305 E. Luverne St.  
Luverne, MN 56156  
www.cityofluverne.org  
Announcement of Meeting  
City Council  
Regular Meeting Minutes  
Tuesday, June 17, 2025  
5:00 PM  
Council Chambers  
A.  
CALL TO ORDER - ROLL CALL  
Council Member Caroline Thorson, Council Member Kevin Aaker,  
Council Member Dan Nath, and Council Member Marlin Kracht  
Mayor Patrick Baustian  
Present:  
Excused:  
Jessica Mead, Jill Wolf, Tyler Reisch, and Chad McClure  
Additional :  
B.  
C.  
PLEDGE OF ALLEGIANCE  
APPROVAL OF AGENDA AND SPECIAL ORDERS  
With the addition of Take 16 Lower-Potency Hemp Registration a motion was made by  
Council Member Aaker, seconded by Council Member Nath, that the agenda be  
approved as amended. The motion carried unanimously.  
D.  
APPROVAL OF MINUTES OF PRECEDING MEETING(S)  
City Council Minutes from May 27, 2025.  
D.1. 2025-207  
A motion was made by Council Member Nath, seconded by Council  
Member Kracht, that this Minutes be approved. The motion carried  
by a unanimous vote.  
E.  
F.  
RECOGNITION OF GUEST(S)  
Chad McClure, Jason Berghorst, Carol Morgan, Traci Davis, Dylan Stokes, Peter Dikun  
and Shawn Kinsinger.  
PETITIONS, COMMUNICATIONS, COMMITTEE/COMMISSION REPORTS  
Planning Commission Minutes from April 7, 2025.  
F.1. 2025-178  
A motion was made by Council Member Kracht, seconded by  
Council Member Nath, that the Minutes be approved. The motion  
carried by a unanimous vote.  
G.  
STAFF AND CONSULTANT REPORTS  
Palace Theatre Bi-annual Report--Shawn Kinsinger.  
G.1. 2025-144  
The Palace reported steady year-over-year growth in attendance,  
with 12,788 visitors from June 2023 to June 2024 and 13,520 from  
June 2024 to June 2025. School visits, including those from Adrian  
and Rock Rapids, contributed significantly to May attendance, with  
hundreds of students attending movie screenings. Notable events  
included a Taylor Swift-themed show and a Christmas piano  
meditation, both of which exceeded expectations. Due to high  
sound system rental costs, the number of live music events has  
been reduced, with plans to purchase equipment and prioritize local  
performers. A new partnership with the Green Earth Players will  
expand live theater to six productions annually through 2026. The  
Palace is also increasing its focus on community-written plays and  
family-friendly holiday events featuring local talent. Financial  
strategies include reducing reliance on movie distributors and  
mixing live events with films to retain more revenue locally.  
Affordable school field trip packages have helped maintain strong  
attendance. Volunteer support and positive community feedback  
continue to play a vital role. Looking ahead to 2025–2026, the  
Palace aims to sustain attendance through expanded live theater  
and local programming while managing costs and maintaining  
strong community ties.  
City Administrator Report.  
G.2. 2025-208  
City offices will be closed on Thursday in observance of the  
Juneteenth holiday. As a result, Thursday’s garbage route will be  
collected on Friday, June 20, along with the recycling route south of  
Dodge Street. During peak mowing season, five employees  
continue to maintain approximately 180 acres on a full-time basis.  
Water and wastewater staff completed quarterly testing for toxicity  
and biosolids, with additional testing now required due to the city’s  
population growth. PFAS testing equipment, funded through a grant  
from the Minnesota Pollution Control Agency (MPCA), arrived this  
week. Potholing work is underway on Spring Street to identify lead  
service lines. The Electric Department installed three new  
residential services—two in the Uithoven Addition and one on Britz  
Drive—and replaced lighting and poles in the public parking lot  
behind Minnwest Bank. Staff remain busy responding to utility  
locate requests. The rates in the City’s Reserved Capacity  
Agreement with Missouri River Energy Services (MRES) increased  
from $5.18 to $5.35 per KW resulting in an additional $1,513 per  
month or $18,156 annually. The City’s 8.9 megawatts of generation  
capacity continues to provide reserved capacity to MRES, for which  
the City receives monthly payments. These rates are adjusted  
annually. Attending the League of Minnesota Cities (LMC) Annual  
Conference in Duluth next week. I have been appointed to the LMC  
Nominating Committee and will travel early to participate in Board  
interviews.  
H.  
FINANCE AND BUDGET  
Claim Report for June 2025 (Check No. 164892-165106) for  
H.1. 2025-175  
$1,827,137.89.  
A motion was made by Council Member Nath, seconded by Council  
Member Aaker, that this Claim Report be approved. The motion  
carried by a unanimous vote.  
Motion to approve petty cash reconciliation as of May 31, 2025.  
H.2. 2025-214  
PERSONNEL  
A motion was made by Council Member Aaker, seconded by  
Council Member Kracht, that this Petty Cash be approved. The  
motion carried by a unanimous vote.  
I.  
I.1.  
No items under personnel to consider.  
J.  
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.  
J.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.  
A motion was made by Council Member Nath, seconded by Council  
Member Kracht, that this Motion be approved. The motion carried  
by a unanimous vote.  
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.  
J.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.  
A motion was made by Council Member Kracht, seconded by  
Council Member Nath, Motion failed. The motion carried by a  
unanimous vote.  
Requested Conditional Use Permit (CUP) application submitted by  
Dylan Stokes, to open and operate a Cannabis Retail  
J.3. 2025-209  
Establishment, located at 1202 South Kniss Avenue (20-1943-000),  
in H-C - Highway Commercial District, City of Luverne, Minnesota.  
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.  
A motion was made by Council Member Aaker, seconded by  
Council Member Nath, that this Motion be approved. The motion  
carried by a unanimous vote.  
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.  
J.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  
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.  
A motion was made by Council Member Nath, seconded by Council  
Member Aaker, that this Motion be approved. The motion carried by  
a unanimous vote.  
Requested Conditional Use Permit (CUP) application submitted by  
Terry Kapple, to open and operate a Cannabis Retail  
Establishment, located at 401 South Kniss Avenue (20-0037-200),  
in C-C - Community Commercial District, City of Luverne,  
Minnesota.  
J.5. 2025-211  
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 401 South Kniss, 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, compliance with all state and  
local regulations, and visual screening installation on the East  
property line. 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.  
A motion was made by Council Member Kracht, seconded by  
Council Member Aaker, that this Motion be approved. The motion  
carried by a unanimous vote.  
Private Use of Public Property Request for Luverne Lake Events at  
The Lake on July 4, 2025  
J.6. 2025-212  
Representing Luverne Lake Events, Jen Wiebe applied for  
permission to host a public 4th of July event at The Lake, located on  
West Edgehill Street. Activities include a triathlon, inflatables, bean  
bags, log rolling, hula hoops, limbo, tug o war, bingo, food vendors,  
a band from 8:30-Midnight, and Fireworks at 10:00 p.m. Certificates  
of Insurance and Fireworks Operator Permit have been received.  
A motion was made by Council Member Aaker, seconded by  
Council Member Nath, that this Motion be approved. The motion  
carried by a unanimous vote.  
Application for Exempt Permit for the Rock County Agriculture  
Society to Conduct a Raffle on July 26, 2025 at the Rock County  
Fairgrounds.  
J.7. 2025-213  
Representing the Rock County Agriculture Society, Lee Sells has  
applied for an exempt permit to conduct a raffle on July 26, 2025 in  
conjunction with the Rock County Fair.  
A motion was made by Council Member Kracht, seconded by  
Council Member Nath, that this Motion be approved. The motion  
carried by a unanimous vote.  
Lower-Potency Hemp Product Business Registration for Luverne  
Brew Partners DBA Take 16 Brewing.  
J.8. 2025-216  
Take 16 has submitted a City registration form for 2025 to  
manufacture and sell on and off sale lower-potency hemp products.  
The completed application is attached, fees have been paid and  
background checks were also found to be favorable.  
A motion was made by Council Member Aaker, seconded by  
Council Member Kracht, that this Motion be approved. The motion  
carried by the following vote:  
Kevin Aaker, and Marlin Kracht  
Caroline Thorson, and Dan Nath  
Aye:  
Abstain:  
K.  
ORDINANCES AND RESOLUTIONS  
PROPOSED RESOLUTION  
K.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.  
A motion was made by Council Member Nath, seconded by Council  
Member Kracht, that this Resolution be approved. The motion  
carried by a unanimous vote.  
Proposed Ordinance, Fourth Series  
AN ORDINANCE AUTHORIZING CONVEYANCE OF REAL  
ESTATE  
K.2. 50  
(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.  
A motion was made by Council Member Aaker, seconded by  
Council Member Nath, that this Ordinance be introduced and  
adopted. The motion carried by the following vote:  
Caroline Thorson, Kevin Aaker, Dan Nath, and Marlin  
Kracht  
Aye:  
Proposed Ordinance, Fourth Series  
K.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.  
A motion was made by Council Member Kracht, seconded by  
Council Member Nath, that this Ordinance be introduced and  
adopted. The motion carried by the following vote:  
Caroline Thorson, Kevin Aaker, Dan Nath, and Marlin  
Kracht  
Aye:  
PROPOSED RESOLUTION  
K.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.  
A motion was made by Council Member Nath, seconded by Council  
Member Kracht, that this Resolution be adopted. The motion carried  
by a unanimous vote.  
Proposed Ordinance, Fourth Series  
K.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.  
A motion was made by Council Member Nath, seconded by Council  
Member Aaker, that this Ordinance be introduced and adopted. The  
motion carried by the following vote:  
Caroline Thorson, Kevin Aaker, Dan Nath, and Marlin  
Kracht  
Aye:  
Proposed Ordinance, Fourth Series  
K.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.  
A motion was made by Council Member Nath, seconded by Council  
Member Aaker, that this Ordinance be introduced and adopted. The  
motion carried by a unanimous vote.  
Caroline Thorson, Kevin Aaker, Dan Nath, and Marlin  
Kracht  
Aye:  
Proposed Ordinance, Fourth Series  
K.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.  
A motion was made by Council Member Kracht, seconded by  
Council Member Aaker, that this Ordinance be introduced and  
adopted. The motion carried by the following vote:  
Caroline Thorson, Kevin Aaker, Dan Nath, and Marlin  
Kracht  
Aye:  
L.  
COUNCIL REQUESTS - GENERAL DISCUSSION  
Thank you to all City staff for assisting with Buffalo Days, it was a wonderful event.  
ADJOURNMENT  
M.  
A motion was made by Council Member Nath, seconded by Council Member Kracht, to  
adjourn the meeting at 6:00 p.m. The motion carried unanimously.  
__________________________  
Jessica Mead, City Clerk  
__________________________  
Caroline Thorson, Acting Mayor