--- ## author: Sara Ludwig date: D:20260724081803-05'00' --- ## WORKSHOP MINUTES ## OAKDALE CITY COUNCIL ## JULY 14, 2026 The City Council held a Workshop on Tuesday, July 14, 2026 at Oakdale Discovery Center, 4444 Hadley Avenue North, Oakdale, Minnesota. The meeting began at 5:00 PM. ## Present: Mayor Kevin Zabel ## Council Members: Kari Moore ## Andy Morcomb ## Gary Severson ## Absent: Council Member Katie Wrich ## City Staff Members: Kelli Bourgeois, City Administrator ## Sara Ludwig, City Clerk ## Hannah Dunn, Senior Community Development Specialist ## Jake Foster, Assistant City Administrator ## Andy Gitzlaff, Community Development Director ## Mikaela Huot, Finance Director ## Melanie Lee, Human Resources Director ## Max Lohse, Planner ## Luke McClanahan, Planning Manager ## Nick Newton, Police Chief ## Lori Pulkrabek, Communications Manager ## Cory Tietz, Public Works Director ## Kevin Wold, Fire Chief ## Others Present: John Dobbs, Developer’s Representative ## Tom Mulcahy, Property Owner/Developer ## Nancy Mulcahy, Property Owner/Developer ## Don Theisen, Owner’s Representative ## Joe McCormick, Project Manager, Kraus-Anderson ## P 4 PROPERTIES LLC – HADLEY STORAGE – DEVELOPMENT CONCEPT PLAN Planner Max Lohse noted this development is a self-service storage facility proposed at 6815 55 th St N. The building would have a footprint of approximately 26,000 square feet and be three stories in height. Currently, the subject property is vacant and approximately 8.2 acres in size, with approximately three acres of wetlands present on the eastern half of the site. The land use approvals needed include a Comprehensive Plan Amendment, Rezoning, Variance, Preliminary Plat, Final Plat, and Site Plan. In response to Mayor Zabel’s question about the reason behind a 350-foot setback as required by City Code, Mr. Lohse did not have historical knowledge, but noted in general, it is to provide a buffer from residential properties. ## WORKSHOP MINUTES ## JULY 14, 2026 ## PAGE TWO Mayor Zabel suggested a difference in setback requirement for a single-story versus multi- story self-service storage facility. Mr. Lohse presented a rendering of the facility and requested Council feedback on the favorability of potential requests for a Comprehensive Plan Amendment, rezoning, and variance. Responding to Council Member Severson’s question, Mr. Lohse clarified that the 350-foot setback only applies to self-service storage facilities, not light industrial buildings. Council Member Morcomb inquired about the site entrance and the possibility of a turn lane into the facility. Mr. Lohse indicated that Washington County had previously approved the site entrance for future development from Hadley Ave N, which is a County road, so alterations may be limited. The Council was supportive of the Comprehensive Plan Amendment, variance, and rezoning, as presented. The City will not waive the wetland requirement, as outlined in City Code, so all the wetland areas will be deeded to the City. Lastly, the Council requested that self-service storage facility setback language in the City Code be revised when other Chapter 25 changes are brought forward in the future. ## POLICE EXPANSION AND CITY HALL REMODEL BUDGET AND VALUE ENGINEERING City Administrator Kelli Bourgeois stated that there will be additional discussion on these value engineering items at a future Workshop after the 2027 budget has been further refined. Regarding value engineering Option 2 found in the Council Memorandum, Kraus-Anderson will provide a rendering without the interior brick, but staff is not recommending moving forward with this option. Mayor Zabel requested public safety’s perspective on value engineering Option 4 found in the Council Memorandum, which will be provided as a follow-up. In response to Mayor Zabel’s question about the current concept for the Veterans Memorial, Joe McCormick, Project Manager with Kraus-Anderson, stated it is a 6’x12’x2’ granite slab with five inset granite plaques to represent each branch of the military. Mr. McCormick assured the group that all items from the previous Veterans Memorial and Officer Walton Memorial are being preserved and stored on site until a decision is made for their future placement. Council Member Moore pointed out the importance of creating a beautiful and respectful Veterans Memorial while also balancing the City’s fiscal responsibilities. Ms. Bourgeois stated that City staff will look into grant funding opportunities. Council Member Severson added that the concept may start small, but could be expanded if grant funding is secured. ## WORKSHOP MINUTES ## JULY 14, 2026 ## PAGE THREE The Council was interested in one cohesive proposal with renderings and physical material samples, for the Veterans Memorial, possibly a public safety memorial, and the value engineering options. ## TANNERS LAKE INTERFUND LOAN PAYABLE UPDATE Mayor Zabel asked for Council’s intent for the repayment of the Tanners Lake Tax Increment Financing (TIF) Interfund Loan (IFL), and the Economic Development Authority’s (EDA) active Purchase and Development Assistance Agreement with Tanners Lake, LLC. Council Member Morcomb was supportive of waiting two weeks per Tanners Lake, LLC’s request before deciding on the Tanners Lake TIF IFL. Mayor Zabel was not interested in delaying the decision and did not see a path forward to redevelop the site without a significant taxpayer subsidy. Council Member Severson was supportive of moving on from the current redevelopment plan, but was not supportive of abandoning all future redevelopment plans. Mayor Zabel presented a long-term proposal to pay off the Tanners Lake TIF IFL and draw down the Bergen Plaza TIF District without abandoning all future redevelopment plans. The proposal would also provide an annual revenue stream to the City until 2039. As for the $2.2 million in the TIF Spending Plan from TIF (Housing) Districts No. 1-4 and No. 1-6 , Mayor Zabel suggested returning it to Washington County for redistribution as excess increment. It was noted that these funds must be expended by December 31, 2027 for a TIF-eligible project anywhere in the City, or be returned to the original TIF Districts, and if those were decertified, returned to the County for redistribution. Finance Director Mikaela Huot clarified that Bergen Plaza TIF is primarily restricted for Tanners Lake redevelopment. TIF in the City’s Spending Plan from the decertified housing districts have been identified for Tanners Lake, but may be used for other qualifying projects in the City if development occurs and funds are spent by December 31, 2027. In response to Council Member Morcomb’s question about keeping the funds in the TIF Districts versus repaying the IFL and adding to the City’s accounts, Mayor Zabel pointed out the guaranteed 8% compounding interest as one reason to keep them in the TIF Districts. Ms. Huot noted that the Bergen Plaza TIF District is technically intended to pay for the Tanners Lake TIF District so the two Districts would likely need to be closed at the same time, but TIF counsel should be consulted if the City Council wants to close either District. In response to Council Member Severson’s question about the timeline for this decision, Ms. Huot indicated that Council action could be considered sometime during the 2027 budget process. ## WORKSHOP MINUTES ## JULY 14, 2026 ## PAGE FOUR Council Member Moore inquired about the impact on future City Councils if the City moves forward with the long-term proposal as presented. Mayor Zabel stated that the City will still own the land and will have full discretion for its use. Ms. Huot added that if the Council moves forward with paying the Tanners Lake TIF IFL in full, and closes both Districts, then that leaves limited options to support financial assistance for redevelopment on the site for future Councils. Ms. Huot also explained that the captured tax capacities of open TIF Districts would be added to the City’s general tax base once the TIF Districts are closed. Council Member Morcomb was supportive of pursuing future redevelopment plans, but would be comfortable with the long-term proposal as presented. Regarding the two-week waiting period requested by Tanners Lake, LLC, Community Development Director Andy Gitzlaff noted that the EDA could require the developer to deposit $1 million toward closing, clear all liens for the site, and provide proof of financing by the end of that period. Mayor Zabel suggested the EDA take conditional action later this evening with requirements for the developer, and if those conditions are not met then the Purchase and Development Assistance Agreement with Tanners Lake, LLC will be terminated. Mr. Gitzlaff stated that the City Council will have to take action as well, likely at a future meeting, because they are also a party to the Agreement. He will work on motion language with City Attorney Jim Thomson. ## 2027 PROPOSED BUDGET UPDATES Ms. Bourgeois asked to move this item to a Special Workshop to allow more time for discussion. It was determined that a Special City Council Workshop will be held on July 29 th from 9 AM to 12:30 PM. ## 2050 COMPREHENSIVE PLAN UPDATE AND CLIMATE ACTION PLAN Mr. Gitzlaff explained that as part of the 2050 Comprehensive Plan update, a “Climate Element” section is required, which is more robust than in past years. In anticipation of this change, City staff applied for a $50,000 Minnesota Pollution Control Agency (MPCA) grant, budgeted for the required 50% match, and was ultimately awarded the grant. The funds would be used to work with a consultant to conduct additional public engagement efforts and develop a Climate Action Plan that will be used to develop the “Climate Element” in the 2050 Comprehensive Plan. Mayor Zabel inquired about repurposing current resources available to City staff to create this section. He also noted that engagement efforts can only be taken so far until operational or fiscal challenges arise. Council Member Morcomb asked whether the City has current resources for two specific components of this section – heat island and flooding. His preference is to wait for further clarification from the Metropolitan Council on these requirements before putting time and money into the process. ## WORKSHOP MINUTES ## JULY 14, 2026 ## PAGE FIVE Council Member Moore stated that the Climate Action Plan could have benefits other than satisfying the Metropolitan Council’s requirements like tying it back to the City’s Strategic Plan. Mayor Zabel struggled to find a practical use for the Climate Action Plan, especially given financial constraints. Senior Community Development Specialist Hannah Dunn gave a brief overview of the background and makeup of the 2017 Vulnerability Assessment, one of the resources mentioned by Mayor Zabel. Council Member Morcomb pointed out that going through the process of creating a Climate Action Plan fosters public engagement, which can be helpful for the Council to understand where City funds should be invested. Council Member Moore suggested adding language to the Strategic Plan for City staff and Council to use studies and plans that have been developed and approved by Council when making future decisions for the City, much like the Park System Plan. The Council agreed to not move forward with the Climate Action Plan and will circle back on the required “Climate Element” section of the 2050 Comprehensive Plan at a later date. Mayor Zabel inquired about 2040 Comprehensive Plan content, previous studies and plans, and community engagement feedback that could be carried over into the 2050 Comprehensive Plan. Council Member Morcomb was in agreeance to make minor tweaks versus a complete overhaul, and utilize current City staff as much as possible. Mr. Gitzlaff noted that the Met Council is requesting more information than in previous years which would not be included in the 2040 Comprehensive Plan; however, the 2040 Comprehensive Plan is a starting point that can be built upon. He also expressed concern about staff workload and expertise for things like updating source data, map creation, and public engagement. Mr. Gitzlaff mentioned a grant opportunity to help offset consultant costs to build upon the 2040 Comprehensive Plan. Mayor Zabel suggested that Council revise the 2040 Comprehensive Plan goals to assist with staff workload. Mr. Gitzlaff stated that would be helpful, but wanted to ensure that Council intent is met especially regarding whether public input should be gathered before the update. Council Member Moore was supportive of a consultant to lead the 2050 Comprehensive Plan development as they bring a perspective that Council and City staff may not have. Mayor Zabel was unclear about the consultant’s role, and wanted to ensure that the 2050 Comprehensive Plan is reflective of Council’s intent. Currently, the 2040 Comprehensive Plan is up to date as of Council’s intent in 2023, so Mayor Zabel inquired what may have changed from then until now that would warrant a consultant as facilitator. ## WORKSHOP MINUTES ## JULY 14, 2026 ## PAGE SIX Council Member Morcomb suggested tailoring the consultant’s scope to better reflect which sections of the 2050 Comprehensive Plan could be done by City staff. Ms. Bourgeois confirmed that she and Mr. Gitzlaff will discuss staff capacity, but asked for Council’s intent on the community engagement component. Mayor Zabel brought up several instances where required community engagement components have been completed or are still being completed, i.e., Pedestrian and Bicycle Plan and park playground improvement engagement events. Next steps include City staff revising the work scope to address Council intent prior to Council approval of a consultant contract. Ms. Bourgeois requested the running list of staff identified gaps within the 2040 Comprehensive Plan that can be shared with Council. ## WILLOWBROOKE FIELDS RESTROOM/SHELTER CONSTRUCTION CONTRACT AND SELECTION ## OF BID ALTERNATES Public Works Director Cory Tietz provided an update on the bid results for City Project P2025- 02 (Willowbrooke Fields Park and Prairie Trails Park). He asked the Council for feedback on the selection of the five proposed bid alternates as outlined in the Council Memorandum. The Council agreed to accept Alternate #1: Pickleball Court Shade Umbrellas (Qty of two: 10’x20’ each) and Alternate #2: Volleyball Court Shade Umbrella (Qty of one: 10’x10’); and reject Alternates #3-5: Soccer Field Lighting, Pickleball Court Lighting, and Volleyball Court Lighting, respectively. The Council also agreed to allot up to $75,000 total for shade amenities for Project P2025- 02, which includes the cost of Alternates #1 and #2. Mr. Tietz stated that the formal award of bid will be presented to Council at their July 28, 2026 regular meeting. Seeding of the grass at the parks will take place in the Spring. ## WORKSHOP RECESSED FOR THE REGULAR CITY COUNCIL MEETING AT 6:50 PM ## WORKSHOP RECONVENED AT 7:34 PM AFTER THE REGULAR CITY COUNCIL MEETING ## ADMINISTRATOR UPDATE Ms. Bourgeois reported that the dates for the street closure on Hadley Avenue N and the closure of Walton Park due to the Police Expansion and City Hall Remodel project are to be determined and depend on Xcel Energy. The City will be given a 7-day notice to notify residents and prepare traffic signs and cones in a timely manner. Communications and Public Works staff will have messaging created in preparation of the confirmed closure dates. ## WORKSHOP MINUTES ## JULY 14, 2026 ## PAGE SEVEN Ms. Bourgeois noted that the Oakdale Marketplace LLC mediation will take place on Monday, July 20 th . Lastly, Ms. Bourgeois reminded the group of the Police Expansion and City Hall Remodel Neighborhood Meeting on Thursday, July 16 th at 6:00 PM at the Walton Park South Picnic Shelter. ## COUNCIL TOPICS Council Member Moore brought up Minnesota squatters’ rights to bring awareness to homeowners’ rights and how the City handles these types of situations. Additionally, Council Member Moore shared that she met a couple of individuals who are interested in forming a community building collaborative and referred them to Ms. Bourgeois for helpful resource information to continue moving their initiative forward. Lastly, Council Member Moore thanked Fire Chief Kevin Wold, Police Chief Nick Newton, and the public safety officers who attended the Ladders and Squads event and those that had an impact on her son. Council Member Morcomb brought up a pending car wash application and the impact it could have on the City’s water supply. He inquired whether the Council should discuss and provide clarity to developers who may come to the City with a concept that involves high-volume water use. He expressed concern about the City’s water supply capacity. Mayor Zabel stated that the City Council cannot make land use decisions based on water usage, but the Development Review Committee (DRC) does take that into consideration when making a recommendation. Mr. Tietz indicated that there is a difference between the City’s ability to pump water versus the City’s ability to store water, citing the two Minnesota Pollution Control Agency (MPCA) grant-sponsored water reports that were presented to Council last May. He assured the group that there is a conscious evaluation of the City’s water supply as developments come before the DRC. Mr. Gitzlaff added that car washes are approved as a Conditional Use Permit which allows the Council to put conditions on the permit. Assistant City Administrator Jake Foster proposed adding conservation and high-volume water users to a future water rate study conversation. Via Council Member Morcomb, Council Member Wrich was interested in exploring the City’s options to express concerns about the proposed 180-acre development to the east of Ideal Avenue in Lake Elmo. Mayor Zabel noted that he will be meeting with the Mayor of Lake Elmo on this topic. ## WORKSHOP MINUTES ## JULY 14, 2026 ## PAGE EIGHT Mayor Zabel stated that the members of the Oakdale Summerfest Community Organization (OSCO) are processing and debriefing the recent Summerfest event as well as brainstorming ideas for a possible organizational shift. Time will be slated on a future Workshop agenda in the coming months to discuss the 2026 Summerfest event and what lies ahead for the 2027 Summerfest event. Council Member Moore added that the individuals who are interested in forming a community building collaborative should connect with OSCO. ## ADJOURNMENT The Workshop was adjourned at 7:58 PM. Respectfully submitted, ## Sara Ludwig, City Clerk