Waconia City Council Regular Meeting on March 2, 2026

Mayor Tim Litfin and Council Member Derek Siddons were absent. Mayor Pro Tem Jeff Grengs called the meeting to order at 6:00 PM and adjourned it at 7:00 PM. The central focus of the evening was a public hearing on an annexation petition, which was ultimately tabled to the April 20, 2026 meeting. The Council also awarded the Downtown Phase 4 reconstruction contract, initiated the preliminary work for the 2027 Sugarbush Neighborhood Street Construction Project, and approved a 13-item consent agenda.

Consent Calendar

• The Council approved the Consent Agenda by a single motion. The 13 routine items included: approval of the February 19, 2026 meeting minutes; approval of March 2, 2026 expenditures; adoption of the 2026 Capital Equipment list; awarding a contract for Island View Estates Park site improvements; resolutions supporting grant applications for the Pickleball Courts and Sudheimer Park projects; accepting a donation and pass-through recommendation from the Waconia Fire Relief Association; accepting cash donations for Fire Department operations; approving the Elm Creek Ridge Development Agreement; approving a 5-year copier/scanner lease; authorizing recruitment for a Park Maintenance Lead position; and issuing special event permits for the Memorial Day Parade and the Lake Waconia Band Festival.

Public Comments & Testimony

• Casey Wollschlager, Summergate Developers (representing the applicant property owners): Mr. Wollschlager stated that staff had indicated both parcels should be annexed simultaneously, but that another developer, Jason Palmby, purchased the central 5-acre parcel (1705 Waconia Parkway South) ahead of his clients. He asserted that the landowner group has had a negative experience with Mr. Palmby and feels it is unfair to require them to work with him. Mr. Wollschlager expressed his belief that the City is "falling into the trap" of Mr. Palmby and indicated that securing a "place in line" for future water capacity is the applicants' primary concern. He noted that the property owners are willing to wait for capacity but want the annexation completed to secure their position.
• Mike Klingelhutz, Laketown Township: Speaking for the Klingelhutz family, Mr. Klingelhutz noted the property division was created by Carver County. He stated the petition represents approximately 30 of the 35 acres proposed for annexation, or roughly 85% of the total area. He cited historical examples of annexations that proceeded without 100% consensus and characterized concerns about livestock on the remaining 5 acres as speculative, requesting Council approval.
• Bob Burandt, Waconia resident: Mr. Burandt stated he has lived in Waconia for 80 years and previously donated land for city projects (Oak Avenue Extension, Community Drive, a pathway) without compensation. He expressed concern that if the annexation is denied, the property owners may be forced to sell to Jason Palmby, which he does not believe is fair or democratic.
• Neil Klingelhutz, Victoria: Mr. Klingelhutz encouraged the Council to approve the annexation, stating it is the right location and right time except for the five-acre parcel. He suggested that if the property owners are willing to proceed despite the complication, the city should give them the opportunity to move forward.

Discussion Items

• Annexation Petition (Wolter and Klingelhutz): Community Development Director Lane Braaten presented staff analysis, explaining the annexation request was premature as it excluded the 1705 Waconia Parkway South parcel, creating an inefficient growth pattern and potential code enforcement conflicts. Public Services Director Jon Haukaas noted significant utility hurdles, stating the development would need to wait until additional municipal wells are operational (anticipated 2027 or 2028) and that off-site sewer improvements would be needed. Council Member Jacob Coleman identified water and sewer capacity as his primary concern. Council Member Nick Gleason agreed, stating it was inappropriate for the landowners to be pressured to sell to one specific developer. Mayor Pro Tem Jeff Grengs noted he had been leaning toward denial but is a strong proponent of landowner rights, acknowledging the process could continue for years. In response to a query, Mr. Braaten clarified that once a property is annexed, if a development application meets all standards and zoning requirements, the city has a legal obligation to approve it. This led the Council to table the item to allow staff to draft language tying development timing to the availability of utility capacity.
• 2026 Downtown Reconstruction Phase 4: Jon Haukaas reported that five bids were opened on February 24th. The low bid from GMH Asphalt Corporation ($3.8 million) is approximately 18% below the Engineer's Estimate and 10% below the next lowest bid. The project involves total reconstruction in three stages: Stage 1 (First Street) from May 4th to July 11th, Stage 2 (Elm Street and 2nd Street) from July 6th to August 28th, and Stage 3 (Pine Street removal) after Nickle Dickle Day with completion by mid-November 2026.
• 2027 Sugarbush Neighborhood Street Construction Project: Jon Haukaas presented the initiation of the preliminary investigation for the next planned neighborhood reconstruction, identified in the adopted Pavement Management Plan. The area includes the Sugarbush Lane loop, a segment of Dunsmore Drive, and five cul-de-sacs (Tamarack, Honeysuckle, Butternut, Hickory, and Barbary). Staff committed to significant public outreach, including project boards and a neighborhood meeting before formal public hearings.
• Board Reports: The Land Use Summary for 2025, presented by Lane Braaten, was tabled to the March 16, 2026 City Council Meeting so the director could present imagery along with the report.
• Announcements: City Administrator Shane Fineran recognized Jeff Hilgers, who is retiring after 23 years of service with the City, having worked from the Street Department to Utility Maintenance.

Key Outcomes

• Annexation Petition Tabled: A motion by Council Member Coleman, seconded by Council Member Gleason, to table the Wolter and Klingelhutz Annexation Petition to the April 20, 2026 City Council Meeting carried. The Council directed staff to bring back revised language that would condition future development on the availability of adequate water and sewer capacity.
• Downtown Phase 4 Contract Awarded: The Council adopted Resolution No. 2026-073, authorizing the award of the Downtown Phase 4 Reconstruction project contract to GMH Asphalt Corporation.
• Sugarbush Project Initiated: The Council adopted Resolution No. 2026-074 (authorizing survey and geotechnical review) and Resolution No. 2026-075 (ordering a feasibility study and assessment benefit evaluation) for the proposed 2027 Sugarbush Neighborhood Reconstruction Project.
• Consent Agenda Approved: The 13-item consent agenda was adopted in a single motion.
• Land Use Summary Tabled: The 2025 Land Use Summary was tabled to the March 16, 2026 meeting.
• Meeting adjourned at 7:00 PM.