Pine Island — Transcript
Tuesday, January 13, 2026
Project Skyway Data Center Development
City Budget and Property Tax Levy
Community Infrastructure and Amenities
Local Government Regulatory Processes
Votes (12)
Amendment to Consent Agenda
Dissent: None
Moved by Council Member [0:35] · Seconded by Council Member [0:40]
A council member requested an amendment to item I of the consent agenda, which involved an assembly permit application for Winterfest. The motion was made and approved to amend the agenda item before proceeding with the full consent agenda vote.
Consent Agenda Approval
Dissent: None
Moved by Council Member [1:38] · Seconded by Council Member [1:40]
The consent agenda included various routine approvals such as previous meeting minutes, a probation completion for public works, and resolutions for donations and fund transfers related to Evergreen Place. Also included were approvals for a health service connection increase and fire department quotes, along with the amended assembly permit.
Resolution 2556: Approving the Final Budget
Dissent: None
Moved by Council Member [1:00:20] · Seconded by Council Member [1:00:30]
The City Staff provided a detailed 'Truth in Taxation' presentation outlining the city's financial position, explaining various funds (general, special revenue, debt service, capital, enterprise), revenue sources, and expenditures. The final budget of $4,218,893 reflected a 4.25% increase, largely due to rising health insurance premiums, a wage study, and public safety contract increases, while noting a decrease in debt service.
Resolution 2557: Approving the Final Levy
Dissent: None
Moved by Council Member [1:01:30] · Seconded by Council Member [1:01:40]
Following the budget presentation, the council moved to approve the final property tax levy. This was directly tied to the budget, reflecting the 4.25% increase for the upcoming year, designed to cover the outlined expenditures.
Resolution 2558: Adopting the 2026 Fee Schedule
Dissent: None
Moved by Council Member [1:03:00] · Seconded by Council Member [1:03:05]
The proposed fee schedule for 2026 included minor changes, primarily increases in building inspector fees (through Safe Built) and utility rates as part of a city's 10-year plan for small, incremental utility increases. These fees fund enterprise accounts and are separate from property taxes.
Ordinance 180: Chapter 11 Definitions Change
Dissent: None
Moved by Council Member [1:06:00] · Seconded by Council Member [1:06:05]
Staff proposed an amendment to the city code's Chapter 11 definitions, specifically for 'Planned Unit Development' (PUD). This change aims to broaden the definition to align with a previously approved Ordinance 178 and bring it in line with other Minnesota cities, which often use PUDs for various development types beyond just residential. The Planning Commission unanimously recommended approval.
Request to Approve Community Mural Estimate and Contract
Dissent: None
Moved by Council Member [1:09:15] · Seconded by Council Member [1:09:20]
The council reviewed and approved a $14,000 contract with artist Greg Preslica for a new community mural. The project is funded by a $10,000 grant and additional community donations. The mural, measuring 10x25 feet, will be installed on the easterly wall of Island Market, with an estimated completion within 6-8 weeks of the first meeting.
Request to Vote for Exemption from an EQB Petition
Dissent: None
Moved by Council Member [1:14:45] · Seconded by Council Member [1:14:50]
The city received a citizen petition from the Environmental Quality Board (EQB) for an Environmental Assessment Worksheet (EAW) for Project Skyway. The city attorney and staff recommended claiming an exemption, as the city had already completed a more comprehensive Alternative Urban Areawide Review (AUR), which state rules allow as an alternative to an EAW. The attorney also noted the ongoing legal challenge to the AUR, making a new EAW redundant.
Resolution 2559: Approving Liquor License for JFP Compadres
Dissent: None
Moved by Council Member [1:16:30] · Seconded by Council Member [1:16:35]
The city council considered and approved a liquor license application for JFP Compadres, following a complete submission.
Request to Approve Collins Park Equipment Quote
Dissent: None
Moved by Council Member [1:19:40] · Seconded by Council Member [1:20:00]
The Park Board requested council approval for new playground equipment at Collins Park. The primary discussion revolved around the type of surfacing: wood chips ($135,683) versus poured rubber ($285,250). Despite the higher cost, the council opted for the poured rubber for its accessibility and long-term maintenance benefits, funding the additional expense from the city's $250k unrestricted fund, which consists of non-taxpayer dollars.
Resolution 2560: Approving the Pine Island Industrial Preliminary Plat
Dissent: None
Moved by Council Member [1:42:00] · Seconded by Council Member [1:42:15]
The council considered the preliminary plat for 'Pine Island Industrial' (Project Skyway), covering 482 acres. Staff and the city engineer presented a detailed review of grading, utilities, stormwater management, and addressed public concerns like railroad easements and a historic cemetery (both found to be non-issues). Conditions for approval included securing a plat opinion from the city attorney, addressing MnDOT comments, and providing easements for public improvements. This was established as a preliminary step, with a final plat review to follow.
Request to Approve Preliminary Development Plan (Project Skyway)
Dissent: None
Moved by Council Member [1:57:00] · Seconded by Council Member [1:57:05]
The council reviewed the Preliminary Development Plan for Project Skyway under a Planned Unit Development (PUD) framework. The plan detailed proposed deviations from standard city code, primarily offering more restrictive provisions for noise (meeting state guidelines), lighting (0.5 foot candles at boundary), and green space (60% vs. 25% city code). It also outlined extensive infrastructure plans (White Pines Road paving, 3 miles of utility extensions at developer cost), traffic management during construction (490th Street access, future MnDOT coordination), building setbacks, water usage (152,000 gallons/day for domestic use across all phases), and tree planting/wetland mitigation.
Notable Quotes (14)
Mr. Mayor, I would like to amend the consent agenda item I the assembly permit application for winter fest. A motion to agenda the consent agenda.
So, just to clarify a few things because I know um the average citizen sometimes gets uh the difference between the levy and the home valuation and the budget mixed up. So, the levy is the amount of taxes that the city collects. A budget is the amount of money that the city spends.
So, the city has seen um some 0% increases. We've seen some very large all the way up to uh 16%, but for the most part, we've been in that, I'd say, four to 5% range each year. This is uh consistent with our growth.
However, um it was my oversight that at the beginning of the uh chapter 11 of the city code, it lists a list of definitions of terms that appear throughout the code. Um we did not update the definition of plan unit development to match the substantive changes that we made um later on in the code.
It says that if a local government does environmental review using an AUI, which is what you've done, and the EQB accepts that review, which has happened here, then the project that's being reviewed is exempt from other forms of environmental review...
The AUR, the environmentally city has conducted and it's been accepted as the ATV has been is in court, right? A group has sued the city over the adequacy of that review. That lawsuit's pending and that doesn't change anything, but that that those are the facts. And so the idea that we would now start a different environmental review in addition to the fact that the rule doesn't doesn't provide for that.
However, it is drastically more expensive and so it essentially doubles the cost of the playground equipment. So, the quote uh, including the equipment um, for wood chips is $135,683. And then the quote for the foreign rubber surfacing is $285,25.
I think what um is a lot more accessible. I know that's a city's goal is to make our city more accessible um age friendly initiative. I think that would help this um in making uh our parks more accessible.
The plat is just a legal document that shows the proposed subdivision of the land. Um lays out right of way things like that. It doesn't necessarily have to do with the use of the property. Um more so again just the subdivision of land.
The overall water quality volumes that are being provided by these filtration basins and what these are are relatively shallow basins with a sand um under layer and there's a subgra that drains and draws down that storm water. So again that's what provides the water quality uh treatment for the uh a treatment for increased uh from the surface.
When you approve review and food subdivisions in the city, uh it is very common in the city in the 20 years that I've been here, it's very common for you to combine the preliminary review of a subdivision and the final review, the final approval into one step. ... What we're doing tonight here in front of you uh is proposing a preliminary approval with some conditions, some things that would have to be done before a next step happens, which is final approval.
In most areas, the PUD language suggested is actually more constrictive than what city code would allow. So, if a development were to proceed without the PUD, um they'd actually have less restrictions than if we were to proceed with the PUD restrictions.
From my understanding, the build out is 10 to 15 years. Correct. So 2028 also not correct. Yep. So that's why I'm trying to understand the practic was saying exactly. Yep. And it's again um part of the ongoing conversations with you another um meeting with various agencies coming up in January where we're going to continue to talk about um the possibility of altering alternative routes.
There will be zero water usage for um any industrial purposes such as water cooling. All water uh used in the development is for domestic purposes um such as employ flushing toilets and flushing their dishes after lunch and things like that. Um and there will be no private wells on site.
Ordinances & Resolutions (26)
Accepting monthly donations for the mural when giving tap.
Evergreen Place fund at the transfer enclosure.
Evergreen Place or M fund transport and closure.
Purpose clause of the land use regulation chapter, stating intent to preserve health, safety, and welfare of citizens.
Requirement that proposed uses not have an unlimited adverse impact on neighboring property.
Approving the final budget for the upcoming fiscal year.
Approving the final property tax levy for the upcoming year.
Adopting the 2026 fee schedule.
Previously approved ordinance that updated language for Planned Unit Development (PUD) in City Code Section 111.
Amends Chapter 11 definitions in city code to update the definition of 'planned unit development' to match substantive changes in Ordinance 178.
A less in-depth environmental review process, sought by citizen petition for Project Skyway.
A more in-depth environmental review process already completed by the city for Project Skyway, qualifying for EAW exemption.
Approving the vote for exemption from an EQB petition regarding Project Skyway, with a noted correction to the resolution text.
Approving a liquor license for JFP Compadres.
Section of city code regulating subdivision and platting processes.
Section of city code outlining conditions and documents required for platting.
The proposed hyperscale data center development.
The name given to the proposed plat for the data center development.
A plan updated every 10 years to assess the city's water usage and projections.
The overarching city plan, referenced regarding quality of life and future infrastructure like water towers.
The initial development plan for Project Skyway, reviewed for approval by the council.
The subsequent detailed development plan required after preliminary approval.
Permit required for the data center project, with timelines extended due to the preliminary development plan review.
Permit from the MN DNR regulating the amount of water the city can pump.
Minnesota Pollution Control Agency guidelines for noise and stormwater.
Minnesota Department of Transportation manual for stormwater calculations.