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City Council Minutes <br />June 16, 2025 <br />--------- <br />Page 10 of 12 <br />done their service on this, but they are in this position that they have to come together on a <br />partnership to make something happen, and that's why they are willing to partner and cover half of the <br />intersection improvement costs. <br />Councilmember Beyer asked if MnDOT was done with their projects for 26-27. Mr. Femerite explained <br />that MnDOT projects out five years. Councilmember Beyer asked when they think the intersection <br />improvement would get started if this is approved. Mr. Femrite stated, from a development standpoint, <br />they would be looking next year to start and end by the end of 2026. He continued in order to achieve <br />that, they would need authorization by the next meeting or so to give the design work and topographic <br />engineering work started for putting those plans together. <br />Councilmember Beyer asked when the expense would affect us. Mr. Femrite answered that the <br />construction piece pay estimate would most likely be expected around September 2026. <br />Mr. Barker stated that MnDOT had said that in order for Capstone to move forward, they need the <br />permit issued. <br />Councilmember Calva confirmed that Capstone is still asking for 1.2 million. Mr. Barker stated Yes, 50% <br />of the cost. Councilmember Calva asked if this money existed. Mr. Femrite stated Yes, there are funds <br />with the state aid fund, and also explained that they didn't have the expenses from the Twin Lakes <br />expansion to Highway 10, so they have funds from that as well. <br />Councilmember Beyer confirmed that the state aid fund comes every year. Mr. Femrite stated that it is <br />correct. Councilmember Beyer asked if the funds could roll over every year. Mr. Femrite stated to a <br />point, but there are rules that when they get too large a fund balance, they start making some negative <br />adjustments, and the allocations would go down. He continued to explain that we are sitting at a <br />healthy balance, noting that some of the funds are for Main Street and Jackson improvements, and <br />improvements downtown; however, he does think it is a sufficient balance. <br />Councilmember Grupa wanted to talk about the Plants and Things Complex area. He stated that we <br />have families crossing the highway, and he feels like it would be a help to the north side. He further <br />explained that he is looking at it that the city now has a partner to develop the intersection, rather than <br />the other way around. He said us helping them is helping us and thinks it would be wise to partner with <br />them. <br />Councilmember Beyer agrees with Councilmember Grupa. <br />Councilmember Wagner explained her thoughts and stated it relates to the Plants and Things Complex <br />and the amount of time and resources that have been put into the complex. She further explained that <br />the investment in the intersection is ensuring the community is safe going to the athletic complex. She <br />explained that she doesn't like the situation they have been put into, but given the situation, she is <br />willing to split the cost and move forward. She stated that she would like the city to continue to look at <br />the north side and possible zoning. <br />Mayor Dietz stated that it's not a matter of whether we have the money or not, but how we use the <br />money. He thinks the developer should pay more than the city because, if it wasn't for the <br />development, this wouldn't be coming up right now, and he would not support a 50/50 split. <br />Page 13 of 309