The Brainerd City Council conducted the first reading of proposed Ordinance 1578 on Jan. 6, 2025, which would revise lot standards and building design standards and potentially allow mixed‑use development in the city’s commercial corridor along Washington Street.

Community Development Director James Kramvik outlined the proposal and said the change was intended to ease development burdens while preserving neighborhood compatibility. "Allowing mixed use development would give developers options and may help incentivize revitalization in this district," Kramvik said, while noting the existing central business district incentive policy forgives SAC and WAC charges along Washington Street.

Councilmembers asked specifically whether allowing residential units in the commercial corridor would affect collection and future use of SAC (sewer availability charges) and WAC (water access charges). Finance Director Connie Hillman and utility staff explained that SAC/WAC funds are restricted by city policy and generally support system expansion; council discussed how waiving those charges could shift future costs to ratepayers or require bond financing. "As a utility department the use or what's done on the property is neither here nor there. We would just be concerned with usage flows," Public Utilities staff explained, and added that if SAC/WAC revenues decline the utility would seek alternate financing when future expansion is required.

Council conducted the required unanimous vote to dispense with the full reading and then voted to direct staff to bring the ordinance forward for a second reading at the Jan. 21 council meeting (Option 1). Council also considered sending the ordinance to the Public Utilities Commission for comment about SAC/WAC implications as an alternative but opted to proceed with Option 1.

Ending: The ordinance remains in the code‑change review process; staff will prepare materials for the Jan. 21 second reading and include analyses of SAC/WAC implications for mixed‑use development in the commercial corridor.