Hastings City Council Regular Meeting, April 27, 2026

The Hastings City Council met in regular session at 6:00 PM on April 27, 2026, at the Hastings Municipal Airport. All eight council members were present. The meeting covered routine consent items, a Federal Opportunity Zone 2.0 grant application, an airport runway engineering resolution, and the first reading of a Restaurant and Drinking Place Occupation Tax ordinance.

Consent Calendar

• The consent agenda was approved unanimously (8-0). Approved items included the April 13, 2026 meeting minutes, routine claims and payroll (withholding the claim of Vaughan's Printing), event permits and liquor licenses for First Street Brewing Company events (Fun Run/Bags Tourney on August 8, 2026, and Do the Que BBQ on August 21–22, 2026), an addendum to the Duncan Field Lease Agreement adding Hastings Sports LLC, and a $10,505.30 invoice for Brownfield Grant administrative services. An Item J that appeared in a draft of the agenda was removed before the vote.

Public Comments & Testimony

• Curtis Johnson spoke against Ordinance 4829 (Restaurant and Drinking Place Occupation Tax). He argued the tax would be an additional burden on Hastings residents, citing the city's 14.8% poverty rate (compared to a 10.6% state average) and a median household income of approximately $64,000 (compared to the state average of $76,000). He recommended the council look for budget cuts before enacting new taxes.
• Edward Krontz also spoke in opposition, stating that a majority of residents he spoke with are against the tax because they cannot afford it. He argued the tax would likely reduce tips for waitstaff and that people might choose to stop dining out entirely, negatively impacting restaurants and their employees.

Discussion Items

• Federal Opportunity Zones 2.0 Grant (General Business 4b): HEDC Community Development Director Sydney Erickson presented the application to have two Hastings census tracts designated as federal opportunity zones. These 10-year designations encourage private investment in low-income or economically disadvantaged areas through capital gains tax deferrals. The council asked clarifying questions about the specific tracts (located on the south side of Hastings) and how the tax credits function. A motion to authorize Mayor Beckby to sign the application passed unanimously (8-0).
• Airport Runway Project Agency Agreement (Resolution 2026-37, General Business 5a): Airport Manager Matt Kuhr explained the resolution was an application to the FAA for engineering funds covering the entire runway lighting project. The funding structure is 95% federal, 2% state, leaving a 3% city share. Kuhr stated the current lighting is holding but needs replacement, with bidding for construction expected to begin in February of the following year. The resolution passed unanimously (8-0).
• Restaurant and Drinking Place Occupation Tax (Ordinance 4829, General Business 5b): City Administrator Mark Funkey presented the ordinance for first reading. The ordinance establishes a 2.5% tax on prepared food and beverages to fund the Hastings Museum and the city's general fund. He estimated that 1% of the tax would generate roughly $600,000 annually. Council debate included:
  • Support from Councilmember Brad Consbruck as a preferable alternative to property tax increases.
  • Support from Councilmember Maggie Esch framing it as a necessary step to address a projected $3 million budget gap and capture visitor dollars, noting other communities already have such a tax.
  • Concerns from Councilmember Michael Anderson about the impact on the elderly and difficulty collecting from mobile food vendors.
  • Opposition from Councilmember Marc Rowan, who argued the city should find budget cuts equal to the amount generated by the tax.
  • Concerns about food truck compliance, with staff acknowledging they are working on a better registration and tracking system.
• Councilmember Steve Huntley suggested moving the item forward on first reading to allow more public feedback before the second reading. The percentage can be amended at the second reading.

Key Outcomes

• Consent Agenda: Approved (8-0).
• Vaughan's Printing Claim ($215.00): Approved (7-0-1, Councilmember Esch abstained).
• Federal Opportunity Zones 2.0 Grant: Mayor authorized to sign the application. Approved (8-0).
• Airport Resolution (2026-37): Agency Agreement for FAA funding approved. Approved (8-0).
• Restaurant and Drinking Place Occupation Tax (Ordinance 4829): Approved on first reading (6-2). Councilmembers Michael Anderson and Marc Rowan voted against. The ordinance will return for a second reading at a future meeting.