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The Chisago City Council began its Jan. 14 meeting by swearing in three familiar faces who won seats in the November election: long-time council member Jeremy Dresel, now mayor; former council member Mark Anderson, who returns after a brief hiatus to the fill the council seat vacated by Dresel; and incumbent Marie Rivers, re-elected. 

In other business, the council:

- announced an informal work session will be held at 5 p.m. Jan. 28 to discuss issues related to Karmel Avenue, Highway 8 and Liberty Lane. 

- was reminded that Chisago City’s Local Board of Appeal and Equalization (of real estate taxes) is scheduled for 6 p.m. Wed., April 23, and that a quorum of the council is required.

~ After considerable deliberation, issued an on sale liquor license to Shane Banwarth for a golf simulator business in a building he owns at 29173 Karmel Ave. Banwarth has operated Allways Automotive in another part of the building for  nine years. Plans call for food and liquor to be sold at the golf simulator business, organized  as Clutch Golf LLC. 

Lakes Area Police Chief William Schlumbohm had recommended denying the license after the required background check showed Banwarth had a past arrest history   involving alcohol. The most recent conviction, a gross misdemeanor, according to Washington County district court records, was Dec. 4, 2022. Banwarth appeared at the council meeting. He said that he’d made “a big mistake” in the past but had no problems since, and indicated his probation would end soon. 

The golf simulator business is proposed to open in October.

During the discussion that followed, Mayor Dresel said the council wasn’t in the habit of disagreeing with recommendations from the police chief. The council discussed various options including the possibility of imposing additional stipulations on issuing the license to Banwarth.    

The police chief explained that once a background check is done and a liquor license issued, “It’s normally one and done. Thereafter we no longer look at the person (who applied for the license), we just look at the business for liquor violations.”  Liquor license holders in the city are visited for compliance each year before renewal. After considering its options, the council voted to issue the license to Banwarth with no added conditions.

- passed a resolution agreeing to have Chisago County take responsibility for “the retail registration of cannabis and hemp businesses and conduct compliance checks for those businesses.”  

Administrator Pechman explained, “If the county gets an application for a retail license to sell cannabis in Chisago City, they will come to us to determine if the location complies with our zoning regulations.” The application will then go back to the county, which controls the maximum number of licenses allowed. Mayor Dresel pointed out that this decision does not bind future councils should the city want to exert more direct control over retail cannabis sales.

- approved a variance for  setback from the Ordinary High Water Level requested by Craig Pahlen for an addition to his residence at 11325 Interlachen Rd. The addition replaces a nonconforming deck. At a Jan. 2 planning commission hearing, neighbors voiced support for the addition, and the planning commission recommended approval.

~ completed “the first reading” of a new municipal code on massage providers. The code will prohibit massage businesses in the city “except those licensed as therapeutic massage businesses” and employing “persons who have bona fide and standardized training in therapeutic massage,”  

The goal of the code is to control the number of therapeutic massage licenses issued and prohibit massage businesses that employ people with no specialized training because “such businesses are more likely to be operated as fronts for prostitution and other criminal activity.” according to the council materials. The entire nine-page code is available for review at city hall. A public hearing on the new code is set for Feb. 25. In the meantime, a moratorium on new massage businesses in the city remains in effect.

- approved a lease allowing the Chisago Lakes Area Recreation Association to conduct lawful gambling at the Uncommon Loon in Chisago City. Activities permitted are paper and electronic pull-tabs, bar and electronic linked bingo, tip boards and paddlewheels. A representative of the CLARA was present and said their portion of gambling proceeds will help fund sporting activities such as baseball, softball and lacrosse for kids.

~ approved the city’s updated 2025 fee schedule. Fees to rent cabins at Ojiketa Regional Park will now range from $55 and $60 a night for the smallest cabins and $95 to $135 a night with a two-night minimum for the larger cabins and two guest houses. The park and all buildings can be rented for a weekend for $6,700 plus a $1,000 damage deposit. The summer weekend rates to rent Strom Hall and Zonta Lodge are now $3,200 and $1,400, respectively, and half that amount in December through March, with a $200 damage deposit. Weekend is defined as 3 p.m. Friday to noon Sunday. These rates will increase annually for the next two years.    

~ The fee to hire the police officer required for a private group serving alcohol on city property increased to $70 an hour.   

~ City water and sewer were also increased consistent with a recent sewer and water rate study. The new sewer fees are up eight percent and water is up nine percent.

~ Made official appointments— Chisago County Press remains the official newspaper for legal notices, monthly council meetings are 6:30 p.m. on the fourth Tuesday of each month with the second Tuesday reserved if needed. Official depositories are MidWestOne Bank, 4M Fund, and RBC Wealth Management. City announcements are posted at city hall and at the Chisago City Post Office. Mayor Dresel, Administrator Pechman and Fire Chief Reed will serve as municipal trustees for the Volunteer Fire Relief Association. Administrator Pechman was appointed to the tourism bureau.

City attorney remains Patrick Doran of Miller & Stevens Law Office. 

Bolton & Menk, Inc., ISG Inc., serving as city engineer; Abdo as city auditor; Ehlers & Associates as city financial consultant; Zach Reed as Chisago City Fire Chief. 

Council member committee appointments are: 

Mayor Dresel to the Economic Development Authority (EDA), Police Commission, Sewage Treatment Commission, Public Works Committee, and Finance Committee, weed inspector, and alternate council liaison to the Personnel Committee. 

Craig Meyer to the Public Works Committee, Finance Committee and Highway 8 Taskforce, as council liaison to the Planning Commission and Fire Department, and Acting Mayor in Mayor Dresel’s absence.

Nikki Battles to the Cable Commission, CLJSTC, Personnel Committee, Green Lake Association and Library Board, and as alternate council liaison to the Park Commission;

Marie Rivers to the EDA, Personnel Committee, South Lindstrom Lake Association, as alternate to the Police Commission, CLJSTC and Tourism Bureau and as alternate acting mayor.

Mark Anderson to the Police Commission, as council liaison to the Park Commission, and alternate council liaison to the Planning Commission, Fire Department and Library Board.

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