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Lake Elmo approves interfund loan to buy land for ball fields after resident objections
Summary
The Lake Elmo City Council voted to approve an interfund loan and associated fund transfers to purchase land for future ball fields, drawing public comment objecting to the timing and financing. Council members said the acquisition aligns with the Parks Master Plan and is intended to preserve open space for future community recreation.
The Lake Elmo City Council on Feb. 18 approved a resolution authorizing an interfund loan and fund transfers to purchase land intended for community ball fields, a decision that drew sharp public comment from at least one nearby resident who urged the council to delay the financing and increase public engagement.
Resident Susan Dunn, who spoke during public comment, asked the council to withdraw the item from the consent agenda and hold a community hearing before finalizing the financing. “There needs to be open communication and active cooperation as the members of the community before any decision on finances made,” Dunn said, and noted the developer contribution and proposed additional spending described in council materials.
Dunn told the council the developers of the Royal Gulf complex paid the city $1,000,000 with the stated intention that the funds be used to develop ball fields. Council materials and discussion showed the proposed purchase would draw on that $1,000,000 plus additional city funds; staff and council discussed borrowing more than $2,000,000 from the City Sewer Fund to complete the purchase, with repayment spread over 10 years in proposed assessments. Dunn warned the additional borrowing would add to residents’ bills.
Council members said the acquisition follows previously adopted planning documents. Councilmember Dragosic said the purchase followed the Parks Master Plan process and public input that identified a shortage of the type of sports fields the city needs. He said the interfund loan is a financially efficient way to secure the property without immediate bond issuance and the higher costs that accompany it.
Mayor Collins and other council members said the purchase is intended to preserve open space near Sunfish Lake and keep the property available for community recreation rather than risk redevelopment. Councilmember Holtz said the city has a long-term need for ball fields and that land prices will rise, so inaction could make future provision more costly.
The council moved and seconded the resolution during the regular agenda and voted to approve the interfund loan and fund transfers (Resolution 2025-016). The council discussed—without altering the approved financing—the need for a later public process to determine the park’s programming, amenities, funding for development and long-term maintenance.
Council members and staff acknowledged the next steps include planning how the site would be developed and funded. Staff said purchase agreements were already in place and that the interfund loan provides the near-term financing to close on the property so the land is not lost to private development. The council’s action authorized the financing method; subsequent decisions about design, construction and maintenance will come back to the council and the public for review.
Council members and staff reiterated that community engagement will be part of future planning for amenities on the property and that funding and operational details will be resolved in follow-up proceedings.
