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Not sure what that means either. >> Good evening. Thank you for joining the Chesca City Council for Monday, July 20th, 2026. I call this meeting to order. Uh would you please rise for the pledge of allegiance? I pledge allegiance to the flag of the United States of America and to the

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republic for which it stands. One nation under God, indivisible, with liberty and justice for all. >> All right, Elise, will you call roll, please? >> Council member Hatfield, >> here. >> Council Bennish, >> here. >> Council member Shlinin here. >> Council member Gro here.

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>> Mayor Hubard. >> Thank you. Brings us to item four, adopt the agenda. Any uh adoption changes to the agenda? Otherwise, I'll entertain a motion. >> Motion to adopt the agenda. >> A motion by council member Hatfield. >> Second.

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>> Second by council member Vanesh. Any discussion? All in favor of adopting the agenda say I. >> I. >> I. Opposed. Agenda is up. Visitor presentation. We do have several people out there. I don't know if they're here for just the

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events, but if you are here for something else, please come up forward for visitor presentation. We just ask you to state your name uh and address for the records. Uh I don't see anyone quickly moving, so I'm going to make assumption that everyone's here just to have fun and listened for a great entertainment night. Uh and we'll move

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into number six. Uh approve previous meeting minutes. And those meeting minutes are from June 29th, 2026. >> Motion to approve meeting minutes. Motion by council member uh Chevlin going to I was going to combine your names there for a minute.

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>> Second. >> Second by council member Hatfield. Thank you. >> Any discussion? Hear none. All in favor of approving the meeting minutes of June 29, 2026 26 say I. >> I post sign.

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Number seven is consent items. Just a reminder, these are items that are on here forformational purposes and information do not need any specific conversation can be pulled out if we would like to talk about them. Does anyone have any questions or uh comments regarding the consent items?

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>> I have a question on 7A more just out of curiosity maybe. So, this would be our third and final cannabis retail. Um, and they count as that they're cuz it sounds like they have a special license from the state because they're going to be doing actually it seems kind of cool and

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interesting all their investing in that building to do like growing and cultivating and everything. Um, but that still counts as our third now we're done. Yep. With retail. Okay. >> Um, do you know if they're going to like grow it inside or outside? That might be a dumb question. >> Inside. >> That's what I thought too based. Okay.

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>> Cuz that building I mean that was sort of the huge building. I mean, they used to have the pools inside of there and stuff, so it it's not like most buildings. >> Okay, perfect. That was my only question. >> Any other questions on consent?

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>> If not, I would entertain a motion to approve consent items as uh shown. >> Motion to approve consent. >> Motion by council member. >> Second. >> Second by council member Chevlin. You're

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right next to me this whole time. Any further discussion? All in favor of approving consent items as presented, say I. >> I. >> I. >> Oppos? Same sign. >> Consent approved. That brings us to action items and the first one, riveting

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8A, the annual 2020 financial reports. >> All right. Uh, mayor, council members, the the, uh, item in front of you tonight is something that we do annually. uh we're required to have uh audit an independent audit done of our financial statements from the previous

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year. So in this case this would be for the 2025 year. Um the uh um our finance department is responsible for putting together the information and then uh the auditors come in to make sure that it meets different tests and financial

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reporting requirements that we have. So, uh, as part of that requirement, we have the auditor, uh, come, uh, each year to give a presentation to the council. And the one thing I'll, uh, point out is, uh, we typically do this, uh, meeting

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the meeting before we start having our discussions for budget for the next year. Um, I think it's good because this gives you sort of a this sort of illustrates some of the stuff that we've talked about uh during budgeting processes and how it actually

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turned out uh when when we got done with the with the uh budget year. So, it's sort of a good way to sort of re-educate ourselves on the things that we'll be talking about during the budget uh process which uh first meeting will be uh coming up uh on August 3rd. So with

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that being said, I'll turn it over to null and uh he can introduce the process. Mayor Pro Council members, thank you for the opportunity to present before you tonight our 2025 comprehens annual comprehensive

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financial report and the audit that was conducted by our independent auditor that was selected by the council two years ago, Clifton Larson Allen. With us tonight is um Lisa Nelson who's on city staff. She's part of the uh staff part

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of the staff that prepares this report each year. Um the finance division is led by Erica Mati who cannot be here tonight. She is the finance division director and she leads that team during the for the entire year of its financial operations as well as in preparing this

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report each year for the auditors. With us tonight from CLA will be Ezra Kitz. He is the manager from the um audit. Um Ezra was here last year. Uh Chris Kenopic, who is the managing partner, could not be with us tonight. Um but

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Ezra will be presenting on behalf of CLA this evening. Um CLA was selected for a five-year engagement in 2024. This is the second year of their five-year engagement as the independent financial auditor for the city. We work with CLA

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to go through each year to make sure that we are implementing current GAPS requirements as well as Gazsby standard requirements. Gazsby standing for the government accounting standard board which um provides those requirements by which we comp compile our financial

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statements and actually then prepare them for audit. A brief overview of what we're going to cover tonight with the city. There's going to be five different reports that we work through tonight. There'll be the large one which is the comprehensive annual financial the annual comprehensive financial report.

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We refer to that as the ACFR heck. There will be um no single audit tonight, but there will be a couple opinions from the single audit that would typically be included that we will be covering tonight. We're still working on some disclosure requirements that um are

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applicable to the federal single audit. that is not a part of what we are presenting tonight, but those will be completed and submitted as a part of the deadline that's coming up in September. Um, for the city, the second report we're going to look at deals with internal controls. Um, there will also

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be the Minnesota legal compliance. Have we complied with the requirements for state statutes? There'll be required communications from the auditor on the audit and any u findings that they had as well as the executive um audit summary which they prepare. This is what

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we used to refer to as the management report. It provides a summary from the auditors of the operations of the year and it's a good introductory document. If someone doesn't want to review the entire financial report can refer to that document as a um report. We'll also

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be looking then at some reports from the fire relief association. The city is responsible to fund the benefits that have been awarded to the firefighters through the Jaska Fire Relief Association uh pen pension benefit association. Um and so they will have

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their annual financial report as a that was also audited by CLA again internal control state compliance to um any to make sure that they're in compliance with the statutory requirements. I like to start with just five numbers.

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When you look at 130 pages of a report, I want to sort of give you a focus on what is the overall financial position of the city. Our total operations, if we looked at all activities across the city, both our governmental as well as our business type activities, was $118.4

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billion last year. So that's what we spent to provide all the different types of services we do. So that's the basically the entire pie of the services that we provide. 118 million point 118.4 million of that 78.1 million is

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enterprise operations. These are our fourprofit type entities that are charging users for the services. We have nine different enterprise funds. We have the electric, the water, the sewer, the storm water, the loop, the town course,

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the community center, the chaska curling and event center and our Minnesota River Station. So each of these is delivering services that is charging fees to the users of those services to make sure that we are recovering the cost of those services through the rates that we

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charge. That represents twothirds of the operations of the city. That's actually increased over last year when it was about 63%. So we're seeing the enterprise funds continue to expand their footprint in the city. Our electric fund is the largest of those

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enterprise funds. That's 49.4 4 million. 42% of our operations is electric. It's a significant operation for a city our size, but it also generates significant contributions to the community as well as to our general fund in the form of

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transfers that we have in place that along with our rightway service fee equals about 10% of the gross sales coming into our general fund. So that helps support our general governmental activities, helps reduce our tax levy and provide the full scope of general fund services.

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The general fund itself, which provide is our general governmental fund, police, fire, snow, snow plowing, street maintenance, park and wreck, administration, payroll, finance, audit, all of those overhead type services that happen on a day-to-day basis occur in

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our general fund type activities. That's 28 million about 24% of our operation. So as you can see the whole pie is getting smaller and smaller. These are all important services. That general fund operation is supported by a tax

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levy of about 20.8 million in 2025. That's about 18% of our total expenditures for the year. And the general fund itself is about 13%. So, as we go through our budget process, we spend a lot of time looking at what our pro proposed property tax would be, make

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sure we're funding at appropriate levels, maintaining our reserves, and we're going to talk more about that later. That's an important part, but I want you to remember that it represents about 13% of our operation. We're going to spend significant amount of time through the budget process looking at

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our enterprise funds, the user charges, um, because that is a very significant part of our operations. So to start with, you don't have this in printed form, but you do have it in PDF. This is that um annual comprehensive financial report. It breaks down into

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multiple sections. This entire report is prepared and generated by city staff. We prepare the operational u financial system throughout the year. We generate trial balances that are used to generate financial statements that we then have

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the auditors review our activity, our trial balances and those financial statements. So this is the work product of the finance division but also of the other staff members across the city who help make sure that we can properly account for the resources that the city has set aside for services.

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Um as a part of this report the auditor includes their audit report. Um Ezra from CLA will be presenting more detail on what's included in their report in their role. But in this report, the first section is the introductory section. This is the first page 1

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through 10. This provides an overview primarily for a first-time reader. What is the city? What are our finances? What's the difference between a governmental and enterprise fund operation? What's the overall financial position that the city is in and its

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operations over the fiscal year. It also includes an organizational chart that shows the relationship of the council and its appointed boards. One thing I would like to point out is we do have the Chaza Economic Development Authority. The city council serves as the members of that board. And so that

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is included in this as a part of the city's financial operations. It's been blended into the operations since the bo you since the council and the EDA board are essentially the same members. So they do not have a separate financial statement. that's included in this

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particular report. Um the final thing piece is the elected and appointed officials which we show on page 10 which is primarily the organizational structure because we are organized around as a city administrator um as a statutory type a city in accordance with

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state statutes. The second section is the in is the financial section. It begins on page 11 with the independent auditor's report. I'm going to quote from that because it says in there that these financial statements present fairly in all material respects the respect of financial position of the

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city of Jaska as of December 31st 2025. What this means is this is commonly referred to as a clean opinion as a as they went through their audit process there was nothing that they had to um highlight as a qualification against their report that was included in the

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report. So this is what we strive for. This is what would be expected of a city that is in compliance with Gazsby standards as well as with GAP standards um which are required by the state statute that we report under. Um after that then in uh starting on page 15 is

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the management discussion section. This is a more detailed um section that starts to analyze what are the positions in the funds, what was the revenue expense levels, what is the year-ending financial position say the general fund, each of the enterprise funds. So as a reader starts to get more familiar with

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the city, this would be the next part of the report. I would encourage them to read through to get that understanding. And then beginning on page 32 is the basic financial statements. It begins with a two-page statement which we refer to as the entitywide. Um, this is a

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gazsby requirement that takes all of the governmental funds which are reported on a modified acrruel basis where we match the revenues with the expenditures that are delivering the services along with the business per enterprise operations which are on a full acrruel model and

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shows them all on a full acral type model to make a common comparison. This is what allows analysts to compare maybe one city to another. And so we have to prepare this entitywide statement. What this shows at the end of the year is the net position. This is assets less our

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liabilities that we owe. The city of Chaza's net position was 299.1 million. This is a uh increase of 27.5 million over last year. This comes primarily from the donation of additional capital assets to the city. So as developers are

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developing new infrastructure, roads, streets and utilities and those get donated to the city, we recognize those assets and so we do see an increase in the asset value of the city. Um our unrestricted net position of the city went from a negative 1.4 million to 9.4

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million. This was as a result of some um unrestricted cash that became freed up as well as some other donations that were made to the city. So, we use this entitywide statement as a way of just trying to show and review what the analysis is when we're comparing with

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other cities. When we start doing our budget work internally, we start talking about our operational funds. So you're going to hear us talking about our general fund, police and fire administration, the enterprise funds with all of their rates, some special revenue funds that we operate, but one

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of them that's very common um in cities that we have is the cemetery fund for Mount Pleasant Cemetery. And so all of those operations have restricted use of their dollars, they're accounted for that special revenue fund. Um as we continue to work through the a

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um the acter there are major and non- major funds that we report. There are four major funds this year. Um two key ones I just want to highlight is our general fund. The change in our fund balance in the general fund increase by $789,477. Um a big a large part of this was an

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increase of $300,000 that we have been setting aside each year to increase our fund balance. This is something we've been doing since 2021 in response to a comment from standard and pores that identified that our fund balance reserves were low compared to other

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entities and that we had six of seven years where we drew down on fund balance. So the council has committed to increase that by 300,000 a year through 100,000 of levy support plus 200,000 from our enterprise funds. that has

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continued each year to build back our fund balance position. And as we saw in the bond ready report we reviewed with council earlier this year, S&P continues to notice that our fund balance reserves are increasing that that's providing long-term predictability for the city

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and that that has really raised our position from you know up to back to the stable position as a as a as opposed to the watch type status that we were in in 2021. So that is a very positive change that has been occurring over the last

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five years and S&P has continued to monitor. Our total expenditures in the general fund for the year was 28 million. Um this represents an increase of about 2.3 million as the fund is growing. In particular, you're going to see there was some increases in our public safety

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expenditures and this has to do with some staff turnover that we're going to highlight a little later as a part of the presentation with CLA. The second major fund I want to highlight then is our electric fund. This is on page 42 through 44. Net

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assets of the electric fund is 13.1 million. This represents a increase of 2.5 million which follows a decrease we had last year of 200,000. The electric fund has been seeing a lot of growth with new customers both residential as well as business. We've also been

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incurring some additional costs as it relates to converting our AMI system as well as some staff turnover as we're seeing retirements and also new staff and training coming on with that. So, it was a very positive year for the electric fund to once again have a

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positive net gain for the year. Um, the electric fund contributed to the general fund in 2025 [clears throat] $5.1 million as a support to the general fund. And this is what we will be highlighting in the budget work because we have two

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different support that two different revenues that support the general fund. We have the 5% rightaway fee charge that is on every utility bill that goes to the general fund and then there's an additional 5% transfer that's made to the general fund. So together that

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represents a 10% contribution from the electric fund to the general fund. that has been our historic target for for many years uh to have the electric fund support the general fund. Um the detailed section on page 45 gets into the financial note disclosures.

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Someone who's really trying to analyze and understand the city like a bond analyst who is uh doing our bond rating or sub investor who is looking to understand our position in terms of our assets, our debt and our long-term obligations is going to review these detailed notes. These are consistent

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with what's required by Gazsby for making these disclosures. Um, we spend a significant amount of time updating these numbers each year to make sure that they're correct and then also adjusting them to reflect changes in Gazsby pronouncements which are coming basically every year. There'll be at

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least two more that CLA is going to highlight for you tonight. Um, then on page 112, we get into the non- major funds. This is both governmental funds, special revenue, debt service, capital projects where we build several of the ongoing like street projects and public

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improvement projects as well as our non- major enterprise funds which is the two golf courses that we operate. The third and final section of the um ACT for is the statistical section which begins on page 144. This represents 10-year tread

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information that an analyst is going to want to look at on things such as what were our revenues, what were our tax levies, what have been our expenditures, what sort of debt bonds do we have outstanding, what is our debt limit and are we within that debt limit debt limit, which we are, what is our debt

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service, um what is the tax, who are the taxpayers of the community? Um who are the largest 10? Who are the largest electric customers? What's our population? what's the number of employees over a 10-year period? That is historical information that analysts

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turn to and having it in the actford available for them in one single source assists in their review and analysis. A couple highlights from the 2025 fiscal year just to bring to your attention. Um I did mention before that we have did

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not have the auditors issue at this time the federal single audit report. Um that will be completed by September. The reason for that is there's a requirement that on one of our federal grants that we're still reviewing. Um we we feel we

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just need to document some exemptions that are applicable to our situation and we're still waiting to complete that and then we'll be able to submit the federal single audit. The reason we're doing a federal single audit is because we had $2,45,929 in federal expenditures that were

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applicable to the 2025 fiscal year. The largest one of these I know has been Elisa's favorite project for the last two years, which is working on building out the EOC in the new public safety facilities because that was supported through some congressional designation dollars. And so we've had to go through

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some additional reporting requirements as well as the auditors had to do some additional testing as a part of the federal single audit process. The threshold for doing a federal single audit increased from 750,000 to now in 25 a million dollars. So at 2

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million plus we were well above that and had to do a federal single audit for 25 right now with what we anticipate for federal dollars in 26. We're going to take a deep breath and pause for a year. We don't think we need one. Now I know Matt likes to do a federal single audit every year because as he says that means

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we're getting federal dollars. But if we don't have to do a single audit, finance and the auditors are both going to say thank you. It's a lot of work, but it's well worth it because there is a benefit for the dollars we get. Um there were two prior period adjustments that were recorded this year. The first one had to

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do with the closing out of a state aid bond that was refunded. Um the second one had to do with the change in the level of materiality. This had to do with the highway 4161 project where we booked a revenue in 24 expecting it to

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arrive in 25. That revenue has not yet been received and they're still working to close out that project. The the the amount became material because there were no other project expenditures. So, we had to restate our beginning balance for the year. This is part of that technical adjustment that we have to do

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and we review these with the auditors each year. Um, we strive to avoid prior period adjustments, but we sometimes do find that when there's a change beyond what we anticipated that we do have to go back and and adjust our beginning balance for the year. All of those are

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reviewed by the auditor when we make those adjustments. Our total cash balance is disclosed in note 13 on page 55 through 57. I want to highlight this because every quarter we're providing the council with our cash and investment report which shows

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the position of the cash investments that we have. Altogether we have [clears throat] 73 million in cash but of that 46 excuse me 27 million is restricted. Most of this is with bond trustees because we're required to set

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aside reserves for various uh revenue bonds. um and those that service requirements have to be held in securities that are held by the trustee and therefore is not available for city use. Our unrestricted cash is at 46

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million. This is across the entire city. Um most of that is used to manage our ongoing cash flow um as well in the enterprise funds as well as the governmental fund. And as we've talked about on bond rating and in budget discussions, we do have targets in our

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general fund and governmental funds to maintain about a 35 to 45% balance on our fund balance. We're not quite at those levels, but one of the reasons we can be a little lower is because we do have the monthly cash flow that's flowing in from our electric fund. So

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that is something we review with S&P as a part of our process. And so as you'll see each quarter when we provide you our investment report we review the investment positions what their maturity is the risk level that they are. The longer the maturity the higher the risk.

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Um but overall our our return on investment is not to maximize return on investment but to provide safety and security for the principal while also getting a return on the investment. So that note disclosure on page three is similar to what you see each quarter.

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some long-term liabilities. During 2025, we had two major debt issuance. Back in January 16th, we issued 3,972,000 of EDA, excuse me, lease purchase agreement notes. This was used to

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acquire the MSB2 site. Um, we wanted to control that land before we actually went through and sold the financing this year for the construction. As a part of that financing we did last month, we refunded this temporary financing. So that issue from 25 has now been refunded

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and is no longer outstanding. The second issue we did was on January 30th of 25 6,125,000 Chaska EDA lease revenue refunding bonds. This refunded some of the bonds that we sold for the CHA curling convent

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center. These were refunded to capture economic savings, reduced debt service and generated present value savings to the city. So we do work with our municipal advisor Baker Utility to review all of our outstanding debt and when the market is conducive to capturing those re uh refunding

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opportunities, we will bring those before console in the future. The other um issuance that we have is sort of a rolling basis. we uh enter into various equipment leases primarily right now some of our vehicle leases for like police vehicles um and our building

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inspection vehicles are on a lease basis and so that is considered outstanding debt of the city and so we also have to have that disclosed as a part of our financial statements if we're talking debt here I just want to review basically our bond rating um position at this point with standard and

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pores our general obligation which is where we've pledged the taxing authority of the city to guant guarantee the repayment of the bonds. Our our bond rating with S&P for geo debt is double A. Now, the highest is AAA. I'd like to say that we could get there, but right

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now with the amount of debt that the city has outstanding, I don't think we would qualify for the AAA rating. But as the city continues to grow in the future has continues to have stable revenue sources that we've demonstrated in the past and we begin to pay off some of our

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debt when we have completed some of the growth of the city, that might be something that'll be available to the city in the future. So for a city that's still growing, [clears throat] also rein reinvesting in itself through redevelopment, a geo debt rating of double A is very good. Um when we sell

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our EDA lease revenue bonds like we did for the um MSB2 project, um that is still a very secure debt, but because it's a lease pledge and not a go pledge, S&P downgrades that one step. So our bond rating through the EDA lease

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revenue process is double A minus. And so that's one step. And as we saw when we sold those bonds earlier this year, it was about a normally you'd see a 6 to 12 basis point u additional cost for that. When we sold the bonds, we were

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closer in that five to six% or six basis point difference. So our debt was very well received in the market. Even though we were, you know, a double A minus when we were comparing to the AAA, it came out very well. We also have outstanding electric revenue bonds. Those are rated

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A. Again, this is a little lower rating, but still a quality investment grade as a um grade A for S&P electric revenue. Um because these are supported through um electric revenues. There's no geo pledge, there's a little higher risk

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level for the investors. So that's why we carry the A rating. Moody's provides a similar rating on our electric fund. Uh their rating is A1 and that would be equivalent to the A from S&P. So overall, our bond rating is a very good high quality rating for the city.

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[clears throat] Last thing I want to talk about from 25 is our general fund fund balance. Again, I mentioned we've been adding 300,000 a year since 2021. Um, this started from some declines we saw in fund balance that were exasperated during the COVID period. Um,

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we did issue some debt in 21 and S&P highlighted this as an issue for us. And so we worked with Baker Tilly and through our budget process to increase this 300,000 a year with 100,000 coming from the levy. And so in 25 we we were

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able to complete um putting that 300,000 towards the general fund fund balance. And that is also included again in our 2026 budget. That is the overall city financial report. Um there are several other

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reports that the auditors issue. Um those are all included in your reports. Like I said, they refer to our internal controls. There were no findings um that the auditors highlighted through that process. Um there were no findings on the state compliance. Um, so those are

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very clean opinions and for that finance is very grateful because we can't do that without the help of city staff that works with us during the year to, you know, whether it be getting bids when we have to get bids, getting quotes when we have to get quotes, paying bills on a timely basis, being in compliant with

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our investment positions with our broker dealers. Those are all things that the auditors are reviewing and they found no deficiencies in our state compliance. The next section I just want to highlight briefly is the Jaza Fire Relief Association. There are four

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reports that they um are included in your packet for um acceptance tonight. The first one is the 2025 annual financial report. We refer to this as the AFR. This [clears throat] contains a clean unmodified opinion. Um the relief

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continues to accumulate assets uh based on an actuarial basis um that will provide for the future benefits whether it be a lump sum benefit or for those members that will take a monthly benefit when [clears throat] they retire. So,

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um, there is an agreement in place right now between the city and the fire relief that looks at the overall funding level every two years through the actuarial study. And if the funding level um provides for a benefit increase and that increase results at a funding level of

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no lower than 85% then they're able they will bring forth a increase in that benefit and the city has stated that they will then support that. Um, as a part of this audit period, we found that there was some additional actuarial gains that were recognized and I I can

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report to you that the fire relief board had board is bringing before their membership a benefit increase and that will be coming forth before the council as a part of our budgeting cycle because that'll help set how much we will setting aside to support the relief in

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2027. Any benefit change would not be effective till the first of the year. So this report and the actuarial funding report that goes with it every two years sets up that budgeting process to maintain a competitive benefit level. The other three reports is the um

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internal controls. There were two findings, but these are the two we've had every year. There's an issue with cash at fundraising events. I know the uh relief has been taking efforts to improve that. This was included again this year because they were halfway through the year with the audit last

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year when those changes were made. this last January during the fundraising events. Our hope would be that CLA will be comfortable and maybe that'll go away next year. Um the second um comment they had in on internal controls is segregation of duties. There's a very

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limited staff. Um we do our very best to have two people review the cash controls to the board reviews the financial reports every month that are coming from the um accounting firm that does their bookkeeping. So, we're doing anything we can to segregate duties and have dual

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control on review of those duties. Um, these two comments from the auditors have not been an issue with the um office office of the state auditor that reviews fire relief um reports each year. Um so, in no way will it impede

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our ability to get the state aid. So, these have been I've been here many years. It has been here as long as I have been. It has not been an issue. There was one legal compliance finding. We have to have statements of economic interest from each trustee. And when we

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went to look at the end of the year, turns out we did have one of them. So we we apologize. We had that person sign it. It's been submitted for the 26th year. So it's been addressed. With that, I'm going to turn this over to Ezra from CLA to go through his presentation and

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then I'll come back to do some summary review on the uh acter and request the action. All right. Thank you, null. Thank you all. And good evening. I'll try to make this riveting. [laughter] It's Yeah.

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Um, as null mentioned, I'm the manager um of the city's audit. I'm the audit manager. Uh, I've been working with the city now for two years. Um, overall just appreciate the opportunity to serve the city as your auditor and appreciate the opportunity to present a riveting presentation for you today. Um, null did

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touch on a lot of um, what I'm going to talk about, so some of this might feel a little repetitive, but sometimes it helps to hear it a second time, too, right? Um, as far as an agenda, we have audit results and then some required communications. Just as your auditor, um, I'll just have some required

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communications I should tell you about. and then I'll go over just some highlights of financial statement results um and then um talk about a couple future pronouncements that will affect the city in future years. So starting off with audit results uh null did touch on this but our audit

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opinion on the financial statements is an unmodified or clean opinion. This is the highest level of assurance that we can provide as your independent auditor. Um and overall that opinion indicates that the financial statements were found to be material and uh to be fairly

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stated in all material respects. Um as null mentioned with internal control so we did not have any deficiencies in internal controls that we noted in 2025. Um we did have one restatement. He did mention two restatements. Um one of them is related to um just a change in major funds. Um

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so that's not the result of what would be considered an error as you might see in the financial statements that language. Um there was one restatement that would be considered an accounting error. Um however, we don't have a deficiency for it as null um kind of gave some details on. Basically that was

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the result of uh the public improvement projects fund having unavailable revenue recorded in 2024 and because of a change in activity in that fund between 24 and 25 materiality dropped in 2025 um resulting in that amount being material

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for 2025. So overall, not something that we considered to be a deficiency, just something that that had to be corrected um in 2025 with that change. Null also talked about Minnesota legal compliance. Um so these are six um guides that the Minnesota Office of the State Auditor uh

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requires all independent auditors to go through um for all government entities. Basically, there's different checklists for different entities. Um but we go through those. We do some testing and some inquiry. Um and we did not uh note any deficiencies in legal compliance for

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2025. Null also mentioned um the federal single audit. Um so uh the single audit is required when a city has over a million dollars of federal expenditures and CHASA did have more than that in 2025. Um he did mention this is still in

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progress um and it's related to that emergency operations center. Just trying to get um some of that last documentation for the the single audit there. Um but we expect that to be completed prior to the September 30th deadline. So no issues there and just relates to that emergency operations center within the public safety

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facility. All right. Then just looking at required communication. So um as an audit our responsibility is under generally accepted auditing standards as well as government auditing standards. Um as part of our audit we perform a risk assessment. Um we test transactions and

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balances uh evaluate significant accounting estimates and disclosures. We also take a look at accounting policies. We noted no new accounting policies um that were significant in 2025. We also noted no significant accounting estimates in 2025. Um we had no

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difficulties in performing the audit um and we had no disagreements with management and overall just want to appreciate all of management and the whole city staff effort um you know making sure they're prepared helping us complete the audit in 25 um it's great relationship.

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Um I will now just highlight some of those key financial statement results. Again null went through some of these already but um just to kind of highlight again. So governmental fund change in fund balances um you can see there was a decrease from 2024 to 2025 of about $34 million. You

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can see in kind of the first uh the top part of this table here um it's across all the governmental funds and you can see it's in that restricted category where that decrease was. And then if we look by the different funds both the major funds and non- major the biggest change is in that public facilities

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capital improvement fund. Um and really in both cases that's just the um the result of spending down of unspent bond proceeds that were just unspent at the end of 2024. Those have been spent down as part of that public facilities um project and and that's where that that

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large decrease is coming from. Um null also highlighted the general fund increase uh in fund balance of about $789,000. Um and that's a result of those efforts to replenish the reserve. He said that was has been going on for the past couple of years. Um and that was

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emphasized in that 2025 budget as well. Continuing to just look at the general fund here. Um as far as trend analysis, so you can see fund balance had that that increase to 7.7 million. So that $789,000 increase. Um pretty much the

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exact same increase in the um cash balance uh for 2025. About $790,000. uh revenue increase by about $3 million. Um so overall, you know, trending in a positive direction. We're going to continue to encourage the city to um

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just emphasize that revenue replacement um getting up to kind of those targets that null was talking about and just ensure some future flexibility in the general fund. Um but overall, you can see just from that trend analysis how that fund balance amount has increased kind of year-over-year since that that's

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been implemented. Next, looking at general fund revenue, budget to actual. Um, I'll just highlight a couple of these here. So, charges for service revenue had a favorable budget variance um due to just higher than anticipated uh recreation program revenue. Licenses and permits uh

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also had a favorable budget variance and that was due to greater than anticipated building activity in 25. Taxes uh were actually within 0.3% of budget and that's just a result of strong collections. Um so very accurate budgeting there.

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Next looking at general fund expenditures. Um so parks and recreation uh was over budget by about 273,000 um due to higher than expected maintenance upkeep costs um in 25. public safety. Null alluded to this as

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well, um over budget by about 721,000 due to just an increase in some payroll costs from onboarding and turnover. Um in that area, general government um actually had a favorable budget variance came in under budget um due to multiple departments being under budget, but

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specifically the IT department had um significant underbudget amounts for the equipment acquisition cost. So just less spent there than budgeted for. All right. Next we will move on to the enterprise funds. Uh null kind of gave some background on this. A large chunk

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of the the city's activities in those enterprise funds. Um in total enterprise funds increased by about $9 million. Um so net position at at 2025 for the enterprise funds was 136 million. 136.1 million. You can see across all of the

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the different enterprise funds um that change in net position was positive. Um there is one hidden amount in the non- major enterprise. Um the loop at Chaska did have a deficit. I'll get to that later, but overall between the two golf courses that was positive as well. Um so again, kind of uh just replenishing

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those reserve balances, the effects of supporting operations and some of the funds. We'll look at some of the operating results here in the coming slides, but um overall seeing that that that positive change in that position. So, specifically kind of going through

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each one here, the electric fund operating revenue increased by 3.75 million to about $61 million. Um that was an increase in usage as well as rates um for the year. Operating expense increased about 2.3 million um due to

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some higher energy purchases. the AMI implementation as as null talked about and then that overall operating income um increased by about 1.4 million to 11.5 million. So just overall very strong um results in the electric fund and then as a result of that that

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strength in operations that was where null also talked about the transfers out overall the electric fund transferred out just under $8 million um to support other funds in their operations and a large chunk of that did go to the general fund. >> Yeah. So we're we're in the process of

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that now. So we're just starting what's going to be either a mediation or arbitration process with the old vendor had provided us. Uh but that process we're just starting right now. >> So that will show up next year. >> Yeah. Yep.

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All right. Then I'll move on to the water fund. So the water fund operating revenue increased by about 484,000. Um there are some strong uh increase in residential consumption there. Um operating expenses increased by about 665,000. Um that was just related to an increase

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in production and distribution costs. Um but still overall positive operating income in the water fund. Um can see it was a little bit of a change um from 23. That's as a result of some some of the changes that were made um accounting wise um restatement wise in the previous

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year for 24 um but overall um positive operating income in 25. Next, we'll go to the sewer fund. So, operating revenue in the sewer fund, 8.3 million. That was an increase of just under 500,000. Um, there's an increase in sewer rates. Operating expenses

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increased or actually stayed stayed very consistent. They only increased by about 18,000. And then operating income um almost actually more than doubled. Um so, a strong operating income in 2025 in the sewer fund as well. Moving on to the storm fund. So

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operating revenue here increased by about 125,000. Um there was additional residential um commercial consumption in 25. The operating expenses increased by about 400,000 and that's uh part of that's related to just the

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depreciation on some of the transfer of assets that was done in 2024. So kind of fully year depreciation on those assets contributing to some of that that difference there. Um so this was the first year um in the past five years that the storm fund did see an operating deficit um in and so in 2025. So you

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kind of see the trend there. Next we'll go to the turbine generator. Um so as you can see here operating revenue stayed exactly the same. That's not a typo. Um that's actually going to be consistent unless there's another type of operating revenue in this fund.

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Um which I'll talk about in a bit. But um basically it's due to the amortization of this lease asset. So it's being advertised at a consistent amount each year. Um that's part of a change that was made in 24 um to follow uh a newer Gazsby standard. Um and so you'll kind of see that going forward,

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but um that's the amount that uh we had for 2025. Overall operating expense stayed uh fairly consistent. Um again, that 2024 change from 2023 is also related to that change in how we did that in 24. um operating income still

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positive um uh for operating income and then the change in net position you can see um was even [clears throat] greater for 25. So just wanted to highlight that piece as well. Next the community center fund. So with

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the community center fund um did see growth in in operating revenue. Um there's an increased membership and rentals in 25. Um operating expenses also increased by about 342,000. Um so just from the result of revenues

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exceeding uh well the change in the revenues exceeding the change in operating expense do see that that operating loss um did decrease um from the previous year. It is still an operating loss. Um, and we actually did want to just highlight that if we were

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to take out the depreciation, which is the expense on all the assets within that fund, and just kind of look at those current results, um, we do still show, um, an operating loss in in the community center. Um, it has been improving over the past 5 years, but but

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still at that deficit in 2025. >> One thing I'll point out there, if you remember, when we go through the community center budgeting, now we've been doing this for the past few years, is we have sort of a plan in place where we're sort of taking a chunk each year uh to get ourselves up uh to what

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we think is the proper support from the general fund into the community center fund because if you look generally in in the municipal uh comparisons I think we we typically see about uh 60%

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of the uh revenue for a community center facility being generated by the facility itself. and about 40% being general fund dollars that are coming in. We've been way under that. Uh you know, we've up through the years have really tried to

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rely on that fund being self-supporting which we've just as it gets older it can't. Um so uh it is good that we're seeing those those increases even though they're small because that matches with the action that you guys have been taking uh each year to to to help

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improve that position. Wasn't there also something about it used to fund park and wreck so there was some money coming back in from you know change in that? >> Yeah. So it's Yeah. So some of the salaries and stuff like that. That was sort of the first place that we uh sort of turned to was pulling some of those

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salaries out of the community center and putting them into the general fund because they weren't really necessarily community center staff. They were park and recck staff. Yeah. >> So yep. [clears throat] >> All right. Then we'll move on to the

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curling center fund. So uh operating revenues here increased as well 63,000 um additional um lessons membership the biggest driver there. Operating expenses increased about 40,000 um some additional salary repair expense.

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um overall operating loss uh in 2025 and kind of similar to the community center if we take away the depreciation we still do show um an operating loss in 2025. Um did want to highlight you know change in that position that is positive. A large result of that is

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going to be transfers in um from from other [clears throat] funds um supporting the activity in in the curling center and especially the the debt service activity in that fund. But um yeah, so I wanted to highlight both of those pieces. All right. And then we'll take a look at

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the golf course funds. Um so with the loop at Chesa, I did allude to this earlier, but um operating revenue increased 74,000. Operating expenses increased about 199,000. Um so overall did have a loss on operations. Um and then even if we take away the the

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depreciation, it's still a loss, though it it did um become less of a loss. Um you can see that depreciation is kind of the the main reason for the additional piece of loss in 2025. Um so and again that that fund is kind of still getting off the ground. This is kind of the

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first full year of revenues um depreciation. So um you know we'll see kind of how that goes into the future here. And then for the town course golf fund um operating revenue $146,000 increase to about 3.4 million 3.47 247.

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Um, operating expenses decreased about 274,000. And so, actually from a deficit in 2024, this did end up having a positive operating income. In 2025, um, and so we we actually showed that in 2024, if you took away the depreciation,

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you still had the the um income from operations, but there was an overall operating income loss. Now, um, there was enough that even covered the depreciation in 2025. All right. So, just to kind of pull all of this together and null did did talk about this earlier. So, summary of net

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position, governmental activities, that's the result of all of those um governmental funds. So, your general fund, special revenue funds, capital project funds, debt service funds that are all on the modified acrruel, converting those to full acrruel to then kind of compare them apples to apples with all the enterprise funds that are

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already full acrruel. So in total um those governmental activities in the full acrual piece increased by about 18.4 million the business type activities increased by about 9 million altogether increasing about 27.5 million to get that total net position of 299

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million. Um the big the big reason for the the difference in the governmental activities is going to be related to construction progress on the public facilities um as that will eventually be depreciated when it's fully capitalized. Um but at the moment it it basically just goes into an asset column. So that's a a large piece of that as well.

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But um yeah, overall 299 million for the entire entitywide net position. All right. Then the last piece I was going to touch on was just some future pronouncements. So we have two um future pronouncements from the governmental accounting standards board um that'll be

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effective next year in 2026. It's going to be Gazsby's 103 and 104. Gazsby 103. The goal here is really to make financial statements easier to understand, make them a little more transparent. Um how they're going to do that. Null kind of went through the acter. He talked about the management

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discussion analysis. There's going to be um some changes there just as far as what they actually want. They're basically requiring um governments to have five distinct sections. They're going to tell you exactly what sections those are. they're not too different from the sections you already have, but

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it's basically making things consistent across governments um for those sections. And then there's also going to be a larger emphasis on why for some of these changes. So instead of a little bit less and and not to say that's not already in there, but just an additional emphasis on just, you know, what are some of the policies driving some of

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these changes, you know, why did some of these things change, etc. Um there also is a change with Gatsby 103 related to the enterprise funds. So they're giving us a clear definition of operating revenues versus non-operating revenues. So we may see some changes there and we'll be working with the city on that

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on just what will actually show up in those buckets. So when we see some of those comparisons year-over-year, um just know that there may be some changes from Gazby 103. Um additionally, there's an introduction of a non- capital subsidy as this new classification in the financial statements. And really

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what that's trying to do is say you have transfers supporting um a fund and its operations that are basically allowing you to keep rates lower. That's one of the things that they're saying, hey, if this is not related to capital, this is something that we just want to call out separately. Now, um so something that

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may change um for for 2025 and again we'll or sorry for 2026 and we'll be we'll be working with the city on that, but some changes that you might see next year. Um, Gazsby 104 is basically making some of the capital asset disclosures more consistent across governments. Um, the past couple of years we had a couple

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different Gazsby standards that created new assets and we'll talked about these a little bit like lease assets, subscription assets. Um, and basically it's just making sure that we didn't have great guidance on what those were supposed to look like in the financial statement. So, not every government did it exactly the same. And now we're just getting good guidance that hey, this is

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exactly what what this needs to look like. Um, so we'll make sure that that's um up to date for for 2026. It also introduces um capital assets held for resale, kind of a new term. Um, basically, if the city is going to intends to sell an asset in 2026, but it

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hasn't done so at the end of 2026, if it meets certain criteria, we may just disclose in the financial statement notes that, hey, there you're going to be selling a building, you're going to be selling something if it's if it's large enough that the users of the financial statements um would potentially care. So those are the two

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big changes for for 2026. And then Gazsby 105 will be effective in um 2027. That's uh going to be a really small change. Um basically it clarifies the definition of a subsequent event which is really for us to kind of go through and and look at things. And then um

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there will just always be a note disclosure now of what subsequent what date we evaluated subsequent events through. Um, so whether or not there are any subsequent events, we're going to say, hey, we we looked at subsequent events through the state. We already do this piece. It's just going to be an additional note disclosure in the

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financial statement. So, so really minor there. Um, so basically all three of these statements, you know, basically are our big upcoming changes in the governmental accounting world. Um, but really what they're just trying to do is create that consistency um and transparency um across governments.

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And those are the big changes. So um that was everything I had. Um once again just want to thank you for for ser being allowing us to serve you as your auditor um and then presenting for you today. Um if you have any questions happy to take those but otherwise thank you.

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>> Any questions? >> Thank you. >> Thank you Ezra. Um just a couple things here. Just I wanted to highlight the um on page eight of the acturer is the u certificate of achievement which is issued by the government finance

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officers association. This is their program that re you basically we participate in it so that they will have reviewers look at our acter two of them from out of state and one in-house at GFOA to make sure that we have met not only the Gazsby requirements but also

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the standards of the certificate of program by including the letter uh the management discussion the full note disclosures the statistical section those are parts of the basic financial statements that a lot of communities do not include in their act for that's why it would just be a financial report as

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opposed to a annual comprehensive financial report. Um this gives us a lot of great feedback from outside reviewers which helps us make sure that we maintain the standard that we are striving for um through their program participation. Um in 2024 we received

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the certificate. It's included in this 25 edition. Um, that was the 36th consecutive year we've received it every year since 1989. To give you some perspective on this, there's over 91,400 governmental units across the United

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States. GFOA last year only issued 4,72 certificates of achievements. So that right away puts us in the top 4.5% of reporting entities in the nation. If you look at of that 4,000 about 1,937

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of them, which is about 47% of the certificates came from large or small municipalities. Large being like a Minneapolis, St. Paul, small being a Bloomington to a Chaza to an Elk River. Um, of those certificates, that would

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put us in the top 2.1% of all the entities in the United States. In the state of Minnesota, we have a very high participation rate of governmental entities that apply for the certificate each year. There are 131 certificates issued to the in the state of Minnesota.

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Of the 3,672 entities, that puts us in the top 3.6% in the state of Minnesota. When we met with S&P, I actually spoke to them about this and said, "What does it mean to you when you see the certificate in an ACTER?" and they say, you know, that

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lets us know that you are at a higher level of reporting that we know we can rely on the standards that the auditors have provided issued an opinion on, but also that you've risen beyond those requirements and obtain the higher level disclosure requirements of the

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certificate of program. They also know they've got the 10 year of history that they need um already available to them in one source. So, it is very beneficial to the rating agencies who are looking at us. It's also used by bond analysts um who are you know oftentimes reviewing

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um bids to bid on our bonds as well as analysts who are looking to maybe purchase those bonds on a secondary market to be a part of their portfolio. So it is a very um high standard that we uh appreciate getting the feedback from. Most of our comments are pretty small

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but when an issue is identified it helps us identify and improve our financial reporting. So staff is very proud, finance is very proud, the finance staff is very proud to participate in this program each year. The ACTUER is available to the public. It's on our city website. It'll be in

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the Wakonia Patriot, which is our legal publication paper this Thursday in summary form. It has also been posted on Emma, which is the electronic municipal database for all of our financial disclosure through the MSRB. Um and so that's where all of the bond rating

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agencies or analysts are going so they have access to that data. GFOA certificate program also has links to every um certificate that's been awarded so people can see it on there. We also have it available in the Chaza library as well as anyone who wants to see it

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here at city hall. So we've already distributed this to not only the state auditor's office but a lot of the other entities that are looking for our financial report each year. And then finally, I just want to acknowledge um I did mention Erica as our finance division director. She leads

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the team that works all year and then works on the audit to get that done by our June 30th deadline. Lisa Nelson has been our controller for many years. She's responsible for our enterprise ERP financial system that we operate the entire year and then she uses that to

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draft the trial balances and financial statements and note disclosures for the act. experience is very beneficial to the city. Um all of the finance staff who work every day on processing the activity, the revenues, the expenditures, the disclosures that we

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have to make on a timely basis as well as the department heads that work on their budgets and the department leads who manage the budget operations within each of the city departments. It's a very diversified effort across the entire city and all. Of course, there's

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Matt's leadership who develops budgets with us. And then we also review financial activity with him. And then finally, the city council yourselves. It's a pleasure to be able to work and represent the city from a financial perspective to implement the decisions that you've brought forward. And

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hopefully this report reflects those desires and activities that you've directed over the last year. With that, I'll take any other questions as well. Otherwise, there is the requested um action by the council to accept the city and the fire relief reports.

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>> Questions for no >> questions, but great job on that. I've seen many audits that that don't look so good. Um actually used to work for Clifton Larsel long ago in their healthcare sector. So, um but it's uh it's a pleasure to have someone who knows what they're doing go through this with us and also manage this all year

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long. So, know as the lead of finance, good job to you as well. >> Thank you. You know, I do want to point out that uh Ezra said that Gazsby uh added one more thing to make things simpler. Uh that

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only in the government can we add one more thing to make things simpler. [laughter] >> We look forward to that. [laughter] >> Any other comments? >> I just had one fun fact. >> Yes. If [snorts] anyone listening at home or

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watch this in the future, in 2025 there were 1,637 public fire hydrants in the city of Jes. >> Yeah, >> that was the fun fact I found on this like just buried [laughter] into that thing just like someday you're going to be somewhere at a bar and that's the

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conversation point. 1,637 public fire. Well, we have more. We got more now. That was in 2025. But >> I just I I just thought that was fun to point it out in the riveting discussion as we talked about. So, >> and with our 10-year analysis, you'll see as those numbers go up that we've been growing.

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>> Yeah. I mean, I mean, to your point, right, in all seriousness, it is actually a really good model of growth, right? Like more grow, more fire hydrants, but yeah, fun stuff. >> All right. Thank you. >> So, with that, uh, there is a motion to

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accept. We need a motion and a second to accept the 2025 annual comprehensive financial report for the city of Chaza associate audit reports as well as the 2025 annual financial report for the CHASA fire department relief association and associated audit reports. >> So moved.

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>> Motion by council member Hatfield. >> Second >> second by council member Penish. Additional conversation hearing none. All in favor of the motion say I. >> I opposite. Motion is passed. Thank you. Bring us to

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8B. Adopt resolution number 2026-65 approving the concept plan for Vista Ridge/ Johnson Ry Island Homes uh PC number 2026-12. >> Mayor, Councilman, first of all, just want to thank Null and and uh Ezra and Lisa for for being here and all the the

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work with it. They they put in a a ton of work into that. So, really appreciate that. So, thank you. Mhm. >> Um the uh item in front of you tonight from a planning uh perspective uh is a concept plan that's being proposed for the uh sort of the remainder of the

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Carlson property in the southwest Chaza. Uh it's a concept plan for 27 uh lots uh that would be on 30 acres and just south of the uh property that was developed of theirs a couple years ago. So, um you'll

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see that it is being recommended from the planning commission for uh approval and we have Ashley here to go over presentation for it. >> Thank you, Matt. Uh as Matt said, tonight we have a consult plan uh by

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Ryland uh Johnson Ryland Homes for 27 single family detached dwelling units uh on a roughly 30 acre site. Uh the concept plan, as the council is aware, is the first of Chaza's three-step process. Um

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tonight, we're not necessarily solving issues. We're identifying them, providing some feedback on them, and giving direction for the developer to come back and resolve uh those items as the process moves forward into the preliminary phase and the final phase,

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which each of those plans getting more detailed and our review getting more detailed. Uh surrounding the development site which is highlighted in black uh there kind of in the center of your screen uh is roughly 350 residential lots uh

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within five subdivisions generally all developed within the last decade. Uh earlier this year the council also reviewed a concept plan uh for the PY or a PY concept plan by PY uh for the Hassic site kind of west of here. uh

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that was for 207 units and was a mix of uh single detached dwelling units and twin homes. Uh Chaza's downtown is just off to the right of the screen uh to the east and then uh the southwest Chaza Park and the

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future Savannah Way and Future Elementary School is to the west of the site. And then lastly uh on the Lano property directly to the south is a gravel mine. Uh so again the development site is uh

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roughly 30 acres. Uh it encompasses four properties. Uh the first is a portion of outlot H of Insconed Woods. Uh outlot A from Carlson Bluffs. Then a large unadressed parcel. All three of those

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lots are owned by Linda Carlson and were intended for future development. And then the last site is uh the former ShraMM Brewery property. Um [clears throat] it can that site does contain the only building on the

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property and uh the access into the site. Uh so earlier this evening uh the council did approve as part of the con consent agenda a con conditional use permit for that site. So it's important to note here um that this site is really

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only part of the project uh to provide access. There's not redevelopment uh proposed for the site other than that realignment uh before you this evening. Uh the site as you can see is heavily wooded. Um a tree inventory has not yet

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been submitted for review. Um, but you can see here from these photos looking in all directions into the site, uh, that it's very heavily vegetated. And you can start to see, uh, what will become kind of the site's biggest challenge to overcome and a theme

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throughout my presentation this evening, uh, related to topography. The site does uh slope about a 100 ft uh from the highest point in the northwest corner of the site uh down to the lowest point uh in the southeast corner of the

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site along Chaza Boulevard. Uh generally this site does slope downwards from that highest point to an area where it sort of flattens out. Uh when looking at the concept plan that's roughly in the area of that new culde-sac and then it continues uh to slope downwards again.

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Uh the site much [clears throat] like the surrounding area does have a lot of areas of significant uh wooded steep slope. Uh those areas are highlighted kind of around the perimeter of the northern and eastern sides of the property and then extending offsite.

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So before I go through uh staff's review of the project and all of the plans, I just wanted to kind of give you a quick grounding of the concept plan itself. Uh so again 27 new single dwelling lots uh those would be accessed via a new collector

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road or a new connector roadway Soaring Eagle Parkway running from east to west. That new road does terminate on the western side of the property and then also a new culde-sac soaring eagle court uh would allow access for the 13

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remaining lots. Uh, quick question. Who names streets? >> Um, these are the road names that are proposed by the developer. >> Could I suggest do we change that to Soaring Hawk Parkway, not Eagle? >> Um, my understanding is Soaring Eagle uh

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may have and the applicant uh may have more information on that. I'm not sure if they're here this evening, but >> I'm joking, but I'm actually pretty serious. I'm curious. I believe that soaring eagle was a request by the property owner, but I will make that >> I I would guess the property owner would love the soaring hawk idea.

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>> This is not eaten furry. >> I'm just saying are over there. >> We'll talk more about that. I jumped out. >> I will put I'll put that note in. >> I like I mean >> and let them >> like I said I'm kind of ser I'm kind of joking but I'm kind of mostly serious actually. It' be awesome. [clears throat]

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Um and then there is also proposed supporting infrastructure uh the utility sidewalks and the storm water to support those new homes and the new roadway. And then you can just see the examples of uh what they're proposing in terms of those new homes there on the bottom of the screen.

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>> So is if I understand this right the shramm lot or where it sits today is part of this like it'll be rebuilt into a house that >> No correct. So the so right now uh it received a conditional approval to

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basically just be like a contractor storage building. In the future it would get redeveloped. Okay. Uh but that the only reason that that parcel's in this now is because they need it for access. >> Um so the access would basically be when

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you'd come up to ShraMM and you'd see sort of the opening in the woods going up. That would basically be the access up to this. In the future, you can bet though that that and properties to the east are probably going to want to redevelop. >> Yeah. But hopefully like another

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restaurant or something, not a house. >> Yeah. I mean, it's it's hard to say at this point. I mean, right now, our comp plan guides it for higher density residential. >> Okay. >> Um >> I mean, keep in mind the only reason that it was used where it was is because

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it was a abandoned or empty >> county building that the county no longer needed. Yeah. Okay. Yeah. Interesting. >> That is crazy to think that it's gonna cuz that's steep. >> Like to go like to go straight up like that'll be an interesting

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>> That used to be our our gun range. >> Well, yeah, because you had the hill. >> It was uh Carver County Sheriff and and Chaza Police Department. That's where all the firearm training was. >> Y >> you guys are making a lot of my presentation points. So, if you want to

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continue that, just skip right to the recommendation. >> We hear from you all the time. [laughter] >> Um, as uh Matt said, the Shan Brewery site is uh one of kind of two properties in that area that are uh guided by our comp plan for highdensity residential.

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Uh the remainder of the property is primarily lowdensity residential and then open space preservation, which covers a lot of that steep slope area uh to the north and the east. Um, [clears throat] as noted in your report, uh, the proposal may fall under

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what our threshold is for lowdensity residential. Um, but a more careful and thoughtful calculation can really happen once this northern boundary is clarified and and that goes into more description in your report this evening. Um, but

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it's it's likely going to tip that threshold into conformance uh once we understand what that boundary is. uh roughly twothirds of the site is currently zoned open development. Uh the classification is really a holding zone

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uh for properties uh that will become reszoned when they are uh developed. Uh the remaining kind of residential areas as part of the concept plan uh are zoned planned residential district as part of ensconed woods to the north and Carlson Bluffs to the west. And then that Shramm

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Brewery site is uh zoned I2 restricted industrial district. It's likely that if the proposal were to come back before you, uh the residential portion, so that western side, uh would be reszoned to a consistent PRD district uh just to

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ensure consistency, but there would likely not be any reszoning uh to that Shanbury property. Uh so continuing to step through uh when we're reviewing lot configurations, lot sizes are ranging uh from 13,000

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uh to 116,000 square ft just over on both of those. Uh that's consistent with what we see uh in the southwest Chaza area. And then the lot widths are really ranging from 70 feet to 405t. Again, consistent with what we've seen

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uh in southwest Chaza. uh the as currently shown the lot lines are extending into those wooded steep slope areas. So those wooded steep slope areas are shown in this red area. You can see those property lines extending into

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them. Uh the some of the council may recall when we reviewed Carlson Bluffs to the west, there was a similar uh proposal that came through as part of concept plan review. Uh we had a similar condition than what as what's included in your report this evening to adjust

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those lot lines to align with that 30foot no grade no mo setback to protect the steep slope. And really what that what that allows us it's the highest level of protection because we're taking those sensitive areas out of private property ownership. Uh and so with

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Carlson Bluffs, that condition uh really allowed them or they they did modify most of their rear lot lines except for two small areas of encroachment. Uh the council did support those two areas because they needed them to kind of meet their their lot size requirements, but

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they had some stronger uh conservation needs that they had to meet and there's signs that are out there to alert the property owners uh where those areas exist. Just a question on that and it's fitting that you're sitting in this room because you asked me this question too. When there's convention easements in

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there and property owners use it as their own property, put stuff there, cut things down, move things in, they're in violation of the city. I mean, that would be enforceable through the city, correct? like if there's rec recognition again now it's hard cuz

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there's lots of them and it's not things that we always are fun to chase after >> but I guess what I say all out loud here is if you are those people who have that in your backyard respect that because that is intended to be conservation

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spaces not what you decide it is because you've taken it as your own property >> I can tell you that some of the least fun conversations that that we've had with people is when neighbors get upset at other neighbors for for the neighbor

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using the conservation easement. We've had it where they've had decks built into it and it's a really uncomfortable conversation because you're right, the intent is to try to preserve those those

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areas and 90% of the people do. Uh but there's always a few that don't and uh it's they they become very difficult to to to >> Is that not something instead of an easement that the city could just keep ownership of those and the lot lines could be smaller?

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>> Well, that it is owned by the city essentially. The problem is is that it's it's their backyard. >> Yeah. >> Right. So they just extend into >> I can sort of weigh in here too a little bit. Easements, property lines, they're all enforcable, right? They're all tough to

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enforce. And so whether we put a property line there or an easement there, if a if a resident has a strong desire to encroach into it, I mean, I can point to >> every which way in the city and give you examples of both. Um, and so,

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you know, I agree that, you know, 95% of people are trying to do the right thing. I also think that there's folks who encroach that don't necessarily realize what they're doing. Um, but that's just the reality of it. So whether you want to call it a city outlot or you want to call it an easement um you know there's

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the potential for uh encroachment and enforcement challenges in the future. That's just the reality of it. Absolutely. >> I brought it up to help with the percent of people that don't know what they're doing is not right. >> Well the helpful part I think you're right. I think some people don't know >> keep it like that which sounds like is

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beneficial. Maybe we just keep ownership of it. But you're you're right. >> You still if your property line butts up to it and nothing's ever going to be there. I think probably the most effective thing and this is the direction we've been going and Ashley mentioned it is uh having signs go up

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that actually indicate uh that >> it's hard to say you don't know if >> it's hard to say you don't know when there's a sign that says that that's it's there. Um that's something we hadn't done in the past, but I know it's been become something that uh has been a lot more on our mind because we've had a

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few cases pop up in older parts of town. um you go through it once and you don't want to have to go through it again. And so so you do >> I mean and maybe I'm thinking of newer parts of town, but like Shioval for instance, we've been very clear that some of that green space can't be, you

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know, and the lots are big and there's, you know, like it seems like we've taken the right precautions to keep >> the green space. >> There's still enforcement issues though. Oh, yeah. and and I can think of >> people I actually I can actually think

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of specific properties where I know there's encroachment occurring and so it's it's >> it's an ongoing issue. >> Yeah, agree. Thank you. Sorry. >> Go ahead. >> No, that was great discussion. Uh so in

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your uh prepared information this evening, staff is suggesting or recommending that those lot lines be adjusted to that 30foot uh no mo no grade setback. So that kind of black line uh outlining the

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red uh would effectively be some configuration similar thereof of what that lot line would be. Obviously we'd want to make sure that those lot configurations and dimensions make sense. Uh but you would start to see it follow more of that line.

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>> And then can I just ask one more question? Um as we were just talking about the Southwest Park earlier and the drainage um coming from other neighborhoods around there, how will this drain because it is on such a steep hill and it will

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>> um that's the I see Matt's not in here now. He might be able to talk better. At a concept level, I I can't really speak to specifics as to exactly how, you know, drainage is going to be captured and treated. That's going to be a requirement they need to meet through the process. Um, you know, and how how

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drainage is captured on the road versus how drainage coming off of the private property is captured can sometimes be handled in different ways as well. No, I meant more like we were asking PY for some money towards the park for this like you wouldn't be able to have that that

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opportunity here >> because the water's going that way. >> The water's so the park is on the left hand side. >> So the water's all going to the southeast. >> Oh yeah. >> So we couldn't Okay. >> No, we wouldn't we can do it on the py side because the water's heading in that

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direction but uh not on the other side. >> Okay. >> Yeah. >> Okay. Got to get to the river somehow. >> Mhm. >> I was just thinking if we can make some leaf here's [cough] my splash pad. We should.

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>> And so as currently proposed and currently named Soaring Eagle partway uh would extend from uh a a newly upgraded intersection at Chaza Boulevard uh up through that Shan Brewery site and then through the site to the west and then

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terminating. Uh the concept plan does also show a future road connection uh that would go through the Lano property to connect into Percheron over to the west that would [clears throat] require coordination uh with that Lano property owner at the time that that would happen

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>> and then sorry. So it is a asis concept is it's it's a one in one out. >> Correct. Yep. And I know our fire and police in emergency, they'll take a look at it. And those are the always the ones that you we scrutinize a little bit just because of

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if something were to happen to that space and can get in and out. So, >> correct. and and I talk a little bit more about emergency services and and some of their comments a little bit later, but um in an attempt to get to your point about ensuring that there's a

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turnaround, they did include this little turnaround here intended to allow for fire trucks to be able to turn around until that um future connection is made. Um and then there's this culde-sac again for those 13 lots uh soaring Eagle Court.

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Um, as more thoroughly detailed in your report, the alignment of that connector roadway has been heavily studied by the city uh over many many years and by many plans. Uh, the first was really the southwest chasa plan. There were three

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alternatives uh explored as part of that plan in relation to where the site is. Uh ultimately the preferred growth and development plan coming out of that study did show that that connection road would come uh just to the south of the development site primarily on the Lano

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site. And then the alignment uh showing connection kind of at where the existing Edge Hill Road intersection with uh Chesca Boulevard is was then also reflected in the 2040 comp plan.

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In 2020 or 2018, uh sorry, the county looked at um this area for 61 and 41, this corridor plan. Uh they their plan does identify two full intersections uh at both Edge Hill Road and the Shramm

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Brewery site. Uh north is kind of to the east of this site, if you will, or to the east of this slide, if you will. Um the Edge Hill intersection was intended to provide access for that future connector roadway. Uh and then that

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Shramm Brewery site was intended to provide access uh to those future redevelopment sites to the north. Most recently uh last year staff uh with Stantech took a look at uh this

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Percheron Boulevard extension and identified three alternatives. Uh alternative three shown in purple uh cuts through the Lano site. Uh it was quickly eliminated though due to poor soils. So soil conditions and just

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feasibility of what that construction would take. Um there was also spacing issues that were coming up and arising uh from County Road 40. So this alternative one uh shown in red here uh that one again kind of aligns

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with the Edge Hill Road. So generally what was previously identified as that location. Um this one was still considered an option. However, it was realized that that would probably result in the most impact to the wooded steep slope in this area of the three

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alternatives. Uh so, alternative two shown in green and generally aligns with what's being proposed as part of the concept plan. Um [clears throat] it would result in likely the least amount of steep slope impact, but still

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recognizing that there would be some. So staff is is open to the further exploration of this alignment and we would look for some more details coming forward as part of preliminary uh to better understand what that looks like. Um my report goes into more detail

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including pictures and what the historical marker says. I admittedly have driven by it a thousand times but hadn't stopped to read it. Uh but it was originally constructed in 1938. Uh it was put on the National Register of Historic Places following its

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reconstruction in 2010. Uh the developer has indicated that they do not plan to have any impacts to that site. Uh some of their line work does suggest otherwise, but it it might just be an overlay issue. And so there is a condition of approval that they just have to clarify that uh when they're

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moving into preliminary. And it's import it's a smaller issue in comparison to some of the other challenges as part of this proposal but it's important to note because if there is impact uh there would need to be additional review by other jurisdictions.

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Uh so that east west uh connector soaring eagle parkway uh does have some impacts and and needs in order to construct it. Uh the first would be a a pretty sizable retaining wall on the north side of the new roadway. Uh there would be two areas of

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grading within the wooded steep slope area on the east side. Uh there's also some grading that would happen on the Lano property to the south that would require them to participate in the process. Uh so again, we're looking for some more

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clarification on that uh should the project move forward. Uh this is a little exciting for me. Um, I'm going to nerd out for a little bit. So, you often see these street profiles uh in your staff report as part of our

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grading plans, but we very rarely get to actually talk about them. Um, tonight it's it's a pretty significant part of the presentation. So, I'd like to just take a little bit of time to walk you through it and explain why it's important. Um, but in order to do that, I'll I'll try to explain it, but feel

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free to stop me if if I nerd out too much and you're having a hard time following. Uh so the street profile is essentially if if you're bicting the center line of that new east west uh corridor. Uh so

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everything beyond this line. So everything to the left of that is showing the grades uh for the future connection. Everything to the right of that is what we're looking at as part of that newly constructed Soaring Eagle Parkway.

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Uh so these these kind of lines help orientate. So those are the stations along that roadway that help orientate us where we are within the site to help provide that context. Um the green areas are showing what would be needed in terms of fill in

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order to construct that road. And then um the red is obviously areas in the opposite direction. So areas that would need to be cut of the site in order to bring the grade down in order to to construct that roadway. So hopefully I haven't lost you yet. Um,

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but again, here's that end of the the end of the terminus of the road uh down to the Chesa Boulevard intersection. That's roughly 1,800 ft of new roadway. Um, that grade change across that 1,800 ft is 80 ft. So we're dropping 80 feet

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from the one end uh to the other end. So when you're averaging that across the entire kind of profile, uh we're well within what our city standards would be. However, um there's this area on the eastern end when you're dropping within that that wooded steep slope where that

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grade gets up to that ch grade change uh is really getting up to 14%. So that newly constructed road would would have a 14% grade and that far exceeds what our our ordinance would allow. Uh so the maximum in our subdivision ordinance is

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8%. So we're we're nearly doubling that. Um so staff has some concerns with that. um primarily, you know, from emergency service access um and just maintenance uh and construction of what that new roadway would be. And so included in

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your uh packet this evening is is a recommendation for that grade change to be brought down to that 8%. And so they there will have to be some work done uh as part of their plan in order to make that happen.

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Uh so moving into um hopefully the less complex and and less nerdy parts of the presentation. Uh the concept plan is proposing a 5-ft sidewalk on the north side of Soaring Eagle Parkway and then on the east side of Sor Eagle Court. Uh

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generally that's that's pretty consistent with what we see in single family neighborhoods. Um but there has been um additional kind of shared use paths and trails um bisecting the site. So there's a trail junction that was

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shown uh in the 2040 comprehensive plan uh that reflects back to some trail alignments that were reviewed as part of the Southwest Chesa plan. And then most recently in that uh recently adopted 2040 pedestrian and bike master plan. Again,

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[clears throat] it's kind of showing this bisection and and the intent of that is to allow for access from the new community park down to downtown and then also from Savannah Way uh to the southwest up to Big Woods Boulevard in the northeast.

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And so included again this evening is recommendations to ensure consistency with those previously approved plans and with the adjacent neighborhoods. And so in order to get to that consistency, uh we would want to see sidewalks on both sides of Soaring Eagle Court, uh

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continuing to show that sidewalk on the north side of Soaring Eagle Parkway, uh but then also showing an 8-ft uh shared use trail on the south side of [clears throat] that roadway. And then also establishing the location for where

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that uh additional bisecting trail would come through and and where that trail junction would be. So earlier this evening I said uh that a tree inventory has not been submitted. Um so we will that is a requirement for the

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next phase. We would want to see that. We would compare that to a comprehensive site grading plan to better understand what the site impact or the impacts to those existing site trees would be. Um so this evening uh that's a requirement. You can obviously see these wooded steep

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slope areas. Um again where our ordinance would provide or require some additional protections. Uh utilities [clears throat] to the site. Um connection would be made to existing infrastructure east of the site by directionally boring under Chaza

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Boulevard. Those utilities would be brought up through the ShraMM site and then through uh the site. The water man then would loop through and connect to existing infrastructure into Peron. Uh the developer initially indicated that that would be a future connection. Uh

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the city has continued to advocate that that water man loop is extremely important to ensure that there is adequate water pressure due to the site's topography uh throughout the entire development. So staff would advocate for that water man to be constructed at the time of the development. Uh and again that would

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require coordination uh with that southern property owner. Uh so this is just showing those those off-site impacts. Um the one going under Chesca Boulevard and then again the portion of that water main connection

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that would require the Lano coordination. Moving into just some building design review. Um, the new homes are generally shown to be consistent with what you've seen from other Johnson Ryland developments. Uh, footprints of roughly

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2,000 square ft, a mix of single and and two-story homes, uh, with generally threecar attached garages. Um, their development setbacks are generally consistent with kind of all of the setbacks that are within that area.

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They're identical to what was approved with Carlson Bluffs to the west. um with the note that they are not including a corner side lot setback. So included in your packet this evening uh would be our recommendation to add that to 15 ft to

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be consistent with what our ordinance would be. Um it was likely just an oversight by the developer um as they kind of carried over Carlson Bluffs uh which doesn't have any corner lots. So there that setback was not needed. Um but in this development there would be some corner lots. We would want to that

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to carry over and be consistent. >> Did they build Carlson Bluffs? >> They did. >> They did. Okay. >> Y >> the planning commission reviewed uh the concept plan at their meeting earlier this month. Uh they ultimately did recommend approval of the project. Uh

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they didn't have a lot of discussion about it. Um but they did express concern about the anticipated amount of tree loss. They wanted to better understand what that would look like. uh they expressed concern about the steep slope impacts and then also uh the

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street grades and some of them shared some experiences of of driving Big Woods as it is today and and trying to correlate that over to what the new uh slope would be. >> What is that? What is Big Woods Boulevard's grade if you go up from Chaza Boulevard?

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>> I'm I can look it up. I don't know offhand. >> Just curious. I drive that every day. It's much it's it's I can tell you that it would have met city standards. >> So, >> okay. So, it's less than 8%. >> It might be 7% because >> So, 14 is Yeah, that's a that's a that's

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a steep hill. >> Yeah, 100 foot%. >> Yeah, that's >> But Nate's Nate's giving me the eyes, so maybe he'd recall something differently. >> The eyes, huh? Actually, Ashley, that's just my face. [laughter]

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>> We're getting squirrely on this Monday night. >> Yeah, it's good. >> It's been a long month. >> It's because it's I'm running it today. That's the problem. [laughter] >> No, I I appreciate it. It's it's good uh good humor. Uh so then they again they supported the trail connections as as

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staff was recommending them and they wanted to see those changes uh incorporated to the plan as well. Uh so this evening staff's continuing to recommend approval. um understanding that it's the appropriate land use, it's a continuation of what's happening in

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Southwest Chaza, it does, you know, provide logical expansion. Uh there are a number of conditions of approval though to get to these items that we've talked about this evening that would need to be addressed as part of that next step. Uh so again, approval tonight

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does not constitute construction. It there's many more things and much more information that's needed. Uh before we get to uh the actual construction, >> one point, Ashley, sorry to interrupt. Um I just I just

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want to point out because I've had conversations with, you know, the property owners that surround this property uh on a few occasions. And just to point out, not that Ashley didn't already, but access, road access, and sewer and water access all require

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cooperation with neighboring properties. this this particular property will not get that service absent that cooperation. Um and so I think it's going to be important for the developer uh you know continue to keep that in mind as they move forward through the

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process. Um and I think you know different property owners have their have their own perspectives on it. Um but regardless it'll it will require that cooperation. So, with that, that concludes my presentation. Uh, thank you, Nate, for

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for adding that again. Um, and I'll turn it back to you. >> Okay. And the developer is here. >> I don't see them. Okay. >> So, perhaps they might be online. >> No, I think it's preliminary now.

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>> If they're online, >> do you think they're online? I don't if she can hear us back there. >> I'm not seeing them online either. Well, it is concept. So, uh any questions uh as a concept planning? Any questions from the council or feedback

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or comments? >> Since I think it's exciting that it's growing up the way we kind of had hoped, but there's a lot of contingencies on this one. So, the road, the backyard easements, the you know, cooperation with other neighborhoods. Certainly, we'll want to see them in the

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preliminary address some of those things, but also very exciting to see that we're developing land that we were hoping to develop. >> Yeah, no real questions at concept. I think it was all covered well and the call outs are the things I had on my

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mind, too. So, I think it's good. It's such a beautiful area, so I think it'll be nice for homes to be there, of course, once this is all worked through. So, uh, yeah, no other comments or questions.

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>> Yeah, I just, um, I echo those thoughts that I think that I just realized I said echo. It's an inside joke between Michaela, but I echo things a lot. I see I did it. Um, development's great. I I do the access on to Chazco Boulevard is always interesting. That is a

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interesting area. Uh, the county hat knows that. I also think the road, whatever road comes from Carver there, that road doesn't sit right with me either. I every time I look at that road road coming. So with development comes

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some of those changes and fixes, which is good because I think, you know, improved visibility and access points are important. Um, you know, I'm still going to shout out to change Eagle to Hawk. I'm going to say that again because it seems minor, but I think it's cool. I think it'd be a great selling point. Um, unless there's some really

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attachment to Eagle with the with that decision too. I get that too. So, all right. Any other conversation? >> Otherwise, I lost it. >> Motion to approve the neighbor the Well, do you is there something about that?

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>> Uh, it would be adopt resolution number 2026-65 approving the concept plan for Vista Ridge Homes PC26-12. >> So, moved. >> Motion by councilor Chevlin. I didn't have to pause that time. I got it right. >> You did. >> Second.

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>> Second by council member Hatfield. Any further discussion? All in favor say I. >> I. >> I. Opposed. Same side. >> B is adopted. Thank you. That brings us to 8 C. Authorized letter of intent for TIFF assistance for the proposed Big

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Woods business park project. >> Mayor and council members. item in front of you tonight is in relation to the industrial park that uh we are currently working on trying to bring to reality with the Scanel who's a developer uh of the property. Uh you'll see tonight that

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uh the item in front of you tonight is to authorize a letter of intent for assistance uh to propose to bring to uh this business park. Uh you'll hear Julie talk about how it fits within our policy. Maybe one thing I I will mention

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um about this uh particular park is uh this is a particularly difficult park to uh develop and get going uh because the utilities uh for this uh uh property are

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on the north side and the road and access is on the south side. And so a lot of times you have the road access and the sewer access and water access are all sort of coming from the same place. And so you can sort of build into the development and not have to put all

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the uh investment in upfront before you actually have the users. Um the way this lays out um that just doesn't allow that to happen. Uh we need to bring that uh sewer utility all the way across the site to make it happen. And so the developer ends up having to take some

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pretty big upfront uh costs to to be able to accomplish that. Um and uh you'll see that we still talk about our policy and how they'll meet our our policy. But I just wanted to put some context behind why uh bringing this

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letter forward now is important for the developer. Uh because um it's a big component of how do they make it financially feasible to get this industrial park off the ground. So, with that, I will turn it over to Julie. >> Thank you, Matt. Thank you, Mayor Prom

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and Council members. I think I'm going to start just by giving some background so we're all on the same page of where we're talking about. And Matt, thanks for introducing it. So, well, here's a location map. Uh, what we're talking about is the Big Woods Business Park phase one, which is

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in blue on the map in front of you. It's outlined in purple. And um I'm going to just It's in Southwest Chaza. Um I'm going to There we go. The concept plan for the Big Woods Business Park was

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approved back in February and it went through prelim preliminary planning approvals in earlier this month. What we're talking about tonight is Big Woods Business Park North, which is north of Big Woods Boulevard, County Road 44, and it's east of Jonathan Carver, which is

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County Road 11. And within that red circle on the map in front of you is this the portion we're talking about tonight. That's the portion that's under control by the um developers, Scanel Properties. What's also part of Big Wood's um business park North are

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parcels to the east. you they're shown industrial uses and commercial uses. Those are owned by different entities. One is owned by the city and another is on control by traditions. Those are not part of the discussion tonight. I just wanted to clarify that what we're talking about tonight is pretty much

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within the circle that you see. Um, so phase one, which I said was approved in June, uh, by the city council, uh, the developer is working with an enduser of the phase one facility, and that's what I'm going to count call the phase one facility is what's in the turquoise on

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the map in front of you. Uh, that is a 2 2000 218,000 square foot distribution facility with parking and then private site improvements all along in that property. Um the site will be sold to the end user once construction is

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completed. In addition, the developer will also be constructing the public improvements that Matt talked about. That is the public road A in pink. They will also be doing some improvements to Big Woods Boulevard and County Road Carver Carver County 11. Um just to make

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the road work network work for the entire North Business Park. Um, as Matt said, there will also be the water extensions. Those will come from the northeast. They will go underneath the ravine, which also adds to some of the expense. Um, and then there'll be mass

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grading for the entire portion shown here. So, not only will it be for phase one, the grading will also take place in the purple portions. Those are the future phases of the business park, >> which that's that's a huge positive for us that we're going to have industrial parcels that are actually ready to go.

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Um, that's been a real challenge for us to have enough industrial parcels ready to go. I mean, I think people have seen over in Carver uh with some of the industrial development that that's happening there. And >> you know the first user that they had over go over there came from Chaza and

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one of the big reasons that they didn't want to leave Chaza but we did not have a spot for them to be able to build when they made that decision. So having an inventory of industrial lots is I think a real positive thing for our community.

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>> Thanks Matt. Uh the developer is requesting tiff assistance uh to make the construction of the public improvements financially feasible. This assistance will be used to reimburse the upfront investment for the public infrastructure including building the public road A and the improvements to

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Big Woods Boulevard, County Road 11 and the utility extensions and the mass grading for the site prep. These improvements are needed not only for the phase one facility but also to prepare as Matt said the entire northern portion of this business park for future development. Um so the industrial

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project um and that is outlined in red on the map in front of you. This is the phase one facility. Um this project qualifies for tiff assistance under the city's tiff policy as an 8-year economic development district. Under the proposal, the phase

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one project would be where we would create the district and that's what would generate the tiff increment or the funding source. However, the enduser of the distribution facility is not requesting anything from the tiff assistance for their facility. Instead, the developer is requesting that the

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tiff funding be used solely to reimburse them for the upfront public infrastructure and site development costs for the greater north greater business park north business park. So, under the city's TIFF policy, eligible industrial projects may receive TIFF assistance in the amount of two times

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the amount of taxes generated by the completed project or up to three times the amount of taxes generated if there's sufficient land to accommodate future building expansion of 50% which this property does have. The developer has requested tiff assistance equal to three

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times the property taxes generated by the phase one facility along with any remaining increment generated within the district to help finance those big upfront costs that Matt indicated. Uh the tiff this project does differ from some of the typical industrial

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developments because the public infrastructure needed to serve the site is being constructed by the developer rather than the city. Usually with an industrial development that has multiple phases, the city would construct the public roads and all the utilities and other infrastructure needed uh to move the project forward. That's similar to

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how TIFF 24 uh the Oppedin uh Chaza Creek Industrial Park was structured and this that was just to the north of the site where the city built all the infrastructure needed and then uh Oppen built the buildings that were located within that tip district. Uh in this

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case, the end user has an accelerated construction schedule that cannot accommodate be accommodated through the city's normal infrastructure construction schedule or time frame. To meet the timeline, the developers agreed to design and construct the required public infrastructure, the city's

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standards, and assume all the associated financial and construction risk with that and then complete the improvements that will ultimately serve not only this phase one facility, but also the future industrial development throughout the entire north portion of the Big Woods business park, including those properties that are not part of this,

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the ones owned by Tradition and the city. As a result, the project has extraordinary upfront public infrastructure costs that would not typically be part of a single industrial development. Um so as part of the just to give a

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little background on the tiff and um letter of intent process in Chesa, our tiff process begins with a letter of intent or LOI as we sometimes call it. The LOI outlines the proposed TIFF framework and the key business terms for the city's process. Once the LOI is

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approved by council and the uh EDA um then the TIF plan, the TIFF agreement are negotiated. Um and these outline the project scope, the financing and the eligible costs that will be in that tiff district. These plans and agreements

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would then be brought back to city council and the EDA for approval along with holding a public hearing that would ultimately lead to the creation of a a new tip district. So, when considering the proposed TIFF district, the TIFF's city's tiff policy states that there should be public

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benefits as part of the project. These include things like creating uh tax base, creating business opportunities, generating jobs, or supporting public infrastructure. So, this project um is expected to provide those benefits. Some

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of them include in phase one, um the facility itself will um add approximately 200 full-time jobs to the city at an average wage of of $60,000. In addition, sorry, in addition, there

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would be 400 logistic and distribution jobs associated with that facility. These would expand Chesa's industrial employment and tax base. Then the construction of the public infrastructure, the roads, utilities would serve the future development. Um, and then that would create development

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ready sites like Matt already mentioned that can attract private investment in the future. Uh, one of the state statute requirements when considering a TIFF project is to determine if the project has a financial gap. Because phase one

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is funding the future public infrastructure, the road cost, the extension to the utilities, and the mass grading. After reviewing this project, city staff, the city's financial consultter, Baker Tilly, has concluded that these costs do create a financial

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hardship that would not exist if there was this was a typical industrial project. And without the TIFF funds, the development, both the phase one facility and the public infrastructure installation would not be able to be built. So that leads us to the proposed framework

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that is um highlighted in the letter of intent that is attached to your report. Based on this review, staff is recommending the following framework. uh creating an economic development district. That would be an 8-year district structured as a pay as you go

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note. And that means that the developers reimburse after the construction is done and then they get funds as increment is uh generated each year. Um so they would not be paid up front. Uh the tiff would only be eligible for the public

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infrastructure as described. It would not be used for any of the private phase one facility and the private um parking and other structures being built in that site. There would be a one-year look back review after project completion and

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stabilation just to confirm that the project is consistent with all the assumptions that we're making. And it will require some more financial analysis to ensure that the amount of tiff is appropriate. [clears throat] Um and that amount we are working on and

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will be brought back to you um with the TIFF plan and the TIFF agreement. So why are we considering going above and beyond our policy which is the three times the tax or the two times the tax generated? Although the proposed uh phase one tiff assistance exceeds the

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typical level contemplated under the policy, staff believes this approach is appropriate because the phase one developer is constructing public infrastructure that will directly benefit future development throughout the entire Big Woods um business park

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north and create development ready sites that will attract additional private investment and future industrial employers. in keeping in an effort to keep the overall development of phase one or of BIS Big Woods, it's a mouthful, Big

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Woods business park north consistent with the city's tiff policy staff is recommending treating that additional phase one assistance. So, um, as I mentioned, the developer is requesting three times the amount of taxes as per our policy plus all of the increment

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generated within that district. So that additional increment um would be considered as an advanced investment in the business park itself because the developer is constructing the public infrastructure that'll benefit the entire north business park.

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Staff recommends treating this assistance um above the standard policy as an advanced investment. What that means is any excess tiff received above that three times the tax generated would be distributed for all of the future phases that were in purple

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in that previous map. >> I think the best way to think of it is when it's all said and done, the entire development will all receive the same amount of assistance based on our policy. Um it's just that in future

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phases we'll actually give less because we've given more in the in the first phase. And again it's because we're having to stretch all those utilities all the way across the uh the site. So when it's all said and done it'll be the assistance provided will be identical to

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what we do in every uh other place. It's just that the future buildings will get less. >> But they're all owned by the same developer. So he's going to get >> the land is owned by this same developer now, but chances are it's going to be just like the first building where each site will get sold to whoever that they

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still have. Okay. >> Yep. >> Cuz I say he's doing the work for all of those other ones. Yeah. Right now. >> And so that's that's what the the TIF assistance is basically there to reimburse for those public infrastructure improvements. >> Okay. But then he could pass those costs

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on to the buyers of the because he owns the rest of the lots. [clears throat] >> Yeah. Yes. >> Yep. >> Yep. >> So, if if you're needing a visual to understand kind of what we're talking about, this map kind of shows some

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concepts of what could happen. So, the phase one tip districts uh outlined in red. Some potential concepts of future phases would are in blue outlined in blue, purple, and yellow. So for

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example, if tiff district future tiff district A comes in and they request two times the amount of taxes per our policy, what we would do is what would be available to them would be the that request minus the excess that was

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provided in phase one and it would be distributed evenly across >> the lands all the future parcels. Ba basically like Matt Matt said the goal is that when the entire business park is developed at least this part

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that is in control um is controlled by Scout Properties when that is developed the total amount of T tiff assistance remains aligned with the city's TIFF policy >> right it's just fronting it because it's fronting yes >> Yep. Um

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so the futurative framework that's outlined in your letter of intent um is also in or is outlined in is aligned in the attached letter of intent. Everything that I just talked about is out in there. One thing that I haven't mentioned is a caveat that each of those

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future projects will be evaluated on their own merits. We're not guaranteeing that there will be tiff assistance provided but we're just setting up the framework so that this is how we can look at it in the future. So for instance, if you had a building come in

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and it was more than 10% office, um it would not be eligible under state statute for tiff assistance. Uh so like tiff assistes can't be used for a pure office building. Um so when she says they each have to be uh you know looked

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at on their own merit, we have to make sure that each building as they come in actually meet the criteria from the state. >> Okay. Okay. Now chances chances are they will but because it's an industrial park but but we have to look at each one

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separately. Okay. >> Um so the letter of intent that's attached outlines the proposed framework and the business terms as I mentioned. Approving this letter of intent establishes the city's intent to continue negotiating the proposed tiff assistance. It's not a binding financial

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commitment to provide that tiff assistance nor is it establishing the district tonight. Upon approval, um staff will then work with the developer, the EDA attorney, and the financial consultant to finalize the remaining negotiations and the amount and the due

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diligence that needs to be completed. And then we'll draft the TIFF plan, the TIF agreement. Both of these will then be um brought in a final and the final amount of TIFF assistance will be brought back to the council and the EDA for approval in the next month or so. So

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the the future council actions to create a diff district would be holding a public hearing, approving a tiff plan, approving the tiff agreement, and ultimately creating a new district. Um so I just want to close by emphasizing um kind of one important

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point that we've been trying to get through tonight that tonight's recommendation is not about helping finance the private distribution or warehouse building. That's not what we're recommending. What we are recommending is partnering with the developer who is willing to take the risk of holding. Uh building the public infrastructure for the entire North

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Business Park years before it might actually happen otherwise. That infrastructure benefits more than just that first project. It opens the entire business park to future development. Once the roads and utilities are in place, we'll have development ready industrial sites that can attract

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additional businesses, employers, and investment within Southwest Chaza. And that's the vision that the city established when we approved the Southwest Chesco plan back in 2013. And this is an opportunity to move that vision forward sooner. Staff believes that's where the long-term public value

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is, not subsidizing the single private building, but investing in the public infrastructure that will support many future projects. So that's why we're recommending approval of the TIF framework along with the future allocation provisions and keeping the overall business park consistent with the city's tiff policy. So, we are

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recommending um council approve the motion to authorize the city administrator to execute the letter of intent. I should note that the EDA will be asked to um make a similar motion because both need to sign the letter of intent. Uh I also want to mention that

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Jake Kurt with Skell Properties is here to help answer questions that you might have tonight. And of course, I can take any questions as well. >> Thank you. questions for anyone. >> Jake's going to be one of our best viewers because he's been in a lot of

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meetings lately [laughter] >> and he's always the last one to go up. I don't have any questions, but I think this is clear and I appreciate staff outlining really why the ask is and I think it was helpful to clarify like

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over the whole piece of development, it will come out the same, but because of where we're at with um needing to be able to service that with public utilities, I think it makes sense. Um but I appreciate that we can be clear about that um because I think that's

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important. So, If no other questions, I would look for a motion to authorize the city administrator to execute the letter of intent for TIFF assistance to the proposed Big Woods business park project. >> So moved. >> I'll take a motion. I have a motion from

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council member Chevlin. >> Second. >> Second by council member Hatfield. Any further discussion? Hear none. All in favor say I. >> I. >> I. oppose. Same sign as approved. That is our actions. That bring us to bills.

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Questions on bills? >> No questions. >> All right. I will make a motion to approve the bills. Do I have a second? >> Second. >> Second by council member Benes. Alish, will you call roll, please? >> Council member Havfield. >> Yes. >> Council member Banish.

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>> Yes. >> Council member Shovel. Yes. >> Mayor Progra >> I bills are paid. I got I wrote it down this time. >> All right. That brings us agenda item 10. Other business. Let's start with

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Council Chevlin. >> Oh, I was looking over there. [laughter] >> Gotcha. >> Uh let's see. Well, the I guess I hope everybody enjoyed Fourth of July and Fire and Ice. I think it was a um we

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were actually here for the Wednesday fireworks and then went up north to Brainer for the 4th and it was nice to be able to see them and support the city and then head up north. Um so I think that it worked out nicely that it was early. Um and I did not I was not able

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to attend Fire and Ice at all um this year, but I have heard overwhelmingly that it was a great time. So happy to hear that. Um, and then yeah, I think that's all I have. >> Thank you, Council Venice.

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>> Uh, I don't have much. Just uh looking forward to the parade on Thursday for River City Days. Uh, I'll be participating. I don't know if everybody else will, but I'll be part of it. So, [laughter] >> it'll just be you. >> It'll just be me. Yeah. Yeah, I'm all right with that. I like handing out

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candy. So, um, yeah, looking forward to that for the weekend. Everybody come on out and experience River City Days and stay safe. So, thanks. >> Is it at Lions this year again? >> Yeah. >> Yeah. Okay. [clears throat] >> Council member Hatfield.

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>> Correct. Um, yeah. Fire and ice. I could not believe the crowds both days. It was literally insane. Um, >> especially Friday. >> Friday. I was like, "What is happening?" PE like every parking spot in downtown Jaza. People were finding new parking

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spots >> and it was beautiful. It was crazy. It was great weather. >> There was a lot of young people. >> Oh my gosh. I was like, I didn't know there were this many teenagers in Chesca is how I felt when I first walked in. But it was really great. The fireworks fantastic. Um and so it was just it's

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always a great event. And then um the farmers markets have been packed. Bummed that we had terrible air quality and had to cancel last one. But the farmers markets, if you haven't gone and checked one out, like they're popping and there's great things. There's now people have flowers for that to that time of

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the season. So there's a lot of really amazing vendors and like local vendors. So definitely check that out. Um, River City Days, yes, is coming up this weekend. There's a lot going on. Um, obviously the parade which is at a new

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time everyone's used to being at on Sunday. Council member Ben mentioned it, but it is now on Thursday at 6:30, the normal route. So if you're used to going on Sunday, don't. It's now on Thursday night. Um, so that'll be exciting. And they've got a lot planned for the 50th

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anniversary of River City Days. Um, shout out to that team that plans River City Days. It is not a city event. Contrary to popular belief, there is a whole organization that plans it and puts a lot of blood, sweat, and tears into making it a really amazing time for everyone. So, thank you for all they've

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done. Um, you know, there's local vendors. There's a ton of good food. Uh, there is going to be a drone show this year. Um, just a lot of the fire the water fights are always so much fun to watch. Um, kids love it. They usually

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get a little mist going on with the with the water. So, those are all of those things are a whole lot of fun. Um, >> is there a dump team? >> Who knows? >> I don't know. >> Not that any of us are in, but maybe there is. >> But there is there's usually like a

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whole kids area with like um blow up those bounce houses and things. So, there is just a ton to do. I highly recommend taking Southwest Transit from the Chesa garage on 41 to the event. There's not a lot of parking if any at

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all. Like if you're literally if you're trying to go pretty much the vendors take it all up. So just go take the trolley. It is super air conditioned. It's a short ride. They're very friendly. Um it is well worth it. You can your when you're parking you can

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park under the ramp so your car is shaded. It is literally the only way to get there. When people try and park at River City Days, I am baffled. And there was like barely anyone that used it for fire and ice. And I think that was a mess. >> East Creek. >> Yeah, it'll be from East Creek down. So,

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um that and then I also just wanted to say um the council, we all got an email about the blood drive. Uh there is a a shortage of um units of blood. And so there that's happening on Friday from 10:00 to 4:00 at the curling center. And

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so you can find it on Facebook or online. Um but I know that I had a family member that had that needed blood urgently um about a decade ago and they lived only because so many people had given blood and they were able to get that but I think they had have their

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body blood replaced three times over. So it's like very important. So if you can and you're able, please do that. Um you can sign up to to give blood. That's important. Um so that's River City Days. There's some other things coming up. The coffee with the first responder is

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tomorrow. Um, and it is at in the public safety building, which is really exciting in the classroom there. So, you can go check that out from 9:00 to 10:00. Um, I think that's going to be fantastic. If I didn't have to work, I would go. And then, um, Thursday, another thing you can do at 600, the

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Chass Cubs game is hosted by the Chaza Police and Parks and Wrecks. you can go over to the athletic park, catch some of that game, go to the parade, then go back to the game, however you want to do that. So, [snorts] there's it's a fun week coming up. Um, I think that's

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everything that I can think of. So, farmers market. Do we have a farmers market this week? There you can do a lot on Thursday night. Don't make any other plans. You're busy. Um, farmers market. Uh, you can go to the farmers market and then go to the parade and then go to the

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baseball game. Your whole night's planned. You're welcome. So, I think that's everything. >> Isn't the farmers market earlier? >> Yeah. So, go to the farmers market. Go to the parade. >> Okay. >> Go to the game and we have everything covered. Um, yeah. So, I think that's

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everything. Um, I'll get off my soap box now. That's it. >> Deal. Thank you, Nate. >> Uh, River City Days this weekend at the city at the city's booth. >> Here we go. [laughter] One of the items that we're going to be

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uh featuring is the downtown master plan. So, you'll see a number of things that are there to talk about that and hopefully engage with the community. We're looking to gather feedback. There'll be a map that people can put stickers and thoughts on. Um there'll be another board where we'll be try to

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gather input from folks. And we're also quickly putting together online uh engagement opportunities with you know surveys and maps that you can kind of mimic um the more analog version right that'll be in the booth. So um with you know ability for folks to to

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get to those um so your help in gathering people's perspectives this weekend would be much appreciated. >> I was actually going to ask a question on that. Is there anything around the library being presented? [snorts] Yes.

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>> Yes. So, in [laughter] I'm gonna get the microphone to work. Um, so in addition to the downtown master plan, we have information on the new MSB facility, the new library, and um just general information about the

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city as well as city hall plaza, which will start next week. >> Sure. Okay. >> Elise, anything more to add? I know you Okay, perfect. Kristoff, >> just briefly, I have an introduction to make. [clears throat] Uh, Hakeim Jackson

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is sitting right here in the front row. Um, he is our newest associate attorney at Malcard Hubert Jadine. Um, and so if you see him on an email thread or if my two my toddler brings home a fever for me from preschool, um, and I'm not able

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to make it at the at the council meeting, have somebody sitting here. You won't have to wonder who he is. It's Hakee. Nice to meet you. Thanks for sitting through this entire meeting for this afternoon. [laughter] >> Yeah. >> Matt, >> uh the only thing I'll mention about

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Southwest Transit is it is the only way to go to the new amphitheater in Shakipi. That is super convenient. You get on the bus, you're over there in like five minutes, and afterwards they pick you up right out in front. And watching

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everybody else having to get onto the casino buses and go back and, you know, wrestle with that. I really appreciated getting on a Southwest Transit bus. That is a very nice service. And I think they did it for the yacht club festival this weekend. And

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>> so it's Do they do it every time there's a big concert? >> Every time there's a big concert, they do most of them. Most of them. Apparently, we're not doing Hillary Duff, but if you learn. >> We're saying most of it big time. >> Most [laughter] the ones worth knowing. >> Yeah. Our transit planner worked with um

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worked with Live Nation a whole lot to make that happen. And it is Yeah. You do not want to try and even park there. That's a mess. It's >> even restaurants are horrible. Yeah. >> Yeah. It's just a mess. So, definitely I would I mean I haven't done it, but I would agree. And it's nice because if you park at Chaza, the only time it

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happens Yeah. that uh you don't have to wait through all the other stops. >> Yeah. You're the You're the last last to get picked up and the first to get dropped off. >> So, it's really nice. >> The opposite of the state fair. [laughter] >> Is it all at East Creek, too, or is it done at Walnut or? >> No, East.

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>> That's all I >> Okay. Uh, all right. Uh, I have a couple things. Uh, I was able to go to Fire Nights on Saturday. Friday was state baseball. Uh, Saturday was great. Uh, yeah, fireworks great. Just a lot of people, a lot of good weather. Um

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it's just such a fun event of how that has turned out, you know, uh being on the park board when we looked at the curling center and fireman's park at the time and we felt that was a great space to be a community gathering space to think that many people would fit in that space and I was in Friday night and it

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sounds like Friday night Imagine about a third. >> Yeah, exactly. Right. So, um it was just fun and and and you know I think the you know I just you you see a lot of people you know and you see a lot of people you don't know. So, I think it was great. Um, talked about River City Days. I will say

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it again, but it was said already, but I think it's important because I think sometimes it gets lost. River City's Days is run by an organization. The city certainly supports it and and is glad that it happens, but it's not a city-run event. Uh, because I think sometimes people wonder about that. But, uh, thank

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for all those volunteers. Uh, I know they re I really, my personal opinion, Meration, it helps that it's an anniversary year. They really energized the the the the mentality, the the the the vigor behind it. I think some of that truthfully came from a tough decision at the time to move the Lions

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and then was like, "Wow, that's a really great decision." And that's really how maybe parking is a trouble. I'm sure the residents around there will see some traffic there, but please be patient or take the bus. >> Take the bus. >> Uh and then lastly, I'll just take this opportunity because I don't get to talk

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about me too often, which is okay. Uh just a shout out to the Chesa 11A baseball team. Um tomorrow's our last game for the season. It is the league playoff league championship where we're in tier three for that. Um I've had the

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pleasure to be an assistant coach for those boys. 11 year olds are just a lot like 10 year olds. They just get older, you're older. But it's just fun to see the growth and the development and the team attitude. And you know this last weekend we were up in Sartell for go for state tournament and a lot of hotel

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stays and shenanigans the funness of being a kid in a hotel with a bunch of uh parents watching and observing and and pool time and there's indoor volleyball court that we're staying in St. Cloud. So just a shout out to the Ches 11A team. It's been a pleasure to be one of your assistant coaches and I

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look forward to continue to do that and great things from all of you in the future. So just shout that out. Last call. Anything else to add? I will remind us that we do have a economic development authority meeting right after this. The other thing that

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usually gets brought up by the person who runs this meeting is our next meeting is >> on uh August 3rd. >> August 3rd. Gosh, it's going to be August already. That's crazy. >> Uh August 3rd. So we'll meet in August 3rd. Uh I would look for a motion for

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adjournment. >> Motion to adjurnn. My motion journ by council member Hatfield. Do I have a second? >> Second. >> Second by council member Menes. All in favor of adjournment say I. >> I. >> We are adjourned. Oh, I didn't ask Nate. No, we're journed. We're good. I know

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that rule. You just have to say it then it ends. >> No, you didn't ask Nate. He went and then we kind of bled into a lease. Remember? >> I will pause here and then I think I can go right into I got to pull up that here. Hold on. I'll let some people cycle out here.

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>> Do great. >> Yeah. >> Awesome. >> Appreciate that. >> Hi, Matt Powski. >> Welcome. >> Yeah. just city doesn't have problems.

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>> Good job you guys. >> Thank you. >> All right. Thanks. >> All right. I will at 9:20 >> call the chass economic development authority meeting together on Monday July 20th again at 9:20. >> Uh can I take a roll call please?

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>> Commissioner Hatfield >> here. >> Commissioner Benish >> here. >> Commissioner Chevlin >> here. >> Commissioner Gra >> here. >> President Hubard. >> Uh that brings us to uh item three. Adopt the agenda as presented. Uh if there's no changes made, I'd look for a

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motion and a second. Motion to adopt the agenda. Uh >> motion by Commissioner Hatfield. >> Second. >> Second by Commissioner Benish. Any further discussion hearing? None. All in favor of adopting the agenda as presented say I. >> I.

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>> All oppose. Same sign. >> Agenda adopted. Brings us to uh four. Approve previous meeting minutes. Those meeting minutes are from the June 15, 2026 meeting. Uh any questions or clarifications? Otherwise, also look for a motion for approval and a

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[clears throat] second. >> Motion to approve meeting minutes from 6:1526. >> Motion from Commissioner Chevlin. >> Second. >> Second by Commissioner Hatfield. Further discussion hearing none. All in favor of approving previous minutes from June 15,

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2026 say I. >> I. >> Post same sign. Meaning it's approved. Brings us to number five, discussion items 5A. Authorized letter of intent for TIF assistance for proposed Big Woods business park project.

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>> Uh Mr. President and commissioners, this item is identical to the item in the council meeting. So unless uh you'd like us to go through the whole presentation again, we would recommend uh approving it, this would be the EDA entering into that letter along with the city.

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>> If I said I wanted to hear it all again, is Julie really going to do it? >> I don't know. I I do I do have one question though. Do I have to sign it twice? [laughter] >> I don't know what's on here. >> That is a good question. That is a good question. Yeah. >> Look. >> All right. As this is the identical item

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that was in the council member agenda, but since it involves EDA, it also needs our authority. So, I would look for a motion to authorize letter of intent for TIFF assistance for proposed Bigwoods business park project. >> So moved. >> Moved by Commissioner Benes. I'll second by Commissioner or I guess President

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Promp uh Gra. That's weird to say. Um, uh, all in favor say I. >> I. >> I. Oppose. Same sign. Five A's. Other business. We'll just do open. I can call all you, but if you

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have it open, we'll just go open. Anyone have any other business? I look for a motion for adjourn then. >> Motion to adjurnn. >> Motion by Commissioner Hatfield. >> Second. >> Second by Commissioner Chevlin.

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All opposed or excuse me all in favor of a no say I [laughter] post same sign we are go