OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

City Council Meeting Summary: November 3, 2025

City Council — Monday, November 3, 2025
BodyRochester, Minnesota
SessionCity Council
DateMonday, November 3, 2025
StatusFILED
Video Record
0:00 / 4:28:07

Transcript — Verbatim
0:00

Clerk Caseel, do you have the sign-in sheets?

0:40

Please rise as you're able for the Pledge of Allegiance.

0:47

I find it allegiance to the United States of America.

0:52

And you're public relations and for all.

1:04

Welcome everybody to our November 3rd, 2025 City Council meeting.

1:15

This is an opportunity for anyone from the public to speak on items that we will not be taking public testimony during a public hearing later this evening.

1:25

Each person has up to two minutes to speak for a total of 20 minutes.

1:29

I will be keeping track of time through two methods.

1:33

One the red uh timer up on uh to my left, and then the stoplight here.

1:41

When it reaches yellow, you have one minute left.

1:46

Um I'd also request that each speaker be concise to allow more people to speak during the time period.

1:53

Uh participants are also encouraged to limit comments generally to topics that are within the scope and jurisdiction of the account the council's ability to affect policy.

2:05

Council members and staff do not respond to your comments during public comment, but will instead follow up on any specific requests uh separately.

2:15

If you have materials for the council, please give them to the city clerk who is to my right to distribute.

2:22

You will be invited up in the order in which you signed up.

2:27

Please state your name clearly and make sure the clerk has your information if you need follow-up.

2:32

We'll start with Grace Pesh.

2:41

Hello, Council members.

2:43

My name is Grace Pesh.

2:44

I live at 1436, 13th Avenue Northwest in Rochester.

2:48

Thank you for the leadership that you provide both during times of visible and invisible crises.

2:54

I serve as the Vice President of Community Impact at United Way of Southeast Minnesota, and I have the privilege to serve at an organization that has dedicated the last 100 years to responding to the greatest needs across our community.

3:06

Since 2001, 211 has been a critical resource for your constituents to get connected to the help they need.

3:13

At United Way, we have been remaining engaged in the latest updates related to the shutdown, and now more than ever, our community needs to know about 211.

3:22

With the ability to call or text 24-7 and talk with someone in your native language 365 days a year.

3:33

In our area alone, 5,000 callers are connected to critical resources each year.

3:39

And I ask that you tell your constituents about how 211 can help them.

3:43

While today people are preparing to lose access to food resources, tomorrow our community may need something different.

3:49

And your staff along with staff at other nonprofits in our community are working hard to keep their information up to date in our database.

3:56

And without that up-to-date information, people can get defeated and lost in the system.

4:08

She talks to a two-on-one staff member to find and they uncover a few other resources that may help her, from child care assistance to mental health care.

4:17

While she called for food, she ended that call with several new opportunities for her and her children.

4:22

When we invest in two one-one, we invest in the future of our community.

4:26

Thank you for your time.

4:28

Thank you.

4:28

Next up we have Barry Skullnick.

4:36

Hi all.

4:37

Nice to see everybody.

4:40

I'm really talking about two things, but the most important one right now is the Big Sky North Coast Railroad Road, which is I too on the agenda.

5:00

And I think it's a shame that Mayo Clinic, which is one of the major institutions for health care in this country doesn't have a railroad where patients can come in.

5:08

A railroad usually has a restroom facilities and has a more comfortable ride.

5:14

And not everyone can come in by plane.

5:16

Some people do want to come in, you know, by train.

5:18

And I just think it's extremely important that we have a railroad here because again, we're one of the only major facilities that doesn't have a railroad around.

5:28

And it's more comfortable, I think it's more usable.

5:31

Also, the Amtrak ridership has gone up not only nationally, but also in Minnesota, both the people getting on the train and off the train at Amtrak has gone up each of the last fiscal years, both in Minnesota and nationally.

5:47

So it's a an improving trend, and I I think it's something we should seriously consider doing.

5:53

I think it's very, very important to have that.

5:55

And even the city of Duluth is trying to get a train up there.

5:59

I was researching that too, and they're ahead of us, so I think we should catch up with us.

6:03

They don't even have a major medical center there like we do nationally.

6:06

I do think we should have it, and I urge you to do that.

6:10

And uh the only other thing I was going to mention when it comes to the um the thing with the um air quality meters.

6:18

Yes, what's there is something that's happening now, but it's not easily usable for many people.

6:28

Uh that's basically my only point there.

6:30

I we have to use that because we we have all those installed, and it's very hard to find what you need online.

6:36

Anyway, thank you very much.

6:38

Thank you.

6:39

Uh next up we have uh Martha Grogan.

6:45

Good evening, uh Mayor and Council members.

Discussion Breakdown — Share of Meeting
Historic Preservation██████████████████████████████30%
Public Engagement██████████10%
Library Funding████████8%
Libraries Funding███████7%
Procedural██████6%
Economic Development██████6%
Community Development Block Grant█████5%
Public Transportation████4%
Food Access███3%
Summary of Proceedings

City Council Meeting Summary: November 3, 2025

The November 3, 2025 City Council meeting addressed three primary public hearings regarding the removal of historic landmark status for three downtown properties, the reconstruction of Center Street East involving special assessments, and the adoption of the 2026 Community Development Block Grant (CDBG) action plan. The meeting featured significant public testimony concerning economic hardship claims, historic preservation values, tree canopy loss, and emergency food security needs due to a federal government shutdown. Key council actions included the denial of historic landmark removal, the reconsideration and approval of the Center Street project, and the allocation of city funds to supplement food assistance for residents affected by federal benefit disruptions.

Consent Calendar

  • The consent agenda was approved unanimously with no polled items raised. This included routine approvals and administrative actions typical for the month.

Public Comments & Testimony

  • Grace Pesh (United Way): Expressed full support for continued investment in the 211 information and referral service, emphasizing its critical role in connecting 5,000 callers annually to resources like child care and mental health care, especially as constituents face food resource losses.
  • Barry Skolnick: Expressed strong support for adding railroad service to Rochester, citing the lack of rail access for major institutions like Mayo Clinic compared to other cities, and noted the improving trend in Amtrak ridership. He also voiced concern regarding the usability of the city's air quality meters.
  • Martha Grogan: Expressed support for the train service proposal, noting the historical instrumental role of the train in building Mayo Clinic and advocating for alternate transportation modes.
  • Virginia Witherspoon (Channel One): Urged the council to support the food shelf with a $100,000 grant and the mobile market project, citing a dire situation with 10,000 household visits per month and a recent surge of 100 daily visits due to anticipated SNAP disruptions. She emphasized the necessity of maintaining the partnership for mobile markets.
  • Eric Decker (Cutsky Park Association): Expressed concern that the city's neighborhood feedback process for developers is insufficient, recommending that the council ensure community feedback is actually incorporated into development decisions rather than treated as a procedural formality.
  • Cameron Mullen (Cutsky Park Association): Expressed frustration regarding slow responses from Mayo Clinic following their West Logistics Center meeting. He urged the council to advocate for improvements to the project, specifically regarding air/noise pollution control for trucks, traffic disruption, and adherence to neighborhood guidelines.
  • Trevor Boget: Advocated for the city to add consumer protections for self-storage rentals, proposing caps on rent increases (e.g., one increase every six months) and requiring advertised prices to remain the actual paid price, citing a personal experience of an 84% unexpected rate hike.
  • John Creasel: Shared a personal experience of predatory self-storage practices and expressed full support for the restoration of historic Pullman cars for patient transport to Rochester.
  • Kevin Mullen (Cutsky Park Association): Reiterated concerns regarding the West Logistics Center, specifically the lack of response from Mayo Clinic and the need to address semi-truck traffic and air quality.
  • Barry Skolnick (Public Hearing G1): Expressed strong opposition to removing the landmark status of the three properties, arguing they are historically significant to Rochester's commercial history and that the economic hardship claim is unsupported by staff and the Heritage Preservation Commission (HPC).
  • Barb Hudson: Expressed full support for historic preservation, stating that history has no price and urging the council not to allow economic hardship to override community values established over 13 years of district development.
  • Martha Grogan (Public Hearing G1): Expressed concern that allowing the removal of landmark status sets a dangerous precedent that threatens the entire downtown business district and heritage preservation efforts, comparing the situation to the economic pressures faced in European historic cities.
  • John Creasel (Public Hearing G1): Expressed strong opposition, stating the soul of Rochester is at stake, and criticized the applicant's rhetoric that the buildings lack historical significance. He supported the HPC's unanimous recommendation to deny the request.
  • Benjamin Zastro: Expressed opposition to the removal, noting that the applicant's financial documents lacked standard disclosures ("no assurance"), included unrelated property data, and failed to prove routine maintenance, suggesting the hardship was caused by "demolition by neglect."
  • Ahmed Elkit Halef (Bahia LLC/CEO): Argued that preserving the facades and history is part of their intent, but economic constraints regarding the purchase of the remaining 23% of the block prevented their prior large-scale project, necessitating the removal request to allow for redevelopment.
  • Bunny Kato Camp (History Center): Expressed full support for the historic designation, correcting the record on the history of Mayo Clinic and the Oddfellows building (where Dr. Mayo's father was a member), and criticizing the applicants for attempting to re-litigate historic significance after previously paying to develop the properties.
  • Bobby Pritt: Expressed concern that removing the properties would void the nature of the historic district and set a dangerous precedent for using economic hardship loopholes.
  • Kevin Fleming (Center Street Hearing): Expressed strong opposition to the Center Street reconstruction assessments, citing defective notice (received on the day of the meeting) and arguing that the assessment amount exceeds the increase in market value.
  • Kara Ongyu (East Side Neighborhood Association): Expressed strong opposition to the tree removal and the cycle track, arguing the existing bike path is sufficient and that the project threatens the neighborhood's sense of place and tree canopy.
  • Sean Kettlecamp: Expressed opposition to the Center Street project, stating there is no need to rip up the street or plant a redundant cycle track when a bike path already exists.

Discussion Items

  • Historic Landmark Removal (7, 21, 23 2nd Street SW): The applicant (Capital Ventures/Bahia LLC) presented a case for economic hardship, citing negative net incomes (over $3.1M cumulative loss) and cap rates far below market norms (negative rates vs. 5.5-7% market average). Legal counsel argued the buildings lack unique cultural significance compared to Mayo's story. Staff and the HPC recommended denial due to insufficient evidence of hardship and potential "demolition by neglect" regarding deferred maintenance. Staff clarified that removing the designation would allow redevelopment but would not legally bind the applicant to the specific facade preservation plans shown during the presentation.
  • Center Street Reconstruction (J 7348): Staff presented the plan to reconstruct the street from Zumbro River Bridge to 11th Ave, including utility upgrades (water mains 1887, sewers early 1900s), a cycle track, and roundabout. The project requires a 4/5 supermajority for the improvement order. Public commenters objected to the removal of 26 mature trees and the special assessment rates. Staff clarified that while trees will be removed due to utility conflicts, a 1:1 or 2:1 replacement ratio is planned, and the assessment covers 25% of the street cost while utilities pay the rest.
  • 2026 CDBG Allocations: Staff proposed the 2026 Annual Action Plan, prioritizing affordable housing and public services. An amendment was proposed to divert $20,000 from Catholic Charities to the Salvation Army for security and rental assistance. The amendment failed (4-3) due to concerns about bypassing the established steering committee rubric, but the original plan was adopted.
  • Library Master Plan: The Library Board presented the 2025 Master Plan, proposing satellite locations, parking pilots, and accessibility upgrades (elevators, ramps). Council members expressed concern about the $11.7M+ capital costs and the lack of funding in the current CIP. A motion to "Adopt" was amended to "Receive and Adopt," reflecting a desire to support the vision without legally committing future funding, though the final vote passed 4-3.
  • Food Support (Council Initiative): Following testimony on SNAP disruptions and a federal shutdown, a resolution to allocate $100,000 from the contingency fund to Channel One was passed unanimously to support food and infant formula for affected residents.
  • Big Sky North Coast Railroad: Council Member Miller proposed directing staff to prepare a resolution requesting the Passenger Rail Authority to study Rochester as an alternative route alignment. The motion passed to direct staff to prepare the resolution for a future meeting.

Key Outcomes

  • Historic Landmark Removal: Motion to deny the request for removal of landmark status from 7, 21, and 23 2nd Street SW passed 6-1 (Councilmember Palmer voted nay). The properties remain contributing structures in the Downtown Commercial Historic District.
  • Center Street Reconstruction (Order of Improvements): The motion to order improvements and prepare plans failed on the initial vote (5-2) because it required a 4/5 supermajority (8 votes). Councilmember Palmer moved to reconsider the item. The reconsideration passed. Upon reconsideration, the motion to order improvements and prepare plans passed 7-0 (all present voted aye).
  • Center Street Reconstruction (Assessment Resolution): The motion to levy the proposed assessments passed 6-1 (Councilmember Fredericks voted nay).
  • 2026 CDBG Action Plan: The resolution approving the 2026 Annual Action Plan passed 6-1 (Councilmember Palmer voted nay).
    • Amendment: The amendment to redirect $20,000 from Catholic Charities to the Salvation Army failed 4-3.
  • Food Support Allocation: The motion to allocate $100,000 from the contingency fund to Channel One passed unanimously. A follow-up motion to enter a service agreement with disbursement schedules also passed unanimously.
  • Railroad Study Request: The motion to direct staff to prepare a resolution requesting the study of Rochester as a route for the Big Sky North Coast Corridor passed unanimously.
  • Library Master Plan: The motion to Receive and Adopt the 2025 Library Master Plan passed 4-3 (Councilmember Wall, Fredericks, and Palmer voted nay).
  • Adjournment: The meeting was adjourned.

Note on Discrepancy: The initial vote count for the Center Street improvement order was recorded as 5-2, which is insufficient for the required 4/5 supermajority. This was resolved via a motion to reconsider, after which the item passed with all seven members voting in favor. The summary reflects the final successful outcome of the reconsidered vote.

Meeting Transcript

Clerk Caseel, do you have the sign-in sheets? Please rise as you're able for the Pledge of Allegiance. I find it allegiance to the United States of America. And you're public relations and for all. Welcome everybody to our November 3rd, 2025 City Council meeting. This is an opportunity for anyone from the public to speak on items that we will not be taking public testimony during a public hearing later this evening. Each person has up to two minutes to speak for a total of 20 minutes. I will be keeping track of time through two methods. One the red uh timer up on uh to my left, and then the stoplight here. When it reaches yellow, you have one minute left. Um I'd also request that each speaker be concise to allow more people to speak during the time period. Uh participants are also encouraged to limit comments generally to topics that are within the scope and jurisdiction of the account 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 uh separately. If you have materials for the council, please give them to the city clerk who is to my right to distribute. You will be invited up in the order in which you signed up. Please state your name clearly and make sure the clerk has your information if you need follow-up. We'll start with Grace Pesh. Hello, Council members. My name is Grace Pesh. I live at 1436, 13th Avenue Northwest in Rochester. Thank you for the leadership that you provide both during times of visible and invisible crises. I serve as the Vice President of Community Impact at United Way of Southeast Minnesota, and I have the privilege to serve at an organization that has dedicated the last 100 years to responding to the greatest needs across our community. Since 2001, 211 has been a critical resource for your constituents to get connected to the help they need. At United Way, we have been remaining engaged in the latest updates related to the shutdown, and now more than ever, our community needs to know about 211. With the ability to call or text 24-7 and talk with someone in your native language 365 days a year. In our area alone, 5,000 callers are connected to critical resources each year. And I ask that you tell your constituents about how 211 can help them. While today people are preparing to lose access to food resources, tomorrow our community may need something different. And your staff along with staff at other nonprofits in our community are working hard to keep their information up to date in our database. And without that up-to-date information, people can get defeated and lost in the system. She talks to a two-on-one staff member to find and they uncover a few other resources that may help her, from child care assistance to mental health care. While she called for food, she ended that call with several new opportunities for her and her children. When we invest in two one-one, we invest in the future of our community. Thank you for your time. Thank you. Next up we have Barry Skullnick. Hi all. Nice to see everybody. I'm really talking about two things, but the most important one right now is the Big Sky North Coast Railroad Road, which is I too on the agenda. And I think it's a shame that Mayo Clinic, which is one of the major institutions for health care in this country doesn't have a railroad where patients can come in. A railroad usually has a restroom facilities and has a more comfortable ride. And not everyone can come in by plane. Some people do want to come in, you know, by train. And I just think it's extremely important that we have a railroad here because again, we're one of the only major facilities that doesn't have a railroad around. And it's more comfortable, I think it's more usable. Also, the Amtrak ridership has gone up not only nationally, but also in Minnesota, both the people getting on the train and off the train at Amtrak has gone up each of the last fiscal years, both in Minnesota and nationally. So it's a an improving trend, and I I think it's something we should seriously consider doing. I think it's very, very important to have that. And even the city of Duluth is trying to get a train up there. I was researching that too, and they're ahead of us, so I think we should catch up with us.

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