09g. City Administrator - Staff Report1
Staff Report
Date of Meeting: June 18, 2024, City Council Meeting
To: Mayor and City Council
From: Kyle Morell, City Administrator
Re: City Administrator Report
______________________________________________________________________________
Gateway Trail Project
City Engineer Ryan Goodman and I met with Nathan Moe and Kent Skaar from the Minnesota
Department of Natural Resources (DNR) on Monday, July 10, 2023. We discussed the next steps in the
work plan, including the environmental review, soil borings, and topographical survey. Ryan and the
DNR are working to complete these items before the end of the year. This group plans to meet monthly
to ensure the project stays on schedule.
Kent explained that the LCCMR funding has a hard deadline of June 30, 2027. All spending must be
completed before that date. The City plans for 2026 construction to complete the project before the grant
funding disappears. Our DNR Grant Administrator has also contacted me. LCCMR administers the
project, and the funding comes from the DNR.
I have submitted our first required update to LCCMR. I will have to file a budget amendment to
redistribute the funds we received from construction to engineering, as the money allotted for
engineering will not cover the projected cost. I am also working on our first request for funds, which
needs to be submitted before the end of June.
Water Tower Barn Project
The Scandia Heritage Alliance is working to construct part of the old water tower barn to apply for
historic tax credits and a place on the National Register of Historic Places. Additionally, they will need
to create a for-profit entity to allow for qualification for historic tax credits. Council approved the
construction of the east side of the barn and the formation of a “for-profit” entity at their Work Session
on September 6. At our December meeting, the Alliance received Council approval to aid the City in
applying for an LCCMR grant to help fund their project's parks and trails plan. The plan includes
connecting trails from the Water Tower Barn parcel to the Community Center along Olinda Trail and
through the City-owned wetland to connect to the Gateway Trail.
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The City’s LCCMR proposal was selected to move forward in the review process. The City will present
its application to the LCCMR board on June 28.
Scandia City Center Study
The Consultant presented the Community Involvement Plan to the Council at their December Work
Session. Staff updated contact information for the local businesses listed in the Plan. The County and
the Consultant attended Vinterfest and had many positive interactions with the community. The
comments left on the project website have also been very insightful. These comments will be gathered,
analyzed, and used to determine areas that need further review in the coming months.
The next project management team meeting is scheduled for July 17. One or two pop-up events will be
held in August.
Bliss Stormwater Project
The preconstruction meeting for this project is scheduled for the week of June 25.
Cannabis Legislation Update
The Legislature passed new and amended current cannabis rules this session. In August of last year, the
City passed an Interim Ordinance prohibiting cannabis businesses until Jan. 1, 2025, which is still
effective. The Interim Ordinance Prohibiting Hemp Businesses passed on the same day, expires on
August 22, 2024. If the Council wishes to extend the Interim Ordinance until the end of the year they
must hold a public hearing between July 23 and August 7. Neither City Attorney Eric Larson nor his
associate Christina Benson is available on August 7, which is our regularly scheduled August Work
Session. Therefore, we must hold a Special Meeting after July 23 to hold the required public hearing.
Available dates are Wednesday, July 24, or July 31. At this meeting, we will also discuss where
cannabis businesses can operate within the community based on our current zoning codes and whether
the Council would like to amend our code to restrict cannabis and hemp business locations.