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The Chisago City Council devoted much of its March 24 meeting to approvals related to Kendall Howard, LLC’s proposed new manufacturing, office and warehouse facility at Liberty Lane and Karmel Avenue.

Kendall Howard manufactures computer racks, benches, shelving, server cabinets and also designs cable management, and related accessories at its facility at 10152 Liberty Lane.  For the foreseeable future this plant will continue to be used along with the new site.  Construction is expected as soon as it’s feasible.

As part of the future development agreement with Chisago City, the company commits to retain no fewer than 105 full-time employees and to create 120 new full-time jobs at a base wage of $25 an hour,  as a result of the upcoming project.

The council approved Kendall Howard’s request for tax abatement for costs related to purchase and development of 19.3 acres currently owned by the Chisago City’s Economic Development Authority (EDA.) 

The tax abatement is for a 10-year period and involves participation of the city, county and Chisago Lakes School District. The purpose of the abatement is: 

-  for the initial land acquisition, 

- to fund roadway improvements in the area 

- create employment

- increase the tax base, and

- fund a public trail connection in the area.

Chisago City will receive approximately $1.92 million through the tax abatement program over a period of 10 years. Kendall Howard will receive approximately $1.87 million in tax rebates during the same timeframe.

One half of the city’s abatement revenue will be allocated to the reconstruction of Karmel Ave. and Liberty Lane. Remaining abatement funds will be used to reimburse the city for the purchase price of the property.  

The council also approved the preliminary and final plats for the development. The building consists of 145,552 sq. ft. of manufacturing space and 81,200 sq. ft. of warehouse space. 

The development meets all of the city’s minimum standards for setback and off street parking with 317 parking stalls planned. The site is proposed to have 87 trees, 371 shrubs and 380 perennial plants for landscaping, which meets the minimum standards set by city code. A lighting plan has yet to be completed.

When approving the building design, the planning commission noted that the new Kendall Howard property and building are anticipated to generate in excess of $500,000 in property taxes annually when the abatement expires.  

The city council also spoke favorably of the project and unanimously approved the building design on condition that a lighting plan meet city code and be approved by city staff. 

In other actions, the council:

-  was notified by City Administrator John Pechman that he has issued a request for proposals from engineering firms Bolton & Menk and ISG  to provide consulting services for design, project coordination and engineering services for reconstruction of Liberty Lane and Karmel Ave. between Highway 8 and Lofton Ave. The proposals are due by 4:30 p.m. April 21 with a council selection expected April 28. The council reserved the right to reject both proposals and to be able to negotiate the scope of work. The goal is to have a final design by September.

In other business, the council:

- approved a request by Michele Hein, of Fentanyl Free Communities, and City Park Supt. Doris Zacho, also member of the Chisago County Opioid Action Council and a volunteer with Fentanyl Free Communities, to install an Opioid Overdose Harm Reduction Station on the exterior of the bathroom building at Moberg Park. The  cabinet and contents are provided at no cost to the city.  

The unlocked Harm Reduction Station provides immediate access to Narcan (Naloxone), and fentanyl test strips. Narcan nasal spray is used to reverse an opioid overdose.The test strips can be used to detect the presence of fentanyl in a drug. 

Narcan is harmless and has no effect on someone not experiencing an opioid overdose. 

Fentanyl Free Communities will maintain and restock the Harm Reduction Station. Police Chief Schlumbohm said 33 fentanyl overdoses were reported in the area this year.

- at the request of Justin Kral, agreed to renew the permit for Captain Shawn’s Boat Rental for five years. 

The rental is located off Aldrid Avenue, Russell Beach Park.  Use of the parcel for the rental business causes the city property to be taxable at approximately $1,950 a year, Kral agrees to pay the city for the real estate taxes as well as a $400 peddler’s fee. The boat rental offers pontoon boats, fishing boats and kayaks.

- amended its ordinance on authorizing cannabis businesses in the city in order to eliminate a conflict with state statute. In order to meet the state’s 30 day deadline for certifying that the applying business complies with local ordinances, an interim use permit is no longer required and city staff, rather than the council, may give final approval. Chisago City  allows up to two cannabis businesses in the city. 

- during the open mic portion of the meeting, a resident on Old Towne Rd, expressed her concerns about rumors of a possible data center in Chisago City. She cited concerns about the water and electricity use required by such centers and the environmental impact. She urged the council not to enter into any nondisclosure agreements (NDA) with a data center developer, saying she did not want “an NDA to come between my city and me.” She also distributed printed materials regarding a temporary hold on data centers put in place in Eagan while they further researched the issue. 

Administrator Pechman responded that city staff had been in discussions with a data center developer. The party had taken an option on some property, he advised,  and had been advised of the need for an environment review but backed out of the project after learning from Xcel Energy that the power capacity for such a facility in this area “was years and years into the future.”

- authorized expenditure of $25,200 from Charitable Gambling Fund 29 for:

A volunteer recognition, $3,750; 

Ki-Chi-Saga Days Fireworks $12,500;  

Fire Department Volunteer Steak Fry $1,750; 

Lakes Area Police Department Employee Recognition $1,200; 

Falloween and Easter Egg Hunt, $1,000 each, 

and Celebration of the Lakes 2027 fireworks for $1,000.

- agreed to transition local lodging tax collection and enforcement responsibilities from city staff to the Minnesota Department of Revenue.  

With local approval, the state will retain one percent of the 3 percent lodging tax with the remaining funds to the Chisago Lakes Visitors Bureau.  Lodging tax revenue is only assessed in the area of the Chisago Lake School District and comes from short term stays and is reinvested into marketing efforts to support local lodging businesses, and other tourism marketing.

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