Packet text, August 8, 2023
Machine-extracted text of the packet PDF, searchable with your browser's find. Page images, tables and scanned FYI pages may be garbled; the PDF is authoritative.
- 8.8.23 Council Packet Agenda packet · 138k chars
Highlighted passages are the agenda items linked from the meeting page.
AGENDA
CITY COUNCIL REGULAR SESSION
August 8, 2023
7:00 PM
I. CALL TO ORDER AND ROLL CALL
II. CITIZEN COMMENTS
III. ADOPT AGENDA
III.A Adopt Agenda
Summary Report
8-8-23 Agenda Council Meeting.docx
IV. CONSENT AGENDA
**All items listed with asterisks (**) are considered routine and non-controversial by the
Council and will be approved by one motion. There will be not separate discussion of these
items unless a Council member, City staff or citizen so requests, in which case the item will be
removed from the Consent Agenda and considered in its normal sequence on the agenda.
V. APPROVAL OF MINUTES and APPOINTMENTS
V.A Approval of Minutes and Appointments
Summary Report
7-11-23 Minutes.doc
VI. PRESENTATIONS/PUBLIC HEARINGS
RECOGNITIONS/PROCLAMATIONS
VI.A Public Hearing - Interim Ordinance and Moratorium on Cannabis businesses
Summary Report
ORDINANCE 101 Cannabis Business InterimPublic Hrgnotice.docx 7-23.docx
VI.B Summary of 2022 City Audit -Tyler See - Abdo
Summary Report
2022 FINAL Audit Presentation.pdf
VII. ENGINEERING
VII.A Pearl Creek Sanitary Sewer Improvements
Summary Report
01.1_General Project Update.pdf
VII.B 2023 Street Improvement Project
Summary Report
01.1_General Project Update.pdf
VIII. LEGAL
1
VIII.A Review of Ordinance No. 101 (interim ordinance) Cannabis
1. Approve Ordinance 101MOTION NEEDED
2. Resolution 2023-11: Approving Publication of Ordinance No. 101 by Title and
Summary MOTION NEEDED
Summary Report
DOCSOPEN-#888445-v1-Kenyon Cannabis Business Moratorium.DOCX
DOCSOPEN-_888450-v1-Notice_of_Cannabis_Business_Moratorium.DOC
Resolution 2023-11
Summary_Publication_Resolution_for_Cannabis_Moratorium.docx
VIII.B Sale of Kenyon Sunset Home
1. Resolution 2023-18 Approving Termination of Tax Abatement after
Decertification of TIF District No. 4-4 (45).
1. Approve release of
Purchase and Redevelopment Agreement
Covenants
Contract for Private Development
Summary Report
Resolution 2023-18 Terminating Tax Abatement Agreement Sunset Home .docx
DOCSOPEN-#886212-v1-Release of Purchase and Redevelopment Agreement
(492414).DOCX
DOCSOPEN-#886323-v1-Release of Covenants.DOCX
DOCSOPEN-#886213-v1-Release of Contract for Private Redevelopment
(492416).DOCX
DOCSOPEN-#886331-v1-Release of Covenants.DOCX
2023_06_29_KBT Title Commitment.pdf
IX. FINANCIAL
X. OLD BUSINESS
XI. NEW BUSINESS
XI.A Replacement of Library Lights - Michelle Otte- Library Director
Summary Report
DOC080223.pdf
Shea Eletrix Quote.pdf
XI.B Fire Relief Association Request for Approval of Raffle at Fireman’s Dance on
November 25, 2023
Summary Report
XI.C Set Council Work Session to Review 2024 Proposed (Levy) Budget
Summary Report
XI.D Purchase Motorola Police Body Cameras – Chief Sjoblom
Summary Report
2
XII. F.Y.I. - Department Updates
XII.A FYI
Summary Report
FYI 8-8-23.pdf
XIII. COUNCIL AND STAFF GENERAL COMMENTS
XIV. ADJOURNMENT
3
AGENDA ITEM NO. III.A
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: August 8, 2023
SUBMITTED BY: Mark Vahlsing, Administration
ITEM TYPE: Agenda
AGENDA SECTION: ADOPT AGENDA
SUBJECT: Adopt Agenda
SUGGESTED ACTION: The August 2023 agenda is attached below.
ATTACHMENTS:
8-8-23 Agenda Council Meeting.docx
4
AGENDA
CITY COUNCIL MEETING
August 8, 2023
Recite Pledge of Allegiance
7:00. I. CALL TO ORDER AND ROLL CALL
II. CITIZEN COMMENTS
III. ADOPT AGENDA
IV. CONSENT AGENDA
** All items listed with asterisks (**) are considered routine and non-controversial by the Council and
will be approved by one motion. There will be no separate discussion of these items unless a Council
member, City staff or citizen so requests, in which case the item will be removed from the Consent
Agenda and considered in its normal sequence on the agenda.
V. **APPROVAL OF MINUTES and APPOINTMENTS
A. City Council Meeting Minutes of July 11, 2023
VI. PRESENTATIONS/PUBLIC HEARINGS
RECOGNITIONS/PROCLAMATIONS
A. Public Hearing – Proposed Interim Ordinance 101 Cannabis
B. Summary of 2022 City Audit -Tyler See - Abdo
VII. ENGINEERING
A. Pearl Creek Sanitary Sewer Improvements
B. 2023 Street Improvement Project
VIII. LEGAL
A. Review of Ordinances for Cannabis
1. Approve Ordinance 101: Authorizing a Study and Imposing a Moratorium on the
Operation of Cannabis Businesses within the City of Kenyon
2. Resolution 2023-11: Approving Publication of Ordinance No. 101 by Title and
Summary
3. Approve Ordinance 102:
4. Resolution 2023-19: Approving Publication of Ordinance No. 102 by Title and
Summary
B. Sale of Kenyon Sunset Home
1. Resolution 2023-18 Approving Termination of Tax Abatement after
Decertification of TIF District No. 4-4 (45).
2. Approve release of
a. Purchase and Redevelopment Agreement
b. Covenants
c. Contract for Private Development
IX. FINANCIAL
**A. July 2023 Treasurer’s Report
**B. Payment of Claims
5
X. OLD BUSINESS
XI. NEW BUSINESS
A. Fire Relief Association Request for Approval of Raffle at Fireman’s Dance on
November 25, 2023
B. Replacement of Library Lights - Michelle Otte- Library Director
C. Set Council Work Session to Review 2024 Draft Budget
D. Purchase Motorola Police Body Cameras – Chief Sjoblom
XII. OTHER BUSINESS
A. Schedule of Upcoming Meetings
1. KMU Meeting: Tuesday, August 13th @ 4:00 p.m.
2. City Council Meeting: Tuesday, September 12th @ 7 p.m.
XIII. COUNCIL AND STAFF GENERAL COMMENTS
XIV. ADJOURNMENT
6
AGENDA ITEM NO. V.A
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: August 8, 2023
SUBMITTED BY: Mark Vahlsing, Administration
ITEM TYPE: Minutes
AGENDA SECTION: APPROVAL OF MINUTES and APPOINTMENTS
SUBJECT: Approval of Minutes and Appointments
SUGGESTED ACTION: July 11, 2023, minutes are attached below.
ATTACHMENTS:
7-11-23 Minutes.doc
7
Pursuant to due call and notice thereof, a City Council Meeting was duly held in the City Council chambers
at 7:00 p.m. on the 11th day of July 2023. The meeting was called to order by Mayor Henke.
The following members were present: Mayor Doug Henke, Council Members Kim Helgeson, Lee
Sjolander, Mary Bailey, and Molly Ryan
Absent: None
Also, present: City Administrator Mark Vahlsing, Police Officer Brian Homeier, Attorney Scott Riggs,
Public Works Director Wayne Ehrich, City Engineer Derik Olinger, Administrative Assistant Holli
Gudknecht, police Chief Jeff Sjoblom, McLellan & Linda Bean, Jerry & Diane Barrett, Nicole Eggert
The meeting opened with the Pledge of Allegiance.
CITIZEN COMMENT
ADOPT AGENDA
Motion by Henke second by Ryan to approve the amended agenda. Motion carried 5-0-0.
CONSENT AGENDA
Motion by Helgeson second by Bailey to approve the Consent Agenda, which includes payment of check
numbers, 74959 through 75042.
Motion carried 5-0-0.
PRESENTATIONS/PUBLIC HEARINGS/RECOGNITIONS/PROLAMATIONS
ENGINEERING
Pearl Creek Sanitary Sewer Improvements
Engineer Olinger stated that the bids for the Pearl Creek Sewer project were opened last week and were
lower than projected.
Resolution 2023-17: Accepting Easements Engineer Olinger updated the council on the progress of
securing easements for the sewer project. The City is still waiting for signatures from one property
owner.
Motion by Bailey second by Helgeson to approve Resolution 2023-17 Motion carried 5-0-0.
Construction Engineering Proposal
Engineer Olinger stated that Council approval was needed for costs related to construction engineering
services including surveying for the Pearl Creek Sanitary Sewer project.
Motion by Henke second by Ryan to approve the construction engineering proposal from Bolton and Menk
for the Pearl Creek Sanitary Sewer and Street Improvement projects. Motion carried 5-0-0.
2023 Street Maintenance Improvement Project
Engineer Olinger reviewed the pavement management plan for the city this year. Quotes for reclamite work
to seal specified streets were solicitated. One proposal was received.
Construction Engineering Proposal
Motion by Helgeson, second by Bailey to approve the proposal from Bolton and Menk for construction
engineering services for the 2023 Street Improvement Project. Motion carried 5-0-0.
LEGAL
Review of Ordinance No. 102 (interim ordinance) Cannabis
City Attorney Riggs reviewed the draft interim ordinance authorizing a study and imposing a moratorium of the
8
operation of Cannabis. Summaries of the new law, and a copy of the interim ordinance are attached. He also said
that before the draft ordinance is considered the Council needs to discuss whether the City wants to regulate
hemp products (THC edibles and gummies that have been available since last year). If the Council moves to
proceed with the Ordinance a Public Hearing would have to be scheduled for the August Council meeting.
Adopt Interim Ordinance No. 102
No discussion.
Resolution 2023-11 Approving Summary Publication of an Ordinance Authorizing a Study and
Imposing a Moratorium of the Operation of Cannabis Business
No discussion.
Request for City to relocate alley/ROW - Jeff and Ann Traxler
Attorney Riggs stated that the City received the legal description from Rapp Surveying today (7/11). He
will begin to prepare the deeds for the land swap. Jeff and Ann Traxler are requesting that the City to do
a land swap of right-of-way area that abuts their property to the west. They need the land swap to help
facilitate a planned expansion project of their business. Further information is attached below
OLD BUSINESS
Review Ordinance No. 101 Allowing Chickens within City Limits
Administrator Vahlsing stated that revisions were made to the draft ordinance regulating Chickens based on
discussion at the June Council meeting.. Revisions were made to the areas regulating chicken coops. He also
reviewed the results of the on-line survey conducted on the City web site. Respondents were asked if they
supported allowing Chickens n residentially zoned areas. The results were 121 yes, 103 no, and 17 unsure.
Mayor Henke- Thanked Library Director Otte for her work with the survey on the City web site. He had
talked to residents about allowing chickens but had received mixed results. He was still against allowing
chickens in the City.
Councilmen Ryan Had done research, also had talked to City employees and residents about allowing
chickens. She ha concerns with who would enforce the ordinance.
Councilmen Bailey- Stated that more people wanted chickens in the survey. The Council is here to serve the
public and they voted yes.
Councilmen Helgeson – It was hard to tell if the survey is accurate as far as who may have voted.
Councilmen Sjolander – He was torn on the idea of allowing chickens. He wants to give residents what they
want. There are already chickens in town. May be hard to enforce ordinance. It the ordinance is passed it
should be reviewed again in a year.
Motion by Sjolander, Second by Bailey to approve ordinance 101 Allowing Chickens in the City limits
Ayes Nayes
Bailey Helgeson
Sjolander Henke
Ryan
Motion failed.
Resolution 2023-15: Approving Summary Publication of Ord. 101
9
No discussion
Review Quotes for Payroll Services
Administrator Vahlsing stated that staff has been continuing to review options for contracting payroll processing. The
city has received updated quotes from five firms. Kelly Perry has met with representatives of all the payroll firms. In
order to cover the costs of the payroll service, the hours that the city pays toward the PD/City Administrative position
could be reduced. The personnel committee has reviewed the concept and is supportive. Staff would recommend
using Paycom. Kelly has worked with that company previously and had a good experience.
Motion by Ryan second by Henke to approve proposal of Paycom. Approval contingent on execution of
agreement. Motion carried 5-0-0.
NEW BUSINESS
City and KMU Compensation Study
Administrator Vahlsing updated the Council that staff is getting quotes for a compensation study. This study
compares City pay scales with comparable cities. He stated that the city was hoping to get 4 or 5 quotes and have
them ready for the August City Council and KMU meetings.
Therapy and Consulting Services Agreement – Police Department
Police Chief Sjoblom requested Council approval of an agreement with Lodestar Psychology to provide counseling
services and therapy for the Police Department. He stated that a recently approved state law requires that law
enforcement agencies provide therapy services for offices.
Motion by Sjolander seconded by Ryan to approve agreement with Lodestar Psychology for therapy services
for the Police Department. Motion carried 5-0-0.
Pearl Creek Sewer Main and Street Improvement Projects Bond Sale – George Eilertson –
Northland Public Finance
George Eilertson- Northland Public Finance reviewed the proposed bond sale terms for the 2023 public works
projects. As part of the bond sale Standard and Poors reviewed the City financial standing and confirmed the A+
rating. See S&P summary attached below for more information on the bond rating. The bonds sold at a 3.93%
interest rate and a 15 year term.
Resolution 2023-16: Awarding the Sale of General Obligation Bonds – Pearl Creek Sewer Main and
Street Improvement projects.
Motion by Ryan second by Helgeson to adopt Resolution 2023-16. Motion carried 5-0-0.
Schedule of Upcoming Meetings
KMU Meeting: Tuesday, July 18th @ 4:00 p.m.
EDA Meeting: Tuesday, August 1st @ 8:00 a.m.
City Council Meeting: Tuesday, August 8th @ 7 p.m
COUNCIL AND STAFF GENERAL COMMENTS
Council member Helgeson thanked community for supporting Farmers Market.
Mayor Henke- Farmers Market has had a good turnout. Thanked Councilmen Helgeson, Bailey Ament and
Park Board for work on the market. Administrator Vahlsing has approved 2 building permits for townhomes
in Trondheim area.
10
City Administrator Vahlsing stated that Library Director Michelle did a great job with the survey for
Chickens on the City web site.
Police Chief Sjoblom reminded the Council that National Night Out was August 1.
Motion by Bailey second by Helgeson to adjourn the meeting at 8:22 p.m.
Motion carried 4-0-0.
Holli Gudknecht, Administrative Assistant Douglas Henke, Mayor
11
AGENDA ITEM NO. VI.A
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: August 8, 2023
SUBMITTED BY: Mark Vahlsing, Legal
ITEM TYPE: Miscellaneous
AGENDA SECTION: PRESENTATIONS/PUBLIC HEARINGS
RECOGNITIONS/PROCLAMATIONS
SUBJECT: Public Hearing - Interim Ordinance and Moratorium on
Cannabis businesses
SUGGESTED ACTION: To hear public input on proposed Ordinance Interim Ordinance 101
regulating cannabis businesses. City Attorney will provide further
information at Council meeting. (Ordinance will be considered for
adoption under Old Business later in Council meeting).
ATTACHMENTS:
ORDINANCE 101 Cannabis Business InterimPublic Hrgnotice.docx 7-23.docx
12
ORDINANCE NO.
AN INTERIM ORDINANCE AUTHORIZING A STUDY AND
IMPOSING A MORATORIUM ON THE OPERATION OF CANNABIS
BUSINESSES WITHIN THE CITY OF KENYON
THE CITY COUNCIL OF THE CITY OF KENYON, MINNESOTA, ORDAINS:
SECTION 1. LEGISLATIVE FINDINGS AND AUTHORITY.
A. The Minnesota Legislature recently enacted, and the Governor signed, 2023 Minnesota
Session Laws, Chapter 63 – H.F. No. 100 (the “Act”), which is comprehensive
legislation relating to cannabis including, but not limited to, the establishment of the
Office of Cannabis Management (“OCM”), legalizing and limiting the possession and
use of cannabis and certain hemp products by adults, providing for the licensing,
inspection, and regulation of cannabis and hemp businesses, taxing the sale of cannabis
flower, cannabis products, and certain hemp products, establishing grant and loan
programs, amending criminal penalties, providing for expungement of certain
convictions, and providing for the temporary regulation of Edible Cannabinoid
Products.
B. The Act provides local units of government certain authority related to Cannabis
Businesses, including the authority to (i) require local registration of certain Cannabis
Businesses operating retail establishments, (ii) adopt reasonable restrictions on the
time, place, and manner of the operation of Cannabis Businesses, provided that such
restrictions do not prohibit the establishment or operation of a Cannabis Business, (iii)
limit the number of certain Cannabis Businesses based on the population of the
community, and (iv) prohibit the operation of a Cannabis Business within 1,000 feet of
a school, or 500 feet of a day care, residential treatment facility, or an attraction within
a public park that is regularly used by minors, including a playground or athletic field.
C. The Act requires the OCM, which was established effective July 1, 2023, to work with
local governments to develop model ordinances for reasonable restrictions on the time,
place, and manner of the operation of Cannabis Businesses. The Act also requires the
OCM to establish additional rules and regulations relating to the operation of Cannabis
Businesses. It is anticipated that the city of Kenyon (the “City”) will benefit from
reviewing and analyzing the OCM’s model ordinances, rules and regulations before
making any decisions related to the regulation of Cannabis Businesses in the City.
D. The Act (Minnesota Statutes, section 342.13(e)) expressly allows a local unit of
government that is conducting studies or has authorized a study to be conducted or has
held or scheduled a hearing for the purpose of considering adoption or amendment of
reasonable restrictions on the time, place and manner of the operation of Cannabis
Businesses to adopt an interim ordinance applicable to all or part of its jurisdiction for
the purpose of protecting the planning process and the health, safety, and welfare of its
citizens. The interim ordinance may regulate, restrict, or prohibit the operation of
Cannabis Businesses within the jurisdiction or a portion thereof until January 1, 2025.
1
KE200\5\888445.v1 13
E. Given the uncertainty regarding the model ordinances to be developed by the OCM and
the broad scope of the changes to Minnesota law brought about by the Act, the City
desires to adopt an interim ordinance for the purpose of protecting the planning process
and the health, safety, and welfare of its citizens.
F. The City desires to conduct a study for the purpose of considering the adoption or
amendment of reasonable restrictions on the time, place and manner of the operation
of Cannabis Businesses as well as the other regulations local units of government may
adopt under the Act.
G. On August 8, 2023, after providing at least 10 days published notice, the City Council
held a public hearing regarding the consideration and adoption of an interim ordinance
prohibiting the operation of Cannabis Businesses within the City until January 1, 2025.
SECTION 2. DEFINITIONS. For purposes of this Ordinance, the following terms shall have
the meaning given them in this section.
A. “Act” means 2023 Minnesota Session Laws, Chapter 63 (H.F. No. 100).
B. “Cannabis Business” has the meaning given the term in Minnesota Statutes, section
342.01, subdivision 14.
C. “City” means the city of Kenyon, a Minnesota municipal corporation.
D. “Edible Cannabinoid Product” has the meaning given the term in Minnesota Statutes,
section 151.72, subdivision 1(f).
E. “OCM” means the Office of Cannabis Management, established as set forth in
Minnesota Statutes, section 342.02, subd. 1.
F. “Ordinance” means this interim ordinance, which is adopted pursuant to Minnesota
Statutes, section 342.13(e).
SECTION 3. STUDY AUTHORIZED. The City Council hereby authorizes and directs City staff
to conduct a study regarding the adoption or amendment of reasonable restrictions on the time,
place, and manner of the operation of Cannabis Businesses, as well as other potential local
regulations allowed under the Act, and report to the City Council on the potential regulation of
Cannabis Businesses. The study may include a review of any model ordinances that OCM is
directed to draft under Minnesota Statutes, section 342.13(d), an analysis of potential setback
regulations allowed under Minnesota Statues, section 342.13(c), and such other matters as staff
may determine are relevant to the City Council’s consideration of this matter. The report may also
include City staff’s recommendations on whether the City Council should adopt regulations and,
if so, the recommended types of regulations.
2
KE200\5\888445.v1 14
SECTION 4. MORATORIUM. A moratorium is hereby imposed on the operation of any
Cannabis Business within the City. During the term of this Ordinance, no business, person, or
entity may establish or operate a Cannabis Business within the jurisdictional boundaries of the
City. Accordingly, during the period that this Ordinance is in effect, the City shall not accept,
process, or act on any application, site plan, building permit, zoning request, or other approval,
including any requested confirmation, certification, approval, or other request from the OCM or
other governmental entity requesting City review of any application or proposal for a business
proposing to engage in the operation of a Cannabis Business. During the term of the moratorium,
it is a violation of this Ordinance for any business, person, or entity to establish or operate a
Cannabis Business within the City.
SECTION 5. EXCEPTIONS. The moratorium imposed by this Ordinance does not apply to: (i)
the continued operation of a duly established business as part of the Medical Cannabis Program
administered by the Minnesota Department of Health that was lawfully operating within the City
prior to the effective date of this Ordinance; or (ii) the sale of Edible Cannabinoid Products under
Minnesota Statutes, Section 151.72, provided, however, that nothing in this Ordinance exempts a
business, person, or entity from complying with all other requirements and prohibitions of
applicable laws and ordinances related to such exceptions.
SECTION 6. ENFORCEMENT. Violation of this Ordinance is a misdemeanor. The City may
also enforce this Ordinance by mandamus, injunction, or other appropriate civil remedy in any
court of competent jurisdiction. A violation of this Ordinance is also subject to the City’s general
penalties prescribed in the city code and may further result in the City reporting violations to the
OCM, if relevant to OCM licensing. The City Council hereby authorizes City staff and consultants
to initiate any legal action deemed necessary to secure compliance with this Ordinance.
SECTION 7. SEVERABILITY. Every section, provision, and part of this Ordinance is declared
severable from every other section, provision, and part. If any section, provision, or part of this
Ordinance is held to be invalid by a court of competent jurisdiction, such judgment shall not
invalidate any other section, provision, or part of this Ordinance.
SECTION 8. EFFECTIVE DATE AND TERM. This Ordinance shall be in full force and effect
upon its passage and publication. This Ordinance shall remain in effect until January 1, 2025, or
until the City Council expressly repeals it, whichever occurs first.
Passed by the City Council of the City of Kenyon, Minnesota, this 8th day of August, 2023.
______________________________
ATTEST: Douglas Henke, Mayor
___________________________________
Mark R. Vahlsing, City Administrator
(Published in the Kenyon Leader on August 5, 2023)
3
KE200\5\888445.v1 15
AGENDA ITEM NO. VI.B
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: August 8, 2023
SUBMITTED BY: Mark Vahlsing, Finance
ITEM TYPE: Miscellaneous
AGENDA SECTION: PRESENTATIONS/PUBLIC HEARINGS
RECOGNITIONS/PROCLAMATIONS
SUBJECT: Summary of 2022 City Audit -Tyler See - Abdo
SUGGESTED ACTION: Lead field auditor Tyler See will present a summary of the findings
of 2022 audit. See attached summary below.
ATTACHMENTS:
2022 FINAL Audit Presentation.pdf
16
City of Kenyon
2022 Financial Statement Audit
17
Introduction
• Audit Opinion and Responsibility
• General Fund Results
• Other Governmental Funds
• Enterprise Funds
• Key Performance Indicators
2 18
Audit Results
Minnesota Legal
Auditor’s Opinion
Compliance
No compliance issues
Unmodified noted
3 19
Audit Results
2022 Audit Findings
• Limited Segregation of Duties
• Internal Control Finding
• Preparation of Financial Statements
• Internal Control Finding
4 20
Results from Prior Year
2021 Audit Findings
• Material Audit Adjustment
• Liquor Inventory
• EFT Policy
5 21
Auditor
Recommendations
• Consider Closing the KMU Bank Account
• Would increase efficiency of finance staff
• Reduce complexity of monthly processes / bank
reconciliation
6 22
General Fund Fund Balances
$1,600,000
$1,400,000 $1,481,075
$1,200,000 $1,302,960 $1,369,075
$1,261,460
$1,000,000
65.8% 57.1%
$800,000 50%
49.7%
$600,000 50%
50%
$400,000
$200,000
$-
2020 2021 2022 2023
Unassigned Fund Balance Budget Fund Balance Policy
7 23
General Fund Budget to Actual
Budgeted
Final Actual Variance with
Amounts Amounts Final Budget
Revenues $ 1,411,075 $ 1,453,128 $ 42,053
Expenditures 1,369,075 1,477,810 (108,735)
Excess of Revenues
Over Expenditures 42,000 (24,682) (66,682)
Other Financing Sources (Uses)
Proceeds from sale of assets - 375 375
Transfers in 88,000 108,000 20,000
Transfers out (112,000) (129,500) (17,500)
Total Other Financing Sources (Uses) (24,000) (21,125) 2,875
Net Change in Fund Balances 18,000 (45,807) (63,807)
Fund Balances, January 1 825,774 825,774 -
Fund Balances, December 31 $ 843,774 $ 779,967 $ (63,807)
8 24
General Fund Revenues by Type
$800,000
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$-
Taxes Licenses and Permits Intergovernmental Other
2020 2021 2022
9 25
General Fund Expenditures by Type
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$-
General Public Safety Public Works Culture and Transfers Out Other
Government Recreation
2020 2021 2022
10 26
Fund Balances
December 31, Increase
Fund 2022 2021 (Decrease)
Nonmajor
Fire Fund $ 53,400 $ 61,023 $ (7,623)
Library Fund 71,980 62,837 9,143
Police Forfeiture 1,269 1,269 -
Special Purpose Donations 69,849 73,542 (3,693)
ARPA - - -
2004 Sunset Home TIF 17,236 883 16,353
Special
Economic Development Authority 238,946 222,948 15,998
Total $ 452,680 $ 422,502 $ 30,178
$500,000
$450,000
Revenue
$400,000
$350,000 Fund
Balances
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$-
Nonspendable Restricted Assigned
2021 2022
11 27
Fund Balances
December 31, Increase
Fund 2022 2021 (Decrease)
Capital Projects Fund
Capital Outlay $ 868,992 $ 734,850 $ 134,142
Red Wing Ave Project (323,095) (335,929) 12,834
2023 Street Overlay Project (5,263) - (5,263)
Industrial Park (44,138) (44,461) 323
Total Capital Projects Fund $ 496,496 $ 354,460 $ 142,036 Capital
$600,000
Project
Fund
$500,000
$400,000
$300,000
Balances
$200,000
$100,000
$-
Committed
2021 2022
12 28
Total Cash
and Total Outstanding Maturity
Debt Description Investments Assets Debt Date
General Obligation Bonds
G.O. Refunding Bonds of 2007 $ 496 $ 496 $ - Matured
Total G.O. Bonds 496 496 -
G.O. Special Assessment Bonds
G.O. Improvement Bonds of 2012A 6,533 6,533 8,905 02/01/23 Debt
Service
G.O. Improvement Bonds of 2016A 27,383 56,806 306,375 02/01/26
G.O. Improvement Bonds of 2020A 119,311 522,728 2,364,769 02/01/41
2017 USDA Bond (Direct Borrowing) 20,339 20,339 1,994,033 08/28/57
Total G.O. Special Assessment Bonds 173,566 606,406 4,674,082
Notes
2017 USDA Note 11,847 11,847 423,260 08/28/57
Capital Lease
2020 Freightliner 114SB (491) (491) 147,637 07/20/26
2019 Ford F-150 - - 7,703 07/01/23
Total Capital Leases (491) (491) 155,340
Total All Debt Service Funds $ 185,418 $ 618,258 $ 5,252,682
Future Interest on Debt $ 2,052,809
13 29
$500,000
$450,000
Debt
$400,000
$350,000
Service
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000 Continued
$-
2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
Principal Interest
14 30
Net Position
December 31, Increase
Fund 2022 2021 (Decrease)
Enterprise Funds
Water $ 1,681,812 $ 1,587,549 $ 94,263
Sewer 2,667,866 2,715,523 (47,657)
Electric 6,651,460 6,294,951 356,509
Storm 944,992 1,013,716 (68,724)
Liquor 327,155 294,774 32,381
Total Net Position 12,273,285 11,906,513 366,772
Enterprise
Funds
Cash Balance
December 31, Increase
Fund 2022 2021 (Decrease)
Enterprise Funds
Water $ 788,455 $ 695,404 $ 93,051
Sewer 1,475,069 1,461,590 13,479
Electric 4,453,297 4,087,408 365,889 Net Position and Cash
Storm 614,179 716,568 (102,389)
Liquor 200,221 165,083 35,138 Balances
Total Cash 7,531,221 7,126,053 405,168
15 31
2022 2021 2020
Operating Revenues $ 396,099 $ 261,220 $ 259,086
Operating Expenditures 301,431 232,680 266,659
Operating Income 94,668 28,540 (7,573) Water
Net Nonoperating Revenue (Expense)
Capital Contributions and Transfers
(11,001)
10,596
(9,355)
638,474
160,363
(559,225)
Utility
Change in Net Postion 94,263 657,659 (406,435) Fund
Net Position, January 1 1,587,549 929,890 1,336,325
Net Postion, December 31 $ 1,681,812 $ 1,587,549 $ 929,890
Change in Net Position
16 32
2022 2021 2020
Operating Revenues
Operating Expenditures
$ 453,755
497,916
$ 415,830
430,817
$ 403,752
450,278 Sewer
Operating Income (44,161) (14,987) (46,526)
Utility
Fund
Net Nonoperating Revenue (Expense) (10,248) 12,293 190,165
Capital Contributions and Transfers 6,752 288,215 (33,218)
Change in Net Postion (47,657) 285,521 110,421
Net Position, January 1 2,715,523 2,430,002 2,319,581 Change in Net Position
Net Postion, December 31 $ 2,667,866 $ 2,715,523 $ 2,430,002
17 33
2022 2021 2020
Operating Revenues
Operating Expenditures
$ 1,964,648
1,608,726
$ 2,022,105
1,584,735
$ 2,026,025
1,674,702 Electric
Operating Income 355,922 437,370 351,323
Utility
Fund
Net Nonoperating Revenue (Expense) 66,587 145,358 376,592
Capital Contributions and Transfers (66,000) (65,774) (68,703)
Change in Net Postion 356,509 516,954 659,212
Net Position, January 1 6,294,951 5,777,997 5,118,785 Change in Net Position
Net Postion, December 31 $ 6,651,460 $ 6,294,951 $ 5,777,997
18 34
2022 2021 2020
Operating Revenues
Operating Expenditures
$ 50,698
101,929
$ 53,896
86,336
$ 53,542
57,248 Storm
Operating Income (51,231) (32,440) (3,706)
Water
Fund
Net Nonoperating Revenue (Expense) (17,493) (23,728) 39,629
Capital Contributions and Transfers - 216,185 (14,191)
Change in Net Postion (68,724) 160,017 21,732
Net Position, January 1 1,013,716 853,699 831,967 Change in Net Position
Net Postion, December 31 $ 944,992 $ 1,013,716 $ 853,699
19 35
2022 2021 2020
Gross Profit $ 267,461 $ 269,671 $ 229,667
Operating Expenditures 249,722 235,351 235,106
Liquor
Operating Income 17,739 34,320 (5,439)
Net Nonoperating Revenue (Expense) 54,642 48,499 28,332
Change in Net Position
Capital Contributions and Transfers (40,000) - -
Change in Net Postion 32,381 82,819 22,893
Net Position, January 1 294,774 211,955 189,062
Net Postion, December 31 $ 327,155 $ 294,774 $ 211,955
20 36
Cash and Investments Balances
by Fund Type
$12,000,000
$10,000,000 $9,420,057 $9,547,729
$8,762,554
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$-
$(2,000,000)
2020 2021 2022
General Fund Capital Projects Funds Special Revenue Funds
Debt Service Funds Enterprise Funds
21 37
Taxes
Key Performance Indicators
Tax Rates Taxes Per Capita
120.0% $900
$800
100.0%
$700
80.0% $600
$500
60.0%
$400
40.0% $300
$200
20.0%
$100
0.0% $-
2019 2020 2021 2022 2019 2020 2021 2022
Class 4 Cities 58.1% 58.8% 57.6% N/A Class 4 Cities $574 $606 $630 N/A
Cities in Goodhue Cities in Goodhue
77.0% 74.6% 73.4% N/A $784 $831 $836 N/A
County County
City of Kenyon 95.9% 83.0% 84.8% 86.5% City of Kenyon $516 $551 $563 $565
22 38
Debt
Key Performance Indicators
Debt Service Expenditures as a Percent
Long Term Debt - Per Capita of Current Expenditures
$6,000 20.00%
18.00%
$5,000
16.00%
$4,000 14.00%
12.00%
$3,000 10.00%
8.00%
$2,000 6.00%
4.00%
$1,000
2.00%
$- 0.00%
2019 2020 2021 2022 2019 2020 2021 2022
Class 4 Cities $2,005 $2,150 $2,198 N/A Class 4 Cities 14.16% 13.39% 13.38% N/A
Cities in Goodhue County $2,355 $2,614 $2,804 N/A Cities in Goodhue County 14.58% 15.94% 18.52% N/A
City of Kenyon $2,917 $5,563 $5,217 $4,977 City of Kenyon 12.35% 18.28% 13.65% 15.87%
23 39
Expenditures
Key Performance Indicators
Current Expenditures Per Capita Capital Expenditures Per Capita
$1,400 $1,600
$1,200 $1,400
$1,200
$1,000
$1,000
$800
$800
$600
$600
$400
$400
$200 $200
$- $-
2019 2020 2021 2022 2019 2020 2021 2022
Class 4 Cities $791 $839 $856 N/A Class 4 Cities $426 $558 $527 N/A
Cities in Goodhue County $986 $929 $939 N/A Cities in Goodhue County $395 $524 $211 N/A
City of Kenyon $1,002 $1,289 $1,172 $1,221 City of Kenyon $311 $1,397 $258 $156
24 40
Enterprise Funds
Key Performance Indicators
Water Fund Debt Service Coverage Sewer Fund Debt Service Coverage
500% 250%
450%
400%
200%
350%
300%
150%
250%
200%
100%
150%
100%
50% 50%
0%
2019 2020 2021 2022 0%
Class 4 Cities 2019 2020 2021 2022
119% 248% 257% N/A
Class 4 Cities 120% 216% 187% N/A
Cities in Goodhue County 211% 137% 213% N/A
Cities in Goodhue County 82% 149% 202% N/A
City of Kenyon 427% 267% 190% 233% City of Kenyon 129% 152% 126% 104%
25 41
Your Abdo Team
Brad Falteysek, CPA Tyler See, CPA Jill Knutson Jason Fagan Ellie Singleton
Partner Manager Associate Intern Intern
brad.falteysek@abdosolutions.com tyler.see@abdosolutions.com jill.knutson@abdosolutions.com jason.fagan@abdosolutions.com ellie.singleton@abdosolutions.com
26 42
AGENDA ITEM NO.
VII.A
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: August 8, 2023
SUBMITTED BY: Mark Vahlsing, Engineering
ITEM TYPE: Engineering
AGENDA SECTION: ENGINEERING
SUBJECT: Pearl Creek Sanitary Sewer Improvements
SUGGESTED ACTION: The City Engineer will provide an update on the status of the project.
ATTACHMENTS:
01.1_General Project Update.pdf
43
General Project Update
2023 Street Improvements Project
A preconstruction meeting has been scheduled for 10am on Thurs August 10th at City Hall. As we currently understand,
Bituminous Materials/Heselton Construction plans to start work in late August. Most work should be completed within a
month.
Requested Action:
None – Information Only
2023 Street Maintenance Project
Corrective Asphalt Materials was previously scheduled to start work during their august mobilization to this area. Once
we are notified of the start date, notification will be posted to the City Facebook page.
Requested Action:
None – Information Only
Pearl Creek Sewer & Gates Ave Utility Project
A preconstruction meeting is scheduled for 10am on Tues. August 15 th at city hall. The contractor is currently planning to
start work during the week of September 11-15. We’ll learn more about BCM’s work schedule and planned completion
date during the precon.
Requested Action:
None – Information Only
H:\KENYON_CI_MN\_General\Council Meetings\2023\08 - August 2023\01.1_General Project Update.docx
44
AGENDA ITEM NO.
VII.B
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: August 8, 2023
SUBMITTED BY: Mark Vahlsing, Engineering
ITEM TYPE: Engineering
AGENDA SECTION: ENGINEERING
SUBJECT: 2023 Street Improvement Project
SUGGESTED ACTION: The city engineer will provide an update on the project at the council
meeting.
ATTACHMENTS:
01.1_General Project Update.pdf
45
General Project Update
2023 Street Improvements Project
A preconstruction meeting has been scheduled for 10am on Thurs August 10th at City Hall. As we currently understand,
Bituminous Materials/Heselton Construction plans to start work in late August. Most work should be completed within a
month.
Requested Action:
None – Information Only
2023 Street Maintenance Project
Corrective Asphalt Materials was previously scheduled to start work during their august mobilization to this area. Once
we are notified of the start date, notification will be posted to the City Facebook page.
Requested Action:
None – Information Only
Pearl Creek Sewer & Gates Ave Utility Project
A preconstruction meeting is scheduled for 10am on Tues. August 15 th at city hall. The contractor is currently planning to
start work during the week of September 11-15. We’ll learn more about BCM’s work schedule and planned completion
date during the precon.
Requested Action:
None – Information Only
H:\KENYON_CI_MN\_General\Council Meetings\2023\08 - August 2023\01.1_General Project Update.docx
46
AGENDA ITEM NO.
VIII.A
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: August 8, 2023
SUBMITTED BY: Mark Vahlsing, Legal
ITEM TYPE: Legal
AGENDA SECTION: LEGAL
SUBJECT: Review of Ordinance No. 101 (interim ordinance) Cannabis
1. Approve Ordinance 101MOTION NEEDED
2. Resolution 2023-11: Approving Publication of Ordinance No.
101 by Title and Summary MOTION NEEDED
SUGGESTED ACTION: Approve Ordinance 101
Council approval of ordinance regulating Cannabis Businesses
Motion needed.
Resolution 2023-11:
Approving Publication of Ordinance No. 101
Council approval needed to publish summary of Ordinance.
Motion needed.
ATTACHMENTS:
DOCSOPEN-#888445-v1-Kenyon Cannabis Business Moratorium.DOCX
DOCSOPEN-_888450-v1-Notice_of_Cannabis_Business_Moratorium.DOC
Resolution 2023-11 Summary_Publication_Resolution_for_Cannabis_Moratorium.docx
47
ORDINANCE NO. __
AN INTERIM ORDINANCE AUTHORIZING A STUDY AND
IMPOSING A MORATORIUM ON THE OPERATION OF CANNABIS
BUSINESSES WITHIN THE CITY OF KENYON
THE CITY COUNCIL OF THE CITY OF KENYON, MINNESOTA, ORDAINS:
SECTION 1. LEGISLATIVE FINDINGS AND AUTHORITY.
A. The Minnesota Legislature recently enacted, and the Governor signed, 2023 Minnesota
Session Laws, Chapter 63 – H.F. No. 100 (the “Act”), which is comprehensive
legislation relating to cannabis including, but not limited to, the establishment of the
Office of Cannabis Management (“OCM”), legalizing and limiting the possession and
use of cannabis and certain hemp products by adults, providing for the licensing,
inspection, and regulation of cannabis and hemp businesses, taxing the sale of cannabis
flower, cannabis products, and certain hemp products, establishing grant and loan
programs, amending criminal penalties, providing for expungement of certain
convictions, and providing for the temporary regulation of Edible Cannabinoid
Products.
B. The Act provides local units of government certain authority related to Cannabis
Businesses, including the authority to (i) require local registration of certain Cannabis
Businesses operating retail establishments, (ii) adopt reasonable restrictions on the
time, place, and manner of the operation of Cannabis Businesses, provided that such
restrictions do not prohibit the establishment or operation of a Cannabis Business, (iii)
limit the number of certain Cannabis Businesses based on the population of the
community, and (iv) prohibit the operation of a Cannabis Business within 1,000 feet of
a school, or 500 feet of a day care, residential treatment facility, or an attraction within
a public park that is regularly used by minors, including a playground or athletic field.
C. The Act requires the OCM, which was established effective July 1, 2023, to work with
local governments to develop model ordinances for reasonable restrictions on the time,
place, and manner of the operation of Cannabis Businesses. The Act also requires the
OCM to establish additional rules and regulations relating to the operation of Cannabis
Businesses. It is anticipated that the city of Kenyon (the “City”) will benefit from
reviewing and analyzing the OCM’s model ordinances, rules and regulations before
making any decisions related to the regulation of Cannabis Businesses in the City.
D. The Act (Minnesota Statutes, section 342.13(e)) expressly allows a local unit of
government that is conducting studies or has authorized a study to be conducted or has
held or scheduled a hearing for the purpose of considering adoption or amendment of
reasonable restrictions on the time, place and manner of the operation of Cannabis
Businesses to adopt an interim ordinance applicable to all or part of its jurisdiction for
the purpose of protecting the planning process and the health, safety, and welfare of its
citizens. The interim ordinance may regulate, restrict, or prohibit the operation of
Cannabis Businesses within the jurisdiction or a portion thereof until January 1, 2025.
1
KE200\5\888445.v1 48
E. Given the uncertainty regarding the model ordinances to be developed by the OCM and
the broad scope of the changes to Minnesota law brought about by the Act, the City
desires to adopt an interim ordinance for the purpose of protecting the planning process
and the health, safety, and welfare of its citizens.
F. The City desires to conduct a study for the purpose of considering the adoption or
amendment of reasonable restrictions on the time, place and manner of the operation
of Cannabis Businesses as well as the other regulations local units of government may
adopt under the Act.
G. On August 8, 2023, after providing at least 10 days published notice, the City Council
held a public hearing regarding the consideration and adoption of an interim ordinance
prohibiting the operation of Cannabis Businesses within the City until January 1, 2025.
SECTION 2. DEFINITIONS. For purposes of this Ordinance, the following terms shall have
the meaning given them in this section.
A. “Act” means 2023 Minnesota Session Laws, Chapter 63 (H.F. No. 100).
B. “Cannabis Business” has the meaning given the term in Minnesota Statutes, section
342.01, subdivision 14.
C. “City” means the city of Kenyon, a Minnesota municipal corporation.
D. “Edible Cannabinoid Product” has the meaning given the term in Minnesota Statutes,
section 151.72, subdivision 1(f).
E. “OCM” means the Office of Cannabis Management, established as set forth in
Minnesota Statutes, section 342.02, subd. 1.
F. “Ordinance” means this interim ordinance, which is adopted pursuant to Minnesota
Statutes, section 342.13(e).
SECTION 3. STUDY AUTHORIZED. The City Council hereby authorizes and directs City staff
to conduct a study regarding the adoption or amendment of reasonable restrictions on the time,
place, and manner of the operation of Cannabis Businesses, as well as other potential local
regulations allowed under the Act, and report to the City Council on the potential regulation of
Cannabis Businesses. The study may include a review of any model ordinances that OCM is
directed to draft under Minnesota Statutes, section 342.13(d), an analysis of potential setback
regulations allowed under Minnesota Statues, section 342.13(c), and such other matters as staff
may determine are relevant to the City Council’s consideration of this matter. The report may also
include City staff’s recommendations on whether the City Council should adopt regulations and,
if so, the recommended types of regulations.
2
KE200\5\888445.v1 49
SECTION 4. MORATORIUM. A moratorium is hereby imposed on the operation of any
Cannabis Business within the City. During the term of this Ordinance, no business, person, or
entity may establish or operate a Cannabis Business within the jurisdictional boundaries of the
City. Accordingly, during the period that this Ordinance is in effect, the City shall not accept,
process, or act on any application, site plan, building permit, zoning request, or other approval,
including any requested confirmation, certification, approval, or other request from the OCM or
other governmental entity requesting City review of any application or proposal for a business
proposing to engage in the operation of a Cannabis Business. During the term of the moratorium,
it is a violation of this Ordinance for any business, person, or entity to establish or operate a
Cannabis Business within the City.
SECTION 5. EXCEPTIONS. The moratorium imposed by this Ordinance does not apply to: (i)
the continued operation of a duly established business as part of the Medical Cannabis Program
administered by the Minnesota Department of Health that was lawfully operating within the City
prior to the effective date of this Ordinance; or (ii) the sale of Edible Cannabinoid Products under
Minnesota Statutes, Section 151.72, provided, however, that nothing in this Ordinance exempts a
business, person, or entity from complying with all other requirements and prohibitions of
applicable laws and ordinances related to such exceptions.
SECTION 6. ENFORCEMENT. Violation of this Ordinance is a misdemeanor. The City may
also enforce this Ordinance by mandamus, injunction, or other appropriate civil remedy in any
court of competent jurisdiction. A violation of this Ordinance is also subject to the City’s general
penalties prescribed in the city code and may further result in the City reporting violations to the
OCM, if relevant to OCM licensing. The City Council hereby authorizes City staff and consultants
to initiate any legal action deemed necessary to secure compliance with this Ordinance.
SECTION 7. SEVERABILITY. Every section, provision, and part of this Ordinance is declared
severable from every other section, provision, and part. If any section, provision, or part of this
Ordinance is held to be invalid by a court of competent jurisdiction, such judgment shall not
invalidate any other section, provision, or part of this Ordinance.
SECTION 8. EFFECTIVE DATE AND TERM. This Ordinance shall be in full force and effect
upon its passage and publication. This Ordinance shall remain in effect until January 1, 2025, or
until the City Council expressly repeals it, whichever occurs first.
Passed by the City Council of the City of Kenyon, Minnesota, this 8th day of August, 2023.
______________________________
ATTEST: Douglas Henke, Mayor
___________________________________
Mark R. Vahlsing, City Administrator
(Published in the Kenyon Leader on ______, 2023)
3
KE200\5\888445.v1 50
CITY OF KENYON
KENYON, MINNESOTA
NOTICE OF PUBLIC HEARING
REGARDING A PROPOSED INTERIM ORDINANCE AUTHORIZING A STUDY AND
IMPOSING A MORATORIUM ON THE ESTABLISHMENT AND OPERATION OF
CANNABIS BUSINESSES IN THE CITY OF KENYON
NOTICE IS HEREBY GIVEN that a public hearing will be held by the Kenyon City Council at
its regular meeting on August 8, 2023, at 7:00 pm, or as soon thereafter as practical at the
Kenyon City Hall, located at 709 2nd Street, Kenyon, Minnesota 55946. The purpose of this
public hearing is for consideration of an interim ordinance authorizing a study and imposing a
moratorium on the establishment and operation of cannabis businesses within the City of
Kenyon. The proposed interim ordinance is authorized under Minnesota Statutes, section 342.13.
A copy of the proposed interim ordinance is available for inspection on the City’s website (insert
link) or at Kenyon City Hall during regular business hours.
________________________________
Mark R. Vahlsing
City Administrator
DATED: July 25, 2023.
DOCSOPEN\KE200\5\888450.v1-7/12/23
51
RESOLUTION NO. 2023-11
CITY OF KENYON
COUNTY OF GOODHUE
STATE OF MINNESOTA
A RESOLUTION APPROVING PUBLICATION OF
ORDINANCE NO. 101 BY TITLE AND SUMMARY
WHEREAS, on August 8, 2023, the City Council of the City of Kenyon adopted
Ordinance No. 101 entitled “AN INTERIM ORDINANCE AUTHORIZING A STUDY AND
IMPOSING A MORATORIUM ON THE OPERATION OF CANNABIS BUSINESSES
WITHIN THE CITY OF KENYON”; and
WHEREAS, the ordinance is approximately three pages in length; and
WHEREAS, Minnesota Statutes, section 412.191, subd. 4 allows publication by title and
summary in the case of lengthy ordinances; and
WHEREAS, the City Council believes that the following summary would clearly inform
the public of the intent and effect of the ordinance.
NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of
Kenyon that the following summary is hereby approved for official publication:
SUMMARY PUBLICATION
ORDINANCE NO. 101
AN INTERIM ORDINANCE AUTHORIZING A STUDY AND
IMPOSING A MORATORIUM ON THE OPERATION OF CANNABIS
BUSINESSES WITHIN THE CITY OF KENYON
On August 8, 2023, the City Council of the City of Kenyon adopted Ordinance No. 101,
An Interim Ordinance Authorizing A Study And Imposing A Moratorium On The Operation Of
Cannabis Businesses Within The City Of Kenyon. The interim ordinance temporarily prohibits the
establishment and operation of all cannabis businesses within the City. The interim ordinance also
authorizes a study on potential City regulations of cannabis businesses and will allow the City to
review yet to be published model ordinances and administrative rules from the newly established
Office of Cannabis Management prior to making any regulatory decisions, including whether to
impose zoning restrictions. Currently operating Medical Cannabis Businesses are exempt and the
sale of Edible Cannabinoid Products pursuant to Minnesota Statutes, section 151.72 is not
impacted. The interim ordinance will expire on January 1, 2025, unless repealed sooner by the
City Council. The full text of Ordinance No. 101 is available for inspection at Kenyon City Hall
during regular business hours.
NOW, THEREFORE, IT IS HEREBY FURTHER RESOLVED by the City Council
of the City of Kenyon that the City Administrator is directed to publish the above summary in lieu
of publication of the entire ordinance, and is further directed to post a copy of the entire text of the
1
KE200\5\888452.v1
52
ordinance at the Kenyon Library and on the bulletin board at Kenyon City Hall for a period of not
less than 30 days. In addition, a printed copy of the ordinance is available for inspection by any
person during regular office hours at Kenyon City Hall.
Adopted by the Kenyon City Council on this 8th day of August, 2023.
__________________________________
Douglas Henke
Mayor
ATTEST:
______________________________
Mark R. Vahlsing
City Administrator
2
KE200\5\888452.v1
53
AGENDA ITEM NO.
VIII.B
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: August 8, 2023
SUBMITTED BY: Mark Vahlsing, Legal
ITEM TYPE: Legal
AGENDA SECTION: LEGAL
SUBJECT: Sale of Kenyon Sunset Home
1. Resolution 2023-18 Approving Termination of Tax Abatement
after Decertification of TIF District No. 4-4 (45).
1. Approve release of
Purchase and Redevelopment Agreement
Covenants
Contract for Private Development
SUGGESTED ACTION: Due to the pending sale of the Kenyon Sunset Home property
Council approval is needed to terminate the original tax abatement
and decertify the Tax Increment Financing District.
MOTION NEEDED
Council approval is also needed to release the Sunset Home from
three agreements that were part of the original tax increment
Financing district and Tax Abatement.
MOTION NEEDED
ATTACHMENTS:
Resolution 2023-18 Terminating Tax Abatement Agreement Sunset Home .docx
DOCSOPEN-#886212-v1-Release of Purchase and Redevelopment Agreement (492414).DOCX
DOCSOPEN-#886323-v1-Release of Covenants.DOCX
DOCSOPEN-#886213-v1-Release of Contract for Private Redevelopment (492416).DOCX
DOCSOPEN-#886331-v1-Release of Covenants.DOCX
2023_06_29_KBT Title Commitment.pdf
54
RESOLUTION NO. 2023-18
CITY OF KENYON
COUNTY OF GOODHUE
STATE OF MINNESOTA
BEING A RESOLUTION APPROVING TERMINATION of
PROPERTY TAX ABATEMENT FOR CERTAIN PROPERTY IN
THE CITY OF KENYON FOLLOWING DECERTIFICATION OF
TAX INCREMENT FINANCING DISTRICT NO. 4-4 (45).
WHEREAS, on July 13, 2004, the City of Kenyon (the “City”) created its Tax Increment
Financing District No. 4-4 (45) within its Development District No. 4; and
WHEREAS, the City previously determined a need to grant a property tax abatement (the
“Abatement”) to Kenyon Sunset Home, Inc., (the “Developer”) as part of the Developer’s
development related to the Tax Increment Financing District No. 4-4 (45) for certain property
described on the attached Exhibit A, and such Abatement was filed with the County Recorder of
Goodhue County on September 8, 2003, as Document Number A492417; and
WHEREAS, all bonds and obligations to which tax increment from District No. 4-4 (45) has
been pledged has been paid in full or defeased and all other costs of the project have been paid; and
WHEREAS, the City set forth a resolution on October 11, 2022, to cause the decertification
of District No. 4-4 (45) and to authorize all necessary actions to decertify District No. 4-4- (45) with
the County Auditor of Goodhue County; and
WHEREAS, the City is desires to take action in furtherance of decertifying the District,
including termination of the Abatement, and the City Council of the City of Kenyon finds and
determines the termination of the Abatement is in the best interest of the City as a whole.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Kenyon that the
Abatement is hereby terminated. City staff shall take such action as is necessary to give effect to this
Resolution.
Adopted by the City Council of the City of Kenyon on this ___ day of July, 2023.
_________________________________________
Douglas Henke
Mayor
ATTEST:
___________________________________
Mark Vahlsing
City Administrator
KE200\104\886294.v1
55
EXHIBIT A
Legal Description of the Property Subject to Tax Abatement
That part of Lots 11, 12, 13, 14, 15, 16, and 17, Block 2 of Clark’s Addition and Replat
of Blocks 30 and 21 of S.A. Bullis’ Second Addition to the village (now City) of
Kenyon, according to the recorded plat thereof, described as follows: Beginning at the
southwest corner of said Lot 17, Block 2; thence North 89 degrees 57 minutes 14
seconds East (assumed bearing) along the south line of said Block 2, 163.84 feet;
thence North 00 degrees 00 minutes 00 seconds East 67.53 feet; thence South 90
degrees 00 minutes 00 seconds West 48.25 feet; thence North 00 degrees 00 minutes
00 seconds East 6.17 feet; thence South 90 degrees 00 minutes 00 seconds West 3.33
feet; thence North 00 degrees 00 minutes 00 seconds East 5.00 feet; thence South 90
degrees00 minutes 00 seconds West 112.18 feet to the west line of said Lot 17, Block
2; thence South 00 degrees 03 minutes 22 seconds West along said west line 78.83
feet to the point of beginning.
KE200\104\886294.v1
56
RELEASE OF PURCHASE AND REDEVELOPMENT AGREEMENT
The Kenyon Economic Development Authority, a public body corporate and politic (the
“Authority”), the City of Kenyon, a Minnesota municipal corporation (the “City”), and Kenyon
Sunset Home, Inc., a Minnesota nonprofit corporation (the “Developer”) entered into that certain
Purchase and Redevelopment Agreement, dated as of August 11, 2003, recorded in the office of
the County Recorder of Goodhue County on September 8, 2003 as Document No. 492414 (the
“Agreement”), with respect to conveyance of property in the City of Kenyon by the Authority to
the Developer for redevelopment, the property being legally described as:
1. THAT PART OF THE SOUTH 92.00 FEET OF LOTS 1, 2, AND 3 IN BLOCK 34,
S.A. BULLIS’ SECOND ADDITION TO KENYON, ACCORDING TO THE
RECORDED PLAT THEREOF. LYING WESTERLY OF THE EAST 13.00 FEET
OF SAID LOT 3, BLOCK 34.
2. THAT PART OF THIRD STREET IN S.A. BULLIS’ SECOND ADDITION TO
KENYON ACCORDING TO THE RECORDED PLAT THEREOF, DESCRIBED AS
FOLLOWS: BEGINNING AT THE SOUTHWEST CORNER OF LOT 1 IN BLOCK
34 OF SAID S.A. BULLIS’ SECOND ADDITION TO KENYON’ THENCE NORTH
89 DEGREES 58 MINUTES 19 SECONDS EAST (ASSUMED BEARING) ALONG
THE SOUTH LINE OF LOTS 1, 2, 3, AND 4, BLOCK 34, A DISTANCE OF 235.00
FEET; THENCE SOUTH 00 DEGREES 15 MINUTES 16 SECONDS WEST 66.00
FEET TO THE NORTHEAST CORNER OF THE WEST 10.00 FEET OF LOT 8 IN
BLOCK 2 OF CLARKE’S ADDITION AND REPLAT OF BLOCKS 30 AND 31 OF
S.A. BULLIS’ SECOND ADDITION TO THE CITY OF KENYON, ACCORDING
TO THE RECORDED PLAT THEREOF; THENCE SOUTH 89 DEGREES 58
MINUTES 19 SECONDS WEST ALONG THE NORTH LINE OF SAID BLOCK 2
A DISTANCE OF 234.90 FEET TO THE NORTHWEST CORNER OF SAID
BLOCK 2; THENCE NORTH 00 DEGREES 10 MINUTES 03 SECONDS EAST
66.00 FEET TO THE POINT OF BEGINNING.
AND
KE200\104\886212.v1
57
THE WEST 10.00 FEET OF LOT 8 AND ALL OF LOTS 9, 10, 11, 12, 13, 14, 15, 16
AND 17, IN BLOCK 2 OF CLARKE’S ADDITION AND REPLAT OF BLOCKS 30
AND 31 OF S.A. BULLIS’ SECOND ADDITION TO THE VILLAGE (NOW CITY) OF
KENYON, ACCORDING TO THE RECORDED PLAT THEREOF.
(the “Property”).
The Agreement has been terminated by the Authority and the City. Therefore, the Property
is hereby released from the Agreement.
Dated: July _____, 2023.
KE200\104\886212.v1
58
IN WITNESS WHEREOF, the Authority has caused this Release to be duly executed in its
name and on its behalf.
By
Its: President
By
Its: Executive Director
STATE OF MINNESOTA )
) SS.
COUNTY OF GOODHUE )
The foregoing instrument was acknowledged before me this ____ day of July, 2023 by
____________________ and __________________, the President and Executive Director of the
Kenyon Economic Development Authority, on behalf of the Authority.
Notary Public
KE200\104\886212.v1
59
CITY OF KENYON
By
Douglas Henke, Mayor
By
Mark R. Vahlsing, City Administrator
STATE OF MINNESOTA )
) SS.
COUNTY OF GOODHUE )
The foregoing instrument was acknowledged before me this ____ day of July, 2023 by
Douglas Henke and Mark R. Vahlsing, the Mayor and City Administrator of the City of Kenyon, a
Minnesota municipal corporation, on behalf of the City.
Notary Public
This document drafted by:
Kennedy & Graven, Chartered
150 South Sixth Street, Suite 700
Minneapolis, MN 55402
(612) 337-9300
KE200\104\886212.v1
60
RELEASE OF COVENANTS, CONDITIONS, RESTRICTIONS, AND PROVISIONS
BY THIS RELEASE OF COVENANTS, CONDITIONS, RESTRICTIONS, AND
PROVISIONS, made this ____ day of July, 2023, the City of Kenyon, a Minnesota municipal
corporation, in exchange for good and valuable consideration, does hereby release the property
legally described on Exhibit A attached hereto from all covenants, conditions, restrictions, and
provisions set forth in that certain Quit Claim Deed, dated August 11, 2003, and recorded on
September 8, 2003 in the Office of the Goodhue County Recorder as Document No. 492412.
[signature page to follow]
1
DOCSOPEN\KE200\104\886323.v1-6/30/23
61
Dated: July ____, 2023
CITY OF KENYON
By: ________________________________
Douglas Henke, Mayor
By: ________________________________
Mark R. Vahlsing, City Administrator
STATE OF MINNESOTA )
) SS
COUNTY OF GOODHUE )
The foregoing instrument was acknowledged before me this ____ day of July, 2023 by
Douglas Henke and Mark R. Vahlsing, the Mayor and City Administrator of the City of Kenyon, a
Minnesota municipal corporation, on behalf of the City.
___________________________
Notary Public
THIS INSTRUMENT WAS DRAFTED BY:
Kennedy & Graven, Chartered
150 South Fifth Street, Suite 700
Minneapolis, MN 55402
(612) 337-9300
2
DOCSOPEN\KE200\104\886323.v1-6/30/23
62
EXHIBIT A
1. THAT PART OF THE SOUTH 92.00 FEET OF LOTS 1, 2, AND 3 IN
BLOCK 34, S.A. BULLIS’ SECOND ADDITION TO KENYON, ACCORDING
TO THE RECORDED PLAT THEREOF. LYING WESTERLY OF THE EAST
13.00 FEET OF SAID LOT 3, BLOCK 34.
2. THAT PART OF THIRD STREET IN S.A. BULLIS’ SECOND
ADDITION TO KENYON ACCORDING TO THE RECORDED PLAT
THEREOF, DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWEST
CORNER OF LOT 1 IN BLOCK 34 OF SAID S.A. BULLIS’ SECOND
ADDITION TO KENYON’ THENCE NORTH 89 DEGREES 58 MINUTES 19
SECONDS EAST (ASSUMED BEARING) ALONG THE SOUTH LINE OF
LOTS 1, 2, 3, AND 4, BLOCK 34, A DISTANCE OF 235.00 FEET; THENCE
SOUTH 00 DEGREES 15 MINUTES 16 SECONDS WEST 66.00 FEET TO THE
NORTHEAST CORNER OF THE WEST 10.00 FEET OF LOT 8 IN BLOCK 2
OF CLARKE’S ADDITION AND REPLAT OF BLOCKS 30 AND 31 OF S.A.
BULLIS’ SECOND ADDITION TO THE CITY OF KENYON, ACCORDING
TO THE RECORDED PLAT THEREOF; THENCE SOUTH 89 DEGREES 58
MINUTES 19 SECONDS WEST ALONG THE NORTH LINE OF SAID BLOCK
2 A DISTANCE OF 234.90 FEET TO THE NORTHWEST CORNER OF SAID
BLOCK 2; THENCE NORTH 00 DEGREES 10 MINUTES 03 SECONDS EAST
66.00 FEET TO THE POINT OF BEGINNING.
A-1
DOCSOPEN\KE200\104\886323.v1-6/30/23
63
RELEASE OF CONTRACT FOR PRIVATE REDEVELOPMENT
The Kenyon Economic Development Authority, a public body corporate and politic (the
“Authority”), the City of Kenyon, a Minnesota municipal corporation (the “City”), and Kenyon
Sunset Home, Inc., a Minnesota nonprofit corporation (the “Developer”) entered into that certain
Purchase and Redevelopment Agreement, dated as of August 11, 2003, recorded in the office of
the County Recorder of Goodhue County on September 8, 2003 as Document No. 492416 (the
“Agreement”), with respect to conveyance of property in the City of Kenyon by the Authority to
the Developer for redevelopment, the property being legally described as:
1) That part of the west 43.00 feet of Lot 4 in Block 34 of S.A. Bullis’ Second Addition
to Kenyon, according to the recorded plat thereof, lying southerly of the north 31.00
feet thereof.
2) The east 13.00 feet of the south 109.00 feet of Lot 3 in Block 34, S.A. Bullis’ Second
Addition to Kenyon, according to the recorded plat thereof.
3) That part of the south 92.00 feet of Lots 1, 2, and 3 in Block 34, S.A. Bullis’ Second
Addition to Kenyon, according to the recorded plat thereof, lying westerly of the east
13.00 feet of said Lot 3, Block 34.
4) That part of Third Street in S.A. Bullis’ Second Addition to Kenyon, according to the
recorded plat thereof, described as follows: Beginning at the southwest corner of Lot 1
in Block 34 of said S.A. Bullis’ Second Addition to Kenyon; thence North 89 degrees
58 minutes 19 seconds East (assumed bearing) along the south line of Lots 1, 2, 3 and
4, Block 34, a distance of 235.00 feet; thence South 00 degrees 15 minutes 16 seconds
West 66.00 feet to the northeast corner of the west 10.00 feet of Lot 8 in Block 2 of
Clarke’s Addition and Replat of Blocks 30 and 31 of S.A. Bullis’ Second Addition to
the City of Kenyon, according to the recorded plat thereof; thence South 89 degrees 58
minutes 19 seconds West along the north line of said Block 2 a distance of 234.90 feet
to the northwest corner of said Block 2; thence North 00 degrees 10 minutes 03 seconds
East 66.00 feet to the point of beginning.
5) The west 10.00 feet of Lot 8 and all of Lots 9, 10, 11, 12, 13, 14, 15, 16, and 17, in
Block 2 of Clarke’s Addition and Replat of Blocks 30 and 31 of S.A. Bullis’ Second
Addition to the Village (now City) of Kenyon, according to the recorded plat thereof.
EXCEPT that part of said Lots 11, 12, 13, 14, 15, 16, and 17, Block 2, described as
KE200\104\886213.v1
64
follows: Beginning at the southwest corner of said Lot 17, Block 2; thence North 89
degrees 57 minutes 14 seconds East (assumed bearing) along the south line of said
Block 2, 163.84 feet; thence North 00 degrees 00 minutes 00 seconds East 67.53 feet;
thence South 90 degrees 00 minutes 00 seconds West 48.25 feet; thence North 00
degrees 00 minutes 00 seconds East 6.17 feet; thence South 90 degrees 00 minutes 00
seconds West 3.33 feet; thence North 00 degrees 00 minutes 00 seconds East 5.00 feet;
thence South 90 degrees 00 minutes 00 seconds West 112.18 feet to the west line of
said Lot 17, Block 2; thence South 00 degrees 03 minutes 22 seconds West along said
west line 78.83 feet to the point of beginning. All in the City of Kenyon, Goodhue
County, Minnesota.
(the “Property”).
The Agreement has been terminated by the Authority and the City. Therefore, the Property
is hereby released from the Agreement.
Dated: July _____, 2023.
KE200\104\886213.v1
65
IN WITNESS WHEREOF, the Authority and the City have caused this Release to be duly
executed in their names and on their behalf.
KENYON ECONOMIC
DEVELOPMENT AUTHORITY
By
Its: President
By
Its: Executive Director
STATE OF MINNESOTA )
) SS.
COUNTY OF GOODHUE )
The foregoing instrument was acknowledged before me this ____ day of July, 2023 by
____________________ and __________________, the President and Executive Director of the
Kenyon Economic Development Authority, a public body corporate and politic, on behalf of the
Authority.
Notary Public
KE200\104\886213.v1
66
CITY OF KENYON
By
Douglas Henke, Mayor
By
Mark R. Vahlsing, City Administrator
STATE OF MINNESOTA )
) SS.
COUNTY OF GOODHUE )
The foregoing instrument was acknowledged before me this ____ day of July, 2023 by
Douglas Henke and Mark R. Vahlsing, the Mayor and City Administrator of the City of Kenyon, a
Minnesota municipal corporation, on behalf of the City.
Notary Public
This document drafted by:
Kennedy & Graven, Chartered
150 South Sixth Street, Suite 700
Minneapolis, MN 55402
(612) 337-9300
KE200\104\886213.v1
67
RELEASE OF COVENANTS, CONDITIONS, RESTRICTIONS, AND PROVISIONS
BY THIS RELEASE OF COVENANTS, CONDITIONS, RESTRICTIONS, AND
PROVISIONS, made this ____ day of July, 2023, the City of Kenyon Economic Development
Authority, a public body corporate and politic under the laws of the State of Minnesota, in
exchange for good and valuable consideration, does hereby release the property legally described
on Exhibit A attached hereto from all covenants, conditions, restrictions, and provisions set forth
in that certain Quit Claim Deed, dated August 11, 2003, and recorded on September 8, 2003 in the
Office of the Goodhue County Recorder as Document No. 492411.
[signature page to follow]
1
KE200\104\886331.v1
68
Dated: July ____, 2023
KENYON ECONOMIC
DEVELOPMENT AUTHORITY
By
Its: President
By
Its: Executive Director
STATE OF MINNESOTA )
) SS
COUNTY OF GOODHUE )
The foregoing instrument was acknowledged before me this ____ day of July, 2023 by
____________________ and __________________, the President and Executive Director of the
Kenyon Economic Development Authority, a public body corporate and politic, on behalf of the
Authority.
___________________________
Notary Public
THIS INSTRUMENT WAS DRAFTED BY:
Kennedy & Graven, Chartered
150 South Fifth Street, Suite 700
Minneapolis, MN 55402
(612) 337-9300
2
KE200\104\886331.v1
69
EXHIBIT A
THE WEST 10.00 FEET OF LOT 8 AND ALL OF LOTS 9, 10, 11, 12, 13, 14, 15,
16 AND 17, IN BLOCK 2 OF CLARKE’S ADDITION AND REPLAT OF
BLOCKS 30 AND 31 OF S.A. BULLIS’ SECOND ADDITION TO THE
VILLAGE (NOW CITY) OF KENYON, ACCORDING TO THE RECORDED
PLAT THEREOF.
A-1
KE200\104\886331.v1
70
COMMITMENT FOR TITLE INSURANCE File #: 2221931
Schedule A Revision: 2221931
Completed on: 06/29/2023 01:42 PM
Knight Barry Title United LLC
Last Revised on: 06/29/23 01:44 PM
433 W 3rd Street
Printed on: 06/29/2023 01:44 PM
Red Wing, MN 55066
Title Contact: Jennifer Hoffman (jenniferh@knightbarry.com)
651-388-8891
Fax: (651) 305-0316 Closing Contact: redwingcloser@knightbarry.com
COMMITMENT DATE June 23, 2023 at 08:00 AM
1. POLICY TO BE ISSUED
ALTA OWNERS POLICY (07/01/21)
Proposed Amount of Insurance: $0.00
(the purchase price)
Proposed Insured: A Legally Qualified Grantee To Be Named
(the buyer)
2. TITLE TO THE FEE SIMPLE ESTATE Kenyon Sunset Home
OR INTEREST IN THE LAND IS AT THE
COMMITMENT DATE VESTED IN
(the owner)
3. THE LAND IS DESCRIBED AS See “Exhibit A” attached.
FOLLOWS
(the legal description)
This page is only a part of the 2021 ALTA Commitment for Title Insurance underwritten by Stewart Title Guaranty Company. This Commitment is not
valid without the Notice, the Commitment to Issue Policy and the Commitment Conditions (located at https://www.knightbarry.com/cover/st/21 );
Schedule A; Schedule B, Part 1 Requirements; and Schedule B, Part 2 Exceptions. All italicized words in this Commitment are for informational
purposes only and for the convenience of the reader and are not part of the ALTA Commitment form.
Page 1 of 9
71
COMMITMENT FOR TITLE INSURANCE File #: 2221931
Schedule B, Part 1 Revision: 2221931
REQUIREMENTS
Completed on: 06/29/2023 01:42 PM
Knight Barry Title United LLC
Last Revised on: 06/29/23 01:44 PM
433 W 3rd Street
Printed on: 06/29/2023 01:44 PM
Red Wing, MN 55066
Title Contact: Jennifer Hoffman (jenniferh@knightbarry.com)
651-388-8891
Fax: (651) 305-0316 Closing Contact: redwingcloser@knightbarry.com
All of the following Requirements must be met:
1. The Proposed Insured must notify the Company in writing of the name of any party not referred to in this
Commitment who will obtain an interest in the Land or who will make a loan on the Land. The Company may then
make additional Requirements or Exceptions.
2. Pay the agreed amount for the estate or interest to be insured.
3. Pay the premiums, fees, and charges for the Policy to the Company.
4. Documents satisfactory to the Company that convey the Title or create the Mortgage to be insured, or both, must
be properly authorized, executed, delivered, and recorded in the Public Records.
5. The Proposed Policy Amount(s) shown on Schedule A must be increased to an amount equivalent to the full value
of the Land before the policy will be issued. At such time, an additional charge will be made in conformity with
established rates. The Company has no liability under this Commitment until this Commitment is revised stating
the amount of the proposed policy(ies).
6. You ('You') requested that we ('Company') provide You a search of certain public records (the 'Search'). The
Company performed the Search, the results of which are set forth in this document in the form of a preliminary
informational only commitment with a $0.00 Policy Amount. The Company shall not be liable for any claim arising
out of, or in connection with, the Company's performance of the Search. It is not the intention, express or implied,
of the Company to provide any type of guaranty, warranty, or indemnity to You with respect to the accuracy of the
Search. If this preliminary informational only commitment is going to be used by You as the basis of issuance of a
title insurance commitment/policy, You do so at your own risk. In order to obtain information from the Company
which will carry the full liability of a title insurance commitment/policy, the Company may issue, if requested, a
commitment of title insurance and will charge a fee in compliance with rates filed with the office of the Minnesota
Department of Insurance. The Company shall not be liable under this commitment until it receives a designation
for a Proposed Insured, acceptable to the Company. As provided in Commitment Condition 4, the Company may
amend this commitment to add, among other things, additional exceptions or requirements after the designation of
the Proposed Insured.
7. The deed, when executed, needs to include the following description on Parcel D:
Also that strip of land lying adjacent to and easterly of the easterly right of way line of State Street in the City of
Kenyon, Minnesota, and adjacent to and westerly of the above described parcel, the northerly and southerly
boundaries of the strip of land being conveyed hereby being contiguous with the northerly and southerly
boundaries of the above described parcel. All in the City of Kenyon, Goodhue County, Minnesota.
NOTE: The above description is not marketable and will not be included in the insured property.
This page is only a part of the 2021 ALTA Commitment for Title Insurance underwritten by Stewart Title Guaranty Company. This Commitment is not
valid without the Notice, the Commitment to Issue Policy and the Commitment Conditions (located at https://www.knightbarry.com/cover/st/21 );
Schedule A; Schedule B, Part 1 Requirements; and Schedule B, Part 2 Exceptions. All italicized words in this Commitment are for informational
purposes only and for the convenience of the reader and are not part of the ALTA Commitment form.
Page 2 of 9
72
COMMITMENT FOR TITLE INSURANCE File #: 2221931
Schedule B, Part 2 Revision: 2221931
EXCEPTIONS
Completed on: 06/29/2023 01:42 PM
Knight Barry Title United LLC
Last Revised on: 06/29/23 01:44 PM
433 W 3rd Street
Printed on: 06/29/2023 01:44 PM
Red Wing, MN 55066
Title Contact: Jennifer Hoffman (jenniferh@knightbarry.com)
651-388-8891
Fax: (651) 305-0316 Closing Contact: redwingcloser@knightbarry.com
Some historical land records contain Discriminatory Covenants that are illegal and unenforceable by law. This
Commitment and the Policy treat any Discriminatory Covenant in a document referenced in Schedule B as if each
Discriminatory Covenant is redacted, repudiated, removed, and not republished or recirculated. Only the
remaining provisions of the document will be excepted from coverage.
The Policy will not insure against loss or damage resulting from the terms and conditions of any lease or
easement identified in Schedule A, and will include the following Exceptions unless cleared to the satisfaction of
the Company:
1. Any defect, lien, encumbrance, adverse claim, or other matter that appears for the first time in the Public Records
or is created, attaches, or is disclosed between the Commitment Date, as set forth on the Commitment for Title
Insurance, and the Date of Policy, as set forth on the Policy.
2. Special assessments, special taxes or special charges, if any, payable with the taxes levied or to be levied for the
current and subsequent years.
3. Liens, hook-up charges or fees, deferred charges, reserve capacity assessments, impact fees, or other charges or
fees and due payable on the development or improvement of the Land, whether assessed or charged before or
after the Date of the Policy.
4. Any lien, or right to a lien, for services, labor, or material heretofore or hereafter furnished, imposed by law and not
shown by the Public Records.
5. Rights or claims of parties in possession not shown by the Public Records.
6. Any encroachments, encumbrance, violation, variation, or adverse circumstance affecting Title that would be
disclosed by an accurate and complete land survey of the Land.
7. Easements or claims of easements not shown by the Public Records.
8. Any claim of adverse possession or prescriptive easement.
Taxes and Special Assessments
9. The Property Tax Statement for the year 2024 has not yet been issued and thus property taxes and special
assessments to be shown on the Property Tax Statement are not yet due or payable. Parcel No. 66.180.0240
The total property tax and special assessments shown on the Property Tax Statement for the year 2023 in the
amount of $3,716.00 are being paid in installments.
The balance due is $1,858.00 and all installments that are due have been paid and there are no delinquent
balances. Parcel No. 66.100.0030.
This page is only a part of the 2021 ALTA Commitment for Title Insurance underwritten by Stewart Title Guaranty Company. This Commitment is not
valid without the Notice, the Commitment to Issue Policy and the Commitment Conditions (located at https://www.knightbarry.com/cover/st/21 );
Schedule A; Schedule B, Part 1 Requirements; and Schedule B, Part 2 Exceptions. All italicized words in this Commitment are for informational
purposes only and for the convenience of the reader and are not part of the ALTA Commitment form.
Page 3 of 9
73
COMMITMENT FOR TITLE INSURANCE File #: 2221931
Schedule B, Part 2 Revision: 2221931
EXCEPTIONS
Completed on: 06/29/2023 01:42 PM
Knight Barry Title United LLC
Last Revised on: 06/29/23 01:44 PM
433 W 3rd Street
Printed on: 06/29/2023 01:44 PM
Red Wing, MN 55066
Title Contact: Jennifer Hoffman (jenniferh@knightbarry.com)
651-388-8891
Fax: (651) 305-0316 Closing Contact: redwingcloser@knightbarry.com
The total property tax and special assessments shown on the Property Tax Statement for the year 2023 in the
amount of $8,578.00 are being paid in installments.
The balance due is $4,289.00 and all installments that are due have been paid and there are no delinquent
balances. Parcel No. 66.280.0400
The total property tax and special assessments shown on the Property Tax Statement for the year 2023 in the
amount of $17,968.00 are being paid in installments.
The balance due is $8,984.00 and all installments that are due have been paid and there are no delinquent
balances. Parcel No. 66.280.0371
The total property tax and special assessments shown on the Property Tax Statement for the year 2023 in the
amount of $9,952.00 are being paid in installments.
The balance due is $4,976.00 and all installments that are due have been paid and there are no delinquent
balances. Parcel No. 66.360.0130
The total property tax and special assessments shown on the Property Tax Statement for the year 2023 in the
amount of $18,142.00 are being paid in installments.
The balance due is $9,071.00 and all installments that are due have been paid and there are no delinquent
balances. Parcel No. 66.360.0140
The Property Classification on the Property Tax Statement is Non-Homestead.
NOTE: property taxes are due as follows: First half taxes due May 15th and second half taxes due October 15th,
except the second half taxes for parcels with any Class 2a agricultural land are due November 15th.
Easements, restrictions, covenants and other encumbrances
10. Covenants and conditions and other matters contained in the instrument recorded September 8, 2003 as
Document No. 492411. Affects Parcel B and C.
11. Covenants and Conditions and other matters contained in the instrument recorded September 8, 2003 as
Document No. 492412. Affects Parcel B.
12. Purchase and Redevelopment Agreement and other matters contained in the instrument recorded September 8,
2003 as Document No. 492414.
This page is only a part of the 2021 ALTA Commitment for Title Insurance underwritten by Stewart Title Guaranty Company. This Commitment is not
valid without the Notice, the Commitment to Issue Policy and the Commitment Conditions (located at https://www.knightbarry.com/cover/st/21 );
Schedule A; Schedule B, Part 1 Requirements; and Schedule B, Part 2 Exceptions. All italicized words in this Commitment are for informational
purposes only and for the convenience of the reader and are not part of the ALTA Commitment form.
Page 4 of 9
74
COMMITMENT FOR TITLE INSURANCE File #: 2221931
Schedule B, Part 2 Revision: 2221931
EXCEPTIONS
Completed on: 06/29/2023 01:42 PM
Knight Barry Title United LLC
Last Revised on: 06/29/23 01:44 PM
433 W 3rd Street
Printed on: 06/29/2023 01:44 PM
Red Wing, MN 55066
Title Contact: Jennifer Hoffman (jenniferh@knightbarry.com)
651-388-8891
Fax: (651) 305-0316 Closing Contact: redwingcloser@knightbarry.com
13. Easements, if any, of the public or any utility, municipality or person, as provided in Section 160.28 of the
Minnesota Statutes, as amended, for the continued use and right of entrance, maintenance, construction and
repair of underground or overground structures, improvements, or services in that portion of the Land which were
formerly part of an alley and/or street and which are now vacated. As shown in instrument recorded September 8,
2003 as Document No. 492415. Affects Parcels A and B.
14. Contract for Private Development and other matters contained in the instrument recorded September 8, 2003 as
Document No. 492416. Affects Parcel B.
15. Easement granted to the City of Kenyon for utility purposes and other matters contained in the instrument
recorded October 29, 2003 as Document No. 495423. Affects Parcel B.
Judgments and liens
16. Judgments and/or liens, if any, docketed or filed against the prospective owner of Land. Further report will be
made as to such judgments and liens when the Company is advised as to the name of the prospective owner.
Mortgages, assignments, leases and land contracts
17. Mortgage from Kenyon Sunset Home to United States of America, acting through the United States Department of
Agriculture in the amount of $2,489,000.00 dated January 28, 2005 and recorded February 2, 2005 as Document
No. 515221.
Subordination Agreement recorded October 24, 2005 as Document No. 525280 makes the mortgage described
as Document No. 515221 SUPERIOR to the interests of the City of Kenyon in Document No. 494211.
Assignment of Income recorded October 24, 2005 as Document No. 525281.
18. Mortgage from Kenyon Sunset Home to United States of America, acting through the United States Department of
Agriculture in the amount of $2,800,000.00 dated July 30, 2014 and recorded August 4, 2014 as Document No.
615812.
Assignment of Income recorded August 4, 2014 as Document No. 615813.
Subordination Agreement recorded September 8, 2014 as Document No. 616535 makes the mortgage described
as Document No. 615812 SUPERIOR to the interests of the City of Kenyon in Document No. 492411 and 492412.
Other matters
This page is only a part of the 2021 ALTA Commitment for Title Insurance underwritten by Stewart Title Guaranty Company. This Commitment is not
valid without the Notice, the Commitment to Issue Policy and the Commitment Conditions (located at https://www.knightbarry.com/cover/st/21 );
Schedule A; Schedule B, Part 1 Requirements; and Schedule B, Part 2 Exceptions. All italicized words in this Commitment are for informational
purposes only and for the convenience of the reader and are not part of the ALTA Commitment form.
Page 5 of 9
75
COMMITMENT FOR TITLE INSURANCE File #: 2221931
Schedule B, Part 2 Revision: 2221931
EXCEPTIONS
Completed on: 06/29/2023 01:42 PM
Knight Barry Title United LLC
Last Revised on: 06/29/23 01:44 PM
433 W 3rd Street
Printed on: 06/29/2023 01:44 PM
Red Wing, MN 55066
Title Contact: Jennifer Hoffman (jenniferh@knightbarry.com)
651-388-8891
Fax: (651) 305-0316 Closing Contact: redwingcloser@knightbarry.com
19. All minerals and mineral rights reserved to the State of Minnesota which are held in trust for certain taxing districts.
Said rights were reserved in Lots 11-17, Block 2, Clarkes Addition in instrument recorded September 26, 1997 as
Document No. 408358, and in Lot 6 and the East 19 feet of Lot 7, Block 34, Village of Kenyon in instrument
recorded December 30, 1949 in Book D-9 of Deeds, page 346.
FOOTNOTES
THIS IS FOR INFORMATIONAL PURPOSES ONLY; NOTHING NOTED IN THIS SECTION WILL APPEAR ON THE POLICY.
a. There are no taxes due and payable in the year 2023. Parcel No. 66.180.0240
b. A certificate of levied and pending assessments has been requested from the municipality.
This page is only a part of the 2021 ALTA Commitment for Title Insurance underwritten by Stewart Title Guaranty Company. This Commitment is not
valid without the Notice, the Commitment to Issue Policy and the Commitment Conditions (located at https://www.knightbarry.com/cover/st/21 );
Schedule A; Schedule B, Part 1 Requirements; and Schedule B, Part 2 Exceptions. All italicized words in this Commitment are for informational
purposes only and for the convenience of the reader and are not part of the ALTA Commitment form.
Page 6 of 9
76
COMMITMENT FOR TITLE INSURANCE File #: 2221931
EXHIBIT A Revision: 2221931
Completed on: 06/29/2023 01:42 PM
Knight Barry Title United LLC Last Revised on: 06/29/23 01:44 PM
433 W 3rd Street Printed on: 06/29/2023 01:44 PM
Red Wing, MN 55066 Title Contact: Jennifer Hoffman (jenniferh@knightbarry.com)
651-388-8891 Closing Contact: redwingcloser@knightbarry.com
Fax: (651) 305-0316
Parcel A:
1) All of Lots 6 and 7 and the East 19.00 feet of Lot 8 in Block 34 of the Original Plat of the Town (now City) of Kenyon
according to the recorded plat thereof.
2) All of Lots 5 and 6 in Block 34 of S.A. Bullis' Second Addition to Kenyon and Rearrangement of Block 29 of Bullis'
Second South Side Addition to Kenyon according to the recorded plat thereof.
3) All of Lot 4 in Block 34, S.A. Bullis' Second Addition to Kenyon according to the recorded plat thereof, EXCEPT the
North 31.00 feet of the West 56.00 feet thereof. Also EXCEPT the west 43.00 feet of said Lot 4.
4) The entire vacated alley lying between said Lots 6 and 7 and the East 19.00 feet of Lot 8, in Block 34 of the Original
Plat of the Town of Kenyon and said Lots 5 and 6 and the East 19.00 feet of Lot 4, in Block 34 of S.A. Bullis' Second
Addition to Kenyon.
All in the City of Kenyon, Goodhue County, Minnesota.
For informational purposes only:
Property Address: 127 Gunderson Blvd., Kenyon, MN 55946
Tax Key Number: 66.100.0030 and 66.280.0400
Abstract Property
Parcel B:
1) That part of the west 43.00 feet of Lot 4 in Block 34 of S.A. Bullis' Second Addition to Kenyon, according to the
recorded plat thereof, lying southerly of the north 31.00 feet thereof.
2) The east 13.00 feet of the south 109.00 feet of Lot 3 in Block 34, S.A. Bullis' Second Addition to Kenyon, according to
the recorded plat thereof.
3) That part of the south 92.00 feet of Lots 1, 2 and 3 in Block 34, S.A. Bullis' Second Addition to Kenyon, according to the
recorded plat thereof, lying westerly of the east 13.00 feet of said Lot 3, Block 34.
4) That part of Third Street in S.A. Bullis' Second Addition to Kenyon, according to the recorded plat thereof, described as
follows: Beginning at the southwest corner of Lot 1 in Block 34 of said S.A. Bullis' Second Addition to Kenyon; thence
North 89 degrees 58 minutes 19 seconds East (assumed bearing) along the south line of Lots 1, 2, 3, and 4, Block 34, a
distance of 235.00 feet; thence South 00 degrees 15 minutes 16 seconds West 66.00 feet to the northeast corner of the
west 10.00 feet of Lot 8 in Block 2 of Clark's Addition and Replat of Block 30 and 31 of S.A. Bullis' Second Addition to the
City of Kenyon, according to the recorded plat thereof; thence South 89 degrees 58 minutes 19 seconds West along the
north line of said Block 2 a distance of 234.90 feet to the northwest corner of said Block 2; thence North 00 degrees 10
minutes 03 seconds East 66.00 feet to the point of beginning.
5) The west 10.00 feet of Lot 8 and all of Lots 9, 10, 11, 12, 13, 14, 15, 16 and 17, in Block 2 of Clark's Addition and
Replat of Blocks 30 and 31 of S.A. Bullis' Second Addition to the village (now City) of Kenyon, according to the recorded
plat thereof. EXCEPT that part of said Lots 11, 12, 13, 14, 15, 16 and 17, Block 2; described as follows: Beginning at the
southwest corner of said Lot 17, Block 2; thence North 89 degrees 57 minutes 14 seconds East (assumed bearing) along
the south line of said Block 2, 163.84 feet; thence North 00 degrees 00 minutes 00 seconds East 67.53 feet; thence South
90 degrees 00 minutes 00 seconds West 48.25 feet; thence North 00 degrees 00 minutes 00 seconds East 6.17 feet;
thence South 90 degrees 00 minutes 00 seconds West 3.33 feet; thence North 00 degrees 00 minutes 00 seconds East
This page is only a part of the 2021 ALTA Commitment for Title Insurance underwritten by Stewart Title Guaranty Company. This Commitment is not
valid without the Notice, the Commitment to Issue Policy and the Commitment Conditions (located at https://www.knightbarry.com/cover/st/21 );
Schedule A; Schedule B, Part 1 Requirements; and Schedule B, Part 2 Exceptions. All italicized words in this Commitment are for informational
purposes only and for the convenience of the reader and are not part of the ALTA Commitment form.
Page 7 of 9
77
COMMITMENT FOR TITLE INSURANCE File #: 2221931
EXHIBIT A Revision: 2221931
Completed on: 06/29/2023 01:42 PM
Knight Barry Title United LLC Last Revised on: 06/29/23 01:44 PM
433 W 3rd Street Printed on: 06/29/2023 01:44 PM
Red Wing, MN 55066 Title Contact: Jennifer Hoffman (jenniferh@knightbarry.com)
651-388-8891 Closing Contact: redwingcloser@knightbarry.com
Fax: (651) 305-0316
5.00 feet; thence South 90 degrees 00 minutes 00 seconds West 112.18 feet to the west line of said Lot 17, Block 2;
thence South 00 degrees 03 minutes 22 seconds West along said west line 78.83 feet to the point of beginning.
All in the City of Kenyon, Goodhue County, Minnesota.
For informational purposes only:
Property Address: 104 3rd St., 117 3rd St, Kenyon, MN 55946
Tax Key Number: 66.280.0371 and 66.360.0130
Abstract Property
Parcel C:
That part of Lots 11, 12, 13, 14, 15, 16 and 17, Block 2 of Clarke's Addition and Replat of Blocks 30 and 31 of S.A. Bullis'
Second Addition to the Village (now City) of Kenyon, according to the recorded plat thereof, described as follows:
Beginning at the southwest corner of Lot 17, Block 2; thence North 89 degrees 57 minutes 14 seconds East (assumed
bearing) along the south line of said Block 2, 163.84 feet; thence North 00 degrees 00 minutes 00 seconds East 67.53
feet; thence South 90 degrees 00 minutes 00 seconds West 48.25 feet; thence North 00 degrees 00 minutes 00 seconds
East 6.17 feet; thence South 90 degrees 00 minutes 00 seconds West 3.33 feet; thence North 00 degrees 00 minutes 00
seconds East 5.00 feet; thence South 90 degrees 00 minutes 00 seconds West 112.18 feet to the west line of said Lot 17,
Block 2; thence South 00 degrees 03 minutes 22 seconds West along said west line 78.83 feet to the point of beginning.
All in the City of Kenyon, Goodhue County, Minnesota.
For informational purposes only:
Property Address: 225 Huseth St., Kenyon, MN 55946
Tax Key Number: 66.360.0140
Abstract Property
Parcel D:
Beginning at the southwest corner of Lot 1 in Block 35 of Bullis' South Side Addition to Kenyon, according to the recorded
plat thereof; thence west 66.00 feet; thence north 140.00 feet; thence east 66.00 feet; thence south 140.00 feet to the
place of beginning. EXCEPT that part thereof described as follows: Commencing at the southwest corner of said Lot 1 in
Block 35 of Bullis' South Side Addition to Kenyon, according to the recorded plat thereof; thence west 10.00 feet; thence
north 140.00 feet; thence east 10.00 feet; thence south 140.00 feet to the place of beginning. All in the City of Kenyon,
Goodhue County, Minnesota.
For informational purposes only:
Property Address: 202 3rd St., Kenyon, MN 55946
Tax Key Number: 66.180.0240
This page is only a part of the 2021 ALTA Commitment for Title Insurance underwritten by Stewart Title Guaranty Company. This Commitment is not
valid without the Notice, the Commitment to Issue Policy and the Commitment Conditions (located at https://www.knightbarry.com/cover/st/21 );
Schedule A; Schedule B, Part 1 Requirements; and Schedule B, Part 2 Exceptions. All italicized words in this Commitment are for informational
purposes only and for the convenience of the reader and are not part of the ALTA Commitment form.
Page 8 of 9
78
COMMITMENT FOR TITLE INSURANCE File #: 2221931
EXHIBIT A Revision: 2221931
Completed on: 06/29/2023 01:42 PM
Knight Barry Title United LLC Last Revised on: 06/29/23 01:44 PM
433 W 3rd Street Printed on: 06/29/2023 01:44 PM
Red Wing, MN 55066 Title Contact: Jennifer Hoffman (jenniferh@knightbarry.com)
651-388-8891 Closing Contact: redwingcloser@knightbarry.com
Fax: (651) 305-0316
Abstract Property
This page is only a part of the 2021 ALTA Commitment for Title Insurance underwritten by Stewart Title Guaranty Company. This Commitment is not
valid without the Notice, the Commitment to Issue Policy and the Commitment Conditions (located at https://www.knightbarry.com/cover/st/21 );
Schedule A; Schedule B, Part 1 Requirements; and Schedule B, Part 2 Exceptions. All italicized words in this Commitment are for informational
purposes only and for the convenience of the reader and are not part of the ALTA Commitment form.
Page 9 of 9
79
AGENDA ITEM NO. XI.A
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: August 8, 2023
SUBMITTED BY: Mark Vahlsing, Library
ITEM TYPE: New Business
AGENDA SECTION: NEW BUSINESS
SUBJECT: Replacement of Library Lights - Michelle Otte- Library Director
SUGGESTED ACTION: The condition of the overhead lights in library is continuing to
deteriorate. There are fixtures with broken ballasts that do not
function. An e-mail message from the Library Director is attached.
The replacement could come out of building capital. It could also be
included in next years budget. Also attached below is a quote to
replace the fixtures.
MOTION NEEDED
ATTACHMENTS:
DOC080223.pdf
Shea Eletrix Quote.pdf
80
81
82
83
AGENDA ITEM NO. XI.B
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: August 8, 2023
SUBMITTED BY: Mark Vahlsing, Fire
ITEM TYPE: New Business
AGENDA SECTION: NEW BUSINESS
SUBJECT: Fire Relief Association Request for Approval of Raffle at
Fireman’s Dance on November 25, 2023
SUGGESTED ACTION: The Fire Department Relief association is requesting Council
approval to hold a raffle as part of the dance at the Fire Hall on
November 25, 2023.
MOTION NEEDED
ATTACHMENTS:
84
AGENDA ITEM NO. XI.C
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: August 8, 2023
SUBMITTED BY: Mark Vahlsing, Administration
ITEM TYPE: New Business
AGENDA SECTION: NEW BUSINESS
SUBJECT: Set Council Work Session to Review 2024 Proposed (Levy)
Budget
SUGGESTED ACTION: I would like to schedule a City Council work session sometime the week of
9/4. The main purpose for the work session will be to review the draft 2024
budget. The Department heads will also attend the work session.
MOTION NEEDED
ATTACHMENTS:
85
AGENDA ITEM NO. XI.D
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: August 8, 2023
SUBMITTED BY: Mark Vahlsing, Police
ITEM TYPE: New Business
AGENDA SECTION: NEW BUSINESS
SUBJECT: Purchase Motorola Police Body Cameras – Chief Sjoblom
SUGGESTED ACTION: Chief Sjoblom will review the purchase of Body Cameras for the
police officers. Further information on this item will be posted below
on Monday.
ATTACHMENTS:
86
AGENDA ITEM NO.
XII.A
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: August 8, 2023
SUBMITTED BY: Mark Vahlsing, Administration
ITEM TYPE: Miscellaneous
AGENDA SECTION: F.Y.I. - Department Updates
SUBJECT: FYI
SUGGESTED ACTION: FYI - August Department Reports attached below.
ATTACHMENTS:
FYI 8-8-23.pdf
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103