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The Chisago City Council on March 26 worked its way through topics ranging from the annual audit to Emerald Ash Borer, and a resident seeking a moratorium on data centers.    

For the second time in recent months, the council heard a local resident come forward during the open mic portion of the meeting to express opposition to data centers. The resident told the council that she and other residents want the city to place a moratorium on data centers and to work proactively to prevent data centers from being constructed here. Earlier this year the council had told another concerned resident that, in the past, the cit heard from a company exploring the possibility of building a data center but the project was dropped after Xcel Energy said the local power grid is inadequate.

Pechman also explained that the Minnesota Supreme Court has deemed it illegal to arbitrarily exclude any legitimate business from a community. He said that if a one or two-year moratorium were to be approved, it could only allow the city to examine its zoning maps to identify where in the city data centers could exist and under what conditions. 

Mayor Jeremy Dresel listened to the resident’s concerns and reassured her that the city has heard no current proposals for data centers, and that Xcel Energy currently has no plans for expanding the area’s power grid to accommodate them. The council also assured her that Chisago City does not enter into non-disclosure agreements with prospective businesses, which was another of her concerns. The mayor said the city has learned from past experience that enacting code changes before all facts and details about a topic are determined often results in having to reconsider them later.

In other business, the council:

- rescinded its Jan. 14, 2025, action handing over cannabis retail sales registration in Chisago City to Chisago County.  Since taking that action, Chisago City has adopted two ordinances which “refine its municipal code on cannabis” and require the city to directly administer zoning review of prospective cannabis retail businesses. Also, state statute requires that the city certify zoning compliance to the Minnesota Office of Cannabis Management within 30 days of receiving notice of a state license application. That timeframe “necessitates direct city involvement and cannot be delegated without risk of noncompliance.” 

- scheduled another workshop meeting to discuss the Lakes Area Police Department building for 5:30 p.m. Monday, June 8, and changed its November council meeting from the last Tuesday in November to Tuesday, Nov. 10, and its regular December meeting to Tuesday, Dec. 8.   

- approved and accepted an $84,100 grant from the Department of Natural Resources to help deal with emerald ash borer. The funding will go toward removing about 40 unsafe ash trees, “mainly on low-income residential properties and city boulevards in the priority area.”  Each tree removed will be replaced with a different species. An arborist must inspect the trees. The city hopes to begin accepting applications for tree removal in August.

- following a public hearing, amended the city’s liquor ordinance to permit the sale of intoxicating liquors beginning at 8 a.m. on Sundays, as allowed by state law. 

One person, Garrett Angell, owner of Smitty’s Bar, appeared at the public hearing advocating the change in Sunday liquor sales hours from the current noon to midnight to 8 a.m. to 12 a.m. 

- approved replacing existing business subsidy policy with a version more in line with the business subsidy policy used by Chisago County. Administrator Pechman said the change would “streamline” the process when both the city and county are involved in a project.

The new policy requires a public hearing in cases where business applicants are seeking financial assistance such as grants, low-interest loans, tax abatements or tax-increment financing with a value exceeding $150,000. Projects involving subsidies between $25,000 and $150,000 don’t require a public hearing but must be reported to the Minnesota Department of Employment and Economic Development. The policy establishes “clear and consistent criteria” for applicants seeking a business subsidy and is designed to promote non-arbitrary decision-making.

- watched a video presentation of the city’s 2025 annual audit. Justin Nilson, of city accounting firm Abdo, reported no instances of noncompliance.  

The audit showed the city’s general fund budget increased from $2.5 million in 2021 to nearly $3.3 million in 2025 while the general fund balance has dropped from 42 percent of budget to 34.8 percent. This is slightly below the low end of the recommended policy  of 35 to 50 percent for a balance. Public Safety comprises the largest percentage of the city’s General Fund Expenditures. 

Lawful gambling brought more than $76,900 to the special revenue fund while proceeds from  natural gas franchise fees dropped from $110,00 to $70,900 between 2024 and 2025. Chisago City’s tax rate is about the same as other cities in Chisago County and below many other Class 4 cities (population under 10,000). Its debt per capita is below other cities in the county and well below other same sized cities. The city’s expenditures per capita rose from $544 to $696 between 2021 and 2025 and were slightly above other cities in the county but well below other Class 4 cities. 

On the recommendation of Abdo, the city council approved an Electronic Funds Transfer (EFT) policy for use by city staff and for wire transfers. Finance Director Cassie Gemuenden stated, “The city would still prefer cash, check, or credit card payments, but the EFT alternative would be offered in certain circumstances.” 

- despite some council hesitancy about the dollar amount and doubling costs for training, granted Fire Chief Zach Reed’s request for an additional $15,000 from Fund 23 (charitable gambling proceeds) to cover  training expenses for department members. The $15,000 originally budgeted for training has been expended. 

    Reed’s request includes attendance by four members of the department at the Minnesota State Fire Association Conference in September, and the Minnesota State Fire Chiefs Association in October. An Emergency Vehicle Operators Course and Hazardous Materials Training are also proposed. It was pointed out that in the past Fund 23 has been used primarily for capital purchases (such as fire trucks) or major repair bills. 

- approved a Chisago County Board of Aging request for a $300 contribution to help support operation of the Chisago County Senior Center, in North Branch.

- renewed a new two-year caretaker lease agreement with William and Shelby Hooey for rental of Lokinda House, within Ojiketa Regional Park. Having a caretaker at the park improves security and helps reduce the city’s insurance costs for the park. In addition to providing security and oversight, the caretaker performs routine duties and services that support park operation during weekdays and weekends.

- passed a resolution approving a variance requested by David and Kate Edin to build a 32’x44’ detached garage on their property at 10670 Lincoln Street. It exceeds the maximum impervious surface requirement. An existing garage and small shed will be removed and the existing driveway will be removed and replaced with pervious pavers to minimize run-off.

- approved a variance from setback requirements and also okayed design review for a 3,894 sq. Ft. addition to Maranatha Church at 10963 Lake Blvd. The addition will provide children’s ministry space, offices, updated restrooms, storage and lobby. The expanded building will encroach 10 feet into the rear yard setback and 31 feet into the Highway 8 right-of-way setback. As a condition of the variance, the church must provide a grading/drainage plan with proposed erosion controls when applying for a building permit.

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