Rochester City Council Regular Meeting - December 2, 2024

On December 2, 2024, the Rochester City Council held a regular session beginning at 6:00 PM in the Government Center Council Chamber. The meeting covered the adoption of the 2025 operating budget and property tax levy, a final plat approval, the annual Experience Rochester update, a development agreement with Mayo Clinic for West Transit Village, and several consent agenda items and ordinance readings. Notable procedural events included the excusal of Councilmember Molly Dennis during the public hearing on the budget.

Consent Calendar

• Approved minutes of the November 18, 2024 meeting.
• Approved accounts payable totaling $11,235,018.31.
• Approved most reappointments to boards and commissions, noting Mark Hubly resigned from the Heritage Preservation Commission.
• Approved a Boulevard Tree Green Facilities Agreement with Essex Estates Properties, LLC.
• Authorized a contract with ProCore Solutions for $185,023.82 for Link Bus Rapid Transit (BRT) construction management software.
• Authorized a contract with Kimley-Horn for $39,905 for West Transit Village sanitary sewer design and advertisement for bids.
• Authorized a Solar Land Lease amendment with Westside Solar Partners, LLC.
• Items F.4 (Music Library donation), F.6, and F.7 (Civic Theatre roof contracts) were pulled for discussion and later approved separately.

Public Comments & Testimony

Open Comment Period:

• Mike Broughton, an honorably retired U.S. Army veteran with four master’s degrees, described living motel-to-motel and being unable to find employment despite his qualifications. He expressed feeling discriminated against as a veteran and requested policy changes to support veterans seeking work in Rochester.

Public Hearing on 2025 Budget & Tax Levy (G.1):

• Barry Skolnick criticized the decision to close the Government Center at 4:30 p.m. instead of 5:00 p.m., arguing it reduces public access. He also questioned the lack of community input on various budget items, including facade improvement grants and Peace Plaza repairs.
• John Kruesel raised concerns about non-operational streetlights on Peace Plaza (11 lights out), the elimination of facade improvement grants, and the absence of public restrooms downtown, especially during family events like Santa’s visit.
• Schalleen Nelson, a 26-year nurse and homeowner, reported her property tax increased 10% this year. She expressed worry that rising taxes may force long-time residents out of historic Southwest neighborhoods.

Discussion Items

2025 Property Tax Levy, Operating Budget, and Capital Improvement Plan (CIP) City Administrator Alison Zelms presented the final budget, noting a total all-funds budget of $719.8 million. The general tax levy is set at $111,645,142 (up 9.96% from 2024). Key drivers include public safety salary adjustments (market adjustments for police and fire), the Silver Lake Pool reconstruction, and reduced state funding. For a median-value home ($278,800) with no valuation change, city taxes would slightly decrease; with typical valuation increases, taxes could rise ~$125. The budget includes $303.9 million in capital projects (220 projects) and a 4% electric/5.5% water rate increase. Councilmember Keane noted the levy increase primarily reflected public safety contracts and reduced local government aid. After public testimony, the council voted 6-0 (Dennis absent/excused) to adopt the six resolutions approving the budget, levy, CIP, utility budgets, rates, and payment-in-lieu amounts.

Final Plat – Cassidy Farms First (G.2) Planner Ed Caples introduced the subdivision of 33.09 acres into 43 single-family residential lots and three outlots, extending Stonehenge Drive NE. Applicant’s representative Craig Britton expressed agreement with staff’s four conditions. The council voted 5-1 (Kirkpatrick opposed, Dennis absent) to approve Resolution 244-24.

Experience Rochester Annual Update (H.1) President Jacob Malwitz and CEO Joe Ward presented 2024 highlights: 18 high-impact weeks (weeks with ≥500 hotel room nights), 45,000+ hotel room nights booked, $4.9 million in future bookings, and $6.4 million in revenue. Major events included the Combat Veterans Motorcycle Association (1.8 million economic impact) and the International Symposium on Amyloidosis (ISA) with 1,000+ attendees from 50 countries ($1.9 million impact). CFO Nick Landry reported 2024 revenue of $10.4 million (budget $9.6 million) and expenses of $10.1 million, with no use of reserves for the first time since 2019. The 2025 budget projects $10.7 million revenue and a net positive year. Plans include a summer leisure marketing campaign and a comprehensive tourism master plan. The council approved receiving the 2023 Year in Review report and accepting the 2025 budget (6-0).

Development Agreement with Mayo Clinic – West Transit Village (H.2) Deputy City Administrator Cindy Steinhauser outlined a 13-acre mixed-use development at the western terminus of the Link BRT. The agreement includes Mayo’s obligation to fund infrastructure (sanitary, storm, road improvements), provide 100 temporary public parking spaces for BRT (with a permanent commitment), and allow the city use of the Mayo ramp for 18 weekend days per year. Plans include a parking ramp, affordable senior housing, and mixed-use commercial/housing. The council voted 6-0 to authorize the agreement.

Donation of Music Library Holdings (H.3, pulled from consent) Music General Manager Avital Rabinowitz confirmed the music library holdings will be donated to local nonprofits (Rochester Symphony and Community Band), with public access maintained in perpetuity via the music department website. The council voted 6-0 to adopt Resolution 238-24.

Civic Theatre Roof Replacement Contracts (H.4 & H.5, pulled from consent) Two contracts were approved: $261,427.92 to The Garland Company for tax-exempt owner-purchased roofing material, and $1,112,000 to Jackson and Associates for labor and taxable materials (base bid plus alternates 1, 3, 4). The council voted 6-0 to authorize both.

Ordinances – First Readings

• Annexation of 1.03 acres (CD2024-006ANX) – received and filed.
• Zone change for 10 acres from R-2 to R-3 (CD2024-002ZC) – received and filed.

Ordinances – Second Readings (all approved 6-0)

• 2025 Master Fee Schedule (Ordinance 4546).
• Juvenile Curfew Ordinance extension through Dec. 31, 2026 (Ordinance 4527).
• Annexation of 36.84 acres by Olmsted County (Ordinance 4548).
• Annexation of 49.90 acres by the City (Ordinance 4549).
• Medical Overlay District text amendment (Ordinance 4550), replacing the Medical Institutional Campus and Support Campus Special Districts.

Key Outcomes

• 2025 Budget and Tax Levy: Approved (6-0) with a general levy of $111,645,142, a total budget of $719.8 million, and utility rate increases of 4% (electric) and 5.5% (water). The budget funds public safety salary adjustments, Silver Lake Pool reconstruction, and capital projects.
• Cassidy Farms First Final Plat: Approved 5-1 for 43 single-family lots on 33.09 acres.
• Experience Rochester Reports: Accepted the 2023 Year in Review and 2025 budget (6-0).
• West Transit Village Agreement: Authorized (6-0) for Mayo Clinic-led mixed-use development with public parking and infrastructure commitments.
• Music Library Donation: Adopted (6-0) with condition of perpetual public access.
• Civic Theatre Roof Contracts: Both awarded (6-0) for a total of $1,373,427.92.
• Ordinances: All second readings (fee schedule, curfew, two annexations, medical overlay district) approved 6-0.
• Procedural Incident: Councilmember Molly Dennis was excused from the meeting at 7:22 p.m. for violation of rules of procedure; her objection was not seconded.