy of the notice for properties to be assessed. This is the first of two public hearings related to the project.
Notable Quotes (11)
So first of all, the um AUR is a planning tool um to understand how different development scenarios will affect the environment. So typical um items that are studied in AU AUR include traffic impacts, noise, air quality, visual effects, review of any rare features in the area of the proposed development, um potential environmental hazards and water resource impacts.
So, mayor, if I can just I can I say what you just said lawyer words instead of engineer words. I think what you said is to the extent what actually comes forward in a month or a year or whenever whatever comes forward doesn't match my words what's in the AU the environmental review document the environmental review process would have to be updated to match what actually comes forward am I saying that basically right layman's terms
Uh overall, our departments um really weren't asking for a whole lot. We don't have any big equipment purchases scheduled for 2026. We have a um I believe a couple smaller purchases, some lawnmowers, things like that, but that will all come out of capital funds um that were previously saved for. So, compiling all of that information, um we are looking at a levy increase of about 4 or it is 4.25%.
Some of the reasons for the increases is um staff increases. So the city hired a wage consultant last year and implemented a step system for staff. We're looking at a dollar an hour uh increase for our fire department personnel. We're looking at a 12% or $56,000 increase for the Good Hugh County Sheriff's Office contract. We're looking at a $2.50 per capita increase for services with the Zimroa area ambulance service. We have an estimated 15% increase in health insurance premiums and a 5% increase in dental insurance premiums.
So within this updated policy, uh it does go through and discuss what a business subsidy is, including anything from loans, grants, tax abatement, tax increment financing, and so on. uh in order for something to be considered a business subsidy, it must reach at least $150,000 or more in value.
Uh, one one thing I do want to point out, something that was added since the council work session is in defining a whether a business applies for tax abatement or tax increment financing. Uh, we did add that if a business selects that tool that the presumed method will be pay as you go rather than uh the city upfronting any costs. It would be them paying us and then we would repay them over time.
That said, just from experience working with a lot of cities, the one thing I would say about this policy submission and I talked about this a little bit is that the prior prior policy to the extent you've had prior policy was a bit fudgy. It was a bit unclear. And I would just say my experience has been that businesses are incentivized to at least consider your community by understanding what the ground rules are in a relatively clear way about what subsidy you would or would not provide. And I think the point of this policy is to be clearer, more concrete about what you will consider and what you won't consider it. And that really does in and of itself incentivize business to take a hardwood. Pine Island is a place to be.
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 Zimrod. Well, now it's been annexed. um in addition to design and engineering which is about 65% done I believe Craig. So, um, design work is well underway, but now we are back at it lobbying for, uh, construction dollars.
Um, they're viewed a little bit differently in the fact that, um, they would be a user of Pine Island. So, they wouldn't be a direct user of the sanitary district, but their, um, their usage would flow through Pine Island. Um, and then onto the sanitary district.
Um in the feasibility study, we we looked at, uh, four different areas of town. Uh, Willow Court Southwest, which is south of 8th Street, uh, Third Street, Southwest, and 1 Avenue. Uh, those were those two block or three blocks would be um, uh, remaining blocks in the overall southwest um, improvement project that has been under um, underway for uh, quite some years. and then uh Second Street uh southeast in front of the Legion and then North Main Street from uh Center Street up to Second Street. So, right in front of Quick Trip uh those two blocks there.
Um 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 (30)
Minutes from a previous regular council meeting.
Minutes from a previous council workshop meeting.
Contract requested for approval via consent agenda.
Request for after-hours rental and fee waiver.
Request to approve correction of utilities.
Permit for bingo activities.
Accepting monthly donations.
Contract requested for approval via consent agenda.
Request to approve staffing changes.
Request to approve expenditure for masonry quotes.
Approving the Evergreen fund transfer.
Proposed large-scale data center development.
Environmental planning tool for Project Skyway.
Approving the adoption of the final Alternative Urban Areawide Review for Project Skyway.
Initial document submitted to the Environmental Quality Board (EQB) for AUR.
Draft version of the Alternative Urban Areawide Review.
Approving the preliminary 2026 budget.
Approving the preliminary 2026 levy.
Updated city policy outlining criteria and process for business subsidies.
Approving a new liquor license for Los Reyes Kitchen.
Type of liquor license applied for.
Type of liquor license applied for.
Type of liquor license applied for.
Approving the North Zumbro Sanitary Sewer District lobbying contract expense.
Receiving the report and setting a public hearing for the 2026 street improvement project feasibility study.
Study for the proposed 2026 street improvement project.
Used as a reference for land use compliance in the Business Subsidy Policy.
Referenced for compliance in the Business Subsidy Policy.
City's plan for infrastructure improvements, specifically street maintenance.
City's policy governing assessments for property improvements.