Resolution approving the 2025 annual financial report and management letter

Dissent: None

Moved by Council Member Helier [00:52:16] · Seconded by Council Member Lake [00:52:30]

Jim Iikton from LB Carlson presented the audit results for the year ended December 31, 2025, emphasizing the city received an unmodified opinion on its financial statements and federal awards. The general fund's equity position increased by $900,000, significantly exceeding budget expectations and the city's 40-50% fund balance policy. Two findings were reported: an internal control weakness regarding vendor suspension/debarment checks for federal awards (though compliance was met for the specific vendor), and a documentation issue for obtaining multiple quotes on contracts between $25,000 and $175,000 (city defaulted to preferred vendors without proper evaluation). Corrective action plans are in place. Positive trends were also noted in enterprise funds (Water, Sewer, Water Quality) and an increase in public safety expenditures.

Public hearing for the new on sale intoxicating liquor license application for Teresa's Mexican restaurant

Dissent: None

Moved by Council Member Helier [00:51:30] · Seconded by Council Member Churchill [00:51:36]

Community Development Director McCabe presented the application for a new on-sale intoxicating liquor license for Teresa's Mexican Restaurant, prompted by a change in ownership. Staff verified that there were no outstanding debts or property taxes due to the city, and no issues identified under Minnesota State Statute 340A. A prior compliance violation in December 2025 was under the previous ownership and did not preclude approval for the new owners. A public hearing was held, but no testimony was received.

Resolution approving a preliminary plat and an ordinance approving a preliminary planned unit development overlay district for Campbell Shores

Dissent: None

Moved by Council Member Lake [01:03:09] · Seconded by Council Member Helier [01:03:14]

Director McCabe presented Pinnacle Family Homes' request for preliminary plat and PUD approval for Campbell Shores, a 62-unit single-family residential development. The project is located near Campbell Lake, a natural environment lake, requiring adherence to strict shoreland development standards. The PUD approach was necessary to achieve the minimum density of 2.5 units per acre by allowing density transfers to tiers further from the lake. A variance was granted from the 50% open space requirement, reducing it to 47%, to accommodate land dedication for a Scott County intersection project and associated stormwater/trail easements. The development includes significant tree preservation and a proposed trail system. The Planning Commission recommended approval 5-0.

Resolution approving a major amendment to the Shepherd's Path Plan unit development plan

Dissent: None

Moved by Council Member Helier [01:14:40] · Seconded by Council Member Lake [01:14:48]

Presbyterian Homes and Services, in partnership with Senior Housing Partners, requested a major amendment to the Shepherd's Path PUD plan. The amendment allows for the construction of a 72-unit independent living building, replacing a previously anticipated skilled nursing facility, reflecting a shift in market demand for senior housing. The four-story building will feature partially exposed below-grade parking and will be set back further from the street to mitigate perceived height. The amendment slightly increases building area but reduces overall planned units. The proposed 86 parking stalls are fewer than city code requires (108), but the applicant provided data from similar facilities supporting their need, with space reserved for additional stalls if necessary. The Planning Commission recommended approval 5-0. The Mayor raised a concern about a closed trail bridge near the facility and requested the applicant engage with residents on its significance.