WEBVTT

METADATA
Video-Count: 1
Video-1: youtube.com/watch?v=iF1mQ_HdP-8

NOTE
MEETING SECTIONS:

Part 1 (Video ID: iF1mQ_HdP-8):
- 00:00:04: Call to Order, Agenda, and Minutes Approval
- 00:00:53: Retail Academy Market Leakage Report Presentation Begins
- 00:06:31: Public Comment: Thoughts on Leakage Report Potential
- 00:07:43: Public Comment: Report Incentive to Move Forward
- 00:11:20: Public Comment: Concerns Regarding Methodology and Statistics
- 00:13:48: Public Comment: Evaluating Outcomes of Report, EDA's Purpose
- 00:24:17: Property Acquisition for Water Tower/Treatment Plant Update
- 00:28:58: Public Comment: Potential School Property Use
- 00:33:12: Financial Update: 2027 Preliminary Budget Proposal
- 00:39:55: Recommendation: Keep Budget Levy at $152,300
- 00:42:57: Bonding Update: Securing Funds for School Project
- 00:49:55: Nexus Care License Suspension and Building Availability
- 00:53:30: City Council Report and Meeting Adjournment


Part: 1

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I'll call the city of East Bethl EDA uh to order May 18th, 2026. Um first item can >> a motion to adopt the agenda. >> Thanks, Suzanne. >> Second. >> Thank you. We got a first and a second.

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All in favor? >> I >> opposed. We have an adopted agenda. Uh, next we've got minutes to approve. >> I'll make a motion to approve the minutes of January 20th, 2026.

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>> Second. >> Any questions, comments? No. If none, um, all in favor? >> I >> I opposed. All right. Where minutes are approved? Right. Uh, Mr. Look, we've got a market

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leakage report. Madam Chair and members, I have uh before you here this evening a report that was prepared by Lizzie Sanders out of Retail Academy. Um I want to disclaim that um retail strategies uh is the name of the company, but they

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um they provide a lot of different options for cities and one one option that they provide or they provided free of charge is a market market leakage report. Um that was included in your packet here. Um what what uh retail

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strategies does by the way is they uh will u based on this report they have connections with different um large retailers out there you know you think of your Chipotle's or Aldi's or people like that and they have a hands-on or a

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allow you to do it yourself approach. Um, and there's two two different prices in there. And and I want to be clear, I'm not advocating for um uh necessarily signing up with these folks unless uh the EDA would would like to look into that further. But essentially what they

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do is they will make those introductions for you. They will put you in contact with with um the site selectors for some of these large retailers. Um I'll be honest with you just to try and find um the site selector for Aldi is like

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trying to find a needle in the stack. They do not they're not readily available in terms of publishing their information because they'd be getting uh unlimited phone calls obviously but these type of people uh go to the trade shows they they've you know established

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relationships with them and they're selling that connection essentially. Um but what they did provide um we'll scroll down here. There's quite a few pages in here. Um was a different uh you

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know assessments of of uh of East Bethl and particularly the report they provided if you've had a chance to look at it is I think very interesting. Uh what I will say is I don't know that I can believe all of it. Um but that's not

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up to me to decide. Right. I mean, it's uh it's a third-party report that essentially can be presented to retailers and say this is basically the amount of dollars that are leaving this community and going somewhere else. And so if you were

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to locate within this community, um you would essentially be able to capture those dollars or have an opportunity to capture those dollars. And so the unmet demand as they're as they're seeing it is uh 29,455,729.

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Um what's being um supplied is 59 million of that. Um I'm sorry, 188 million total. 59 million is being supplied and uh unmet is $129 million. So, of that, it kind of breaks down into

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various different, you know, automotive parts, accessories, type of thing. Um, they've highlighted some of the ones they thought would be particularly of interest for East Bethl. Your building uh material garden supply stores, that's

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7.8 million of unmet demand. uh your grocery store is $21 million is going outside this community to somewhere else because there are no no grocery stores meeting that demand in East Bethl. Um food and beverage stores,

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they say 23 million. Um health and personal care stores, maybe that's your CVS's, $18 million. Um other general merchandise stores, 12 million. Um full service restaurants

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$17 million. So if you were a a restauranteer and you were looking to potentially locate in East Bethl, you would look at this number right here and say, is that a is that a, you know, something of interest for them to consider East Bethl home? Um,

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restaurants and bars, 35 million. Um, and so the the leakage report essentially is just that what it is. It's the amount of dollars that are leaking out of East Bethl into other communities that have those stores or those services and uh and people are

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forced to then go either north to to um Cambridge or south the Blaine or you know somewhere else to find it and um and that's and so based on this this type of information then if you were to work with retail uh services they would

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they would start to zero in on the retailers that you know these are the highest numbers uh that might have interest in locating in East Bethl if they're in expansion mode and um it's an interesting approach to the work they do. Um

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but anyways wanted to just present that. I thought it was very interesting information for from you know from an economic development perspective in East Bethl. We I I couldn't have told you before looking at this report that we've got, you know, $129 million leaving this

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city, you know, that could be spent here if that retailer was located here. So, don't know that I have all the questions. I don't really want to speak on their behalf, but um but I just found this this gap analysis, as they call it,

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leakage report quite interesting. Okay. Comments, questions. >> I'm just going to say I think it's in very interesting information. I look through it all. Um I would fear that they would try to

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bring too much into here more than what we want. I mean, from looking at this, all the um it's good, but Home Depot and um Crumble and a bunch of the other places we don't need here. We we do need

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a small grocery store because if people are wanting it, um we could use a coffee shop or someplace for people to go hang out and talk to other people. That said, I'm I keep thinking that they bought built the this uh water tower

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system and they said, "Build it and they will come. They will come. If you build it, they'll come. If you provide it, they'll come." Now they're saying, "Now pay us and we will help them come." I'm like, "Just let them. If they want it, let them come. Let them know it's here.

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Advertise it." But that's that's my opinion. No, I Madam Chair, if I can comment, um I think that's what every report will tell you is build it and they'll come because that's the incentive to move forward. Um I can't tell you the number

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of reports I've read that you that just uh make these outlandish statements and there's really no backing for it. There's no proof one way or the other, but they make the statements nonetheless. I think what this offers you is the opportunity to pursue

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uh what you want here. In other words, uh say you want to, for example, I think tractor supply is going in down in Ham Lake right now if I'm not mistaken. >> Yep. Um, >> if we had kind of crossed this bridge a

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year ago, say, okay, when Tractor Supply is looking to locate up in this area, and you got in front of Tractor Supply site selector, and they said, "No, don't look down there. Look here." You know, and they said, "Oh, that's a better spot than down there." Whatever the case is, and you really want a tractor supply in

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this in this town. uh at that point, you know, you might be able to help tilt that scale in in favor of East Bethl uh versus it kind of, you know, organically going somewhere else. That's that's kind of what this this offers. I don't know

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that, you know, I I will say that if if it's zoned for commercial and somebody is selling a lot and, you know, Harbor Freight Tools says that's a place we're going to be, it's kind of hard to say no to them if it's zoned for that. Uh if they bring a you

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know, if they bring an application and it meets all the require requirements of the city, um if you say no, you can get sued for that. But um but at any rate, that's this would offer you more of a proactive approach to going out and

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pursuing who you want versus a reactive approach of just kind of taking whoever comes. You know, I'm not advocating again one way or the other for it. I'm just I just find that um uh that these type of analysis

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obviously they're going to do an analysis because they can sell you on that analysis um or sell you on their services based on the analysis and um and that's their ultimate goal. What what we do with it is I mean we could easily try and go and find Chipotle's

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site selector. I've tried. It's very difficult. I don't know if they like hiding their information, but um very difficult to find them. Um you know, your your caribou or Starbucks, you know, equally difficult to find. Um but

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uh and that's kind of having having been in Noa County and Noa County regional economic development. That's really the the challenge they're having too is they have all this, you know, land from the different communities that said these areas can be developed within our communities, but tying those site

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selectors to that land is a challenge. It's a challenge for some reason. And I don't know that even Anoka County has, you know, successfully overcome that challenge. But they they have the information out there which is good. But it's almost a

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get in front of the site selector, be the last person in front of them type of thing. Keep keep on them type of thing. Uh before um before a deal can be closed. I thought their methodology was

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interesting to create the demand. Um, cell phone data and I just didn't feel that the numbers reflected anything accurate. I mean, because when

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it comes down to it, the retailers when they're looking at statistics, they're looking at median incomes, rooftops, d, you know, cars per day. So, I don't know that the the dollar spent demand is

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something that they look at. Um, I mean, just from other brokers that I know, I mean, you know, Chick-fil-A, um, I've worked with all these people and if you need help finding somebody for Aldi, just reach out to me. I mean,

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I know a lot of these people. Sarah Martin from JLL, I used to work for with her. She does Chick-fil-A. Um, I mean, we could we could easily put this list together. What we don't have is

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our sites that are available in our city. We don't have an inventory of what's available. I mean, we've got a link to to Loopnet or, you know, MNCAR, but it's not really telling us anything.

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So, just my overall comments. I agree with what Julie's saying there too because just on page nine if you look at site selection criteria just under food and beverage they're saying a minimum of 50,000

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population required nowhere near that and what are the rest of them requiring too that's going to willing to come here we don't have the people >> yeah typically you you have your site they look at concentric circles 1 3 510

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you you know, what's my trade area? Then they figure out um can I go here? You know, everybody wants a Trader Joe's. They won't even go to Andover because it's not right. And they're so selective. So, um I mean, and these

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people are out here. I'm happy to make introductions and make connections, but just let me know. >> It's good to know. >> But $25,000, >> that's per year. >> Yeah.

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I um I Googled I know they had some of the previous cities that they worked with on here. So I just Googled some of them and what kind of outcomes and I think it's kind of hit or miss but and I had never heard of this group before.

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>> Yeah, they sit on the board of um >> are they tied in with Edom somehow or the >> I forget the retail >> Oh, ICSE. >> Yeah. >> Okay. sit on that board. >> Yeah. >> So, whatever that means, it's uh you

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know, they may have some influence in terms of directing people. >> Yeah. >> Did they reach out or were you was the city seeking? >> No, they reached out to us. >> Interesting. >> That's their marketing. Yeah. >> Growing their business.

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You know what I got out of this was after I read this, the thought comes to mind that the ADA is here to help businesses invest in this city. Uh to recruit businesses to invest in this city,

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uh having been only on it a short time, there's not a lot of tools for us to use yet. Uh I don't know if we have somebody visiting all of our businesses on a quarterly or every half a year finding out what the pains are, if there are

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issues, what are the success stories, how do we help them expand. I mean, first and foremost, we we have to retain the business we have and help them grow. Second, we have to find out like Juliet mentioned, what sites are available

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besides the one the city has and the other one they're looking at. What are the available sites and so forth that we can put places on um we can take this information and we can build our own tools and really again

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I'm not afraid to go talk to businesses and find out what's going great and what's not. I mean that's that's kind of disposition. I think that's kind of what I've got, you know, out of this. They got a lot of information. Where are they getting it from? These are This is information that

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we should actually know firsthand so we know what's actually happening here rather than have an outsider come in. I'd rather go and talk to these people than someone else. At least we build good business relationships and it shows that we're willing to help them grow or for that

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matter. >> It's called the business br. I mean, we tried but got, you know, nobody agreed to want to move forward with it. Um, either on our own or, you know, we need a task force. We need people. We need help. But, you know, do we have that?

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I'm not sure. >> Jim, >> there you go. I'll take name. I'll write down names. task force would be great. Yeah, it it worked really well when we did it in the past and I think the businesses were

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pleased and felt listened to and um you know we identified gaps of of what people obviously it's a lot of it has to do with hiring and um finding employees. That's a big part of

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it. But what can the city do to help? And >> do we have welcome packets for businesses at all? >> I don't know. >> Yes. >> I'm guessing not. >> I don't believe we do. We don't even know. We don't have licenses for

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businesses. We don't know what businesses there are, when they come, when they go. >> Yeah, it's difficult. >> Do we have a list of vacant buildings? Do we have a list of vacancies that are? >> No.

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>> So, we don't even have records of the businesses that are in our city. >> Nope. >> Really? >> Oh, >> not unless they join the >> chamber. >> Chamber. Yeah. >> I've got a spreadsheet >> from a couple years ago. >> Really? >> Just like when they place wanted to open

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up and you look it up and the address came up gymnast, you know, gym place, >> right? And that's something out there, too. >> So, we talked a little bit about uh in the beginning about possibly doing a business license for fire safety to

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begin with. >> Um, you know, if you've got say a paint booth, you know, or something like that where uh fumes from paint can be highly volatile, you know, explosive. You need to be in there to make sure

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they've got the proper, you know, fire suppression systems. Um, we were working with one body shop that was resistant in getting that, but ultimately we encouraged them to get that. Uh, but but that's what a business license would

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afford you is that opportunity to keep those list current. Uh, but then also be able to respond to the businesses that you know there's potential problems. The list you have might have come from the county perhaps

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>> came from Jack >> because I had offered to start taking a look at who was initially served by the BR& and um where the gap was. So yeah, it's it's a long spreadsheet.

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So, if we've got a summer intern coming in or something, I mean, it's worth digging it back up and just updating our contact list. >> At any rate, that's all I have on that one. >> Anything else on

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the leakage report? Well, it was nice of them to send, but >> yeah, >> kind of steep and probably not not a fit for us, I guess. >> Yeah, like I say, I wasn't advocating for their for their proposal. I wanted

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to present the information. And again, um I'll I'll just kind of recall a personal experience. There was u a um an apartment complex that did a market analysis in Ramsey said that there should be three or four apartment

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complexes. You know, the market would support three or four. And they built one and I thought, "This thing is so massive. There's no way the market would support four of these. No way." And um long and long and short of it, they were

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going to build three more, but then they ended up leaving the city due to political reasons. And um and another um apartment business came in and built probably four or five and they're full.

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And so what I what I equate that to is I might have an understanding of, you know, what I think the marketplace is for any given business, but you really don't know what what they know in terms of their market. Um, and uh, being able

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to do their market studies and understanding where their where their business lies. Um, it's always amazed me that I shake my head think there's no way and Lo and behold, it was true. Lo and behold, it was true. Um, so this type of

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information, while I look at some of it and I think that's a crazy amount of money, I I don't really have a basis of saying that isn't true. >> True. >> But, um, but is it overly inflated a little? It's possibly, you know, inflated a bit, but but what we do know

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is in some industries such as um grocery stores, there isn't one here. So that is definitely leaving whatever that dollar not nut is >> it's not being spent in this city >> uh and other businesses too. So

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>> um if you had if you had a lot of grocery stores in the city and someone threw you a number like this and said that much was leaving you might say is that even possibly true? But we know for a fact that you know whatever the number is we don't have any of it here. So,

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so interesting. >> Yeah, you think about it at 200 bucks a trip and how many people in the city and Yeah, >> that adds up fast. >> Adds up fast. >> Well, I guarantee if we had a grocery store, we'd get people from Wyoming,

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Columbus, Oak Grove, even Ham Lake would come up this way because one, the traffic is better. the prices would probably be lower than the stores they go to that are really close to them like Coburn's is way overpriced.

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>> Yeah, retail's tricky. Retail demand's tricky. Housing is a little more defined, but you know, population and demographics, but retail's tricky, but >> and they do go off of the trips and the houses and, you know,

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>> those are the >> the big items and then they start zeroing in on on the smaller issues to try and further refine their analysis. But it is >> rooftops is a definite top of the list important item for for a lot of these sight selectors. Well, if that's the

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case, why does Iani have a grocery store and their population is less than ours? >> They're drawing from other areas. >> Have a big trade area. >> Y and it's Yeah. And they chose to go there.

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You know, you've got a high traffic intersection and retail's tricky. All right. >> I got a note, by the way, for folks to speak into their microphone. Evidently, people online aren't able to hear uh real clearly. >> Yes.

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>> With our system here. So, okay. >> All right. >> Ready for item five? >> Let's go. >> Okay. So, I'm going to preface this by saying I've got good news and bad news. I'm going to start with the bad news first. Um this uh at the last council

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meeting uh the council approved a um purchase agreement uh for this particular parcel. I will bring it up here um let's see away from it here

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and um this particular parasol right here. So the city acquired 1347 SIMS. This part parcel became available or had been for sale um even before we acquired this parcel. >> And um I got a call from the realtor. Uh

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the realtor was looking to possibly put in a um a project that wasn't going to be a good fit. Uh we started talking a little bit about the city might be interested. He had indicated that well we'd prefer to work with the city. Uh I brought that to the council. The council

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approved a purchase agreement for it and um they have till the 22nd to sign it and the um best information we have is that there was a counter offer and um and they were closing in two weeks or something like this.

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Um keep in mind this is a commercial property. Um it takes longer to do a phase one than two weeks. So, I'm not sure not sure what's going on with that if they're just kind of taking the gamble that there's nothing on this, you know, in terms of unsuitable soils on

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this property. But, at any rate, uh they're going to keep us in the loop in the event that um that that falls through. But um the city is um potentially interested in acquiring this property for um you know the whole

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connect the the school uh with water and sewer project and um and as as you can see there's you know certainly other properties here that if they became available could be a suitable option as well. Um the schools

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again it was in close proximity to the schools which means you're costing less to hook hook that up, make that run. We were initially planning to utilize this land right here, uh, which would require going underneath the highway and, um,

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and that was an additional, I think it was ballpark to $2 million or something like that to go underneath the highway just for the highway portion. So, um, at at this point, it looks like this property is falling through. We um

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um not sure how um how it was uh for sale for so long and then all of a sudden you know >> something notes on right there. >> Who's the broker? >> Um it is uh Dan Dan Dan Dan forget his last name. It was

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no see if I can find it here real quick. >> Dan Weber. Dan Weber. At any rate, um we'll see. We'll see what happens on

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that. But, um in the event that that does fall through, we'll need to try and locate a different property for uh locating a water tower and treatment plant and um and hopefully one that's not too far away. Um, the

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city owns this property right here and that property right there and this property down here. So again, crossing the highway underneath

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is going to be an issue. Sewer is on this side, so that's not necessarily the issue. Water lines don't have to be as deep, so that's not as big of an issue as sewers. But um but I will be working with um Craig

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um Yokum at uh Hackinson Anderson to determine you know what's the next best u location given this falling through. So um again the purchase agreement expires on the 22nd. So if it's not signed by the 22nd it it expires.

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So um council won't need to take action to withdraw that. Um, but at any rate, that's the bad news on that property. We're hoping to have a little better news than that, but um, that's where we

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currently stand on that. >> Can you Oh, sorry. Can you go back to that map for a second and go ahead? >> Is there any chance the school has property we could put it on? Because they own a lot of u vacant property.

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Don't they own like a bunch of wooded area or something? >> They own all this and that there um >> both those 40s. >> Yep. >> One time the one that's highlighted was

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slated for a senior. >> They're looking at um one of their plans was to do a bus garage. >> The one that's up in St. Francis. St. Francis wants to punch Bridge Street through to 47 and bus garage is right in the way. So, they were thinking of

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possibly locating that there. They had inquired as to whether the city would be supportive of that. Um it would bring a lot of traffic down Sims obviously, but um but that was one idea that hasn't formulated as of yet. Um

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what we liked about this property was this whole area then could connect to city sewer and water. Um and Kiraak land here is within close proximity um to that as well. But uh anyways,

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that's where it currently stands. So the piece that we bought on the corner um has anybody thought about trying to acquire that little triangle piece so there's access to 213 lane?

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Yeah, I contacted the owner of that and they want to sell it for $12,000 for that little piece. Um, and uh >> I think he paid five. >> He was the developer of this whole area. Yeah. So, I think he just kept it as a

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carveout. >> But, um, but I think he anticipated the need to sell it at some point. So, um, I forget what the taxable amount is on this, but it's not that much. Um,

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say Matt, >> you had said there was the bad news was there was a counter offer on this property. Was there just a a separate offer or was there an offer in already on this when we made ours? >> My um my belief is that um

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uh 2026 land value is $900. >> Okay. on this. Um my belief is they pursued a another um entity to put in a counter offer. You know, when I was excuse me,

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my voice is fading. When I was taking business law classes, um you know, somebody asked to to sell something at a a given price and uh you offer them full price, you have a contract. you have a verbal contract at that point.

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>> Evidently, it's uh it's a lot looser than that in real estate. >> Not in real estate. Yeah. >> So, um so the games that that uh that can be played are are um I would say bordering on unethical.

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At any rate, that's where it's at. And um if the city ultimately needs it, there is a tool called imminent domain. But that's kind of the nuclear option. So at any rate, um wanted to give a quick

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update on that on that um project. I will tell you this one too fell through and they came back to the table. So it seems like it may be a a trend in East I have no idea.

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>> So, what's the good news? >> Are we Are we done with this? Any other further questions? >> I'm good. >> We'll hit this one first and we'll talk about the bonding update. >> Are you ready for six? >> Yes. Go ahead. >> Okay. Yeah.

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>> All right. I just wanted to give a financial update on the preliminary budget proposal for 2027 for the EDA. Um the levy uh is set at 136200 to coincide with the expenditure budget of

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137200 for 2026. And um the EDA will receive 2026 levy settlement and installments from Noa County on July and December. And at the end of 2026, these payments will provide an approximate cash balance of $70,000

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if there is no additional unbudgeted expenditures during the year. For 2027, the EDA and the council are required to approve and submit a preliminary levy to Anoka County by September 30th of the year for the EDA budget. The maximum statutory levy that

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can be adopted by the EDA is 01813% of the previous year's estimated market value of all property in the city. And that would translate market value is 2 billion19,171,400 enabling a maximum levy of 366,76

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for 2027. What is proposed is an EDA levy of 152,300. This is on the revenue side. we'd be we were successful in getting a $40,000 mech council comprehensive planning grant and interest earnings of $1,000.

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And on the expenditure side, we are look at a general fund transfer for staff supported activities of $141,000 annually. Civic Plus website portion for EDA is $13,000. Time savers minute takings is $1,000. Comprehensive plan services for

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Heckinson Anderson would be estimated at $30,000 and comprehensive plan services with WSB would be estimated at $45,000. So if you add it all up, um with the $70,000 that we have in there now, we'd

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be left with about a $30,000 budget. Um we want to bring this forward because a $30,000 budget, as we've talked before, doesn't accomplish a whole lot. um uh with with um activities that the EDA may

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want to engage in. And uh and so this is kind of the opportunity to um let staff know uh if you do want to go into an EDA levy of 152,300 or if you want to adjust that to account for any um studies that

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may need to be done or um you know we're mayor and I were talking about the flyover trying to find a suitable person that would be able to do that type of work. um or if you were trying to establish some dollars for acquiring

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properties in the future that might be pivotal to the work that we're doing. So that's uh before you here this evening to discuss. So when the purchase of that corner on

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SIMS so that came from the EDA budget or where did that come where does that money come from? That money came from the general fund budget. >> Okay. >> So, if the EDA had the dollars in there, we would be able to use those type of dollars for that type of acquisition.

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But >> there was not I think SIMS was 265 if I'm not mistaken purchase price. >> Okay. >> So, >> I have a question on the comp plan um prices there.

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What have we paid for in the past? Because I don't recall it being that high? I mean, is there somebody else that can do it for less? I'm I just It just seems like an outlandish price for a comp plan.

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>> Well, first of all, this is for the budget, so >> Oh, I understand. >> Hopefully the expenses come in lower than that. Um, I know the part of our comp plan that the mech council wanted us to include this year is is a portion on climate change.

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Um, I'll keep my opinion to myself on that. But at any rate, um, we don't have that incorporated in our comp plan at all. And um, and so we'd have to add that portion to it. Now, the question is how much change is there going to be in from our comp plan 10 years ago versus

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this one? I would argue there's not going to be a lot, but you do have to pay for, you know, um review of it and and um any sort of uh analysis to be done by WSB or others, you know, and

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that's going to cost some money. Um there was I think the ballpark for East Bethl is um around hundred some thousand for a comp plan. I think that's outrageous. Completely outrageous. But um but it's something we cannot get

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away from. I mean it is mandated and every 10 years you got to bite the bullet and and somehow put together a document that they're going to accept. Okay? It's not just putting together a document. It's putting together a document that the mech council will accept.

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That's your housing. That's everything. and um and they like to come up with, you know, we, you know, these figures that we think there's going to be x number of uh people uh that are going to be looking for homes in the Twin Cities and every community is going to help,

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you know, solve that problem, you know, for housing. So, everybody gets a bite of the apple and um and you need to account for that in your comp plan. That doesn't mean it's necessarily going to happen, but you have to account for it. So, um,

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it's not cheap, frustratingly. So, >> like an audit, >> unfunded mandate. >> I mean, fortunately, they're giving out grants and we're getting $40,000, but

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it's um that's maybe a third of what we're looking at. Yeah. So thoughts on the the 1523 any

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leave it as it is or or add some >> I'd say leave it as as it is um because we really don't know what the um levy total levy is going to be in the future and I don't want to increase

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anything any more than I have to. I just have a feeling that, you know, all these other entities are going to come in with they want more money for this, they want more money for that, and um it's going to cause us to have to levy our residents already more than I

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want to. I think right now the sheriff's contract is around four 4%, four and a half percent, something like that. um which is reasonable. Um salaries are at 3%. So we we've

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capped that. Um we've been getting excellent um bids on road work. So that means we don't necessarily have to bump that up in the future for the budget to try and account for what we think the market

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might be doing. >> Given the price of oil, that's that's anomaly. We don't know. We don't know what'll what'll drive uh the price of asphalt, but um I'll leave that to Nate to try and crystal ball to figure out how he wants

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to try and plan for that part of it. But um I think we'll have a decent decent levy year, but it all depends on couple of factors. is the primary of which is the 2 and a.5

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million deferred maintenance on buildings. That's a that's an interesting topic that we have to address. And then future space needs um you know that's something also that has

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to be addressed at some point. >> So do you need a vote on this or are you just looking for a recommendation. >> Yeah, I would I would take a a motion second on what you want to do.

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>> All right. Anyone have a motion to keep the the budget levy at 1523? I'll make a motion to keep use the recommended minimum uh 2027 budget levy of $152,300. >> All right. Second.

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>> I'll second that. >> Okay. All in favor? >> I I opposed. >> All right. There's our recommendation. >> Okay. And then excuse me then we've got

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uh bonding update or is there anything else on number six? >> Nope. We should be good on number six. >> Okay. >> Bonding update. Um so just by way of history um um the um the city set out on a this

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project of providing sewer and water to the schools and um and that came in at an estimated cost of $10.5 million. You've heard me talk about opium, other people's money, many times and um and

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that is uh something that cities, you know, I I believe in the ask not get not and uh and so we have um we have gone to multiple sources to try try and get these dollars to accomplish this

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project. It was reported not too long ago that uh Congressman Emmer successfully included us in his bill uh for $3 million uh of this project. And um and that's commonly referred to as an

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earmark high priority project or a community project. $3 million for that. We are working on the state here and as you know the state uh finished up uh last night late in midnight I think it was they were

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required to adjourn by midnight and one of the last bills that they approved was the bonding bill and before you at your desk there is a sheet that has a highlighted amount of $3 million um

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that showing that we were included in the bonding bill. And what happens sometimes is this is the request, right? Um, of this category, by the way, this this U grants to subdivisions for water

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and sewer type projects. There's uh $49 million of requests and we're number 567 uh for 3 million. And uh the good news

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is that that did pass and was signed um by the governor and approved. So we received now $3 million from the state of Minnesota for this project totaling now 6 million. And they asked us um I received a call

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late at night uh by Senator uh Bar saying, "Hey, how much what's the lowest amount you can take on this 10 10 and a half million?" And I said, 'Well, let me get back to you. I I called up Craig Yokum at a Hackinson. It was uh 8

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or 9:00 at night. I thought, there's no way he's answering this phone. And he picks up the phone and I said, "Craig, I I hate to bother you. We we just need to know, you know, what's a what can we ask for the least amount and get something done on this?" And we crafted a plan for $3 million. And what that three million

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would do is help us build the treatment plant and the water tower. The second phase of it next year would be for $4.5 million. And that would be for the piping um for the sewer and water to connect up the schools. And um

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and as we're told, it's going to be a new bill uh for next year uh that will require me to go down and and um testify for. But um but it's almost air quotes a guarantee in terms of the

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fact that it's a continuation or a phase two of what they've already invested in. Typically it's better received than than we don't want to get into this project at all. They've already committed to this project and um and I have um some shity that uh that we will be in good

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standing next year. Um, I want to give all the credit to um to uh Representative Peggy Scott who worked tirelessly on the House side. I want to give all the credit to Senator Calbar worked tirelessly on the Senate side. And then the capital investment um

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committee either chair uh which is Mary Franson or the lead um uh is um is Karen Hley. Both of them worked tirelessly to make sure that it stayed in the bill. And what happens is, as I said,

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you start off with a massive list and they start carving and projects are flying. You know, they're cutting them out. And um and having people there that say, "No, I want this one in here. This one stays." Uh is imperative. And they did a fantastic job. I can't can't thank

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them enough. um that uh you know we actually the Senate uh bonding tour came and stopped right out in front of um uh Boat World and we kind of showed them where the project would be and and uh and gave them a presentation on the bus.

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Then they went on their way. the house uh capital uh uh committee uh met at Henipin Technical College and uh gave a presentation there for the house side and uh and both of them were received well. I had two jugs of water. One was a

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store-bought jug and one was water from from what these kids were drinking essentially at at that school. And I think that that had a resounding effect on the need to to address this issue. But as you can see there's I mean of a 1.2 2 billion bonding bill, 400 some

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million is water related. It's an important important topic in the state of Minnesota and um and thankfully it wasn't kicked around like a political football like it's been in the past. And uh some people will say, well, bonding is bad. Well, on projects like this or

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road projects, it's actually good. On um on some of the pork that sometimes you see in these bonding bills, I can agree with them that that may not be the best use of the state dollars. But on these type of projects where it's health and human services and preservation of health for

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kids in this case, I think it's a great use of dollars. So at any rate, that's the good news. So $6 million in this year. It's roughly the city of East Bethl's budget, but anyways, u $6 million and uh we'll be

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working on the additional 4.5 million. And I I let Karsten Anderson, the administrator of the school district, know uh he's ecstatic. I mean, they are they've got some serious problems over there. And um and they're excited that this has finally gotten across the the

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finish line. So that's the update on bonding. >> Good people down there. Love working with them. So >> yeah, great update. >> It's nice to get good news. It's important. Yeah. >> And Madam Chair, if I can just give a

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quick update too on something that's not on the agenda. I received an email from NOA County Sheriff's Office uh concerning Nexus and um has notified us that Nexus has um

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DHS, Department of Health Services has made the decision to spend to suspend Nexus's care license immediately. Per the order, Nexus will have to discharge all the youth at the program within the next 14 days. The order takes

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effect on Saturday, May 29th, or when all the youth have been transitioned to a new provider, which comes first. The reasons for the suspension are significant, and the allegations are still under investigations with DHS. So

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unfortunately um we've had some issues with with that facility uh at a cost to the city the number of calls that come in and we've tried to address it with them and um and some sometimes their hands are tied by

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the state and sometimes they're they don't have the funding and sometimes they don't have the personnel and sometimes sometimes sometimes it's always something but nevertheless it's um um it's a challenge it has been a challenge in the community. That's not to say that these type of services don't

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need to exist. They just need to have a different type of lensure than what um what they had in East Bethl or what the state allowed them to have in East Bethl, a locked facility or however they need to process this. I'm not sure. I'm not ex not an expert in that, but uh I

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do know that there's kids with needs. No question about that. Uh but uh this was not necessarily a good fit in this community. Um, at any rate, that building may uh I will remind uh everyone that that the city of East

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Bethl did a pass through loan uh for that facility. Uh there is no ramifications to the city if they default on that loan. Um but uh at any rate, that building may be you may see another provider try and come in at some

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point or it building may be sold or it may become available. So, we'll we'll keep everyone updated on on that as time goes on here. But, >> so that's May 29th. >> Uh May 29th is the >> shut down

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>> when it takes effect. The order takes effect on Saturday, May 29th at 12:01 a.m. So >> So that means they lose their license that day, doesn't >> Yeah. So, right now they're discharging youth and they're suspended with the,

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you know, the availability availability to move the youth out, >> but on May 29th they're they're done. >> Now, they do have an appeal period. Um, but it's somewhat indicated that DHS is confident that they will not be

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changing their opinion on this. So, I'm not sure what what occurred over there, but I know we've been having challenges with calls and bad behaviors and things of this nature that um that have put a stress not only

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on our fire department personnel, but also on our our sheriff response. So, and I I shouldn't leave a line out. They're they're running over there com, you know, quite often, too. >> So, huge expense.

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All right. Got any good news to end on? City council report. >> City council report. Um, no. I think um, you know, I think that we have we have managed to make some changes at the

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city. I know that um, we brought in Eric Johnson as a senior planner. Uh Eric has um comes with a wealth of knowledge and training and background and education. He's a phenomenal individual. A lot of fun working with him and um he's done a

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great job so far. Um so we I kind of again I kind of look at it like a like a softball team. you know, you've got every player plays an important part and they need to be present and accounted for and so far we've got a phenomenal

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team and uh responding to uh the workload that's coming. Um and uh I'm just I'm I'm happy for that because whereas if there's challenges, you're dealing with that. When there aren't challenges, you're able to focus on the

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work. So, um, aside from that, like I say, I think we're going to into a good budget year here and, uh, and that's coming off of addressing some pretty tough items, uh, like firet truck replacement and things like this, big ticket items, and finding creative ways

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to pay for it. But uh again, it's the primary goal is to keep the budget as low as possible, the impact as as low as possible for residents and um and still meet the needs the community has. So

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that's all I have. >> All right, >> I'll make a motion to adjurnn. >> Second. >> All in favor? >> Opposed? We are adjourned.