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City Council Minutes 08-24-2026MONTICELLO CITY COUNCIL REGULAR MEETING MINUTES Monday, August 24, 2026 — 6:30 p.m. Mississippi Room, Monticello Community Center Present: Lloyd Hilgart, Kip Christianson, Charlotte Gabler, Tracy Hinz, Lee Martie Absent: None 1. General Business A. Call to Order & Pledge of Allegiance Mayor Hilgart called the meeting to order at 6:30 p.m. B. Approval of Agenda Motion by Councilmember Gabler to approve the agenda. Councilmember Christianson seconded the motion. Motion carried unanimously. C. Approval of Minutes • Joint Meeting Minutes from July 7, 2026 • Regular Meeting minutes of July 13, 2026 • Regular Meeting minutes of August 10, 2026 Motion by Councilmember Gabler to approve the minutes. Councilmember Hinz seconded the motion. Motion carried unanimously. D. Public Service Announcement • City Clerk Jennifer Schreiber noted the following announcements: - Downtown Reconnected Open House - Farmers Market - Labor Day Hours E. Citizen Comments • Matt Treichler, Wright County Sheriff's Office Chief Deputy. Deputy Treichler introduced himself and noted that he is a candidate for Wright County Sheriff. He emphasized the importance of the Sheriff's Office's relationship with Monticello and other contract cities. • Scott Cutsforth, 8634 Fairhill Lane. Mr. Cutsforth thanked City staff for addressing the placement of a detour sign near Highway 25 and School Boulevard. He also corrected information provided at the previous Council meeting regarding rental revenues at the Meadows manufactured home City Council Minutes: August 24, 2026 Page 1 1 9 park and expressed concerns regarding rent increases, septic issues, and water quality. He urged the City to assist residents in addressing these conditions and recommended that the City not consider additional development proposals from Lakeshore Management until existing issues at the Meadows are resolved. He further stated that, because the manufactured home sites are rented and residents receive Certificates of Rent Paid, he believes the City should determine what authority it may have to address the conditions. He urged the City to take action to require the property owner to correct the ongoing septic and water -related issues. • City Administrator Rachel Leonard responded to Mr. Cutsforth's comment. She noted that water quality at the manufactured home park is regulated by the State of Minnesota and that the City has limited authority over the private water system. Ms. Leonard stated that the City has worked on these concerns for many years, including coordinating with the Minnesota Department of Health, exploring opportunities for frontage roads and municipal water and sewer improvements, and working with other cities on possible state legislation related to manufactured home park rent increases and infrastructure investment. She emphasized that even if municipal water is extended to the property, the internal infrastructure would remain privately owned and maintained. Ms. Leonard further explained that some homes or lots within the park are rented while others are privately owned, which affects the City's authority. Properties subject to the City's rental licensing program may be inspected or regulated through that program, while privately owned properties generally fall outside that authority. She also noted that the park itself, including its streets and utility lines, is private property, limiting the City's ability to conduct proactive inspections or perform maintenance without permission or a request for assistance. Oversight of manufactured home parks is divided among multiple state and local agencies, making enforcement complex. Staff stated that the City will continue working with residents and other agencies to identify solutions and advocate for improvements. • Mr. Cutsforth expressed concern about the proposed expansion of the manufactured home park, stating that the City should consider the property owner's management of existing conditions before supporting additional development. He questioned whether the City should approve approximately City Council Minutes: August 24, 2026 Page 2 19 226 additional lots when concerns regarding current residents and property maintenance remain unresolved. • Councilmember Christianson stated that he is frustrated with suggestions that the Council and City staff have not been addressing the issues at the manufactured home park. Councilmembers noted that discussions regarding potential future development have been based on the opportunity to address the longstanding water and sewer issues through improvements that could be required as part of a development proposal. F. Council Liaison Updates • Economic Development Authority (EDA) — Councilmember Hinz reported that the EDA met on August 12 and held workshops on lease revenue bonding and a potential fagade improvement loan for 106-108 West Broadway. The EDA also approved funding for the IEDC Manufacturers Luncheon, boundary survey work for the Cedar Fair parcels, and a loan subordination agreement related to the Kids Haven Childcare Center project. Updates were also provided on the Homeowners Rehabilitation Loan Program and current economic development projects and prospects. • Monticello Orderly Annexation Area (MOAA) Joint Powers Board — Mayor Hilgart commented that the board discussed the flood plan. No action was taken. G. Department Updates • Public Works Facility Funding Update — City Administrator Rachel Leonard provided an update on the new Public Works Facility, highlighting the upcoming bidding and bond financing processes. Final design and specifications are expected to be completed this fall, with consideration of bids in September and contract award in October. The total project cost is estimated at just under $35 million, with construction costs directed to remain under $30 million. Ms. Leonard stated that the City plans to finance the project through lease revenue bonds issued by the EDA. The EDA would own the facility during the bond term, with the City leasing the building and using lease payments to repay the bonds. She noted that the EDA and City Council will both take action on September 9 to approve the bond issuance and related lease agreements. • Construction Update — Public Works Director/City Engineer Matt Leonard gave an update on current construction projects. 2. Consent Agenda: City Council Minutes: August 24, 2026 Page 3 1 9 Motion by Councilmember Hinz to approve the Consent Agenda. Councilmember Martie seconded the motion. Motion carried unanimously. A. Approve the payment of bills. Action taken: Approved the bill and purchase card registers for a total of $2,320,749.10. B. Approve the new hires and departures for City departments. Action taken: Approved the hires for Community Development and Monticello Community Center and terminations for the DMV. C. Approve the disposal of surplus City property. Action taken: No report this cycle. D. Adopt Resolution 2026-76 accepting a donation of cookies and bars from Tootie's Sweets (value of $63). Action taken: Adopted Resolution 2026-76 accepting the donation. E. Approve special event permit for Chamber of Commerce for Harvest and Hops Festival on September 12, 2026. Action taken: Approved the special event permit. F. Approve temporary liquor license for Trinity Lutheran Church for an event being held October 24, 2026. Action taken: Approved the temporary liquor license for Trinity Lutheran Church. G. Adopt Resolution 2026-77 approving the issuance of a lawful off -site gambling permit for the Monticello Youth Hockey Program, Inc. to conduct a raffle at the Monticello Country Club on September 12, 2026. Action taken: Adopted Resolution 2026-77 approving the off -site gambling permit for the Monticello Youth Hockey Program, Inc. H. Approve an agreement with Marco Technologies for lease of printers and copier services for $1,566.59 per month for 60 months totaling $93,995.40 over five years. Action taken: Approved the agreement with Marco Technologies. I. Adopt Resolution 2026-78 approving the preliminary plat of Featherstone 71" and 81" Additions. Action taken: Adopted Resolution 2026-78 approving the preliminary plat of Featherstone 7t" and 8t" Additions. J. Approve license agreement between the City of Monticello and CentraCare Health System — NR, LLC for existing improvements within the East River Street right-of-way along Lot 1, Block 1 and Lot 1, Block 3, Monticello — Big Lake Community Hospital District Campus. Action taken: Approved the license agreement between the City and CentraCare Health System — NR, LLC. City Council Minutes: August 24, 2026 Page 4 1 9 K. Authorize an escrow agreement with Monticello Tech, LLC for recovery of review expenses for the land use applications for a proposed 550-acre technology/data center campus. Action taken: Approved the escrow agreement with Monticello Tech, LLC. L. Adopt Resolution 2026-79 authorizing advertisement for bids for the Bertram Chain of Lakes Regional Athletic Park Maintenance Facility. Action taken: Adopted Resolution 2026-79 authorizing advertisement for bids for the BCOL Maintenance Facility. M. Approve a Tree Purchase Agreement with Gertens Wholesale for the ReLeaf Grant Program. Action taken: Approved the agreement with Gertens Wholesale. N. Approve quote from Sir Lines A Lot, LLC for the 2026 Pavement Marking Project in the amount of $55,438.23. Action taken: Approved the quote from Sir Lines A Lot, LLC in the amount of $55,438.23. O. Approve a contract with TK Elevator for the Monticello Community Center Elevator Upgrades for $127,595.51. Action taken: Approved the contract with TK Elevator in the amount of $127,595.51. P. Approve a special event permit for an outdoor entertainment event, including use of City resources, at the American Legion, 304 Elm Street, on Saturday, September 12, 2026. Action taken: Approved the special event permit for an event on September 12, 2026, at the American Legion. Q. Approve an encroachment agreement for a 12' X 10' deck into a drainage and utility easement. Action taken: Approved the encroachment agreement. R. Approve promoting temporary part-time communications staff member to a new full-time position as Communications Associate. Action taken: Approved promoting the temporary part-time position to a full-time position as Communications Associate. 3. Public Hearing: a Consideration of revocation of a Conditional Use Permit for Cross -Access and consideration of an amendment to the Conditional Use Permit for Cross -Access on a 7.01 acre site in a B-4 (Regional Business) district, for a day care center use. Community Development Director Angela Schumann presented the item and noted there were two actions related to the Kids Haven Childcare site plan. The first was revocation of a CUP for a shared access connection that is no longer proposed to be constructed. The parties will instead continue using the existing City Council Minutes: August 24, 2026 Page 5 1 9 access behind the theater property, and the related agreement will be amended accordingly. The second action was an amendment to the remaining CUP to reflect the revised site plan and updated shared access alignment. Mayor Hilgart opened the public hearing. There was no public testimony. Mayor Hilgart closed the public hearing. Motion by Councilmember Gabler to adopt Resolution 2026-80 revoking the Conditional Use Permit for cross -access between Lot 1, Block 1, Jefferson Commons Fifth Addition and Lot 1, Block 1, Jefferson Commons Second Addition and Outlot G, Jefferson Commons. Councilmember Christianson seconded the motion. Motion carried unanimously. Motion by Councilmember Gabler to adopt Resolution 2026-81 approving an amendment to the Conditional Use Permit for cross -access on a 7.01 acre site in a B-4 (Regional Business) district, subject to the conditions in Exhibit Z and based on findings in said resolution. Councilmember Christianson seconded the motion. Motion carried unanimously. Consideration of revocation or extension of the Conditional Use Permit for Drive - Through Services as an Accessory Use in the B-3, Highway Business District. Angela Schumann presented the item which was a one-year extension of a conditional use permit approved in January 2024 for a drive -through accessory to a restaurant use. The permit was not applied within the required one-year period. Mayor Hilgart opened the public hearing. There was no public testimony. Mayor Hilgart closed the public hearing. Motion by Councilmember Hinz to approve a one-year extension to August 24, 2027, for the Conditional Use Permit for drive -through services as an accessory use in the B3, Highway Business District for Lot 1, Block 1, Silver Fox. Councilmember Christianson seconded the motion. Motion carried unanimously. 4. Regular Agenda: A. Consideration of an appeal of a variance denial to §153.067 Off -Street Parking, for a second curb cut access on a single parcel at a distance less than 125 feet of City Council Minutes: August 24, 2026 Page 6 1 9 street frontage and consideration of an amendment to the Conditional Use Permit for a restaurant within 300' of a residentially zoned property. City Planner Steve Grittman gave an overview of the applicant's request to amend the previously approved Conditional Use Permit (CUP) for a restaurant on 7th Street. The original CUP approved a site plan with a single access point to 7th Street. The applicant later proposed a revised plan with a second access point to improve circulation for delivery vehicles. Mr. Grittman noted that City Code requires 125 feet of street frontage per access point, meaning two access points would require 250 feet of frontage. The property has approximately 190 feet of frontage, requiring a variance. The Planning Commission, acting as the Board of Adjustment and Appeals, reviewed and denied the variance request after finding that no unique property conditions existed to justify the variance. The applicant appealed that decision to the City Council and also requested approval of the amended CUP based on the revised site plan. Mr. Grittman further explained that 7t" Street is a major collector roadway where limiting access point is important for traffic safety. Although some properties along Seventh Street have two accesses, those properties either predate current zoning requirements, meet the required frontage standards, or, in the case of the post office, are exempt from City zoning regulations. City Councilmember and staff discussed potential modifications to the previously approved site plan, including widening the existing access and allowing truck circulation around the building. Staff noted that engineering could review a wider driveway design and that relocating the stormwater pond to the south end of the property now makes circulation around the building more feasible under the original conditional use permit. City Council also discussed the criteria required to overturn the variance denial. Staff explained that approval would require a finding that unique circumstances of the property create practical difficulties in making reasonable use of the site. Council members expressed support for working with the applicant on allowable site modifications but agreed that there was not sufficient justification for granting the variance. Concerns included traffic and safety along 7th Street, compliance with current standards, and avoiding an unfavorable precedent. The City Council indicated support for denying the appeal of the Board of Adjustment's variance denial. City Council Minutes: August 24, 2026 Page 7 1 9 Motion by Councilmember Christianson to adopt Resolution 2026-82 denying the appeal of the Board of Adjustment's denial of a variance for off-street parking, for a second curb cut access on a single parcel at a distance less than 125 feet of street frontage, subject to conditions in Exhibit Z and based on findings in said resolution and adopt Resolution 2026-83 denying an amendment to the Conditional Use Permit for a restaurant within 300' of a residentially zoned property based on findings to be made by the City Council and directing staff to prepare the resolution authorizing the Mayor to execute said resolution. Councilmember Hinz seconded the motion. Motion carried unanimously. B. Consideration of City comment on a request for rezoning in the Monticello Orderlv Annexation Area. Planner Steve Grittman presented the request for Council comment regarding a proposed rezoning before the Monticello Orderly Annexation Area (MOAA) Board. The approximately 2.8-acre parcel is proposed to be rezoned to facilitate a future subdivision into two lots of approximately 1.38 acres each. Mr. Grittman noted the proposed lots would be among the smallest in the surrounding area and that the property is located within the City's planned orderly annexation area. He noted that City staff has concern that further subdivision could hinder the future economical extension of City utilities and planned urbanization of the area and recommended that the Council submit comments to the MOAA Board opposing the proposed rezoning. The City Council discussed the proposed rezoning and potential subdivision within the MOAA. Councilmembers noted that the parcel is not contiguous with existing City property and that the City generally avoids "leapfrogging" parcels when considering future utility extensions and annexation. City Council expressed concern that allowing the subdivision could set a precedent for similar requests throughout the MOAA. Staff explained that the purpose of the MOAA is to maintain rural development patterns until areas are positioned to transition into the City in an orderly and incremental manner. Motion by Councilmember Christianson to direct staff to communicate City Council's preference that the request for rezoning be denied. Councilmember Martie seconded the motion. Motion carried unanimously. 5. Adiournment: The meeting was adjourned at 8 p.m. City Council Minutes: August 24, 2026 Page 8 19 Jennifer Schreiber 47�, Attest: City Administrator City Council Minutes: August 24, 2026 Page 9 1 9