305 E. Luverne St.

Luverne, MN 56156

www.cityofluverne.org

Announcement of Meeting

City Council

Regular Meeting Agenda

5:00 PM

Tuesday, June 17, 2025

Council Chambers

CALL TO ORDER - ROLL CALL

Mayor or Presider will call the meeting to order, state the time, and take roll call.

PLEDGE OF ALLEGIANCE

APPROVAL OF AGENDA AND SPECIAL ORDERS

Mayor or Presider will ask whether any items are to be added to the agenda. If not, a

motion would be in order to approve the agenda and special orders as presented. If an

item is added to the agenda, a motion would be in order to approve the agenda and

special orders as amended.

APPROVAL OF MINUTES OF PRECEDING MEETING(S)

City Council Minutes from May 27, 2025.

D.1. 2025-207

RECOGNITION OF GUEST(S)

Mayor or Presider will recognize the guests present.

PETITIONS, COMMUNICATIONS, COMMITTEE/COMMISSION REPORTS

Motion to receive and file the following reports/minutes:

Planning Commission Minutes from April 7, 2025.

EDA Minutes from May 12, 2025.

F.1. 2025-178

HRA Minutes from April 9 and May 14, 2025.

STAFF AND CONSULTANT REPORTS

Palace Theatre Bi-annual Report--Shawn Kinsinger.

City Administrator Report.

G.1. 2025-144

G.2. 2025-208

FINANCE AND BUDGET

Claim Report for June 2025 (Check No. 164892-).

Motion to approve petty cash reconciliation as of May 31, 2025.

H.1. 2025-175

H.2. 2025-214

PERSONNEL

I.1.

No items under personnel to consider.

ORDINANCES AND RESOLUTIONS

PROPOSED RESOLUTION

J.1. 11-25

RESOLUTION APPOINTING A DELEGATE AND ALTERNATE TO

REPRESENT THE CITY OF LUVERNE AT THE LEWIS & CLARK

REGIONAL WATER SYSTEM, INC. ANNUAL MEMBERSHIP

MEETING

This proposed resolution ensures the City of Luverne will be

represented at the Lewis & Clark Regional Water System Annual

Membership Meeting on June 26, 2025. Patrick T. Baustian has

been appointed as the delegate, with Jill Wolf and Kevin Aaker

named as alternates to ensure the City’s interests are represented

at this important regional event.

City Administrator Recommendation: City Council Approve

Proposed Resolution No. 11-25.

Proposed Ordinance, Fourth Series

J.2. 50

AN ORDINANCE AUTHORIZING CONVEYANCE OF REAL

ESTATE

(712 WEST LAWN PARK AVE, CITY OF LUVERNE, ROCK

COUNTY, MINNESOTA)

The City has received a $5,000 offer to purchase the vacant lot at

712 W Lawn Park for the construction of a new home. A

development agreement has been negotiated and signed by the

buyer, requiring the home to be built within one year. As this sale is

governed by ordinance, a roll call vote is required for approval.

City Administrator Recommendation: City Council Introduce and

Adopt Proposed Ordinance No. 50, Fourth Series.

Proposed Ordinance, Fourth Series

J.3. 51

AN ORDINANCE AUTHORIZING CONVEYANCE OF REAL

ESTATE

(LOT 1, BLOCK 1, MAYES ADDITION, CITY OF LUVERNE, ROCK

COUNTY, MINNESOTA)

This proposed ordinance transfers the Marty Mayes Addition in the

industrial park from the City to the Economic Development Authority

(EDA). The EDA takes on the role of developer for this property

because it has the authority and expertise to manage

redevelopment projects, market the site, and facilitate new

investment in the community. Approval of this transfer will support

the EDA’s efforts to attract and guide appropriate development on

the site. As this sale is governed by ordinance, a roll call vote is

required for approval.

City Administrator Recommendation: City Council Introduce and

Adopt Proposed Ordinance No. 51, Fourth Series.

PROPOSED RESOLUTION

J.4. 12-25

RESOLUTION ALLOWING THE WAIVER OF CHAPTER 152

SUBDIVISION REQUIREMENTS AND RECORDING OF MAYES

FOURTH ADDITION (City of Luverne to Luverne Economic

Development Authority)

This proposed resolution waives the subdivision requirements of

Chapter 152 of the City Code for the platting of Mayes Fourth

Addition. Staff and the City Engineer have collaborated to plat a

6-acre area north of the waterway in the industrial park, creating

four lots for sale and development by the Luverne Economic

Development Authority (EDA). Requiring full compliance with

subdivision procedures, such as public hearings and additional

meetings, would impose unnecessary hardship and delay on the

project without providing any corresponding public benefit. This

waiver will allow the Luverne EDA to move forward efficiently with

lot sales and development to support local economic growth.

City Administrator Recommendation: City Council Adopt Proposed

Resolution No. 12-25.

Proposed Ordinance, Fourth Series

J.5. 52

AN ORDINANCE AMENDING CITY CODE CHAPTER 118.

CANNABIS BUSINESS REGULATIONS, SECTION 118.09, SUBD

(A)

This ordinance amendment clarifies the City’s role in cannabis retail

registration in accordance with the new state law (Minnesota

Statutes, Chapter 342.22). Under this law, local governments shall

issue a local retail registration to applicants who have received a

license or preliminary license approval from the Office of Cannabis

Management, even before full state licensure is granted. This

update requires the City to process and approve local retail

registrations earlier in the state licensing process, providing greater

clarity and efficiency for applicants. The ordinance aligns local

procedures with the requirements and intent of the new state law,

supporting a streamlined and transparent approach to cannabis

business regulation. As this amendment is governed by ordinance,

a roll call vote is required for approval.

City Administrator Recommendation: City Council Introduce and

Adopt Proposed Ordinance No. 52, Fourth Series.

Proposed Ordinance, Fourth Series

J.6. 53

AN ORDINANCE AMENDING CITY CODE CHAPTER 91. HEALTH

AND SANITATION; NUISANCES, REPEALING AND REPLACING

SECTION 91.02 OPEN BURNING WITH NEW REGULATIONS

FOR RECREATIONAL FIRES

Due to ongoing complaints about residents burning large piles of

branches, staff recommends repealing the current open burning

ordinance and adopting a new ordinance that aligns with Minnesota

State Fire Marshal guidelines. The proposed ordinance restricts

outdoor burning to small recreational fires with clear limitations on

size, location, and materials, requiring fires to be no larger than

three feet in diameter and two feet in height, set at least 25 feet

from buildings, and attended by an adult at all times. Only clean,

dry, natural wood may be burned, and fires must be extinguished if

they pose a safety risk or when directed by authorities. This update

will help address nuisance complaints, improve public safety, and

ensure local regulations are consistent with state standards. As this

amendment is governed by ordinance, a roll call vote is required for

approval.

City Administrator Recommendation: City Council Introduce and

Adopt Proposed Ordinance No. 53, Fourth Series.

Proposed Ordinance, Fourth Series

J.7. 54

AN ORDINANCE AMENDING CITY CODE CHAPTER 91. HEALTH

AND SANITATION; NUISANCES BY ADDING SECTION 91.05

GARAGE OR RUMMAGE SALE

This proposed ordinance amends City Code Chapter 91 to add

Section 91.05, regulating garage and rummage sales. The

ordinance limits sales to personal property, restricts sales to three

per year per property, and sets a maximum duration of four

consecutive days per sale. Signage is limited and must be promptly

removed after the sale. Exceptions apply for court-ordered sales,

auctions, and sales of farm or garden products. This ordinance aims

to prevent nuisance, address nuisance complaints, and maintain

neighborhood character. As this amendment is governed by

ordinance, a roll call vote is required for approval.

City Administrator Recommendation: City Council Introduce and

Adopt Proposed Ordinance No. 54, Fourth Series.

MOTIONS AND GENERAL BUSINESS

Requested Conditional Use Permit (CUP) application submitted by

Terry Gray, to open and operate a Cannabis Retail Establishment,

located at 206 West Main Street (20-1649-000), in D-Downtown

District, City of Luverne, Minnesota.

K.1. 2025-204

Following the public hearing held by the Planning Commission on

June 9, the Planning Commission recommends approval of a

conditional use permit (CUP) to allow operation of a cannabis retail

establishment at 206 West Main, subject to specific conditions

including off-street parking, screening for automobile headlights,

odor control, exterior property maintenance, obtaining a state

license for proposed business type, and compliance with all state

and local regulations. Under Minnesota law, if an applicant meets all

the general and specific standards set forth in the city’s zoning

ordinance, the city is required to grant the CUP. The applicant for

this cannabis retail establishment has satisfied all ordinance

requirements, and therefore, the city council must approve the CUP

as recommended by the Planning Commission. This ensures the

city’s actions are consistent with state law and local land use

standards.

City Administrator Recommendation: City Council Approve

Requested Conditional Use Permit (CUP) application submitted by

Terry Gray, to open and operate a Cannabis Retail Establishment,

located at 206 West Main Street (20-1649-000), in D-Downtown

District, City of Luverne, Minnesota.

Requested Conditional Use Permit (CUP) application submitted by

Terry Gray, to open and operate a Cannabis Retail Establishment,

located at 218 East Main Street (20-1125-000), in D - Downtown

District, City of Luverne, Minnesota.

K.2. 2025-206

Following the public hearing held by the Planning Commission on

June 9, the Planning Commission recommends denial of the

conditional use permit (CUP) application to operate a cannabis retail

establishment at 218 East Main. Under Minnesota law, a city may

deny a CUP if the proposed use does not meet the specific

standards or conditions established in the city’s zoning ordinance. In

this case, the applicant’s site plan provides only two off-street

parking spaces, which does not meet the minimum requirement for

retail uses as set forth in the ordinance-specifically, one space per

200 square feet of gross floor area. Because the application fails to

satisfy this key standard for adequate off-street parking, the

Planning Commission finds that the proposal does not meet all

required criteria for a CUP and recommends denial. The city council

may deny the CUP on this basis, as Minnesota law allows denial

when an application does not comply with the ordinance’s

established standards.

City Administrator Recommendation: City Council Deny Requested

Conditional Use Permit (CUP) application submitted by Terry Gray,

to open and operate a Cannabis Retail Establishment, located at

218 East Main Street (20-1125-000), in D - Downtown District, City

of Luverne, Minnesota.

Requested Conditional Use Permit (CUP) application submitted by

Dylan Stokes, to open and operate a Cannabis Retail and

Manufacturing Establishment, located at 1202 South Kniss Avenue

(20-1943-000), in H-C - Highway Commercial District, City of

Luverne, Minnesota.

K.3. 2025-209

Following the public hearing held by the Planning Commission on

June 9, the Planning Commission recommends approval of a

conditional use permit (CUP) to allow operation of a cannabis retail

establishment at 1202 South Kniss Avenue, subject to specific

conditions including off-street parking, screening for automobile

headlights, odor control, exterior property maintenance, obtaining a

state license for proposed business type, and compliance with all

state and local regulations. Under Minnesota law, if an applicant

meets all the general and specific standards set forth in the city’s

zoning ordinance, the city is required to grant the CUP. The

applicant for this cannabis retail establishment has satisfied all

ordinance requirements, and therefore, the city council must

approve the CUP as recommended by the Planning Commission.

This ensures the city’s actions are consistent with state law and

local land use standards.

City Administrator Recommendation: City Council Approve

Requested Conditional Use Permit (CUP) application submitted by

Dylan Stokes, to open and operate a Cannabis Retail and

Manufacturing Establishment, located at 1202 South Kniss Avenue

(20-1943-000), in H-C - Highway Commercial District, City of

Luverne, Minnesota.

Requested Conditional Use Permit (CUP) application submitted by

Peter Dikun, to open and operate a Cannabis Retail Establishment,

located at 704 South Kniss Avenue (20-0675-000), in C-C -

Community Commercial District, City of Luverne, Minnesota.

K.4. 2025-210

Following the public hearing held by the Planning Commission on

June 9, the Planning Commission recommends approval of a

conditional use permit (CUP) to allow operation of a cannabis retail

establishment at 704 South Kniss Avenue, subject to specific