Ms. Hatanpa moved and Mr. Dieken seconded a motion to approve the minutes of the Regular Meeting of July 22, 2024 as written. The motion carried unanimously.

Presentation of Citizen Appreciation Award to Kile Hesse.

Recognition of employees who have reached a milestone of 20 or more years of service with the City of Mankato during the 1st half of 2024.

Motion approving Proclamation designating August 21, 2024, as Fentanyl Poisioning Awareness and Prevention Day in the City of Mankato.

Motion approving Proclamation designating August 31, 2024, as International Overdose Awareness Day in the City of Mankato.

Resolution approving application for Mankato Eagles Aerie #269 to Conduct Lawful Gambling at Boulder Taphouse, 291 St. Andrews Drive, Mankato.

Resolution approving Buscher Park amenities and corresponding funding.

Resolution accepting the Minnesota Department of Employment and Economic Development (DEED) Cleanup Grant and authorizing the City Manager to execute a Cleanup Grant Agreement and Subrecipient Agreement for Silos (118 East Plum Street).

Resolution approving a Conditional Use Permit to allow for a restaurant in the CBD-F, Central Business District-Fringe. The subject property is described as Lot 5, Lewis and Meaghers Subdivision (609 South Front Street, Blue Earth County PID R010918152003); by request of David Hruska.

Resolution approving an amendment to the current Planned Unit Development to decrease the parking plan from the previously provided 87 stalls to 82 stalls at Lewis Lofts. The subject property is described as Lots 1A, 1B, and 1C of The Neighborhood subdivision (Blue Earth County PID R010813256009, R010813256010, R010813256008 - 209 Dewey Lane); by request of Cohen Esrey Development Group.

Resolution approving a Conditional Use Permit to allow wetland sequencing and replacement of 7.10 acres of wetland impacts. The subject property is described as part of the West 30 acres of the SW ¼, Section 15-108-26, except the South 330 feet of the West 330 feet thereof, AND The SE ¼ of the NW ¼ of the SE ¼; The S ½ of the NE ¼ of the SE ¼; The SE ¼ of the SE ¼; The SW ¼ of the SE ¼, except the West 30 acres thereof; all in Section 15, Township 108, Range 26, with some exceptions (Blue Earth County PID R430915400003 & R430915400009); by request of Thomas Ponce, on behalf of the property owner, Mesenbrink Construction.

Resolution authorizing Joint Powers Agreement with Minnesota State University, Mankato for 2024/2025 Transit Services.

Resolution directing parking control, establishing no parking along Premier Drive between Augusta Drive and 227^th Street.

Mr. Dieken requested that the item be discussed at a later date after completion of the construction as he believed that several of the vehicles parking along the roadway were from the construction crews.
 
Ms. Hatanpa noted the problems with the traffic and the congestion on the street, especially with the intersection of Hwy 22 and Augusta Drive being closed.
 
Ms. Arntz noted that the Council could recommend signage be placed two weeks following substantial completion of the project as an option.
 
Mr. Laven wondered why there was a request and if there was more information. Mr. Johnson replied that the roadway should have initially been signed with no parking.
 
Mr. Dieken moved and Mr. Mettler seconded a motion approving the Resolution directing parking control, establishing no parking along Premier Drive between Augusta Drive and 227^th Street, two weeks following substantial completion of the construction in the area. The motion carried unanimously.

Resolution authorizing the City Manager to enter into a Severance and Surrender Agreement on behalf of the City of Mankato with KMKT, LLC, North Star Aviation, North Star Companies, and Frandsen Bank.

Resolution authorizing the City Manager to enter into a Master Partnership Agreement for professional aviation architectural/engineering design and construction services for an Air Traffic Control Tower at the Mankato Regional Airport with EXP.

Set August 26, 2024, as date of Public Hearing on an Ordinance establishing a Housing Trust Fund.

Set September 9, 2024, as the date of public hearing for an ordinance rezoning property to OR, Office Residential; for amendments to the Institutional Overlay District and the approved campus plan. The property is located at 1025 Marsh Street, 125 Oaklawn, 1108-1128 East Main Street, 1238-1248 East Main Street, 106-118 Garden Boulevard, 1109 East Mulberry Street, 1115 East Mulberry Street and 1125 East Mulberry Street; by request by HDR, on behalf of the property owner, Mayo Clinic Health System.

Mr. Konz reported that Hotel Mankato, LLC is requesting a preliminary plat review of Hotel Mankato Redevelopment plat; the vacation of an alley; a conditional use permit to allow two hotels in the CBD-C, Central Business District Core; and a certificate of design compliance for the construction of a new, approximately 250,000 square foot development including a 169-stall underground parking garage in the Downtown Gateway Overlay District and the Downtown Design District. He noted that the proposed redevelopment is bordered by South 2nd Street, East Main Street and South Riverfront Drive, with the current addresses being 101 East Main Street, 121 and 123 East Main Street, and 118 South 2nd Street. 

Mr. Konz stated that the redevelopment involves the demolition of the City Center hotel structure and the Landmark building with a proposed four-story extended stay Element by Westin, located at the intersection of North Riverfront Drive and Main Street, and a 10-story AC by Marriott, located at the intersection of Second and Main Streets. He indicated that the two hotels would be adjoined by a common lobby with a direct connection to the existing City skywalk. He mentioned that the narrative outlines that the hotels will share common guest amenities, including a pool, fitness center, guest laundry, lounge spaces, business pods, and a small conference room along with shared back of house spaces. He added that space is also provided for a future coffee shop on the main level and a third-party restaurant with rooftop patio on the 10th story overlooking the Minnesota River Valley, and a courtyard area located between the Element and common lobby will offer a combination of possibilities for guest grilling stations, firepit(s), and an outdoor social lounge area.

Mr. Konz commented on the vacation of a portion of the existing through alley that runs from East Walnut Street to East Main Street as the redevelopment of the property requires it be vacated to make the best use of the site. He noted that all affected property owners adjacent to the alley have signed the required City Petition form and agreed to the vacation. The proposed vacation would result in a private alley with a proposed entry and exit from Walnut Street.
 
Mr. Konz indicated that the proposed preliminary plat combines the underlying nine parcels into one new subdivision. He reviewed the preliminary plat and the traffic impact statement as well as the requirements for the conditional use permit and the certificate of design compliance.
 
Mr. Konz noted that the site plans do not represent the current bus stop on Main Street, and during the Site Plan and Traffic Advisory Committee review, the applicant was made aware that the subject bus stop would be required to be replaced; thus, they will be providing a new, city-approved bench for the bus stop and other required ADA enhancements.
 
Mr. Konz reported that the total parking required for the development is 367 parking stalls. He commented that the on-site parking as proposed is 169 stalls in the underground parking garage and nine surface lot parking stalls for a total of 178. He explained the parking requirements based on the proposal and added that the applicant is proposing to petition the Downtown Parking District to provide the remaining required 189 parking stalls. He noted that a condition is included that limits seating in the accessory restaurant and lounge spaces to the parking available and the parking provided for through the petition to the Downtown Parking District. He mentioned that the applicant has indicated that there will be no event space within the development, which has the potential to create additional parking demand. He pointed out that a condition is included that future review and approval, by way of a conditional use permit amendment, will be required if events are desired in the future. 

Brief discussion on the required parking stalls and availability.

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

Mr. Laven moved and Ms. Hatanpa seconded a motion to approve the Resolution vacating an alley described as part of the alley dedicated in Block 14, Map of Mankato; and for preliminary plat review of Hotel Mankato Redevelopment plat. The motion carried unanimously.

Ms. Hatanpa moved and Mr. Mettler seconded a motion approving a Conditional Use Permit to allow two hotels in the CBD-C, Central Business District Core; and for a Certificate of Design Compliance for the construction of a new, approximately 250,00 square foot development including a 168-stall underground parking garage in the Downtown Gateway Overlay District and the Downtown Design District (101 East Main, 121 and 123 East Main, and 118 South 2^nd Street). The motion carried unanimously. 

Mr. Johnson stated that on August 29, staff became aware that a slope failure in the Viking Ravine damaged the sanitary sewer main serving many homes in Viking Terrace, Viking Court, Kietzer, Kensington, Southbrook, Southview, Paddington, Stony Creek, Ironwood, and Ironwood Oaks additions, resulting in sanitary sewer being directly discharged into the environment. He indicated that staff notified the state duty officer and executed a $29,500.00 contract with WW Blacktopping to complete a temporary repair, which was subsequently completed on August 3.
 
Mr. Johnson stated that in 2014 a lining of the sanitary sewer main was planned for in the 2016 Capital Improvement Plan along with repairs to the airport lift station and manhole rehabilitation; however, the project was delayed due to higher than anticipated costs of the airport lift station and manhole rehabilitation project. He commented that in 2018, staff reviewed the previous plan for a more permanent solution to the continual possibility of erosion damaging the sewer main. He mentioned that the project was subsequently bid, and the bids were rejected in August 2018 due to only receiving one bid and the project was reprogrammed. He noted that the project was rebid again in 2022 along with the Pauley Way lift station as a bid alternate, but there were not enough funds available to complete the project.
 
Mr. Johnson explained that the project was reprogrammed with funds allocated in the 2024 Wastewater Collections Capital Improvement Fund and was originally scheduled to be bid on in the fourth quarter of 2024 with construction to begin in the spring of 2025, but with the recent failure and temporary repairs, staff is prepared to bid the project now to move the timeline of long-lead time parts necessary for construct the lift station to the left by purchasing the components to construct the lift station. He noted that staff has contacted vendors and anticipates critical equipment being delivered 16–20 weeks after a contract is awarded and installation to be completed within 2–4 weeks of delivery. He provided an overview of the resultant costs and funding sources.
 
Mr. Johnson recommended that the Council adopt a resolution to approve a contract in a declared special emergency, which authorizes the Council to let a contract without notice or competitive bidding in accordance with Minnesota State Statute 365.67 in situations requiring immediate action essential to the health, safety, or welfare of the city.
 
Ms. Hatanpa moved and Mr. Laven seconded a motion to approve the Resolution approving a contract in a special emergency, and the Resolution receiving report, ordering preparation of plans and ordering advertisement for bid on Capital Improvement Project 11088; Viking Ravine Sewer Lift Station. The motion carried unanimously.