City Council Meeting - August 27, 2024

The City Council of Brookings met on August 27, 2024, at 6:00 PM in the Council Chambers of the Brookings City & County Government Center. The meeting included first readings of four ordinances, public hearings and second readings on five items, action on three resolutions, and public comment on a proposed reasonable accommodations ordinance and a tax increment financing district. All actions except the first readings were subject to roll call votes. The next regular meeting is scheduled for September 10, 2024.

Consent Calendar

• Approved the August 13, 2024 City Council meeting minutes.
• Approved temporary alcohol/special event licenses for existing license holders on publicly owned property.
• Approved Resolution 24-083 awarding bids for the 2024-2025 contractor snow removal equipment contracts.
• Approved Resolution 24-084 declaring surplus property.

Public Comments & Testimony

• Doug Ostrheim (founder of Austrian landscaping, original owner of property on Western Avenue) expressed frustration over an unresolved obstruction in the north channel of Six Mile Creek, stating that material dumped on college land disrupts flow. He noted that a final report from a study was promised by end of May/early June but has not been released, and called for a simple solution to the issue.
• Kara Bianchi Rassi (resident) opposed the first reading of Ordinance 24-031 (Reasonable Accommodations), arguing the city should enforce existing zoning that limits unrelated occupants to three per single-family home. She stated the ordinance could allow up to 115 homes with 10 unrelated people, and noted the property in question had not applied for a rental license until asked. She requested the city enforce zoning and vacate occupants until resolved.
• Molly Richter (resident) echoed concerns, stating about 20 neighbors have been frustrated since April that the city has not enforced zoning. She criticized the 150-foot notification requirement, suggesting at least 300-500 feet, and warned that the ordinance could change neighborhood fabric. She cited a 1996 state supreme court case upholding the city's three-unrelated limit.
• Nancy Flynn (711 Fourth Street) questioned how the specific home would enhance the historical neighborhood, how the rental differs from college rentals, and whether it will be monitored differently. She confirmed from City Attorney Steve Britzman that requests would be case-by-case.
• Ed Hogan (taught urban geography at SDSU for 30+ years) urged the council to live by their plan, warning that passing the ordinance could reduce property values and open a "big can of worms."
• Tom Boseid (802 Fourth Street, lives 40 feet from the property) asked the council not to hold the first reading and to call a meeting so the public can discuss. He noted the property has no rental license and that occupants have been there for months.
• Tim Reed (Brookings Economic Development Corporation) supported TIF District #16, stating it began as an incentive for 3M (now Solventum) for a $221.9 million investment, adding 48 jobs (37 hourly, 9 salary) with an annual payroll impact of $2.6 million (direct and indirect: $3.7 million). He noted the TIF is pay-as-you-go and only reimburses increment from improvements.
• Alan Austrian (resident) commented that during the vote on TIF boundaries, the map should have been displayed so the public could see what was being voted on.
• Jim Burkhardt (Solventum plant director) clarified that when 3M sold a department, all employees were absorbed into the current operating structure with no reduction in headcount.

First Readings (Ordinances – No Vote Taken)

• Ordinance 24-029: Certifying the 2025 property tax levy to the Brookings County Finance Officer. Finance Director Ashley Rench explained the levy is computed from last year's amount plus growth (2.1324%) and CPI (3%, capped by state law). The total property tax increase is approximately $205,000, for a total of just under $4.2 million. Second reading and action: September 10, 2024.
• Ordinance 24-028: Granting a franchise to Mediacom Minnesota LLC to construct, operate, and maintain a cable television system. City Attorney Steve Britzman noted this is similar to a recently approved franchise for ITC. Second reading: September 10, 2024.
• Ordinance 24-031: Establishing reasonable accommodations pursuant to the Federal Fair Housing Amendments Act of 1988. This ordinance creates an application process and hearing procedure for accommodations to city ordinances for people with disabilities. Council discussion clarified that it does not address a specific property but establishes rules for future requests. Public comment opposed the ordinance. Second reading and action: September 10, 2024.
• Ordinance 24-030: Permitting by conditional use a major home occupation hair salon (one chair) at 1635 17th Avenue South. Community Development Director Mike Strucker reported unanimous approval from the Planning Commission, with a condition that the permit is owner-only. Second reading: September 10, 2024.

Public Hearings and Second Readings (Actions Taken)

• Ordinance 24-025 (Budget Amendment No. 8): Authorizes the budget for an energy savings performance contract with Ameresco, increasing the other capital expenditure line by $3,166,168 and transferring $500,000 from the general fund. Projects include LED lighting, HVAC upgrades, window/door replacements, and fire alarm replacement. Motion to approve passed unanimously (8-0).
• Ordinance 24-026 (Covering of Vehicle Loads): Corrects a clerical error in existing code and clarifies exemptions for county highway vehicles during winter/emergency operations. Passed unanimously.
• Ordinance 24-027 (Storm Drainage Fee Revision): Changes the fee calculation to an Equivalent Residential Unit (ERU) based on impervious area. Single-family parcels will be charged one ERU (initial rate $6.16/month or $73.76/year). Commercial/industrial properties will be charged based on actual impervious area (minimum 1 ERU). The fee funds $12 million in projects over 10 years, with a 3% annual increase starting 2026. A tiered approach was rejected due to administrative costs. Passed unanimously.
• Site Plan Review (Pet hotel at 20th Street South and Christine Avenue): Proposes a pet hotel in a B-2 district, meeting all design and landscaping requirements. Phase 1 includes a southern building, parking, and drop-off areas; a second phase is planned. Applicant hopes to break ground in early spring and open January 2026. Motion to approve passed unanimously.
• Resolution 24-081 (Amend 2040 Comprehensive Plan Future Land Use Map): Updates the future land use map along the 20th Street South Corridor from I-29 to Main Avenue to align with development trends. Changes include urban high intensity near the interchange, urban medium intensity between 17th Street and the soccer complex, and cleanups at Prairie Hills and the depot site. Areas west of Main Avenue were not recommended for change. Passed unanimously.

Other Business – Resolutions (Actions Taken)

• Resolution 24-079: Transferring $23,000 from city manager contingency funds to the street division's mosquito control account. Public Works Director John Thompson noted mosquito counts are currently low but funds are needed for potential resurgence. Motion passed unanimously.
• Resolution 24-078: Declaring boundaries and recommending creation of Tax Increment Financing District #16 for the Solventum (formerly 3M) project. The district includes approximately 1.6-1.7% of citywide taxable value, well under the 10% statutory limit. The project involves $221.9 million investment. Motion passed unanimously.
• Resolution 24-080: Adopting the Tax Increment District #16 Project Plan. The plan identifies $5 million in eligible project costs (site grading, water, sewer, storm sewer, road improvements) over a 20-year term. Solventum fronts the costs and is reimbursed from tax increment. Councilmember Specker voted no, expressing concerns about using TIF for job replacement without significant salary increase. Councilmember Tilton Byrne clarified a separate development agreement will come later (expected September 2024). Motion passed 7-1.

Presentations & Reports

• Introduction of new Deputy City Clerk Amber Hansen.
• SDSU Student Association report (Claire Kennicke): Classes started August 26; expected largest freshman class ever; parking reconfiguration reduced commuter parking to accommodate residents. First Bank & Trust Arena opening September 26.
• Pre-Disaster Mitigation Plan update (Luke Miller, First District Association): Joint plan for Brookings County and all municipalities, required every 5 years for FEMA eligibility. Plan updates critical infrastructure list and hazard mitigation projects (e.g., tornado shelters). Public comment: Jason Elby suggested an ordinance requiring landlords of mobile homes to provide storm shelters.
• Progress Report (Samantha Beckman, Assistant to the City Manager): Provided updates on downtown master plan, economic development dashboards, utility projects, police (safety town, national night out, citizens first responder academy), parks (pickleball courts, pool closure, tree treatments for Dutch elm and emerald ash borer), library summer reading (6,150 attendees at 138 events), and more.

Key Outcomes

• All consent agenda items approved.
• Four ordinances received first readings; second readings scheduled for September 10, 2024.
• Ordinances 24-025, 24-026, and 24-027 approved on second reading.
• Commercial corridor site plan for pet hotel approved.
• Resolution 24-081 (Future Land Use Map amendment) approved.
• Resolutions 24-079 (mosquito control funds) and 24-078 (TIF boundaries) approved unanimously.
• Resolution 24-080 (TIF project plan) approved 7-1, with Councilmember Specker dissenting.
• Council requested a PFAS update from Solventum/3M at a future work session; Plant Director Jim Burkhardt agreed to arrange.
• Next regular meeting: September 10, 2024, at 6:00 PM.