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ARDEN HILLS CITY COUNCIL—JANUARY 12, 2026 8 11. NEW BUSINESS A. Resolution 2026-004 Adopting and Confirming Quarterly Special Assessments for Delinquent Utilities Finance Director Yang stated delinquent utility amounts are certified to Ramsey County quarterly. A list of utility accounts with a delinquent balance was compiled, and notices dated December 5, 2025 were mailed. These customers were informed of their delinquent status and were asked to make payment of the delinquent balance by January 6, 2026. Utility accounts with an unpaid delinquent balance would be certified to Ramsey County to be added to property taxes payable in 2027. The certification amount is equal to the unpaid delinquent balance plus an eight percent penalty. The list of remaining delinquent utility accounts was reviewed. It was noted the City will request that Ramsey County levy the delinquent balances against the respective properties. MOTION: Councilmember Holden moved and Councilmember Weber seconded a motion to adopt Resolution 2026-004 — Adopting and Confirming Ouarterly Special Assessments for Delinquent Utilities. The motion carried (4-0). B. Resolution 2026-005 Approving Conditional Use Permit for 4440 Round Lake Road—Cannabis Warehouse—Planning Case 25-015 Community Development Director Reilly stated Brandon Champeau, Hempel Real Estate dba HRE Arden Hills LLC ("Applicant") has submitted a land use application for a Conditional Use Permit (CUP) for a project at 4440 Round Lake Road ("Subject Property"). The Applicant seeks approval to lease space in the existing warehouse building to cannabis wholesale operators. The wholesale cannabis use triggers the requirement for a CUP. All cannabis uses in Arden Hills require a CUP. The Subject Property is zoned GB, Gateway Business District and is guided as Light Industrial & Office on the Land Use Plan. Community Development Director Reilly explained the Subject Property was previously occupied by Saltbox, a business offering suites leased by individual businesses - usually startup/small digital commerce companies - in this building. Saltbox went through Concept Review with the City Council in March of 2022 (Planning Case #22-005) and Site Plan Review with the Planning Commission and City Council in May and June of 2022 (Planning Case #22- 007). As part of improvements to the property in 2022, a new site plan was approved to reconfigure the parking lot layout to allow for 144 parking stalls. Community Development Director Reilly commented Portal Warehousing ("The Operator") became the new operator of the building in 2024 and has been operating under the same flexible warehousing business model operated by Saltbox. Portal handles the on-demand logistical services for receipt and delivery of packages and/or products and provides order fulfillment assistance to small business owners. Products arrive at the loading dock(s) and the on-site logistics staff ensure items are delivered to individual suites or to secure warehouse space. Approximately one half of the warehouse is unoccupied. The Applicant purchased the property early in 2025. At the October 27, 2025, work session meeting, the City Council reviewed a concept plan for Portal to operate a cannabis warehouse operation in addition to the existing flexible warehouse and office suites offered in the building. The legalization of adult use cannabis by the State Legislature offers a new market for warehousing pre-packaged cannabis products for