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Summary of Fergus Falls Committee of the Whole Meeting – July 30, 2025

Time: 7:00 AM, City Hall Attendees: Mayor Anthony Hicks, council members (Mark Leighton, Al Kremeier, Mike Mortenson, Scott Rachels, Laurel Kilde, Jim Fish, Scott Kvamme, Laura Job), city staff (Andrew Bremseth, Bill Sonmor, Kyle Meyer, Connor West, Klara Beck, Len Taylor), guests (Michaela Hwitt, Emily Mchuan).

This concise summary highlights key outcomes and significant discussions with timestamps, focusing on city business priorities.

Key Items

  1. Bond Financing for Junius and Shore View Projects (0:17–21:27)

    • Action: Recommended approving Gate City’s 10-year, non-callable, 4% fixed-rate bond ($716,000) for council vote on August 4.

    • Discussion (21 min):

      • Bill Sonmor and Michaela Hwitt (Baker Tilly) presented financing for Junius and Shore View projects, both specially assessed under Minnesota Statute 429. Eight proposals from three banks (Bell Bank, Huntington, Gate City) were received, with Gate City’s 10-year option offering the lowest cost ($176,000 total interest, $58,500 average annual levy) (0:29–4:36).

      • Assessments are set for 15 years, but the 10-year bond term requires transferring $9,400 annually from the PIR fund to cover the final five years, reducing levy impact (4:43–6:59).

      • Leighton questioned limited bank responses; Hwitt cited project size and lack of prior relationships (7:28–9:47).

      • Mortenson suggested delaying bonding to combine with a larger 2026 project (e.g., Cavour Avenue), anticipating lower rates and leveraging cash earning 4–5% (10:50–15:30).

      • Rachels supported moving forward to avoid larger levy spikes next year (19:04–20:43).

    • Outcome: Motion to proceed with Gate City’s bond passed (Kilde, Mortenson opposed) (21:21–21:27).

    • Significance: Balances cost savings with timely project funding; advances infrastructure.

  2. Memorandum of Understanding with MState (21:41–27:50)

    • Action: Recommended approving updated MOU with MState for council vote, authorizing signatures for collaboration on sexual assault data.

    • Discussion (6 min):

      • Connor West presented the MOU update (originally signed in 2016) to formalize police department collaboration with MState on crime data, particularly sexual assaults, per state statute (22:01–23:03).

      • Mortenson confirmed city police jurisdiction over the campus, clarifying no state police involvement (24:25–25:36).

      • Rachels noted the MOU ensures data collection and communication without changing police response protocols (25:44–26:36).

    • Outcome: Motion to approve MOU passed unanimously (27:44–27:50).

    • Significance: Strengthens campus safety coordination, ensures statutory compliance.

  3. Lincoln Avenue Alleys and Parking Lot Reconstruction (PI5855) (28:01–39:31)

    • Action: Approved plans and specifications, authorized Interstate Engineering to advertise for bids.

    • Discussion (11 min):

      • Kyle Meyer outlined the project: paving alleys between Lincoln Avenue and Cavour (Union to Cascade) and replacing storm sewer, with three parking lots as bid alternates. Base bid estimate: $280,000; parking lots: $272,000. Total cost with alleys: $385,000 (funded by $72,000 from utilities, $219,500 from city funds, $93,500 from MSA). Parking lots add $293,000, partially from city funds and MSA (28:19–32:14).

      • Sonmor noted funding flexibility, including insurance dividend contingency funds ($700,000–$800,000 in PIR) (32:47–33:51).

      • Hicks emphasized focusing on bids first, deferring funding decisions (34:04–34:58).

      • Leighton’s motion to bid alleys only failed; Kvamme’s motion to include parking lot alternates passed (38:13–39:25).

    • Outcome: Motion to proceed with bidding passed (Leighton opposed) (39:20–39:31).

    • Significance: Advances alley and stormwater infrastructure, preserves funding options.

  4. Planning Commission Update: Interim Use Permit for Cannabis Retail (39:56–1:02:34)

    • Action: Received update on 112 East Washington IUP for cannabis retail; recommended for council approval on August 4.

    • Discussion (22 min):

      • Klara Beck reported the Planning Commission’s approval of an IUP for cannabis retail at 112 East Washington, with conditions: 5-year term, 10 AM–8 PM hours, no on-site consumption, and tenant acknowledgment for upstairs apartments (40:02–41:53).

      • Hicks outlined the state’s cannabis licensing process (2A uncapped vs. 2B lottery) and city’s registration process, noting Sugar High’s preliminary approval (2A) and Elevate’s lottery status (2B) (43:06–45:52).

      • Emily Mchuan (Sugar High) clarified their microbusiness license (single location) vs. Elevate’s retailer license (up to five locations) and timeline constraints (product availability by October) (58:27–1:01:29).

      • Proposed registration timeline: August 8–September 8 for applications, September 9–10 for staff review, September 15 for council decision on one or two licenses (49:42–50:55).

      • Kilde raised concerns about lottery timing impacting local businesses; Beck suggested a 6-month registration validity to align with state processes (51:02–53:12).

    • Outcome: Motion to bring registration process to council passed unanimously (1:02:27–1:02:34).

    • Significance: Clarifies cannabis licensing, ensures equitable local process.

  5. De Lagoon Campground Rates (1:02:56–1:17:45)

    • Action: Recommended approving campground rates: $25/day (tent), $50/day (partial hookup), $60/day (full hookup), $25/day (off-season), $10 cancellation fee (7-day notice) or one-day charge (<7 days).

    • Discussion (15 min):

      • Len Taylor reported the $5.2M De Lagoon project is nearly complete, with a soft opening planned for fall or full opening in 2026. Rates were set based on regional comparisons (Hutchinson, Salk Centre) (1:03:08–1:08:26).

      • Rachels suggested increasing full hookup to $60/day (from $50) to align with market rates; Kilde amended motion to $50 partial, $60 full (1:09:07–1:12:24).

      • Mortenson questioned excluding seasonal rates; Taylor noted potential but prioritized tourism over guaranteed income (1:13:13–1:16:29).

      • Fish suggested premium rates for lake-view sites (1:16:35–1:17:15).

    • Outcome: Motion to approve amended rates passed unanimously (1:17:38–1:17:45).

    • Significance: Supports tourism revenue, aligns with regional standards.

  6. Utility Billing Ordinance Amendment (1:19:13–1:21:36)

    • Action: Received update; ordinance amendment proposed for August 4 first reading.

    • Discussion (2 min):

      • Sonmor outlined changes to remove one-time late fee exemption due to new Cassel system limitations and adjust sewer rate language to reflect monthly billing and January–March usage (1:19:27–1:21:07).

      • Bremseth noted the city attorney will draft amendments for Monday (1:21:18–1:21:30).

    • Significance: Modernizes billing practices, aligns code with operations.

  7. Public Service Announcement: Scam Alert (1:21:36–1:26:02)

    • Action: Received PSA on fraudulent invoices targeting planning applicants.

    • Discussion (4 min):

      • Bremseth reported a scam involving fake city invoices using redacted contact information, costing one business significant funds. City payments are in-person, not wired (1:21:42–1:23:35).

      • Mortenson inquired about other targeted permits; Bremseth confirmed variances and CUPs also affected (1:24:24–1:25:00).

      • Hicks asked about cybersecurity; Bremseth noted frequent staff training and IT oversight (1:25:06–1:25:56).

    • Significance: Enhances applicant awareness, strengthens data protection.

  8. Announcements (1:26:07–1:26:43)

    • July 31: Dandelion Days (mental health awareness).

    • August 1: National Night Out registration deadline.

    • August 4: TIF policy work session (4:30 PM), council meeting (5:30 PM).

    • August 5: National Night Out.

    • August 13: Next Committee of the Whole (7:00 AM).

    • Significance: Informs public of community and council events.

Next Steps

  • Bond Financing: Finalize Gate City bond approval on August 4, plan for August 28 closing.

  • MState MOU: Approve and sign MOU on August 4.

  • Lincoln Avenue Project: Review bids when received, decide on parking lot alternates and funding.

  • Cannabis Registration: Begin application period August 8, prepare for September 15 council decision; clarify 6-month registration validity language.

  • Campground Rates: Implement rates for soft opening, monitor demand for lake-view or seasonal adjustments.

  • Utility Billing: Review ordinance amendments for August 4 first reading.

  • Scam Prevention: Continue redacting sensitive applicant data, enhance public communication.

  • TIF Policy: Conduct August 4 work session.


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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