Lake Elmo City Council — Transcript

Tuesday, June 16, 2026

Sale and Development of 180-Acre City-Owned Land

Future of Old City Hall and Fire Station Properties

Solar Development on Landfill Site

Potential City Acquisition of Fury Property

Votes (3)

Discussion about the sale and development of the 180 acres owned by the city of Lake Elmo

Passed Unanimously

Moved by Tony [Chairman] [16:20] · Seconded by Unknown [Council Member] [16:25]

Community Development Director Stahlecker provided an overview of the 180-acre site, outlining the city's plan to sell it in three phases, guided by ULI recommendations to maximize community benefit and tax revenue. Twelve pre-submitted public comments and five live speakers raised significant concerns regarding increased traffic, noise, light pollution, environmental degradation, loss of rural character, high-density housing, and strain on water infrastructure. Many speakers advocated for single-family homes, parks, and green space, while one resident supported development for tax benefits. The Chairman explained the city's financial need to sell the land to address high debt service from water remediation. Staff committed to compiling answers to raised questions and engaging further with the community.

Motion to Close Public Hearing for 180-Acre Development

Passed Unanimously

Moved by Unknown [Council Member] [41:30] · Seconded by Unknown [Council Member] [41:35]

Following public comments and initial responses from staff and council members regarding traffic, water, and development plans, a motion was made to formally close the public hearing.

New Business and Communication (Fury Property Exploration)

Passed Unanimously

Moved by Council Member [1:02:40] · Seconded by Unknown [Council Member] [1:02:50]

During the new business segment, Director Stahlecker provided updates on the Old City Hall's future, the sale process for the Old Fire Station property, and Xcel Energy's lack of interest in a power purchase agreement for the solar landfill due to scale limitations. A council member initiated a discussion about the city exploring the purchase of the Fury property for redevelopment, noting its high price but potential benefits. Concerns were raised about staff capacity and alignment with existing strategic plans, but the motion to explore the idea passed.

Notable Quotes (11)

The city's plan remains to sell the land and anticipates the project taking place over three phases... City Council's asked us to work on a development plan for the site.

Director Stahlecker [3:00]
Discussion about the sale and development of the 180 acres owned by the city of Lake Elmo

What they don't want built on the 180 site, no big box, no air else, no high-density housing, apartments, townhouses, no bars or restaurants, no commercial buildings. A more appropriate use would be rural housing, single-family homes, parks with green space...

Julie and Tom Pierce (summarized) [12:15]
Discussion about the sale and development of the 180 acres owned by the city of Lake Elmo

I do think that this I am supportive of the development. I don't think that leaving land sitting there off the tax rolls makes any sense.

Robert Dew [22:50]
Discussion about the sale and development of the 180 acres owned by the city of Lake Elmo

as you drive into Lake Elmo, as you come east on 14, it feels like the lights shut off, right? The lights shut off. It gets It's nice and dark. It's a quiet community... That was actually the intention of that comment just to bring them us back to that that study last year.

Jennifer Stathman [29:30]
Discussion about the sale and development of the 180 acres owned by the city of Lake Elmo

I mean, you know, I keep hearing that, you know, increase the tax base. To what projected revenues? I keep hearing, you know, development. Well, have we had any any sense from anyone at all, any commercial real estate folk, about what the value of that property is?

Lucian Justin [33:55]
Discussion about the sale and development of the 180 acres owned by the city of Lake Elmo

How do we anticipate handling the the additional water constraint on our current contaminate contaminated and restricted water system?

Zack Diesen [37:50]
Discussion about the sale and development of the 180 acres owned by the city of Lake Elmo

The purpose of selling this land and and putting it into the tax base is to ameliorate a problem we have, and that is that our debt service is 31% of our expenses... which is lar in large part due to the the money that was spent to fix fix the water problems.

Tony [Chairman] [46:15]
Discussion about the sale and development of the 180 acres owned by the city of Lake Elmo

old city hall update we have a workshop in July to talk about that... Basically adding a parking lot if we want to keep the old city hall and then also the other idea was to demolish the city hall and do a parking lot.

Director Stahlecker [47:35]
New Business and Communication (Fury Property Exploration)

Xcel... basically only enter into power purchase agreements with other privately owned companies that build and own the solar site... And they generally are looking for a couple hundred acres at the minimum. And this is only I believe 47 acres. So, it's a little too small.

Director Stahlecker [49:15]
New Business and Communication (Fury Property Exploration)

I would like the I would like to make the recommendation of the council to explore the purchase of the Dodge Fury property not as a car dealership, but something there... to benefit the city and all the residents within.

Council Member [1:02:40]
New Business and Communication (Fury Property Exploration)

The one The one thing I'll just throw caution at is that, you know, as a city and with staff and with some people in the commissions, we do have some strategic initiatives that the city is going in this this would be not necessarily in line with those strategic initiatives.

Director Stahlecker [1:03:50]
New Business and Communication (Fury Property Exploration)

Ordinances & Resolutions (8)

2019 settlement with 3MOther

Legal agreement that resulted in the city acquiring the 180 acres of undeveloped land.

Urban Land Institute (ULI) reportPlan

Report providing recommendations and guiding principles for the future development of the 180-acre site.

TAP reportPlan

Technical Assistance Panel report from ULI, completed in Winter 2025, detailing development recommendations.

2040 Comp PlanPlan

The city's comprehensive plan, referenced by a public speaker regarding zoning, future land use, and workforce housing.

Updated future land use planPlan

An updated version of the city's land use plan, accessible on the city website, that has changed zoning for the 180-acre site.

Public Opinion SurveyOther

A survey open to residents until July 3rd to gather feedback on the development proposals.

Memo (regarding Xcel Energy)Other

A document created by the Community Development Director summarizing Xcel Energy's feedback on the solar landfill project.

Business View magazineOther

Publication that featured an article highlighting Lake Elmo as a great place to live.

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