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HomeMy WebLinkAbout01-12-26-R IIEN_ HILLS Approved: February 9, 2026 CITY OF ARDEN HILLS, MINNESOTA REGULAR CITY COUNCIL MEETING JANUARY 12,2026 7:00 P.M. -ARDEN HILLS CITY COUNCIL CHAMBERS CALL TO ORDER/ROLL CALL Pursuant to due call and notice thereof, Mayor David Grant called to order the regular City Council meeting at 7:00 p.m. Present: Mayor David Grant, Councilmembers Brenda Holden, Tena Monson and Kurt Weber Absent: Councilmember Emily Rousseau(Excused) Also present: City Administrator Jessica Jagoe; City Attorney Greta Bjerkness; Public Works Director/City Engineer David Swearingen; Finance Director Joua Yang; Community Development Director Jacob Reilly; and Assistant to the City Administrator/City Clerk Julie Hanson PLEDGE OF ALLEGIANCE 1. APPROVAL OF AGENDA Councilmember Weber requested Item 11 B be moved to the Consent Calendar. Councilmember Holden stated she did not support this change. She reported she wanted residents to know a cannabis warehouse use was moving into Arden Hills. Mayor Grant indicated he objected to moving Item I I to the Consent Calendar as well. Councilmember Monson explained she could support moving Item 11 B to the Consent Calendar, but because several Councilmembers objected, she asked that staff provide an abbreviated presentation on this item. MOTION: Councilmember Holden moved and Councilmember Monson seconded a motion to approve the meeting agenda as presented. The motion carried (4- ARDEN HILLS CITY COUNCIL—JANUARY 12, 2026 2 2. TCAAP/RICE CREEK COMMONS UPDATE City Administrator Jagoe stated the Joint Development Authority met in a closed session on December 22nd to discuss attorney-client privilege related to litigation with Alatus Arden Hills, LLC. The January 2nd work session and regular meetings were cancelled and neither of the advisory committees have met. The next JDA meeting will be held on Monday, February 2nd Councilmember Holden inquired if the JDA was considering not pursuing a developer and allowing the County to develop the site. City Administrator Jagoe reported the January JDA meeting was canceled to allow JDA staff additional time to come back to the JDA with pros and cons of having a lead developer versus a hybrid developer role. Mayor Grant questioned if staff had an additional update on the mediation process between the JDA and Alatus. City Administrator Jagoe stated the mediation process was not successful, noting this update was provided to the Council in December. She reported she could not provide the Council with information from the closed session that was held by the JDA at the end of December. Councilmember Monson reported if the hybrid developer role were pursued by the JDA, Councilmember Weber, herself and staff would work to ensure the same terms would remain in place. Councilmember Holden thanked her for the clarification and said that her worry is more that the County becoming the developer is bothersome. 3. PUBLIC INQUIRIES/INFORMATIONAL Gregg Larson, 3377 North Snelling Avenue, stated once upon a time the Council worked to levy a new tax on residents that would be buried in electric bills on a monthly basis. He noted in 2024, the Council ordered residents to pay this new franchise fee with promises that these funds would be dedicated to financing a new fire station, designated for fire bonds and any overages would be directed only to early payoff of these bonds. He expressed concern with the fact the Council has used this new tax revenue for other purposes and questioned why the Council had not held to the promises they had made regarding the franchise fees. He noted after he spoke with the Mayor regarding this topic, he was told the excess would be used for excess salaries within the fire department. He asked why the Council has not abided by the promises that were made. He questioned what the percentage increase would be to the 2026 property tax levy without the transfer of $165,000 from the public safety capital fund to the general fund. He inquired if the Council intended to continue to misappropriate excess franchise fees to cover City expenses rather than pay down the fire station bond as promised. He urged the Council to make amends. Patrick Burlingame, 3590 Snelling Avenue North, stated he was speaking to the Council as a resident and not as a Planning Commissioner. He encouraged the Council to consider if the City has clear publicly available guidance on the role of local law enforcement when federal immigration agencies operate in or around the community. He understood the City could not control federal operations but asked for clarity regarding what role local law enforcement played ARDEN HILLS CITY COUNCIL—JANUARY 12, 2026 3 when federal agencies were present. He stated if residents call for help and local public safety responds to a situation involving federal agencies, it was important that expectations were clear. He stated clear policies were key in these situations. He discussed how public safety was a significant portion of the City's budget and he believed it was reasonable for residents to have clear, publicly available guidance on how public safety responsibilities and under what authority. He reported if this information was not currently available, he encouraged the Council to consider a policy or resolution that defines these boundaries. Lynn Diaz, 1143 Ingerson Road, stated she understood the City could not control ICE activities in the community but asked that the Council do so to the maximum extent possible. She was of the opinion ICE agents were behaving in an aggressive, violent and unprofessional manner and she hoped the Council would communicate with the Sheriff's office to assist residents as much as they legally can. She understood other cities were working on policies for this and it was her hope Arden Hills would as well. Mary Henry, 3521 Ridgewood Court, indicated she has been at the corner of Greenbrier and Geranium to be aware of ICE agents that were coming in front of a school for the students who were English language learners. She supported the Council pursuing a policy when it comes to ICE agents in the community noting many were living under fear these days. She stated after watching the truth in taxation meeting in December she understood seven people in attendance at the meeting supported the proposed increase. She was of the opinion this was a community that could support levy increases. She thanked the Council for all of their efforts on the 2026 budget and tax levy and for working to plan for future expenditures. She noted she has lived in the community for the past 30 years and she appreciated the Council's forethought. Councilmember Monson indicated she would like the Council to respond to Mr. Burlingame's comments. Mayor Grant reported this topic would be addressed by staff under Council Comments. Councilmember Holden stated the Sheriff's office has a policy in place and was working with businesses. She suggested this policy be posted on the City's website. Councilmember Monson requested the agenda be amended and that the Council address the comments made regarding ICE under Response to Public Inquiries versus under Council Comments. Mayor Grant supported this recommendation. 4. RESPONSE TO PUBLIC INQUIRIES Mayor Grant reported he received two emails regarding ICE using City property. Per the City Attorney guidance, he explained the City was not able to restrict ICE anymore than the City would restrict the general public. City Attorney Bjerkness stated the Mayor had accurately restated her opinion. She explained it was her recommendation the City not restrict federal law enforcement agencies on public property. She recommended the City treat these agents as if they were any other resident of the city and to not single out a group of individuals and prohibit them from public property. ARDEN HILLS CITY COUNCIL—JANUARY 12, 2026 4 Mayor Grant commented if any resident of Arden Hills feels unsafe for any reason, they were encouraged to contact 911. He reported the City hires the Ramsey County Sheriff's Department to ensure that the community is safe. As a resource, the Sheriffs office will respond. He indicated the Ramsey County Sheriffs Department will not interfere with federal law enforcement agents, but they will ensure people remain safe. He commented if ICE was in the community and residents believe ICE has done something wrong to an individual, a family or business, these actions can be reported to the Minnesota ACLU. He encouraged residents to do this and to also contact their US Senator and Representative. He reiterated that ICE is a federal agency and the City did not have control over the federal government. He noted he recently met with Nine Cities where the mayors and city managers/administrators discussed ICE. He stated local mayors were not able to issue executive orders for federal agencies but noted the City could post something on the website that educates residents on their rights. He requested the City Attorney speak to anything the City can legally do when it comes to ICE agents in the community. City Attorney Bjerkness explained there was nothing a statutory city can do interfere or supersede a federal law enforcement agency. Councilmember Weber reported local representatives (Kelly Moller and John Marty) were working to help people in the community as well. It was his hope the State could do something down the line. He encouraged residents to call 911 if they felt unsafe and to contact local and federal representatives as well. Councilmember Holden commented on an ICE raid that occurred at a local business in Arden Hills noting it was a traumatic event for this business. She indicated she has been stopping by this business every few days. She stated it was important for local business owners to understand their rights. She noted the Ramsey County Sheriffs Office met with them after the event and talked through everything that happened. She noted ICE was also now in northern Minnesota such as Cold Springs and Long Prairie, and they've been in the meat processing plants. They are in the small towns. She encouraged residents in the community to stop the hatred and to be better. Mayor Grant noted he visited the local business that was raided today and explained the business remains scared. He reported this business did not anticipate a visit from ICE. He clarified that no one from this business was taken away or determined to be illegal, rather ICE was chasing some individuals that they thought had entered the building at this location. He reiterated that any person that feels unsafe in the community should dial 911 in order to receive a response from the Ramsey County Sheriff s Department. Councilmember Monson stated she wanted to hear from the City Administrator what Ramsey County's policy was. City Administrator Jagoe reported she did not have a specific policy from Ramsey County regarding ICE and noted she would reach out to them requesting the document. Councilmember Monson explained she had questions with how the situation with the local business was handled by the Sheriff. She understood it was very complicated to have ICE agents and another law enforcement organization onsite. It was her hope the innocent bystanders could be protected in the future. She said she wanted to make it clear she didn't think there was a policy yet but whatever policy they are going to create to apply to this, the Council should get that and ARDEN HILLS CITY COUNCIL—JANUARY 12, 2026 5 then talk about it. She also would like the policy posted. She wants actionable accountability from the Council about what they expect the Sheriffs to do. Mayor Grant stated he was of the opinion the Ramsey County Sheriff's Department would not back away from protecting an individual, but the question is what happens when law enforcement agencies come together with the understanding no two situations are the same. City Administrator Jagoe noted she would post the City's immigration statement on the City's website along with updated resources and contact information. She explained she would speak with the Ramsey County Sheriff's Department to make sure the City has their general policy for responding to ICE incidents. She reiterated that the Sheriff's office was not coordinating or assisting ICE, but rather was responding to a call for public safety. Mayor Grant clarified for the record that Ramsey County Dispatch calls were not passed along to ICE and vice versa. Councilmember Monson stated she greatly appreciated the trust the City had with the Ramsey County Sheriff's Department. She believed this would go a long way in these extreme situations where the community was seeking public safety. 5. PUBLIC PRESENTATIONS None. 6. STAFF COMMENTS None. 7. APPROVAL OF MINUTES A. November 24, 2025, City Council Work Session B. November 24, 2025, Regular City Council C. December 8, 2025, City Council Work Session D. December 8, 2025, Regular City Council MOTION: Councilmember Monson moved and Councilmember Holden seconded a motion to approve the November 24, 2025, City Council Work Session meeting minutes as presented, the November 24, 2025, Regular City Council meeting minutes as presented, the December 8, 2025, City Council Work Session meeting minutes as presented; and the December 8, 2025, Regular City Council meeting minutes as amended. The motion carried (4-0). 8. CONSENT CALENDAR A. Motion to Approve Consent Agenda Item - Claims and Payroll B. Motion to Approve 2025 Budget Amendment C. Motion to Approve Pay Equity Report D. Motion to Approve Resolution 2026-001 Relating to the 2026 Organization of the City of Arden Hills ARDEN HILLS CITY COUNCIL—JANUARY 12, 2026 6 E. Motion to Approve Resolution 2026-002 Relating to the 2026 City Council Liaisons for Commissions and Committees and Mayor Pro Tern F. Motion to Approve Resolution 2026-003 Relating to the 2026 Appointments and Chairs of the Commissions and Committees of the City G. Motion to Approve City Logo Use Policy H. Motion to Approve 2026 Software Invoices I. Motion to Approve Payments to Ramsey County for Construction and Engineering Costs — Ramsey County Lexington Avenue Reconstruct Project Cooperative Agreements J. Motion to Approve Professional Services Agreement Amendment No. 1 — 2026 PMP Street & Utility Improvements — Arden Manor Hardcourt and Arden Oaks ADA Improvements K. Motion to Approve Renewing Ramsey County Shared Service Agreement — 2026 Grading and Erosion Control Inspections L. Motion to Approve Payment No. 2 — New Look Contracting — Lift Station No. 5 Rehabilitation Project M. Motion to Approve Payment No. 4 (Final) — Hydro-Klean, LLC - 2024 CIPP Lining Project N. Motion to Approve 2026 Met Council Private Property Inflow and Infiltration (I/I) Grant Agreement Councilmember Weber requested to pull an item from the Consent Calendar. Mayor Grant stated this should have been done prior to the agenda being approved. Councilmember Holden asked if Councilmember Weber had a question on a Consent Calendar item. Councilmember Weber stated he wanted to know how Mayor Grant went about selecting the Chair appointments for Item F. Mayor Grant explained he reviewed the resumes and that he called and interviewed members of the EDC. He made a selection of the top two candidates based on the interviews he conducted. Councilmember Weber reported he reviewed Roberts Rules of Order noting he was allowed to pull an item from the Consent Calendar prior to the Consent Calendar being approved. Mayor Grant stated Roberts Rule of Order would say after the agenda has been approved, the Council would have to move to suspend the rules in order to change the agenda. City Attorney Bjerkness advised a simple majority was needed to modify the agenda and after the agenda was adopted a super majority would be needed to modify the agenda. She explained pulling something from the Consent Calendar would qualify as an amendment to the agenda and a three fourth vote would be required. MOTION: Councilmember Weber moved and Councilmember Monson seconded a motion to pull Item 8F from the Consent Calendar for further discussion. A roll call was taken. ARDEN HILLS CITY COUNCIL—JANUARY 12, 2026 7 Councilmember Monson stated she did not believe a fight was needed to discuss this Consent Calendar item. She understood the Council typically removes items from the Consent Calendar at the beginning of the meeting and perhaps Councilmember Weber did not have this understanding. She asked that the agenda be modified and that the item be discussed further. Councilmember Holden explained she was confused because when there were vacancies on committees and people applied but they were not allowed on the committees, it was not questioned why they weren't put on a committee. She asked why Councilmember Weber was now questioning the process that was followed. Councilmember Weber asked if any staff members attended the interviews. Mayor Grant reported staff did not attend the interviews he held. Councilmember Weber inquired if there were minutes, notes or a set list of questions that were asked of the candidates. He explained he wanted to ensure these interviews were thoroughly vetted. Mayor Grant stated he did not have notes from these interviews. He reported there was a motion on the floor and now additional questions were being raised outside of the motion. Councilmember Holden called the question. Mayor Grant requested a roll call vote. A roll call vote was taken. The motion failed 2-2 (Councilmember Holden and Mayor Grant opposed). MOTION: Councilmember Holden moved and Councilmember Monson seconded a motion to approve the Consent Calendar as presented and to authorize execution of all necessary documents contained therein. The motion carried 3-1 (Councilmember Weber opposed). 9. PULLED CONSENT ITEMS None. 10. PUBLIC HEARINGS A. Quarterly Special Assessments for Delinquent Utilities Finance Director Yang stated water customers whose accounts are 90 days past due were informed that the City intends to certify delinquent charges to Ramsey County to be collected with property taxes. These customers have the right to a hearing in front of the City Council to discuss this matter prior to certification. Mayor Grant opened the public hearing at 8:00 p.m. With no one coming forward to speak, Mayor Grant closed the public hearing at 8:01 p.m. 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 ARDEN HILLS CITY COUNCIL—JANUARY 12, 2026 9 wholesale distribution. The Applicant seeks to offer similar flexible warehouse spaces to cannabis wholesalers and Portal will continue to coordinate operations at the site. The discussion at the Council work session revolved around the operations of the building, the number of jobs, and vehicle circulation. Community Development Director Reilly reviewed the Site Data, Plan Evaluation and offered the following Findings of Fact: 1. The subject property located at 4440 Round Lake Road is zoned GB, Gateway Business Zoning District and is designated for office and industrial use in the 2040 Comprehensive Plan. 2. Cannabis, wholesale is a conditional use in the GB Gateway Business Zoning District. 3. A state license is required for each wholesaler. 4. The Applicant, Hempel Real Estate, dba HRE Arden Hills, LLC is the sole owner of the property and applied for a conditional use permit for cannabis wholesale operations at the site. 5. The Applicant's site plan shows sufficient parking for 10% office and 90% warehouse use, a use that continues an existing legal nonconforming use. 6. The Applicant's narrative notes the specifics of the proposed business, including the sourcing of products and customer and employee education, and indicates odor suppression, security, and licensing as required by state law will be followed. 7. The materials submitted show adequate circulation on site to prevent adverse effects to the surrounding neighborhood or the community as a whole. 8. Standards and conditions in Section 1325.047 Cannabis Business Conditional Use Permit are met. 9. Standards and conditions in Section 1320.06 District Requirements Chart (GB Gateway Business District) are met. 10. Standards and conditions in Section 1325.06 - General Regulations, Off-Street Parking Requirements are met, given the existing nonconforming nature of the site. 11. A public hearing for a Conditional Use Permit request is required before the request can be brought before the City Council. The required public hearing was held on December 10, 2025. Community Development Director Reilly stated the Planning Commission reviewed this application at a special meeting on December 10, 2025. The Planning Commission recommended approval with conditions of the application for a Conditional Use Permit for a cannabis warehouse use by a 6-0 vote. The City Council may consider the following motion for approval of Planning Case 25- 015 for a Conditional Use Permit to allow cannabis, wholesale at 4440 Round Lake Road, based on the findings of fact and the submitted plans and subject to the below conditions: 1. All existing and any future refuse/recycling containers on site must be enclosed prior to issuance of the Conditional Use Permit. 2. No additional exterior signage related to the cannabis wholesale use shall be permitted. 3. The Applicant shall comply with all sections of the City Code and with applicable State Statutes. 4. An odor management plan must be submitted to the City prior to issuance of the Conditional Use Permit. ARDEN HILLS CITY COUNCIL—JANUARY 12, 2026 10 5. The Applicant shall for the duration of the Conditional Use Permit continue to provide evidence to the City of the status of each operator's state licensure annually and no later than the first business day of December of each year. 6. Not more than 10% of the building's floor area may be used for office use. Councilmember Holden reported she has received several questions from residents. She asked if any additional security was required for this warehouse in Arden Hills. Community Development Director Reilly explained all State requirements must be met to ensure the property is secure. Councilmember Holden inquired how odor control would be addressed on this property. Community Development Director Reilly indicated the State has requirements for cannabis businesses when it comes to odor control and this business will have to meet these requirements in order to receive a permit from the State. Mayor Grant reported it was his understanding cannabis will be shipped to this warehouse. He asked if the cannabis will be shipped in bulk and then be sorted and packaged, or will it already be packaged. Community Development Director Reilly explained the cannabis items would already be packaged before arrival at the building and would leave the site in the same packaging. Mayor Grant questioned how much of the building would be used for the cannabis warehousing. Community Development Director Reilly stated up to 57,000 square feet of the building could be used for the cannabis warehousing. Councilmember Weber clarified that the City was designating a use and a business was not proposing to use up to 57,000 square feet of warehouse space at this time. Community Development Director Reilly reported this was the case. He noted all future users would have to be vetted and approved by the State of Minnesota. MOTION: Councilmember Holden moved and Councilmember Weber seconded a motion to adopt Resolution 2026-005 for Planning Case 25-015 for a Conditional Use Permit (CUP) to allow cannabis, wholesale at 4440 Round Lake Road based on the findings of fact and the submitted plans and subiect to the conditions in the January 12, 2026, report to the City Council. The motion carried (4-0). 12. UNFINISHED BUSINESS None. 13. COUNCIL COMMENTS Councilmember Weber stated the Planning Commission did not meet in January. ARDEN HILLS CITY COUNCIL—JANUARY 12, 2026 11 Councilmember Holden explained the police reports show a large number of what is listed as "proactive visits" in Arden Hills. She asked if these visits would be increasing costs for policing services. City Administrator Jagoe stated she would follow up with the Ramsey County Sheriffs Department to learn more about these proactive visits. Councilmember Holden requested staff provide the Council with a written report on the backlog of permits in the City. Community Development Director Reilly explained staff has been working on this and noted all permits were almost closed out if they were two years old or older. Councilmember Holden asked for an update regarding the Shoreline property. Community Development Director Reilly said that he did visit the property himself and that everything seemed to be taken care of at that time. He had shared the concern regarding drainage with the Public Works Director. Councilmember Holden stated the December City Council meeting did not end real well. She discussed how there were lengthy public comments. The City is not a business and we cannot just say let's meet tomorrow, the meeting wasn't done. She commented on how the Council was working diligently to address the needs of the community when setting the budget and tax levy. Mayor Grant stated the Nine Cities met recently and noted the tax levies were discussed. He noted retail cannabis shops have opened in New Brighton and Roseville. Mayor Grant reported the Lake Johanna Fire Department building was on schedule and on budget. He noted the facility was slated to be open mid-July. Mayor Grant explained he received two phone calls in regard to the December City Council meeting. He stated these individuals were concerned with the fact a Councilmember had to leave the meeting by 9:00 p.m. and wanted a decision made on the tax levy by that time. He reported this was bad optics for the public. He understood things can happen but believed that did not need to be stated in a meeting. He said it was a big meeting and the City Council owed it to the residents that elect Council to take the time to take comments and fully discuss this topic before making a decision. Mayor Grant thanked staff for putting the ICE related items on the City's website as previously asked. ARDEN HILLS CITY COUNCIL—JANUARY 12, 2026 12 ADJOURN MOTION: Councilmember Weber moved and Councilmember Holden seconded a motion to adiourn. The motion carried (4-0). Mayor Grant adjourned the Regular City Council Meeting at 8:21 p.m. JtAe Hanson David Grant Cify Clerk Mayor