Rochester City Council Regular Session - June 2, 2025
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Rochester City Council Regular Session - June 2, 2025
The Rochester City Council held its regular session on June 2, 2025 at 6:00 PM. The meeting covered consent agenda items, five public hearings, several reports and recommendations, and ordinance readings. Key actions included approval of a major land subdivision (Flowing Brook Valley), a street vacation for affordable housing, annexations for a future sports complex, 2026 state bonding priorities (airport parking, East Zumbro sewer, and planning for Civic Center Drive/South Broadway), the Biolabs shared lab space project (up to $8 million GSIA), and a development agreement with Mayo Clinic. A consent item for 4th St/19th Ave intersection improvements was pulled due to a bid protest and later resolved via rebid. A motion to include a park-and-ride in the DMC district failed 3-3.
Consent Calendar
- Approved minutes of May 19, 2025 meeting.
- Approved accounts payable totaling $20,647,912.47, including investment purchases of $7,061,428.00 and accounts payable of $13,586,484.47.
- Approved numerous items en bloc (F1-F9, F11-F14, F17-F18), including: Med City Art Festival as community festival; golf cart permit route (Councilmember Keene voted no, citing slippery slope); Heritage Preservation Commission rules; LMCIT liability waiver; boundary clarification with MAAB LLC; Fire Station 3 roof replacement contract ($84,495 with Priority Construction); John Adams Middle School Safe Routes to School contract (Rochester Sand & Gravel); School Resource Officer agreement with ISD 535 ($45,993/month); utility connection agreement (Steven T. Sawyer Revocable Trust); annexation CD2025-001ANX; support for Greater Minnesota Housing Infrastructure Grant program; Downtown Historic District Property Preservation Program funding (four properties: $161,535, $6,750, $127,039, $245,185); Loom Apartments DMC project (up to $4,000,000 GSIA); and Aeon West Transit Village Phase 1 (up to $3.9 million GSIA and $4.9 million TIF).
- Items F10 and F15 were pulled; F16 was pulled by Councilmember Palmer. F15 and F16 were later approved under separate votes (H5 and H6).
Public Comments & Testimony
- Rebecca Goneway: Described difficulty with a catastrophic repair bill and inability to find good contractors. Requested assistance for herself and neighbors.
- Mark Iverson: Highlighted loss of tree canopy in Sunset Terrace, lack of boulevard trees at Valley High Post Office and Gage School. Urged attention to older neighborhoods.
- John Holper (attorney, Bassford Remley, representing ICON LLC): Objected to consent item F10, stating ICON was the low responsive bidder ($42,729.14 less than next bid) and that staff incorrectly deemed the bid unbalanced. Asked for rebid or deferral.
- Kenny Iverson: Raised concerns about the Lemon Hill Solar Project (windmills) in Haverhill and Viola, acknowledging it is outside city jurisdiction but seeking feedback.
- Susan Chase (Senior Vice President, Biolabs): Expressed support for the shared lab project at Discovery Square, describing Biolabs as an international operator of 17 lab spaces. Cited potential for Rochester to become a hub for life science innovation.
Discussion Items
G1 – Major Land Subdivision: Flowing Brook Valley (Build Wealth Inc.)
- Proposal to subdivide 98.67 acres into 37 residential lots (34 duplex/triplex, one 12-unit apartment, one community center lot, one common lot). Discussion focused on the decor edge (geological feature) and environmental risks.
- Applicant described extensive soil borings (100+ probes) and a decor edge analysis certified by Olmsted County. Public Works confirmed modern standards (under drains, rock features) mitigate risks.
- Councilmember Keene noted past development failures in the area and inherent environmental risk.
- Approved with five conditions. Passed 6-0.
G2 – Vacation Petition (Onward Investors)
- Proposed vacating portions of 4th St NW, 5th St NW, and alleyways to assemble land for a 270-unit affordable housing project. The project is pursuing state tax credits.
- Approved with two conditions. Passed 6-0.
G3, G4, G5 – Growth Management, Comprehensive Plan, and Annexation for Sports Complex
- Three related applications for a future regional sports complex in SE Rochester.
- G3: Reclassify 145.5 acres from “Urban Expansion Beyond 2050” to “Near Term Urban Expansion” (supermajority required).
- G4: Comprehensive Plan Amendment – change 136.27 acres to Medium Density Residential, 9.23 acres to Commercial and Business Development, and 12.7 acres from Industrial to Commercial and Business Development (supermajority required).
- G5: Annexation of 158.2 acres with MXG (21.94 acres) and R-3 (136.27 acres) zoning. Approximately 95-100 acres for the sports complex; 7-12 acres potentially sold for residential.
- All three items passed 6-0.
H1 – 2026 State Bonding Priorities Resolution
- Staff presented three ranked priorities: (1) Airport Parking Infrastructure & Energy Components, (2) East Zumbro Sewer for Housing Opportunities, (3) Planning for Civic Center Drive/South Broadway Ave.
- Council discussed consistency, the need to meet a June 13 submission deadline, and the possibility of a 2025 special session. Councilmember Keene moved to adopt the resolution as presented, emphasizing the importance of maintaining prior commitments. The motion passed unanimously.
H2 – BioLabs Shared Lab Space Project
- Approved as a DMC Public Infrastructure Project with up to $8,000,000 in GSIA. Also authorized the Mayor to sign an MOU for the creation, launch, and long-term operation of BioLabs Rochester.
- Project expected to house 20-25 companies employing 70-80 people at full occupancy, host at least 50 companies over 3-5 years, and increase clinical trials. A clawback provision will protect the city investment.
- Passed unanimously.
H3 – Development Agreement with Mayo Clinic
- Satisfies conditions from the November 2024 vacation of 3rd and 4th Avenues SW. Includes: easements for utilities, underground stormwater vault, 8-foot public passageway (6:30 AM – 10 PM daily), restoration of north-south bike connectivity (maximum cost $480,000 based on Broadway cycle track), and intersection improvements at Civic Center Dr NW/6th Ave NW.
- Council confirmed the passageway is a through-connection for the public, not just between Mayo buildings.
- Passed unanimously.
H4 – 4th St SE and 19th Ave SE Intersection Improvements (Rebid)
- Following bid protest from ICON LLC, staff recommended rejecting all bids and authorizing a rebid (bid opening July 8, 2025). Staff stated they did not agree with ICON's claims.
- Motion to reject all bids and rebid passed unanimously.
H5 – Downtown Historic District Property Preservation Program Funding
- Approved four grants: 216 1st Ave SW ($161,535), 326/328 South Broadway ($6,750), 22 3rd St SW ($127,039), 324 South Broadway ($245,185).
- Program has stimulated nearly $3 million in private investment. A review of criteria is planned for September DMCC meeting.
- Passed unanimously.
H6 – DMC Development District Boundary Modification
- The main motion to modify the boundary passed unanimously.
- Councilmember Palmer offered an amendment to instruct staff to start the process for including the North Broadway park-and-ride in the DMC district. After discussion, the amendment was withdrawn but later resubmitted as a separate motion.
- The separate motion to start the inclusion process failed 3-3 (Keene, Miller, Schuberg opposed; Wall, Fredericks, Palmer in favor).
J1 – Ordinance First Reading: Annexation by North Rock Real Estate (33.56 acres)
- Received and filed. Passed.
K1 – Ordinance Second Reading: Gas Franchise
- Adopted unanimously.
K2 – Ordinance Second Reading: Annexation by Danielson Farms and Stark Enterprises (67.77 acres)
- Adopted unanimously.
Key Outcomes
- Consent agenda approved with one dissenting vote on F4. F10 pulled and later resolved via rebid. F15 and F16 approved under separate items.
- G1 (Flowing Brook Valley subdivision) approved (6-0).
- G2 (street vacation) approved (6-0).
- G3 (Growth Management Map Amendment) approved by supermajority (6-0).
- G4 (Comprehensive Plan Amendment) approved by supermajority (6-0).
- G5 (Annexation for sports complex) approved (6-0).
- H1 (2026 Bonding Priorities) adopted as presented (unanimous).
- H2 (BioLabs) approved with up to $8M GSIA and MOU authorization (6-0).
- H3 (Mayo development agreement) approved (6-0).
- H4 (Rebid for 4th St/19th Ave) approved (6-0).
- H5 (Historic district grants) approved (6-0).
- H6 (DMC boundary modification) main motion approved; separate motion to include park-and-ride failed (3-3).
- J1 received and filed; K1 and K2 adopted.
Meeting Transcript
Limited time. We want to make sure that others have an opportunity to speak. I'd also request that each speaker be concise to allow more uh people to speak during open open comment. Uh participants are also encouraged to limit comments generally to topics that are within the scope and jurisdiction of the council's ability to affect policy. Council members and staff do not respond to your comments during public comment, but will instead follow up on any specific requests separately. If you have materials to share with the council, you may give them to the city clerk over here to my right. And with that, I will call up our first speaker, Rebecca Goneway. Can you hear me okay? Okay. But when we come up with a catastrophic repair bill such as this, um it really it puts us in a bind where we can't find um good contractors. If we could come up with a way to assist myself and my neighbors so that we don't have this problem. that they have this problem right now but it's highly unsanitary and I would like to see if we could get some thank you uh next we have Mark Iverson hey uh city council uh it's a similar complaint or well I live in Sunset Terrace and uh um we used to have a beautiful tree canopy and it's uh gradually just going away um all the maples were planted too deep and they got root girdle so they're all gone uh the ash trees of course have been removed um but specifically the post office has no boulevard trees the Valley High post office uh sunset terrace has three boulevard trees it's a whole city block it's uh um and then many of the streets are uh are uh um don't have any replanted boulevard trees the same is true for gauge school they they have no trees around that school um it's just like we're gonna make downtown shiny new but the older neighborhoods are our streets are pretty bad too they're just we need some attention um and I'm sure that other people here feel the same way thank you next we have John Holper good evening uh my name is John Holper and I'm an attorney with the law firm of Bassford Remley in Minneapolis and I'm here on behalf of Icon LLC specifically we're here in connection with ICON's objection to consent item F10 which proposes to approve a construction contract with Pender companies for the Fourth Street Southeast and 19th Avenue Southeast intersection project and this afternoon I sent a letter to the city the council uh to all interested parties laying out Icon's position and objection to the council moving forward as a consent item I won't repeat all that but real briefly from ICON's perspective it was and is the low responsive bidder its bid is 42729 dollars and fourteen cents less than the next lowest bidder to whom the council is being asked to award a contract to our perspective staff did not follow the proper analysis when reviewing the bids um staff's conclusion that the proposal or the bid was unbalanced was incorrect there is no mention of the actual formula that law requires to be applied in order to determine an unbalanced proposal specifically a mathematical analysis and that the contract is materially unbalanced the proposal or the the bid that was submitted by my client was balanced regardless if there was what is called penny line items those are not uh inappropriate or uh not allowed in connection with public bidding in fact the city council has approved prior Mr Hopper Holper if you can wrap up sure I will has approved previous contracts that had that same process in them I will wrap up I would just ask two things that the council uh not move forward uh with approving the contract and submit the project out for rebid or alternatively that the council at a minimum uh push this to a next uh the next council meeting with a full opportunity to thank you thank you next we have I I might screw up your first name it looks like Ken Iverson Peterson Everson I do have some items here do I want to uh clerk over here thank you I'm Kenny Iverson I am out of the jurisdiction so I'll give you that right off the bat um what we're what I'm here about is is information for you guys and maybe we can get some feedback back this is in uh regards to the Lemon Hill Solar Project Haverhill and Viola they're coming in with windmills um wondering how city of Rochester likes the eastern view to look like Dexter um so I dropped off some maps there's some contact information there again I realize it's out of your jurisdiction but we'd be glad for some feedback if that was something that we could get from you some direction some help with some things mainly on a verbal uh just to give us some ideas thank you for your time thank you next So I dropped off some maps there. There's some contact information. There again, I realize it's out of your jurisdiction, but we'd be glad for some feedback if that was something that we could get from you. Some direction, some help with some things, mainly on a verbal just to give us some ideas. Thank you for your time. Thank you. Next we have Susan Chase. Good evening. My name is Susan Chase, and I'm the senior vice president for Biolabs in Cambridge, Massachusetts. It's my privilege to be here this evening to speak with you about the we're in support of the shared lab project at Discovery Square. For those of you not familiar with Biolabs, we are an internationally recognized operator of shared lab spaces for early stage science-based startup companies. We pair premium, fully equipped, supported lab and office space with access to capital and industry partners. We currently operate in 17 sites in Japan, the US, Germany, and in France. In the 15 years since our founder, Johannes Fouhoe, a physician, scientist, and entrepreneur founded Biolabs and then Lab Central, we have operated with a single goal. We set out to redefine how life science companies and startup ecosystems were built and how they served the greater mission of our empowering companies to accelerate their science, grow their businesses, and have a lasting impact on the world. We believe that Rochester offers great potential to become a central hub for research and innovation within the life science industry, and we're excited to be involved in this project with this caliber of world-class partners. The state of Minnesota, DMC, Mortensen, and Mayo Clinic. We look forward to working with these partners on the design, operation, and governance of the site. And should it be appropriate this evening? We're happy to answer any questions. I'm here with my colleague Gary Olsom. Thank you. Thank you, Ms. Chase. That is all the folks that have signed up for uh open comment. So I will close open comment and uh ask Clerk Caseel to call the roll. Good evening. Councilmember Keene. Here. Councilmember Miller. Here. Councilmember Wall. Here. Councilmember Fredericks. Here. Councilmember Palmer. Here. Councilmember Doring is absent.
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