Blaine City Council Meeting Summary - August 17, 2026

The Blaine City Council met at 7:00 PM on August 17, 2026, at Blaine City Hall, 10801 Town Square Drive NE, Blaine, MN. Mayor Tim Sanders presided; Councilmembers Terra Fleming, Leslie Larson, Chris Massoglia, Tom Newland, and Jess Robertson were present, and Councilmember Chris Ford was absent. Staff included City Manager Erik Thorvig, Community Development Director Sheila Sellman, Finance Director Jason Zimmerman, Director of Engineering Dan Schluender, City Attorney Eric Larson, and City Clerk Catherine Sorensen. The council approved routine consent items, heard public testimony, held public hearings on two conditional use permits and five utility franchise fee ordinances, and acted on three administrative items.

Consent Calendar

• The consent agenda was approved on a motion by Councilmember Newland, seconded by Councilmember Robertson. Councilmember Newland abstained from item 7.1, the Schedule of Bills Paid, citing a conflict of interest due to a business receiving payment.
• Approved items included approval of minutes; RES 26-149 granting final plat approval to subdivide approximately 10.43 acres into 4 lots and 2 outlots as Blaine Ventures First Addition at 4131 Pheasant Ridge Drive NE; RES 26-153 to declare costs assessable and order a public hearing for the 2024 Southwest Area Street Reconstruction Project, Improvement Project No. 24-07 (T2407); RES 26-166 approving a Joint Powers Agreement with Anoka County for signalization of CSAH 14 at Zest Street NE, Project No. T2611, and budget amendments; RES 26-167 approving an amended Joint Powers Agreement for intersection improvements at CSAH 52 and CSAH 12 and signalization at Mankato Street/Tournament Players Pkwy and CSAH 12, Project No. T2518; and a motion authorizing nighttime paving operations for the CSAH 52/CSAH 12 intersection improvements project.
• Documentation note: The approved minutes contain a duplicate item 7.4 reference to a Zest Street Construction Project assessment under RES 26-153, while the agenda lists RES 26-153 only for the 2024 Southwest Area Street Reconstruction Project.

Public Comments & Testimony

• Open Forum was held from 7:07 PM to 7:18 PM, with each speaker limited to three minutes and a total of 15 minutes.
• Bruce Manthei, 4101 99th Avenue NE, repeated concerns about an electrical box location at 99th and Lexington Avenue and said the council had not responded to his prior concerns.
• Augustin, 11641 Washington Street NE, opposed automated license plate readers and the installation of Flock cameras, calling them secret, constitutionally violating AI mass surveillance; he said he had suspended plans to buy a home in Blaine because of the cameras.
• Jimmy, 1152 7th Street, asked the council to remove Flock cameras and said mass surveillance systems are not properly governed, impede individual rights, and go beyond their intended scope.
• Masih Mohammed, 12081 7th Street, opposed the Flock cameras and the proposed franchise fees, stating he lives on a fixed income and cannot afford additional taxes; he cited a $12 per month, or $144 per year, cost.
• Deanna Belkadi, 2095 131st Court NE, voiced concerns about the proposed tax levy, franchise fees, the proposed parking ramp in the 105th District, and Flock cameras, and said she was considering moving out of Blaine.
• Mona Hussein, 12572 Quemoy Street NE, said she had concerns with the proposed levy and franchise fees.

Communications

• Police Chief Brian Podany said Sergeant Wes Villegas was available to discuss Flock camera and license plate reader concerns, and noted the city posted an FAQ and transparency portal on its website.

Public Hearings: Conditional Use Permits

• 8.1 - Karl Dungs Inc. CUP: Community Development Director Sheila Sellman said the applicant requested a conditional use permit for office, manufacturing, and warehouse uses at 3785 Pheasant Ridge Drive NE. The agenda and presentation described the zoning district as the Planned Business District (PBD); the minutes also contain a reference to Heavy Industrial (I-2). The building is existing, with 386 parking stalls available against 186 required. Staff recommended approval. Bruce Manthei asked about wetland vetting and drainage; Sellman responded that this is an existing building with no wetland impacts and any new building would require watershed approval. The public hearing ran from 7:28 PM to 7:31 PM. Motion by Robertson, seconded by Massoglia, adopted unanimously.
• 8.2 - Scheels sign CUP: Sellman presented a request from Scheels All Sports Inc. for a sign plan at 2105 105th Avenue NE, including four wall signs, a canopy sign, and a wraparound LED display; the agenda described the request as four wall signs and one LED display. Proposed wall signs were about 307 square feet on multiple elevations, and the canopy sign was about 138 square feet; district rules generally limit wall signage to 150 square feet per building. The public hearing opened and closed at 7:34 PM with no public input. Council discussion: Newland said the request was too much and lacked compromise; Scheels representative Josh Remer said the signage would help attract new customers; Larson noted the building across the street had received a prior ordinance amendment and said she would support the request and expected reconsideration of the across-street property; Robertson said the 250,000-square-foot building was never contemplated in the original district plan and is larger than Target or Walmart; Fleming thanked staff and noted the across-street request was an ordinance amendment, not a CUP. Motion by Robertson, seconded by Massoglia, passed 5-1, with Newland opposed.

Public Hearings: Utility Franchise Fee Ordinances

• Finance Director Jason Zimmerman presented a combined presentation for items 8.3 through 8.7. The city has held six public workshops since January 2025. State law allows municipalities to impose uniform franchise fees on gas and electric providers for operating in the right-of-way, and Blaine has not previously imposed these fees. Blaine has three gas providers and two electric providers. Most meters are residential, with over 91% of electric meters and 93% of gas meters in the residential classification. Staff analyzed 14 comparable communities and found all except Maple Grove currently have gas and electric franchise fees. The proposed model mirrors fees recently adopted by Lakeville and uses flat rates rather than consumption-based percentages. The fees could generate roughly $5 million to $6 million annually for capital needs. The fees would also include tax-exempt users such as the airport and the National Sports Center. City Manager Erik Thorvig said the goal is to replace borrowing for street reconstruction, not to create new spending.
• The public hearings, first opened on August 3, were reconvened individually for Connexus Energy electric service, Circle Pines Public Utilities D/B/A Centennial Utilities gas service, Centerpoint Energy Resources Corp. D/B/A Minnegasco gas service, Northern States Power Company D/B/A Xcel Energy electric service, and Northern States Power Company D/B/A Xcel Energy gas service. No action was taken on any ordinance. Adoption will not occur earlier than September 9, 2026, and the earliest collection date would be January 2027.
• There was no public testimony on items 8.3, 8.4, 8.6, or 8.7. During the 8.5 hearing, Deanna Belkadi said the franchise fee should be considered in light of the economy and that her electric bill had doubled in a year without additional usage. Dusty Peterson, a Blaine resident, said a street near his house was reconstructed the prior year and he did not believe it was necessary; he urged the city to present a balanced budget without niceties. Thorvig noted that a median-valued home at $346,000 would pay about $157 per year if the city bonded for street work versus $144 per year through the proposed franchise fee.

Administration

• 10.1 LCCMR Grant for Blaine Wetland Sanctuary Trail: Director Schluender said the revised resolution adds language confirming the city has the financial capability to operate and maintain the project after completion. The original resolution was passed March 2, 2026. The grant application requested $2,350,000; LCCMR recommended $2,167,000 for construction of the first two phases, with total estimated construction costs of about $5,871,000. The proposal was among the highest ranked of 434 proposals. Final award requires approval by the legislature and governor during the 2027 session, with construction possible as early as fall 2027; the current parks capital budget lists the project for 2031. Councilmember Massoglia asked about the commitment, supported the application, but said he did not support the current parks capital improvement plan. Motion by Robertson, seconded by Larson, adopted unanimously.
• 10.2 2027 Laddie Lake Area Street Reconstruction: Schluender asked the council to initiate the project and order a feasibility report for Improvement Project No. 27-04. Project area one includes Tyler Street and 87th Lane and adjoining neighborhoods and would be full reconstruction where there is no curb and gutter; project area two is Taylor Court and would have full-depth pavement replacement with spot curb replacement. The project follows the Chapter 429 assessment process and would be funded by assessments, Pavement Management Program funds, and public utility funds. Motion by Newland, seconded by Massoglia, adopted unanimously.
• 10.3 Bolton & Menk Engineering Contract: Schluender requested authorization for the mayor and city manager to contract with Bolton & Menk, Inc. for preliminary design and preparation of the feasibility report for the 2027 Laddie Lake Area Street Reconstruction Project in the amount of $103,042. Staff reviewed the proposal and determined the fees were justified. Motion by Newland, seconded by Fleming, adopted unanimously.

Key Outcomes

• Consent agenda approved; Newland abstained on item 7.1.
• Karl Dungs Inc. conditional use permit approved unanimously.
• Scheels sign conditional use permit approved 5-1; Newland opposed.
• Utility franchise fee ordinances remained pending; no action before September 9, 2026.
• Revised LCCMR grant resolution for Blaine Wetland Sanctuary Trail approved unanimously.
• Resolution to initiate 2027 Laddie Lake Area Street Reconstruction approved unanimously.
• Mayor and city manager authorized to execute the Bolton & Menk contract approved unanimously.
• The meeting adjourned at 8:18 PM.