Packet text, October 29, 2026

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                                  AGENDA
                       CITY COUNCIL SPECIAL SESSION
                               October 29, 2026
                                   5:00 PM
I.     Call to Order

II.    Agenda

       II.A     Agenda
                Summary Report
                10-29-26 Agenda Special Council Meeting.DOCX

III.   Business to be discussed and Possible Action

       III.A    Discussion regarding Council Salaries, Ordinance, etc.;
                Summary Report
                DOCSOPEN-#1125932-v1-Temporary_Council_Salary_Reduction_Ordinance.docx

       III.B    Discussion regarding Grocery Store Abatement Assistance and Process
                Summary Report
                DOCSOPEN-#1125610-v2-
                Resolution_approving_property_tax_abatement_for_Kenyon_Market.docx
                DOCSOPEN-#1125602-v3-Notice_of_Public_Hearing_for_Abatement.docx

       III.C    Fire Department Appointments:
                Owen Craig
                Blake Waltman
                Blake Mills
                Micah Johnson
                Reuben Johnson

                Summary Report

       III.D    Discussion regarding Business Park, Electrical Service, Transformer, Compass, etc
                Summary Report

       III.E    General Discussion:
                  1. Past Projects;
                  2. Future Projects;
                  3. Pending Matters;
                  4. General Issues;
                  5. Communication
                   6. Training Session

                Summary Report

IV.    Adjourn




                                                                                                    1
                                                               AGENDA ITEM NO. II.A


Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT

DATE:                        October 29, 2026

SUBMITTED BY:                Holli Gudknecht, Administration

ITEM TYPE:                   Agenda

AGENDA SECTION:              Agenda

SUBJECT:                     Agenda

SUGGESTED ACTION:

ATTACHMENTS:
10-29-26 Agenda Special Council Meeting.DOCX




                                                                                      2
                                         CITY OF KENYON
                                       KENYON, MINNESOTA

                       NOTICE OF SPECIAL CITY COUNCIL MEETING
                                Thursday, October 29, 2026
                                        5:00 p.m.

NOTICE IS HEREBY GIVEN that the City of Kenyon City Council will hold a Special City
Council Meeting pursuant to Minnesota Statutes section 13D.04, subdivision 2 on Thursday,
October 29, 2026, commencing at 5:00 p.m., at City Hall, 709 Second Street, Kenyon, Minnesota
for the following purposes:

1.      Discussion regarding Council Salaries, Ordinance, etc.;
2.      Discussion regarding Grocery Store Abatement Assistance and Process;
3.      Fire Department Appointments;
4.      Discussion regarding Business Park, Electrical Service, Transformer, Compass, etc.;
5.      General Discussion:
        a.     Past Projects;
        b.     Future Projects;
        c.     Pending Matters;
        d.     General Issues;
        e.     Communication; and
        f.     Training Session.


                                                    /s/ Scott Lehner________________
                                                    Scott Lehner
                                                    City Administrator

DATED: October 23, 2026.




DOCSOPEN\KE200\1\1126849.v3-10/23/26
                                                                                                3
                                                                   AGENDA ITEM NO. III.A


Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT

DATE:                       October 29, 2026

SUBMITTED BY:               Holli Gudknecht, Administration

ITEM TYPE:                  New Business

AGENDA SECTION:             Business to be discussed and Possible Action

SUBJECT:                    Discussion regarding Council Salaries, Ordinance, etc.;

SUGGESTED ACTION:

ATTACHMENTS:
DOCSOPEN-#1125932-v1-Temporary_Council_Salary_Reduction_Ordinance.docx




                                                                                           4
                                    ORDINANCE NO. ____

         AN ORDINANCE TEMPORARILY REDUCING SALARIES PAYABLE
                  TO THE MAYOR AND COUNCILMEMBERS

WHEREAS, Section 205.01 of Kenyon City Code establishes salaries for the Mayor and
Councilmembers; and

WHEREAS, Minnesota Statute 415.11 authorizes the City Council to temporarily reduce Mayor
and Councilmember salaries by ordinance, and provides that such change may take effect before
the next succeeding municipal election; and

WHEREAS, any ordinance providing for a reduction in Mayor and Councilmember salaries
under Minnesota Statute 415.11 shall be in effect for twelve months, unless another period of
time is specified; and

WHEREAS, the City Council desires to temporarily reduce the salaries payable to the Mayor
and Councilmembers.

THE CITY COUNCIL OF THE CITY OF KENYON, MINNESOTA, ORDAINS:

   1. The recitals set forth above are incorporated into this Ordinance.
   2. Pursuant to Minnesota Statute 415.11, Subd. 3, the City Council hereby temporarily
      reduces the salary payable to the Mayor to $0.00 per annum.
   3. Pursuant to Minnesota Statute 415.11, Subd. 3., the City Council hereby temporarily
      reduces the salary payable to each member of the council to $0.00 per annum.
   4. The reductions in salaries under this Ordinance shall be effective for a period of twelve
      (12) months from the date of passage of this Ordinance.

This Ordinance shall be in full force and effect upon its passage and publication.

Passed by the City Council of the City of Kenyon, Minnesota, this ___ day of November, 2026.


                                                     ______________________________
ATTEST:                                              Donald Kirchmann, Mayor


_________________________________
Scott Lehner, City Administrator


(Published in the Kenyon Leader on November ___, 2026)




                                                                                                  5
                                                                  AGENDA ITEM NO. III.B


Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT

DATE:                       October 29, 2026

SUBMITTED BY:               Holli Gudknecht, Administration

ITEM TYPE:                  New Business

AGENDA SECTION:             Business to be discussed and Possible Action

SUBJECT:                    Discussion regarding Grocery Store Abatement Assistance and
                            Process

SUGGESTED ACTION:

ATTACHMENTS:
DOCSOPEN-#1125610-v2-Resolution_approving_property_tax_abatement_for_Kenyon_Market.docx
DOCSOPEN-#1125602-v3-Notice_of_Public_Hearing_for_Abatement.docx




                                                                                          6
State of Minnesota
County of Goodhue

                                         CITY OF KENYON



                                    RESOLUTION #2026-____
              APPROVE PROPERTY TAX ABATEMENT FOR CERTAIN PROPERTY
                             IN THE CITY OF KENYON


BE IT RESOLVED by the City Council (the “City Council”) of the City of Kenyon,
Minnesota (the “City”) as follows:

Section 1. Recitals

       1.01. Kenyon Markets, Inc. (the “Applicant” and the “Property Owner”)
operates and is considering updating and continuing to operate a grocery store
building (the “Project”) on property (the “Property”) legally described in
EXHIBIT A. The Applicant has requested financial assistance to offset a portion
of the Project's costs, with the Applicant being the intended recipient of the
financial assistance.

      1.02. In order to provide the financial assistance related to the Project,
the Applicant has requested the following assistance: a tax abatement from the
City for up to ten years in the estimated amount of $40,000.00 (the City
Abatement”) pursuant to the Abatement Act, as hereinafter defined.

      1.03. The City has determined a need to grant the City Abatement
pursuant to Minnesota Statutes, Sections 469.1812 to 469.1815 (the
“Abatement Act”) to reimburse the Applicant for pertinent costs associated with
the Project on the Property.

       1.04. The City Abatement shall be based upon a percentage of the
existing property taxes prior to the proposed Project on the Property.

        1.05. The proposed five-year City Abatement would be paid out in semi-
annual installments of $4,000.00 over five years, with the first tax abatement
payment starting in February 2027 and ending in August 2031, all in accordance
with the schedule set forth in Exhibit B and incorporated into this Resolution as
if fully set forth herein.




                                               1
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      1.06. This City Council has reviewed information concerning the
Applicant’s request for financial assistance.

      1.07. On the date hereof, the City Council conducted a duly noticed public
hearing on the City Abatement proposed to be provided by the City to the
Applicant at which the views of all interested persons were heard.

      1.08. Pursuant to Minnesota Statutes Sections 116J.993 to 116J.995, as
amended (the “Business Subsidy Act”), the City Abatement does not constitute
a Business Subsidy as defined in the Business Subsidy Act.

Section 2. Findings

      2.01. The recitals set forth above are incorporated into this Resolution as
findings of the City Council.

      2.02. It is hereby found and determined that the benefits to the City from
the City Abatement will be at least equal to the costs to the City of the City
Abatement, because (a) the City believes that the development to be facilitated
is not reasonably likely to occur absent the City Abatement and the business
subsidy provided by the City, and (b) the long-term taxes collected from the
Property after termination of the City Abatement will exceed the amount of the
City Abatement returned to the Applicant.

      2.03. It is hereby found and determined that the City Abatement is in the
public interest because such action will increase the tax base and retain
employment in the City.

     2.04. The City Abatement complies with the City’s written Business
Subsidy Policy.

Section 3. Actions Ratified; Abatement Approved

      3.01. The City Council hereby ratifies all actions of the City’s staff and
consultants in arranging for approval of this Resolution in accordance with the
Abatement Act.

      3.02. Subject to the provisions of the Abatement Act, the City Abatement
is hereby approved and adopted subject to the following terms and conditions:

         (a) The term “City Abatement” means the real property taxes
         generated in any tax-payable year by extending the City’s total tax rate
         for that year against the tax capacity of the Property in accordance with



                                         2
DOCSOPEN\KE200\225\1125610.v2-10/16/26
                                                                                     8
         this Resolution, excluding the portion of the tax capacity attributable to
         the areawide tax under Minnesota Statues, Chapter 473F, all as of
         January 2 in the prior year.

         (b) The City Abatement will be paid by the City to the Applicant on the
         dates and in accordance with all the terms and conditions of this
         Resolution.

         (c)   In accordance with Section 469.1813, subdivision 8 of the
         Abatement Act, in no year shall the City Abatement, together with all
         other abatements approved by the City under the Act and paid in that
         year exceed the greater of 10% of the City’s levy for that year or
         $200,000.00 (the “Abatement Cap”). The City may grant any other
         abatements permitted under the Abatement Act after the date of this
         Resolution, provided that to the extent the total abatements in any year
         exceed the Abatement Cap, the allocation of Abatement Cap to such
         other abatements is subordinate to the City Abatement granted
         pursuant to this Resolution.

          (d) The proposed five-year City Abatement would be paid out in semi-
          annual installments of $4,000.00 over five years, with the first tax
          abatement payment starting in February 2027 and ending in August
          2031, all in accordance with the schedule set forth in Exhibit B and
          incorporated into this Resolution as if fully set forth herein.

        (e)    The City Abatement shall be based upon a percentage of the
        existing property taxes prior to the proposed Project on the Property.

         (f)   The City Abatement is subject to modification in accordance with
         the Abatement Act, subject to the terms of this Resolution.

         (g) In accordance with Section 469.1815 of the Abatement Act, the City
         will add to its levy in each year during the term of the City Abatement the
         total estimated amount of current year City Abatement granted under this
         Resolution.

         (h) The City makes no warranties or representations regarding the
         amount or availability of the City Abatement.

         (i)   The City Abatement shall be provided to the Applicant pursuant to
         the terms and conditions of this Resolution as approved by the City
         Council.




                                          3
DOCSOPEN\KE200\225\1125610.v2-10/16/26
                                                                                       9
     3.03. Restrictions on City Abatement. The City Abatement granted
pursuant to this Resolution shall not commence until the City and the Applicant
mutually agree on the terms and conditions of the City Abatement.

Section 4. Implementation

     4.01. The Mayor and the City Administrator are authorized and directed
to execute and deliver any additional agreements, certificates or other
documents that the City determines are necessary to implement this
Resolution.

      4.02. The City Council directs City staff to take any appropriate action
and to prepare any appropriate documents to facilitate the directives of the City
Council as set forth in this Resolution.

     4.03. The Mayor, City staff, City attorney and City consultants are hereby
authorized and directed to take any and all additional steps and actions
necessary or convenient in order to accomplish the intent of this Resolution.

Section 5. Effective Date. This Resolution is effective upon adoption.

Date Adopted: November 10, 2026.

                                             Kenyon City Council



                                             Don Kirchmann, Mayor

ATTEST:



Scott Lehner, City Administrator




                                         4
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                                                                                    10
                        EXHIBIT A TO ABATEMENT RESOLUTION

                                          THE PROPERTY


That real property in the City of Kenyon, County of Goodhue, State of Minnesota,
legally described as follows:

                                     [insert legal description]




                                                A-1
DOCSOPEN\KE200\225\1125610.v2-10/16/26

                                                                                   11
                        EXHIBIT B TO ABATEMENT RESOLUTION

                                  [Insert Abatement Schedule]




                                              B-1
DOCSOPEN\KE200\225\1125610.v2-10/16/26
                                                                12
                                       NOTICE OF PUBLIC HEARING
                                               7:00 P.M.

                                              CITY OF KENYON
                                             GOODHUE COUNTY
                                            STATE OF MINNESOTA

             NOTICE IS HEREBY GIVEN that the City Council of the City of Kenyon, Minnesota (the
     “City”), will hold a public hearing on November 10, 2026 beginning at approximately 7:00 PM, or as
     soon thereafter as the matter may be heard, at the City Council Chambers located at 709 2nd Street,
     Kenyon, MN 55946 in the City on the proposal to abate certain property taxes under Minnesota Statutes,
     Sections 469.1812 through 469.1815 (the “Act”) levied by the City on all or a portion of the real property
     listed below (the “Abatement Parcel”).

                                              109 Red Wing Avenue
                                                   665400540

     At the public hearing, the City Council will consider an abatement resolution authorizing an abatement
     in an amount not to exceed $40,000.00 representing all or a portion of the City’s share of property taxes
     from the Abatement Property to be collected by the City over a maximum of 5 years. The purpose of
     the proposed abatement is to provide business assistance to Kenyon Markets, Inc., and/or an affiliated
     entity to be formed (the “Business”) for the operation and redevelopment of its grocery store property in
     the City, and the creation and retention of jobs within the City (the “Project”).

     After the hearing, the City will consider adopting a resolution with the Business or an affiliated entity to
     be formed (the “Developer”) under which the City will provide the proceeds of the abatement to the
     Developer in connection with the Project by the Developer. The assistance is not a “business subsidy”
     under Minnesota Statutes, Sections 116J.993 to 116J.995 (the “Business Subsidy Law”). A summary of
     the proposed terms of the abatement is on file and available for public inspection at the office of the City
     Administrator at Kenyon City Hall during regular business hours.

             Any person with a residence in the City or who is the owner of taxable property in the City may
     file a written complaint with the City if the City fails to comply with the Business Subsidy Law. No
     action may be filed against the City for the failure to comply unless a written complaint is filed.

            The proposed abatement will not affect tax rates for the Abatement Property or otherwise impact
     the Abatement Property differently from other parcels in the City.

            The City Council will give all persons who appear at, or submit comments in writing prior to, the
     hearing an opportunity to express their views with respect to the proposal.

                                                   BY ORDER OF THE CITY COUNCIL OF THE CITY OF
                                                   KENYON, MINNESOTA


                                            By:    ________________________________________
                                                   Scott Lehner, City Administrator
     Dated: October 19, 2026.



                                                                1
KE200\225\1125602.v3
                                                                                                                    13
                                                           AGENDA ITEM NO. III.C


Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT

DATE:                October 29, 2026

SUBMITTED BY:        Holli Gudknecht, Administration

ITEM TYPE:           New Business

AGENDA SECTION:      Business to be discussed and Possible Action

SUBJECT:             Fire Department Appointments:
                     Owen Craig
                     Blake Waltman
                     Blake Mills
                     Micah Johnson
                     Reuben Johnson

SUGGESTED ACTION:    Motion Needed

ATTACHMENTS:




                                                                                   14
                                                            AGENDA ITEM NO. III.D


Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT

DATE:                October 29, 2026

SUBMITTED BY:        Holli Gudknecht, Administration

ITEM TYPE:           New Business

AGENDA SECTION:      Business to be discussed and Possible Action

SUBJECT:             Discussion regarding Business Park, Electrical Service, Transformer,
                     Compass, etc

SUGGESTED ACTION:

ATTACHMENTS:




                                                                                            15
                                                           AGENDA ITEM NO. III.E


Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT

DATE:                October 29, 2026

SUBMITTED BY:        Holli Gudknecht, Administration

ITEM TYPE:           New Business

AGENDA SECTION:      Business to be discussed and Possible Action

SUBJECT:             General Discussion:
                       1. Past Projects;
                       2. Future Projects;
                       3. Pending Matters;
                       4. General Issues;
                       5. Communication
                        6. Training Session

SUGGESTED ACTION:

ATTACHMENTS:




                                                                                   16