Mr. Dieken moved and Mr. Mettler seconded a motion to approve the minutes of the Regular Meeting of May 28, 2024, as written. The motion carried unanimously.

Motion approving Proclamation designating June 16, 2024, as Softball Day in Mankato. 

Resolution authorizing the City Manager to enter into an operator’s agreement with the Mankato Family YMCA for the operation of Tourtellotte Pool.

Resolution approving an amendment to an approved Conditional Use Permit to allow 44 apartments in the CBD-C, Central Business District Core, and for a Certificate of Design Compliance for a new structure in the Downtown Gateway Overlay District and the Downtown Design District. The subject property is described as Tract 1-K and Tract 1-L, Registered Land Survey 148 (12 Civic Center Plaza; Mankato Place Mall); by request of Gordon Awsumb.

Resolution approving a Conditional Use Permit to allow slope stabilization and correction activities in a bluff area having a slope equal to or excess of 17.6 percent. The subject property is described as Lot 5, Block 2, Heritage Estates Subdivision (300 West Welcome Street); by request of Jeanne Kaufman. 

Resolution authorizing the submission of applications for the Mankato/North Mankato Area Planning Organization (MAPO) Unified Planning Work Program (UPWP).

Resolution declaring adequacy of petition and ordering preparation of report on Capital Improvement Number 11125; 2025 Petition Alleys.

Resolution considering quotes on Capital Improvement Project 11119; North Fence Line Replacement at the Mankato Regional Airport (MKT).

Ms. Arntz stated that as the Council is aware, staff are waiting to see information from the State regarding the model ordinance related to cannabis regulations; thus, they are recommending consideration of repealing the current interim ordinance and holding a public hearing to put in place another ordinance. She noted that the primary focus is to study the model ordinance that the State of Minnesota is supposed to be creating before putting city regulations in place. She referenced the draft ordinance for consideration.

Mayor Massad opened the public hearing. There being no one wishing to speak, Mayor Massad closed the public hearing.

Mr. Dieken moved and Mr. Mettler seconded a motion to approve the Interim Ordinance repealing IO-2023-0522-1, and authorizing a study and imposing a Moratorium on the operation of Cannabis Business in the City of Mankato. The motion carried unanimously.

Ms. Bokelmann reported that the Partnership Community Land Trust is requesting the city enter into a service agreement for Phase III of the land trust activities in Mankato. She stated that in December 2023, the city's application was approved by Minnesota Housing for Phase III, for funding which included up to $50,000 per home for five existing home acquisitions/ rehabilitations, which consisted of $15,000 to underwrite the purchase of each home and up to $35,000 for rehabilitation. She mentioned that if the CDBG funding is not needed for rehabilitation, the funds may be used to underwrite the purchase depending on the participant’s income level; however, the maximum amount per existing home is $50,000. She added that the city committed up to $70,000 per home for two new homes. 
 
Ms. Bokelmann referred to the draft agreement for Phase III that contemplates total funding of $75,000 of City/EDA funds for the purchase of five existing homes, $175,000 of CDBG funds for the rehabilitation of the five existing homes, and $140,000 of City/EDA funds for two new homes. She noted that the funding level is the same as presented in 2023 when a resolution of support was adopted by the Council for the application to Minnesota Housing. She stated that the city funding (City/EDA and CDBG) is leveraged by $611,000 of funding from Minnesota Housing. She commented that participants in the Phase III project will be at or below 80% of the median income for the State of Minnesota.
 
Ms. Bokelmann summarized the two previously approved phases for the community land trust as well as the status update of each phase. She indicated that under Phase I, one home was purchased and closed in December 2023. She stated that a second home is currently under purchase agreement and is expected to close in the next 45 days. Five families are currently working with the land trust to find homes. She noted that under Phase II, a new construction home was purchased in March 2024 from Heartland Homes/Drummer Construction to make it available for a new home buyer. She commented that several households were working on financing, and it is anticipated that the home will be sold to a qualifying participant in June or July. She added that the trust will also be purchasing two lots in the Groh Farm Subdivision in partnership with Drummer Development and Wilcon Construction with anticipated construction beginning in the next 60 days. 
 
Ms. Bokelmann mentioned that for the two existing phases, a total of $475,000 of City/EDA funds and $105,000 of CDBG funds have been allocated, which are sourced from the EDA fund (reflected in the budget), which has a fund balance of $9 million. She stated that CDBG funds are allocated on an annual basis and the use for rehabilitation is also reflected in the budget. She reported that the third phase increases the allocation of City/EDA funds to $690,000 and $280,000 of CDBG funds.  

Ms. Bokelman indicated that there may be a proposed fourth phase, and it is recommended that when considering future phases, additional funding sources be examined in lieu of relying on fund balances. She noted that an alternative funding source may be the Statewide Affordable Housing Aid as the city will receive $288,957 in 2023 and 2024 with future payments occurring annually. She explained that the use of the funds for a community land trust and other housing activities are eligible uses of the aid, as is dedicating the funds to a housing trust fund. She concluded that staff is preparing the 2025 City budget to incorporate the aid into a budgetary fund/org for use as determined by state requirements and Council approval, and touched on potential future partnership possibilities.
  
Mr. McLaughlin commented on the rates of homes being filled and asked about applications from Mankato residents and if there was a requirement or a preference for Mankato residents.
 
Chad Adams, Chief Executive Officer, stated that there are no restrictions or requirements since it is public funding. He mentioned that the advertisement had occurred in Mankato, which primarily benefits Mankato residents.
 
Brief discussion on families that are interested in homes and the process. It was noted that with action rehab homes, it has been something that takes longer; thus, sometimes people are not interested.
 
Ms. Hatanpa asked about the percentage of income and clarification. It was noted that it was at or below 80% of the median income for the State of Minnesota.
 
Mr. Laven moved and Ms. Melby-Kelley seconded a motion to approve the Resolution authorizing the City Manager to enter into a Phase III agreement with Partnership Community Land Trust for implementation services of the Community Land Trust. The motion carried five to two, with Mr. McLaughlin and Ms. Hatanpa voting against.