Lake Elmo City Council — Transcript
Tuesday, October 20, 2026
Business Subsidy Policy Adoption
Final Assessment Role for 2026 Street Improvement Project
2025 Bonding for Street Projects
4455 Olsson Lake Trail Comprehensive Plan Amendment and Sewer Connection
Lake Elmo Elementary Grading Permit Request
Votes (7)
Business Subsidy Policy Adoption
Dissent: Council Member Dragoich
Moved by Unknown [07:14] · Seconded by Unknown [07:14]
Ron Batty, who drafted the policy, explained it's mandated by state statute for the city to consider financial benefits to businesses. He clarified that the policy, while providing criteria for evaluation, does not obligate the city to grant any subsidies. Public comments raised concerns about legal recourse for applicants denied similar subsidies and the use of TIF, which was clarified as not drawing from general tax dollars but from new growth. Council Member Dragoich expressed philosophical opposition to business subsidies, fearing potential developer abuse, while others emphasized the policy as a flexible tool for future city benefit.
Adopt Final Assessment Role for 2026 Street Improvement Project
Dissent: None
Moved by Unknown [07:40] · Seconded by Unknown [07:40]
City Engineer Stanley presented the final assessment role for the 2026 street improvements in Lake Elmo Heights and Eagle Point Creek Estates, noting project costs were lower than initial estimates. The project included full-depth reclamation, new curb and gutter, and storm sewer repairs. During the public hearing, resident John France voiced strong frustration over contractor work, including chipped curbing, delayed repairs, and sod installation issues, stating asphalt was found under new sod. Engineer Stanley acknowledged initial contractor errors, noting significant damage was rectified and minor chips would not compromise structural integrity. Council Member Kraus requested follow-up on the sod issue to ensure proper growth.
2025 Bonding for 2026/2027 Street Projects (Resolution 2026-078)
Dissent: None
Moved by Unknown [07:49] · Seconded by Unknown [07:49]
Tammy Amdall of Northland Securities presented the plan for selling $4.61 million in Series 2026A General Obligation Improvement Bonds. These bonds would finance both the 2026 street improvement project and portions of the 2027 proposed street reconstruction project, combining two years of funding. She detailed an estimated interest rate of 4.55%, noted market volatility, and confirmed the city would seek a Moody's Investor Services rating. Council members appreciated the proactive approach to financing multiple projects concurrently, recognizing it as an innovative step by staff.
Approval of Municipal Service Agreement with Northland Securities, Inc.
Dissent: None
Moved by Unknown [07:53] · Seconded by Unknown [07:53]
Following the approval of the bond resolution, the Council moved to approve the municipal service agreement with Northland Securities, Inc. This action formally establishes the city's relationship with Northland Securities for advisory services related to the bond sale, ensuring professional guidance for the financing process.
4455 Olsson Lake Trail Comp Plan Amendment and JPA
Dissent: None
Moved by Unknown [07:58] · Seconded by Unknown [07:58]
Planner Miss Jensen presented a request from Lisa and Kevin Smith to amend the Comprehensive Plan for their property at 4455 Olsson Lake Trail. The amendment involves expanding the Musa boundary and re-guiding the land to facilitate connection to the city of Oakdale's sanitary sewer system. This is driven by a non-compliant septic system and the property's proximity to Lake Olsen, emphasizing environmental protection. The city of Oakdale's willingness to provide sewer required a Joint Powers Agreement (JPA), which was also presented and approved. Staff confirmed the adjustment is trivial for city density compliance and recommended approval, which the Planning Commission supported.
Approval of Joint Powers Agreement (JPA) for 4455 Olsson Lake Trail
Dissent: None
Moved by Unknown [08:00] · Seconded by Unknown [08:00]
The Council approved the Joint Powers Agreement (JPA) between the cities of Oakdale and Lake Elmo. This agreement formalizes the arrangement for the property at 4455 Olsson Lake Trail to connect to Oakdale's sanitary sewer system, a necessary step following the Comprehensive Plan Amendment approval. This ensures the property can resolve its septic issues and mitigate environmental risks to Lake Olsen.
Lake Elmo Elementary Grading Permit Request
Dissent: None (on the motion to table)
Moved by Council Member Dragoich [08:16] · Seconded by Council Member Hearn [08:16]
Community Development Director Mr. First presented the Stillwater Area School District's request for a grading permit for the former Lake Elmo Elementary School site, involving the demolition of buildings and significant grading (over 500 cubic yards per acre) to prepare it for future development. Staff clarified that demolition is an administrative permit not subject to city restriction without an active Heritage Preservation Commission. Public comments and Council Member Dragoich emphasized the historical significance of the original 1920 building, advocating for its preservation as a 'gateway to the village' and exploring potential reuse. The school district representative, Mark Drummerzen, indicated the property has been on the market for 14 months with three offers, and demolition is sought to reduce liability and costs. The Council voted to table the resolution until the next meeting (November 4th) to allow potential developers interested in preserving the building an opportunity to formalize offers.
Notable Quotes (15)
The adoption of the policy does not commit you to anything other than giving you the ability to consider specific requests for business subsidies.
I do oppose business subsidies. I just, uh, I I I don't support them on the principle of it. I have a lot of concern. I I do understand that there may be a situation where it is necessary for a project um for uh the city.
In the case of tiff, it does not use tax dollars. Um the the long and short of it, because of how property taxes work, uh we set a levy and the levy then is charging essentially based upon our assessed value within the community.
I hope I never have to come to Lake Elmo City Hall again because it the frustration is like crazy.
The integrity of the curbing, the integrity of the roadway or the pavement was not in question due to the presence of any of these little chips. And so rather than um I guess like kind of hold the schedule back, we just chose to move forward with that.
The issue with the sad is a little bit concerning. Um I think that we should repair what's not done right. If gentleman had to take asphalt out because the saw is put over the asphalt, he's taking it out, but the sod is likely not to grow. And if it doesn't pop up in the spring, I think we should arrange to have it replaced.
This is the first step by the city council and calling for the sale. The estimated interest rate on the bonds is 4.55%.
I appreciate that we're doing essentially two years in this one. I think that's a creative way and I appreciate that we have staff that are taking innovative steps to just because we've done things the same way for the last number of years we can do things differently and obviously in this case there's a value gain for it.
The reason for the request is the property currently has a non-compliant septic system connecting to sewer is the best long-term solution given the proximity to the lake.
I think we've all made clear over the years that uh protecting especially in this case the the underlying concern obviously besides the property owners needs themselves is also protecting the conditions of the lake.
The demolition would be done through a separate U permit. That's a demolition permit which is reviewed by the city of Lake Almo administratively. So, um the city doesn't necessarily have the ability to restrict demolitions.
We have um put this on the market. It's been on the market for over 14 months. Um we have had um five different groups come through tour the building, take a look at it. We've had over the course of 14 months three different offers to consider.
I would like to do is make a motion to table this request till the next council meeting um to give these school an opportunity to tell potential developers it's time to say you want to buy the building and restore it or we're going to move forward with our plan to grade and demolish and that to me strikes a reasonable compromise.
One of the big drawing points to Lake Elmo was the small town rural village ambiance... you have the old school there and it it serves as a wonderful gateway to the uh the village.
The possibility that the city of Lake Elmo could combine this property with the adjacent Fury parcel to create an extended downtown on the traditional neighborhood development model as discussed at the September 8th city council workshop is a once in a 100-year opportunity that the city should pursue.
Ordinances & Resolutions (21)
Adopting a business subsidy policy.
Policy defining criteria for evaluating business subsidy requests.
Defines business subsidy and requires a policy for granting them.
Adopting the final assessment role for the 2026 street improvements project.
Related to the proposed sale of Series 2026A bonds.
Project being financed by bonds and subject to assessment.
Future project being financed by bonds.
City's adopted plan for street improvements.
Providing for the competitive negotiated sale of General Obligation Improvement Bonds Series 2026A.
Agreement with Northland Securities, Inc. for financial advisory services.
Met Council plan requiring cities to maintain 3.5 units per acre within Musa.
Met Council plan requiring cities to maintain 3 units per acre within Musa.
Agreement between Lake Elmo and Oakdale for sewer connection.
Approving comprehensive plan amendments for 4455 Olsson Lake Trail.
Request for grading exceeding 400 cubic yards per acre for Lake Elmo Elementary site.
Permit for removal of buildings at Lake Elmo Elementary site (administrative).
City's comprehensive plan guiding future land use.
Funding source for Stillwater Area School District's project.
Stormwater permit required for Lake Elmo Elementary grading project.
Agreement covering issues during grading projects.
Body with authority to designate and protect historic sites (currently inactive).