Lake Elmo City Council — Transcript
Tuesday, March 17, 2026
Valley Community Center Letter of Support
Northstar Third Edition Approvals (Plat, PUD, DA)
CASA 14 Water Main Improvements
Utility Financial Management Plan Updates
Votes (7)
Approval of Consent Agenda
Dissent: None
Moved by Unknown Council Member [00:03:52] · Seconded by Unknown Council Member [00:03:54]
The Council reviewed and approved a series of routine administrative items, including payments and disbursements, the hiring of an operator three, a budget amendment for the tree fund, a reimbursement resolution, and engineering design standard updates. No specific policy debate occurred on these items.
Letter of Support for Valley Community Center
Dissent: None
Moved by Unknown Council Member [00:15:37] · Seconded by Unknown Council Member [00:15:40]
David Frank presented on behalf of the Valley Community Center, requesting a letter of support for their proposed 50,000 sq ft inclusive community center at the Lake Elmo Elementary School site. Council members questioned the project's future traffic impact, its location relative to county roads, and the long-term timeline for construction. The project is described as a grassroots initiative supported by community engagement, aiming to enhance quality of life in the St. Croy Valley.
Northstar Third Edition Final Plat, Final PUD, and Development Agreement Approval
Dissent: None
Moved by Unknown Council Member [00:20:53] · Seconded by Unknown Council Member [00:21:05]
Senior Planner Sophia Jensen presented the Northstar Third Edition, detailing the 7.55-acre development with a density of 4.5 units per acre. The project was noted as consistent with the preliminary plat approved in 2022 and the 2040 Comprehensive Plan. Staff confirmed that agency review comments from the fire department, DNR, watershed, etc., had been satisfied. The development agreement was bundled for approval with the final plat and PUD.
Northstar Third Edition Developer's Agreement Approval
Dissent: None
Moved by Unknown Council Member [00:22:20] · Seconded by Unknown Council Member [00:22:24]
Following the approval of the final plat and PUD, the Council proceeded to approve the bundled development agreement for the Northstar Third Edition. A minor clarification was made to ensure the motion correctly referenced the 'Third Edition' rather than a 'Second Edition' typo. No further discussion was noted.
CASA 14 Water Main Improvements - Accept Bids and Award Contract
Dissent: None
Moved by Unknown Council Member [00:32:47] · Seconded by Unknown Council Member [00:32:51]
City Engineer Nate Stanley presented the need to replace 1,700 feet of a 1960s 6-inch cast iron water main on South 14 with a 12-inch line due to a severe break history. The project's estimated cost was higher than initially budgeted, but Miller Excavating submitted the lowest bid. Significant discussion centered on the complex detour plan for westbound traffic during the estimated three-month construction, with council members raising concerns about traffic volume on alternative routes like 39th Street.
CASA 14 Water Main Improvements - Authorize Material Testing Contract
Dissent: None
Moved by Unknown Council Member [00:36:47] · Seconded by Unknown Council Member [00:37:05]
As a separate but related action to the water main improvements, the Council considered and approved the authorization for the City Administrator to enter into a material testing contract. This contract, not to exceed $20,000, is for the project's construction phase services.
Utility Financial Management Plan Updates
Dissent: None
Moved by Unknown Council Member [00:45:11] · Seconded by Unknown Council Member [00:45:16]
Nina Kramer presented the proposed 2026 utility rate adjustments: 20% for water, 15% for sewer, and 8% for stormwater, with an overall goal of keeping the bill increase at or below 15% for typical users. The plan includes a bond for the 2028 Lions Park drainage project in the stormwater fund. The Council discussed the accounting treatment of grants as revenue and expenses, and the long-term strategy for funding stormwater projects, including potential use for road construction components and historical rate increases.
Notable Quotes (11)
So our idea is the creation of an approximately 50,000 square foot facility. It will be an inclusive community center, a central space that fosters social connection and wellness and recreation for the entire St. Croy Valley. And it'll be right here in Lake Elmo. It will be a big investment in the quality of life for the residents of this city and for the surrounding area.
The only question I have for you is has it been looked at the traffic study of any sorts? Because I know that our downtown is not the most robust with with roads. I mean, even with the school in the morning, it gets pretty busy. So, I would imagine the entire St. Croy River Valley area coming out to a 50,000 square foot community center would cause Yeah.
I think the soonest we're talking about starting construction is a few years from now. I probably shouldn't be more specific until we've had a chance to really put that program together, but this is not a start construction this year or next year kind of a project.
The third edition is 7.55 acres of the a little over 101 acres for Northstar altogether. And the density of this phase is 4.5 units per acre. Um so it's a little higher than the total project density which is 2.27 units per acre.
This is just a question I always like to ask with these and you already kind of covered it, but I just like to to double up with this is just it sounds like there's really no significant changes from the initial PL. Correct.
So, this is an existing 6-in cast iron water man that was installed in the 1960s. Um, it's got a pretty severe break history, particularly uh over the in the last few years. Um, we are upsizing this line to create a trunk loop uh going from a six to a 12.
So you're gonna you're going to detour westbound and put eastbound on the westbound lane?
My main concern right now is just with the the traffic that we're going to see on 39th. You know, we've had a lot of work that we've done. We've heard a lot from the residents over the last couple years um who are trying to walk in that area who are trying to cross the roads and it's been an issue.
And so our proposed amounts for 2026 rate adjustments um we went with the same water increase of 20% from last year. Um a sewer increase of 20% also was proposed in 2025. Um but we did change that to 15% as we increase the storm water uh to an 8% from the previous year.
No, but that that helps me understand where where the money goes, right?
My main concern of obviously the rate needs to go up to help us move in this right direction where we're trying the depreciation expenses that are going to acrue over years. Um, I just wanted to make sure that that number is what we're increasing that rate by is is accurate. If we're spreading these the the amount of money we need out over 15 years instead of needing to pay for it in one year, the amount of funds that we need might be different.
Ordinances & Resolutions (10)
Approving the final plat and PUD for Northstar Third Edition.
Approving the Developers Agreement for Northstar Third Edition (corrected from Second Edition).
Accepting bids and awarding a contract to Miller Excavating Incorporated for the CASA 14 water main improvements.
Amending the 2026 fee schedule to include utility rate updates.
Detailed plan for the third phase of the Northstar development.
Final Planned Unit Development plan for the Northstar Third Edition.
Agreement for the Northstar Third Edition development, defining responsibilities and timelines.
General Planned Unit Development for the Northstar project, providing bulk standard flexibilities.
The City's Comprehensive Plan, which guides land use and development.
Capital Improvement Plan, used for budgeting infrastructure projects like water main improvements and utility rate calculations.