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Summary of Fergus Falls City Council Meeting – April 21, 2025

Updated: May 5

Time: 6:00 PM, City Hall

Attendees: Mayor Anthony Hicks, council members (Mark Leighton, Al Kramer, Mike Mortonson, Scott Rachels, Laurel Hildy, Jim Fish, Joel Swenson, Kim Springer), city staff (Clara Beck, Bill Som, Andrew Bremseth, Ryan Muchow, Ralph Nickomo), public speakers.



Key Items

  1. Routine Business (0:06–16:18)

    • Invocation/Pledge: Led by Rich Iverson (0:06–2:02).

    • Roll Call: Quorum present (2:15–2:31).

    • Open Forum (2:36–16:18):

      • Kim Everson: Thanked council for sculpture walk funding; pedestals soon to be placed, grand opening May 31 (2:43–3:51).

      • Lori Mullen: Urged advocating for Fergus Falls as a federal Opportunity Zone to aid economic development, particularly for the Regional Treatment Center (4:05–6:54).

      • Mike Hikis: Celebrated 25 years of Helmets for Kids, distributing 22,000 helmets; event planned at YMCA (7:02–8:20).

      • Dwayne Cookman: Asked about trail plans at dairy site (awaiting drawings) and updates on 801 West (awaiting developer) and golf course (operating under one-year lease) (8:35–9:50).

      • Al Frank: Criticized Councilor Rachels’ March 15 Daily Journal comments calling three councilors (Kramer, Mortonson, Leighton) “three amigos,” deemed divisive; requested public apology. Rachels apologized publicly (10:05–12:42).

      • Bob Noah: Advocated for town hall meetings to foster unity and citizen engagement, citing past successes (13:04–15:51).

    • Agenda Approval: Approved with item F6 (RTC state funds) deferred to next meeting (16:18–17:23).

  2. Business Development Loan for Fergus Hotels LLC (17:23–27:21)

    • Action: Approved $250,000 loan at 5.5% interest, 20-year amortization, 10-year balloon, for Fergus Hotels LLC to rebrand Ferguson Hotel as Days Inn by Wyndham. Origination fee of 1.5% ($3,750) waived.

    • Discussion (10 min):

      • Clara Beck outlined loan terms, third-position collateral, and West Central Initiative’s subordination process (17:52–20:08).

      • Mortonson praised owners Maya and Imran Khan for revitalizing two hotels, proposed waiving origination fee as a thank-you, but others noted precedent concerns (20:58–25:00).

      • Financial analysis by Business Development for Fergus Falls (BDFF) committee (Lonnie Baldwick, Michael Olsen, Jeff Stanius, Holly Pikkarainen, Scott Rachels, Jen Schmidt) reviewed; documents available to council (22:50–23:44).

      • Keyman insurance clarification requested (likely two policies for husband-wife team) (23:50–24:26).

    • Outcome: Loan approved unanimously (25:56–26:02); fee waiver approved unanimously (26:29–27:21).

    • Significance: Supports hotel revitalization, boosting city revenue; fee waiver debated for fairness.

  3. Scenic Drive Sewer/Water Project Final Cost Hearing (27:21–41:54)

    • Action: Approved assessments for PI 8231 (water) and 7224 (sewer) on Scenic Drive, Pebble Hills, with deferred status until connection. Contract awarded to Katza Excavating for $222,881.67.

    • Discussion (14 min):

      • Bill Som detailed costs: sewer ($103,035 total, $45,860 assessments, $8,415/unit) and water ($186,700 total, $123,200 assessments, $7,700/unit), both at 5.5% interest over 15 years, deferred to spur development (27:45–34:18).

      • One resident questioned map shading; clarified as highlighting adjoining lots (34:48–35:52).

      • Written objection from Gerald Linamman cited no benefit, requested deferral (already planned), and called $11,465 assessment excessive (36:05–36:58).

      • Mortonson asked about total lot assessment (~$19,165) and suggested bonding; Som confirmed cash payment from utility funds (37:21–38:27).

      • Rachels questioned bid protections; Andrew confirmed low bid verification and change order requirements (38:34–40:39).

    • Outcome: Assessments approved unanimously (37:06–41:01); contract awarded unanimously (41:08–41:54).

    • Significance: Infrastructure to support future development with favorable bid savings.

  4. Civilian Life-Saving Award (42:02–45:11)

    • Action: Fire Chief Ryan Muchow presented Abby Elbert with a Civilian Life-Saving Award for detecting a fire on April 3, ensuring a resident’s safe evacuation.

    • Significance: Recognizes community vigilance; no discussion.

  5. Arbor Day Proclamation (45:11–47:01)

    • Action: Mayor proclaimed April 25, 2025, as Arbor Day, urging tree planting and protection.

    • Note: Highlighted Fergus Falls’ Tree City status; no discussion.

  6. Consent Agenda (47:01–47:35)

    • Action: 13 items approved unanimously, including trail plans at dairy site. No discussion.

  7. Ordinances (47:35–48:32)

    • First Reading: Ordinance 66, 8th Series, amending pylon signs (47:42–47:55).

    • Second Reading: Ordinance 658, repealing THC product sales chapter, approved unanimously (48:02–48:32).

    • Note: Routine, no significant discussion.

  8. Tax Increment Financing (TIF) Transfer for Sunset Ridge Apartments (48:49–1:08:37)

    • Action: Approved transfer of TIF funds from Sunset Ridge Apartments to Fergus Falls Apartment Developers LLC, 5-3 vote (Rachels, Fish, Swenson in favor; Leighton, Kramer, Mortonson opposed).

    • Discussion (20 min):

      • Leighton moved to table for a closed session, citing unclear financial details and taxpayer costs, but motion failed 5-3 (49:12–52:23).

      • Leighton argued original developer and new buyer benefit significantly (~$360,000 net after $240,000 costs), questioned 2030 TIF end date; Som clarified council controls decertification (52:31–54:15).

      • Mortonson raised past Herzog Properties issues (e.g., 12-ft right-of-way violation, maintenance complaints), questioning TIF integrity (57:04–1:07:03).

      • Rachels and Som noted TIF funds benefit county/school, not city, and obligations persist until 2030 regardless (54:22–1:07:23).

    • Significance: Heated debate on TIF transparency and fairness; approval ensures project continuity but highlights council division.

  9. Interim Use Permits for Cannabis Businesses (1:08:43–1:44:06)

    • Action:

      • Sugar High (112 E Washington): Permit with conditions (10 AM–8 PM hours, no sampling/consumption, resident consent, 5-year term) failed 5-3 (Hildy, Fish, Swenson in favor). Motion to consult Office of Cannabis Management (OCM) for ordinance clarity approved unanimously (1:36:29–1:37:38).

      • Elevate (214 W Lincoln): Permit with conditions (same, minus resident consent, 5-year term) failed 5-3 (same votes). Motion to clarify Spetz Park attraction status approved unanimously (1:38:14–1:43:05).

    • Discussion (35 min):

      • Clara Beck outlined conditions; resident consent confirmed for Sugar High (1:09:06–1:10:23).

      • Mortonson raised ordinance violation: Sugar High at 216 ft from City Park (Riverwalk, used by minors) vs. 250-ft buffer requirement. OCM and City Attorney Nickomo confirmed unclear “attraction” definition, no case law (1:18:08–1:27:02).

      • Hildy noted Riverwalk distances (249.1 ft to path, 389.2 ft to entrance); argued legal exposure if denied (1:28:01–1:29:46).

      • Rachels questioned Elevate’s 234-ft distance to Spetz Park; council agreed to seek clarity for consistency (1:38:47–1:40:04).

      • Debate on 2-year vs. 5-year term; amendment to 5 years accepted but odor control concerns persisted (1:11:37–1:16:20).

    • Significance: Legal uncertainty halted permits; council seeks OCM guidance to ensure compliance.

  10. Claims Approval (1:44:11–1:44:52)

    • Action: Approved $3,498,191.34 in claims unanimously. No discussion.

  11. Council Lightning Round (1:44:58–1:56:58)

    • Discussion (12 min):

      • Leighton: Urged faster committee decisions (e.g., garage on empty lot), criticized slow response times (1:45:31–1:47:32).

      • Kramer: Disappointed by North Point letter undermining council unity on economic development (1:47:44–1:49:10).

      • Mortonson: Thanked community support, reaffirmed economic development commitment despite setbacks (1:49:15–1:51:18).

      • Rachels: Stressed balancing economic development with street repairs, urged work session (1:51:18–1:52:03).

      • Hildy: Supported economic development and infrastructure; promoted firefighters’ pancake feed (1:52:09–1:52:40).

      • Fish: Highlighted road maintenance and coyote issues on Scenic Drive (1:52:48–1:54:11).

      • Springer: Noted upcoming budget/tax levy discussions focusing on roads (1:54:19–1:54:47).

      • Mayor Hicks: Advocated for strategic plan to secure grants, focusing on existing businesses for job growth (1:54:53–1:56:58).

    • Significance: Revealed council priorities (economic development, infrastructure) and tensions over unity.

  12. Miscellaneous (1:57:12–1:58:21)

    • Announcements: Board of Equalization (April 24, 9:30 AM), Committee of the Whole (April 30, 7 PM), Council Meeting (May 5), Economic Development Work Session (May 7, 7 PM).

Next Steps

  • Economic Development: Clarify Opportunity Zone status; discuss plans May 7.

  • Cannabis Permits: Consult OCM/city attorney on ordinance clarity; businesses to reapply post-ruling.

  • Infrastructure: Review Scenic Drive assessments; discuss roads in budget committee.

  • TIF Transfer: Monitor Sunset Ridge project compliance.

  • Community: Promote Arbor Day, firefighters’ pancake feed, and property tax hearings.


Disclaimer: This summary was generated by an AI system without added opinions. No claims of accuracy are made, though timestamps are included for reference. For the full context, please view the meeting video on YouTube: [YouTube Video Link Here]. This content is provided by Growth Forge Studio (formerly 4t Creative), dedicated to helping businesses grow.

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