The council voted 5-0 to approve the agreement with FLT Wayzata Woods LLC for the 107-unit complex at 240 Central Avenue. The deal enables the property to receive a 4D tax classification from the Minnesota Housing Finance Agency, which lowers the property's tax burden to incentivize affordability. Under the agreement, at least 64 units must remain affordable for residents earning no more than 60% of the area median income, with rents capped at 30% of their income. The city's role is to sponsor the agreement without providing financial support, helping maintain the existing affordable housing stock.

Community Development Director Sharp explained that the 4D classification "lowers the tax burden on properties to essentially maintain or incentivize affordability of their units." One council member emphasized the importance of the deal, saying maintaining affordability in as many units as possible is critical for the city.

The meeting also featured two recognition items. The council honored Graciela Gonzalez for more than 20 years of volunteer service on four city boards and commissions. As she prepares to move to a warmer climate, council members praised her thoughtful deliberation and exemplary citizenship. Gonzalez encouraged other residents to get involved, saying community service is "a wonderful opportunity to make a difference in your nest."

Folkestone, a 221-unit senior living community, received the 2025 Sustainability Champion Award for its environmental initiatives. The community features a geothermal heating and cooling system and a resident-led Eco Team that has launched successful recycling programs. Their organics recycling program diverts approximately 7 tons of food waste annually from landfills and incinerators. Residents cited a desire to leave a better world for their children as motivation for the sustainability efforts.