Lake Elmo City Council — Transcript
Tuesday, April 7, 2026
City Debt Service and Financial Management
Future Development of 180-Acre Parcel
Feasibility of Solar Farm on Landfill
Potential Acquisition of Fury Motor's Property
Votes (4)
City Finance Presentation on Debt Service
The Finance Presenter outlined the city's current debt, strategies to reduce it through capital levies and controlled growth, and addressed concerns about the debt-to-tax levy ratio (31.1%). Key components of debt included City Hall/Public Works and long-term sewer projects. The discussion also covered financial modeling assumptions (population growth, general fund growth without inflation), cash reserves, bond ratings (AA1), and the importance of planning for future asset replacement.
Discussion on 180-Acre Development Strategy and Economic Growth
Following the debt service presentation, EDA members discussed how the city's financial situation influences development decisions for the 180-acre parcel. There was strong consensus favoring commercial development over residential to balance the tax base, with some members suggesting higher median pricing for any necessary residential components. Director Stoopa outlined the next steps involving community engagement and aligning with Met Council requirements, noting the TAP presentation had maxed out residential density.
Solar Farm on Landfill Feasibility Study
Tony, Staff presented an update on the solar farm project for the landfill, based on an ADA memo and discussions with Excel Energy. Key barriers include the need to pay off a $3.3M state bond, MPCA approval for post-bond-payoff development, the necessity of special state legislation, and Excel Energy's preference for larger, more ideally located sites. The EDA decided to consult lobbyists regarding legislative feasibility and MPCA for design requirements before proceeding further.
Discussion on Fury Motor's Property Sale and City Acquisition Potential
EDA members discussed the recent listing of the Fury Motor's property for sale, considering its strategic location in the Old Village. The conversation covered the property's contamination issues, the city's interest in controlling its future mixed-use development character, and the challenges of city acquisition (including staff capacity and financial priorities). The EDA Chair indicated personal interest in the conversation but acknowledged staff limitations and existing yearly priorities.
Notable Quotes (16)
Our goal for for the levy especially is to grow the levy enough so that those CIP uh uh investments are that we're able to do those in the future without taking out quite as much debt.
I saw nothing that said here's going to be our total expenditures. I had a hard time understanding a lot of it. For example, I saw nothing that said here's going to be our total expenditures. I think it might be the sum of all the levy numbers for each year would be total up to the all our expenditures.
When I'm doing my modeling, we're looking at everything in today's dollars. So, the difference between your numbers and my numbers are probably that.
The notice of the debt service load that our city has had and the increase to it was alarming. So levies were increased and the capital levies for fleet and infrastructure were created in order to be able to pay for things with some things with cash on hand to decrease the amount of bonding that was required to ultimately bring down that debt service load over time and get that into a more sustainable arena.
We have a lot of debt, but we also have a lot of cash and we're growing rapidly. So, overall, financially, we're in a very good position.
Some of these are to put the city in a better um standing 20, 30 years down the road when those assets need to be replaced.
How does this then make you think differently or the same about the 180? Obviously, we're not directly talking about the 180 tonight. There's no agenda item, but in terms of how we grow, things to focus on. Obviously, council has taken specific fiscal actions to as mayor was mentioning to try to long-term wise with staff's recommendations and insights to bring the debt load down. Um but to me from an EDA standpoint it still comes back to the 180 acres.
Lake Elmo as a city is very residentialheavy and I think to be uh successful in in any form of government, you have to have some good balance. And so the more commercial that we can bring in to help stratify that taxable base for the city and when things need to be done, um it's not solely a residential issue. It's it's more comprehensive, uh plan to be taken.
The big picture is what are we going to hear from residents and then that's the decision I think is the next step kind of locking in the uses because that's going to be really important as we move forward with our AUR. Um, that's what we want to hear from EDA because we know a couple things from the TAP presentation because we were involved closely. um we have population um concerns or things that we need to work through with the Met Council and that wasn't really considered in that tab. It kind of maxed out residential.
The challenge is if we were to go forward with a solar site like we've discussed in the past, trying to find someone to install it, it appears that we would have to pay off the bonds. It'd be very difficult because these are federal um tax exempt bonds.
My proposal is... to talk to the the lobbyist and ask them what do they think is the realistic possibility of ever passing a bill like this not not this session but the next one and and if there is a realistic possibility it's worth going after. If there's not then why waste our time?
I think one glaring thing that that's missing from this is asking Excel Energy, who would be the power provider there, if that's something that even I don't know, for lack of a better term, floats their boat to to put in.
What are the chances that the city especially for flush with cash what that might want to buy that property and include it as part of a old village commercial development plan or development plan. Not necessarily commercial.
The land is pretty contaminated, so it's going to take a lot to get it to where you can actually build on it because of what they used it for.
What kind of impact would it have if Fury Motors were built totally out of character um by by somebody who just wasn't thinking the same way that uh the city's been thinking about the old village. I mean, it's it's more than just contiguous. It's right there in the middle. I I I it seems to me that um the potential impact on the character of the community is such that maybe priorities might could be reconsidered um uh to make sure that something we don't want to happen to that property happens.
If it were to be purchased by the city the plan would be to find a developer have a plan that we could control you know and then move forward and then get that off the books right and
Ordinances & Resolutions (10)
Used for debt modeling and future investment planning.
Data source for city growth assumptions.
Guiding document for future land use, particularly for the 180-acre parcel.
Prior report or presentation related to the 180-acre development.
Memo discussing the feasibility of a solar farm on the landfill.
City's long-term comprehensive development plan under revision.
Implemented to ensure proper street maintenance and asset longevity.
Minnesota law enabling specific solar development models.
Type of bonds for landfill, posing a challenge for solar development.
Bond for landfill site, paid by the state, presenting a barrier to local solar projects.