City Council Work Session

CITY COUNCIL WORK SESSION MINUTES Tuesday, December 02, 2025 at 6:45 PM Baxter City Hall, 13190 Memorywood Drive, Baxter, MN “A Growing Community” CALL TO ORDER Mayor Olson called the meeting to order at 6:45 p.m. ROLL CALL Mayor Darrel Olson and Council Members Connie Lyscio, Zach Tabatt, and Patrick Sundberg (arrived at 6:50 p.m.) were present. Council Member Mark Cross was absent. City Administrator Brad Chapulis, Assistant City Administrator Kelly Steele, Finance Director Jeremy Vacinek, Police Chief Matt Maier, Assistant Finance Director Brenda Brooks, and Public Works Director Trevor Walter were present. BUSINESS ITEMS 1. Discussion on Trident Development Request for Tax Increment Financing Assistance Finance Director Vacinek explained the developer is interested in constructing and operating a 76- unit senior living community affordable housing project in Baxter. The developer has requested the city provide tax increment financing in exchange for 20% of the units being available to households whose income is 50% or less of the area median income. The developer has submitted initial application materials and applicable fees. If the council decides to proceed with the application and further study the request for assistance, city staff and its TIF consultant will prepare a financial analysis of the project prior to scheduling the public hearing for the TIF process. The council will consider whether the project should move forward with an application based on whether they perceive the project meets city goals and objectives. The full financial implications for the city and maximum assistance recommended based upon project would be available and recommended after the completion of a preliminary financial analysis. The council consensus to direct staff and our TIF consultant to proceed with the TIF application by engaging Ehlers to provide a preliminary financial analysis of the level of tax increment assistance necessary for the project. 2. 2026 Budget and Levy Discussion Finance Director Vacinek explained staff is seeking council direction on preparation of the final budget and levy documents for the December 16th council meeting. The council consensus was to keep the 2026 levy at a 4.1% increase. ADJOURN 12/2/2025 City Council Work Session Minutes Page 2 MOTION by Council Member Tabatt, seconded by Council Member Lyscio to adjourn at 6:52 p.m. Motion carried unanimously. Approved by: Respectfully submitted, _____________________________ Darrel Olson Kelly Steele Mayor Assistant City Administrator