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On April 23, the Chisago City Counciil voted to approve the Chisago City Economic Development Authority’’s final plat for “Kichisaga Development”, a 14-acre extension of the city’s industrial park platted for three light industrial lots.  Final plat approval may be in doubt, dependent on new information discussed by the EDA at a closed meeting held only a few hours before the council meeting.

In an unexpected turn of events, City Administrator John Pechman disclosed during the  city council meeting that the EDA, with council members Jeremy Dresel and Marie Rivers present, had met in closed session regarding “some problems that need to be worked out.”

“We’re trying to adjust to the new information,” Pechman told the council and the public attending the city council session. 

Council made a motion to approve the plat based on what the EDA approves of.

Background: The proposed Kichisaga Development is bordered by Martha Lake Dr. on the east, Liberty Lane in the northwest and Karmel Avenue on the west. At previous public hearings, residents mentioned issues with sidewalks, walkability, and the need to provide screening and berming between the industrial sites and adjacent residential zones. 

When approving the plat on April 4, the planning commission recommended that the landscape plan and screening meet requirements to be approved by city staff. Water and sewer area fees for the project would be waived because the EDA is a city entity. The EDA had also requested that the park and trail fees be waived.

Meantime: a project close-by was shelved, however.  Council declined to rezone a nearly five acre area where a light industrial “car condo” project is now not happening.

 Plans to replace the Chisago Lakes Car Condos (proposed last year) with 18 slab-on-grade townhomes failed to gain approval of the Chisago City Planning Commission or from council. 

Developers Don Skelly and Kayla Gustafson had written to the council and city planners explaining the current lending rates and increased construction costs now make their  proposed luxury car condo plan too risky. Instead High Pointe (realty broker)  has new developers interested in single story, slab-on-grade, detached townhomes. High Pointe’s rejected townhome project would have required variances for impervious surface, trees, lot width, lot size and right of way. 

Following an April 4 public hearing, the planning commission voted to deny the petition for this rezoning voicing concern with the increased traffic that residential zoning would create as well as reducing industrial acreage available for future development.  

In other action, council:

- passed a resolution accepting the 2023 financial audit presented by Abdo. In a pre-taped statement, Justin Nelson of Abdo described the audit as “a clean unmodified opinion” 

Nelson pointed out that the city’s general fund reserves as compared to budget have gradually declined over the past several years. The percentage of general fund reserves compared to budget reached 35.2 percent in 2023, near the bottom of the 35 to 50 percent range that is recommended. He advised the council keep this in mind.

While the city’s revenue funds were better than budget, Nelson said 2023 expenditures exceeded budget by $100,000 “with some of the overages occurring in the police department.” He pointed out that the Ojiketa Regional Park fund is in the negative, and advised the city look at ways to get it back in the positive. The 2023 Ojiketa Park fund balance, although in the deficit, had improved by $28,387 compared to data for 2022.  

Nelson explained that the city’s street improvement fund shows a deficit because the city “borrowed ahead” against future Municipal State Aid Street (MSAS) funding. The deficit will resolve as state revenues are received in future years. 

Nelson said that looking at the city’s funds, “the overall trend is in the positive.” 

In 2023, Chisago City had $5.7 million in cash and investments.

 Applicant Mary Jo Wiatrac was appointed to fill an open term on the Chisago City Economic Development Administration (EDA), and as an alternate to the Parks Commission. Wiatrac was interviewed, for both positions. Wiatrak said she has recently transitioned off the board of the YMCA of the North and Camp Northern Lights and is “eager to be more involved in Chisago City governance.” She has worked as an attorney in county and city government and with parks and trails.

Council approved Justin Kral’s request to re-approve his business using the city lot,  off Aldrid Avenue at Russell Beach Park, for his seasonal boat boat rental business. Administrator Pechman explained that, due to the rental business, the city-owned property would be taxed at approximately $1,950 a year. Kral agrees to pay that tax, as well as the annual peddler’s fee of $400. Pechman stated they have received no complaints about the boat rental operation, adding, “It fills a need in the area.”

Kral has previously offered two pontoons, three fishing boats with motors and a variety of canoes and kayaks. Due to increased demand, he asked to be able to rent several  boats,  jet skis and non-motorized craft (kayaks/canoes) and to renew the permit every two years rather than annually. On a motion by Craig Meyer, the council approved Kral’s permit for two years, for a total of 15 boats. 

- authorized “Payment No. 5,” in the amount of $63,927, to Bituminous Roadways, Inc., for the 2023 Street and Utility Improvement Project. This payment reduces the amount the city is withholding for the project from 2% to 1%.

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