CITY OF WANAMINGO
City Council Regular Meeting
Monday, August 11, 2025, 7:00 P.M.
Wanamingo City Council Chambers – 401 Main Street
Wanamingo, MN
CALL TO ORDER: Mayor Holmes.
PRESENT: Council: Ryan Holmes, Eric Dierks (Late), Stuart Ohr, Rebecca Haugen, and Jeremiah Flotterud
City Administrator: Michael Boulton
Deputy Clerk: Laure Musselman
ABSENT: None
ALSO PRESENT: Brad Kennedy, Brandon Theobald – WHKS, Ole Olson, Joan Grove, Larry Grove, Ruthie Welgemoed, Jill Swenson, Beth Hass – Zumbrota News-Record, Goodhue County Deputy Brandon Snell, Cobus Peens, and Andrew Deziel – Kenyon Leader.
ADOPT AGENDA: Haugen motioned to adopt the agenda, seconded by Ohr. Passed 4-0-0.
CONSENT AGENDA: Ohr motioned, seconded by Flotterud. Passed 4-0-0.
PRESENTERS:
A) Brad Kennedy reported on:
1) Hauled ash pile from brush dump to Schumacher pit.
2) The new Bobcat L95 compact wheel loader is in at Lodermeier’s. The compact wheel loader will be delivered and paid for some time in September. The lease on the compact track skid loader is up in early October. Staff will need some time to wire the compact wheel loader to fit their needs before operational for attachments.
3) Both fluoride pumps at Well Number 3 were replaced. The two previous pumps are over ten years old. The new pumps are not working correctly and will need calibration by Hawkins (supplier).
4) Downtown siren repaired and serviced. Rented a lift from Sunbelt Rentals. Employee time and parts were donated. Two employees from Midwest Siren replaced the gear box for the siren to rotate. They also corrected the motor direction to blow air through the horn rather than suck air through the horn. It has more than likely been incorrectly sucking air rather than blowing since it was installed in the mid 1990's.
5) Rented brush cutting head attachment for skid loader from Olson Attachments to clean up around the edge of retention ponds.
6) Street Shop rehab project is coming along nicely. The roof, siding, salt/sand shed overhead door, and service door installations are complete. Sylvander Heating Inc. has been working on ventilation systems and office h-vac work. Romans Overhead Door, LLC, will be working on installing the two large overhead garage doors in the next week or two.
7) Installed No Trucks sign at the entrance to Prairie Ridge Estates on 9th Street to keep industrial park traffic from driving through residential neighborhood.
8) Mowed and trimmed along MN TH 60 & MN TH 57 ditch and utility poles. Mowed at the WWTP, community garden, undeveloped lot boulevards, and other various areas around town.
9) Repairs were made to the street sweeper including replacement of the compressor. Swept streets; the goal is to sweep Main Street weekly, the west side of town one week and the east side of town the next week on Wednesdays.
NEW BUSINESS:
RESOLUTION:
PUBLIC HEARING - Conditional Use Plan (CUP) Request – Daycare Center Business in R-2 Residential District: Mayor Holmes opens the public hearing at 7:04PM. Olson stated that the building permit had been taken out and work has commenced by removing windows and installing required emergency exit doors in the Daycare area. There is also work being done on the wall in the Daycare rooms. An open house is planned for September 6th. Notices are planned to be mailed out regarding the open house. Olson stated that they have had great support from the community at large and the City. Olson stated that he is overwhelmed by the need for daycare in the area. Olson stated that there is roughly a 7–8-year plan to upgrade and improve the facility. Ruthie Welgemoed will be running the facility and managing the daycare operation. They plan to have the gym open for basketball league, starting in September. Ohr asked if pickleball will be open to the public in the future at the gym. Welgemoed stated that they are working on having the gym open to cater to older citizens in the mornings while being open to younger citizens in the evenings. Olson stated that the playground equipment is planned to be replaced. Welgemoed stated that they had reached out to the KW School District and had offered the location as a pickup/drop-off site for busing. No other public comments were provided. Mayor Holmes closing public hearing at 7:10PM.
25-051 = Approving Zoning (Daycare Center Business) Conditional Use Permit (CUP) for Ole Olson located at 225 3rd Avenue: Ohr moved to approve, Seconded by Haugen. Passed 5-0-0.
25-052 = Certifying Proposed Tax levy for 2026: Dierks moved to approve, seconded by Haugen. Boulton reminded the Council that once the proposed 2026 tax levy is certified that it cannot be raised. Boulton stated that the Council will consider a final 2026 tax levy in December that can be equal to or lower than the proposed tax levy. Boulton stated that the 5.13% proposed levy increase is from $1,170,000 to $1,230,000. Boulton stated that the Caseys remodel increased its taxable value by an estimated $15,000 in 2024. This would bring in roughly $615 (slightly less than half City portion) in property taxes (0.041). New construction within the community over the last year (3 new taxable homes in 2024) should aid with the increase to the taxable market value increase. The new construction should offset roughly 1/10 of the proposed levy increase (0.5% of the proposed 5.13% increase). Administrator Boulton shared concerns with continued inflation and meeting capital needs while balancing property taxes from rising too quickly. Boulton shared concerns with lack of real growth in 2024 that will affect the 2026 taxable market value not increasing. Boulton stated the much of any increase in the levy would fall to the existing property taxpayers. Boulton stated that the proposed levy increase helps to cover cost increases from wages, health insurance, public safety (police, fire, and ambulance), 2026 election administration, deputy clerk position to full time, Minnesota Paid Leave tax increase, and Riverside Park parking lot rehab. Passed 5-0-0.
25-053 = Adopting a Proposed Budget for 2026: Flotterud moved to approve, seconded by Ohr. Passed 5-0-0.
25-054 = Setting Date for Public Hearing and Continuation for 2026 Budget Adoption: Haugen moved to approve, seconded by Flotterud. Passed 5-0-0.
25-055 = Approval to Transfer Up to $28,844.00 from Operating Reserve to SEMMCHRA for 2025 Projected Vacancy, Marketing, and Capital Expenses: Ohr moved to approve, seconded by Dierks. Boulton stated that $28,844 is from operating loss and capital purchases. Boulton stated that the City is levying $25,000 in 2025 which would bring the $50,000 reserve to $48,846 in August 2025. Boulton stated that the City would be levying $25,000 in 2026 which will cover 2025 operating loss and additional capital needs while bringing the $50,000 back in line. Passed 5-0-0.
25-056 = Approving Combination of Parcels: Ohr moved to approve, seconded by Flotterud. Boulton stated that the request complies with the requirements of applicable zoning codes in the R-2 Residential District. Passed 5-0-0.
25-057 = Approving and Authorizing Execution of a Stormwater Maintenance Agreement with AMC Wanamingo, LLC: Haugen moved to approve, seconded by Dierks. Theobald started that the proposed stormwater pond and maintenance agreement would help keep the City in compliance with NPS. The City would notify AMC Wanamingo, LLC or future owner (Dollar General) when the ponds need maintenance. If the owner does not have the maintenance completed, the City could have it completed and assess the property owner. Passed 5-0-0.
PUBLIC HEARING - Preliminary Plat of Wanamingo School Addition: Mayor Holmes opened up the public hearing at 7:22PM. Theobald stated that he had reviewed the proposed preliminary plat and had made recommended changes. Theobald stated the engineering conditions are unique. Theobald also had made recommendations on conditions for approval. 1. The conditions should include complying with all comments and requirements of the City Engineer. 2. Development fees shall be charged to new residential lots. 3. Installation of private services (water and sewer) and restoration of the roadway shall be required as part of the plating. Construction details shall be provided to the City for review. A development agreement shall be required to address the construction. 4. The Owner and Contractor will be required to have a pre-construction meeting with the City prior to the installation of utilities. 5. Monuments disturbed/missing shall be set at the end of construction. 6. Utility easements shall be conveyed for the existing utilities. 7. Access easements shall be conveyed for access to the pool property. 8. The south side of Third Street is believed to be existing platted right-of-way and is not needed to be part of the plat. 9. Outlot A does not need to be part of the plat if ownership of the parking lot is retained by the School District. 11. The water service to the ice rink shall be capped at the main and the hydrant salvaged to the City. 12. The Applicant shall pay all fees and costs incurred by the City as related to the development and associated applications. 12. All representations, written and oral, made by the Applicant contained in and concerning the application must have been true, complete, and accurate at the time they were made. 13. The Applicant is always complying and remains in compliance with all applicable laws, rules, regulations, and agreements concerning the Property for which this approval is granted. Boulton stated that the School intends to sell the parking lot to the purchaser. Holmes asked about use of parking lot. Larry and Joan Grove stated that they have concerns with the liability in the parking lot and surrounding public use area. Theobald stated that if the purchaser is buying the parking lot, the school intends to continue to utilize the lot for sporting activities, and the City will need to utilize the parking lot for the swimming pool. Theobald stated that the parking lot, which also includes the street, will have parking for all three parties. Theobald recommends a use and maintenance agreement be made between the School District, Purchaser, and City for Outlot A, parking lot. 10 The shed is encroaching on public right-of-way. Boulton stated that he would be reaching out Patrick Heiderscheit, the new Kenyon-Wanamingo superintendent, regarding the development agreement and parking lot maintenance/use agreement. Boulton stated that after the meeting with the superintendent that he would work with Kennedy & Graven law firm to put together the development agreement along with the parking lot maintenance/use agreement. No other public comments were provided. Mayor Holmes closing public hearing at 7:35PM.
25-058 = Approving Preliminary Plat – Wanamingo School Addition: Ohr moved to approve amended resolution to include maintenance and use agreement for Outlot A, Seconded by Flotterud. Passed 5-0-0.
OLD BUSINESS:
Administrator Boulton provided a Wanamingo school site redevelopment update. The Kenyon-Wanamingo School District agreed to a purchase agreement sale of the Wanamingo Site on May 9th. Since the end of May the City has been working on numerous legal and financial questions with the purchaser. The property is zoned R-2 Residential and would not allow any of the proposed uses. The school property is carved up into multiple parcels that require a re-plat. The re-platting has several layers involved including requirements for dedicating easements and installation of utilities. The tax implications for the building as it currently stands make it financially unfeasible for a private end user. The City has been working on valuations and Tax Increment Financing (TIF).
At the direction of the Council the City staff worked with the City Attorney to draft Ordinance #211 – to allow daycare business as a conditional use. The first reading of the ordinance was in June while the second reading and public hearing were held in July. The City Council approved the ordinance at the June City Council meeting. A conditional use application was submitted soon after approval of the resolution. The City Council approved the conditional use application at tonight’s City Council meeting. City staff are working with the City Attorney to draft Ordinance #212 – creating commercial mixed use zoning district. It is planned to have a first reading in September with a second reading and public hearing at the October City Council meeting. This ordinance change will help meet the commercial related list of potential uses that the purchaser may wish to work into the building use. The city attorney has not yet found a way to work in residential with the proposed commercial uses. These two uses are considered incompatible uses. It would be different if there were multiple floors where each floor had different zoning. The Wanamingo school site is located on one floor.
Kenyon-Wanamingo school district hired Dave Rapp, of Rapp Surveying, to work on the re-plat for the school site from 3rd Avenue to Hill Avenue and from 2nd Street E to the existing parking lot and abutting up to the swimming pool and mobile home court. The City engineer reviewed the original draft and provided comments and recommended conditions. Some of the conditions include dedicating easements, installation of private utility services for future residential lots along Hill Avenue, and installation of property monuments. The City Council held the public hearing on the proposed plat at tonight’s City Council meeting. The City Council amended the conditions and approved the preliminary plat. The final plat will be considered at the September City Council meeting after the conditions are met from the preliminary plat.
The Wanamingo school site is valued at $5.6 million by Goodhue County for 2025, with implications for 2026 payable property taxes. The site is currently tax exempt. Once the site is no longer tax exempt the property taxes on valuation are set in place for the next year. The 2025 $5.6 million valuation could have property tax bill of more than $175,000 in 2025. This could make the site financially unfeasible for any private end user. This valuation is set by State Statutes and cannot be changed for 2025. City staff and the purchaser have worked with the County Assessor to reduce the valuation in 2026 to roughly $1,297,900 (vacant building), significantly lowering potential 2027 property tax implications. The County Assessor then would value the building at $2,424,700 one the facility is fully occupied and used. The new 2026 valuation difference allows some property taxes to be captured. The City has been looking into Tax Increment Financing to help offset costs of the facility. First the City was required to complete a special TIF redevelopment inspection report. The City went through numerous consultants before contracting with LHB. LHB seems to be one of the only consultants that provide this specific TIF redevelopment inspection report. The report shows roughly $11,822,025 building replacement value cost with 15% of the being $1,773,331 (roughly the true taxable value). There were $1,862,460 building code deficiencies identified in the report. The City could set up a TIF district for up to 27 years to capture the difference on the vacant building County Assessor valuation. The purchaser could agree to make some or all the deficiency upgrades, increasing the value above the County Assessor occupancy valuation. The tax increment collected could go to costs for the City setting up the district, acquisition costs for the site to the purchaser, reimbursement for deficiency upgrades to the purchaser, and administration costs to the City. In the short term, the purchaser will be requesting property tax exemption for the roughly 60,000 of the roughly 162,000 square feet of the facility for daycare. The purchaser is looking into renting the facility from the Kenyon-Wanamingo School District until after the 1st of January so that the TIF district can be set up utilizing the vacant building County Assessor 2026 valuation. The remaining 100,000 square feet of the building would be under the TIF for other commercial uses beyond daycare. There would be sufficient TIF generated for the potential eligible uses of the increment to move forward setting up a TIF district.
Administrator Boulton provided a Dollar General development update. The City worked with developers for Dollar General in 2023/2024 with the project falling through due to the developer pulling the plug for a variety of reasons and excuses. There were several site locations discussed. The previous agreed upon location was along the north side of MN TH 60 in the undeveloped field. There were significant costs involved with roadway and utility improvements. These were needed for the proposed project and to accommodate future growth and expansion that the City had agreed to a significant contribution. Dollar General has since parted ways with the previous developer.
The City has been working with a new developer, NATCON Group, Inc., for Dollar General since the beginning of 2025. NATCON Group, Inc. focused back on the old 60 Stop location (677 3rd Avenue) owned by Ag Partners. This site is on the northeast corner of MN TH 60 and 3rd Avenue intersection. The site went through MPCA Petroleum Remediation Program after the fuel tanks were removed. There were no high levels of contamination from the previous fuel tanks. Ag Partners, the MCPA, and the City have copies of the site closure, monitoring, and final investigative report showing no major issues.
The site is considered buildable without a need for roadway and utility improvements. The water service line is in the northwest corner (and option of new service connection on the south side of parcel) of the parcel while the sewer service line is on the northeast corner of the lot (and option of new service connection on the south side of the parcel to main). There should be sufficient access with the proposed driveway being up against the northwest corner of the parcel along 3rd Avenue.
NATCON Group, Inc. took out building permit #25-W-035 for a 9,100 square foot building (130’ x 70’), concrete parking lot and stormwater pond. The permit is valued at $956,000. This should bring roughly $20,000/year in City property taxes. The Council will be considering formal approval of the building permit at the August City Council meeting. The City engineer reviewed the plans with comments on water/sewer service connections and recommendation for a stormwater maintenance agreement. The stormwater pond would be in the southwest corner of the parcel. There would be an outlet along the southeast corner of the parcel along the MN TH 60 ditch. The City staff worked with the City Attorney to put together the proposed stormwater maintenance agreement. The agreement was approved earlier in the meeting. Holmes stated that the public will be excited to see construction activity. Holmes stated that many residents can’t wait for Dollar General to be open in Wanamingo. Flotterud asked if the current plan is the same or smaller than the previous plan from 2023/2024. Boulton stated that the rough concept plans from 2023/2024 had the building at 11,250 square feet while this is 9,100 square feet.
*Next City Council meeting on 9/8/2025. Holmes stated that they will not be available to attend the meeting. Acting Mayor Ohr will lead the meeting.
Adjourn: At 7:48 PM a motion to adjourn was made by Ohr and seconded by Dierks. Passed 5-0-0.
Signed: Attest:
_____________________ ____________________________________
Ryan Holmes, Mayor Michael Boulton, City Administrator
