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Brainerd council approves audit, vacates rights-of-way and waives fire escrow; votes at a glance
Summary
At its July 7 meeting the Brainerd City Council accepted the 2024 audit, approved multiple right-of-way and alley vacations, waived a fire-escrow hold for a downtown building fire, and awarded a $1.41 million contract for a roundabout and Willow Street reconstruction. The council also adopted a resolution backing the county sheriff's ICE enforcement agreement and directed staff to seek county talks on airport funding.
The Brainerd City Council on July 7 accepted the city's 2024 audit, approved several property vacations and infrastructure contracts, and waived a city-held fire escrow so an owner could access insurance proceeds for rebuilding.
The audit presentation by the city's outside auditors included one significant deficiency related to segregation of duties and adjustments tied to GASB 101; staff told the council the general fund's unassigned balance is about $3.4 million, roughly 23% of annual operating expenditures, below the 35—50% policy target. After questions from council members about materiality and ARPA reporting, the council voted to accept the audit results.
A series of property actions followed. The council adopted a resolution vacating a portion of Williams Street right-of-way in northwest Brainerd after hearing from property owner Mary Hmed, who described survey overlaps and requested a 461-square-foot conveyance to resolve a garage encroachment; staff will retain utility easements and noted that any state-owned trail property will require separate action with state agencies. The council also adopted a resolution vacating an unrecorded alley in Block 164 while preserving utility easements.
On downtown recovery, council discussed a June 4 fire at 614 Front Street and the city's statutory ability to hold 25% of an insurer's final payout as fire escrow. Property owner Dave Puringer told the council he intends to remodel; after weighing engineering review time and the risk that a property owner might not rebuild, the council voted to waive the city's hold so the owner can access insurance proceeds to proceed with repairs.
The council awarded the trunk highway 371/Willow Street roundabout and Willow Street reconstruction contract to Landwehr Construction in the amount of $1,412,747.85. Staff said the project is grant-funded (90/10 match) with an estimated local match from municipal state aid in the $200,000—$250,000 range.
Other notable votes: the council adopted Ordinance 1586 on final reading to expand active code enforcement along major thoroughfares and parks; approved a zoning variance to allow a zero-foot rear parking setback at 525 Washington Street; selected a private plan for Minnesota paid family and medical leave (noting a quoted premium of 0.79% versus the state's expected 0.88%); and unanimously adopted a resolution endorsing the Crowing County Sheriff's enforcement agreement with U.S. Immigration and Customs Enforcement.
Votes at a glance - Accept 2024 audit as presented: motion by Chzach, second by Johnson; outcome: approved (unanimous). - Ordinance 1586 (code enforcement) final reading and adoption: motion by Joerger, second by Chzach; outcome: adopted (unanimous). - Williams Street right-of-way vacation (resolution): motion by Chzach, second by Bevans; outcome: approved (unanimous). - Alley vacation (Block 164) resolution: motion by Johnson, second by Bevans; outcome: approved (unanimous). - Waive fire escrow for 614 Front Street: motion by Jagger, second by Johnson; outcome: approved (unanimous). - Award contract: Trunk Hwy 371/Willow roundabout to Landwehr Construction, $1,412,747.85: motion by Chzach, second by Bevans; outcome: approved (unanimous). - Resolution supporting Crowing County Sheriff-ICE agreement: motion by Chzach, second by Johnson; outcome: approved (unanimous).
What happens next Staff will coordinate with Crowing County on title and state approvals where state-owned trail easements are implicated in right-of-way vacations; the engineering team will proceed with contract closeout steps on the roundabout project; and the owner of 614 Front Street is expected to move forward with architectural/structural drawings and rebuilding activity now that the council waived the escrow hold.
Sources: council deliberations and motions at the July 7, 2025 Brainerd City Council meeting; staff presentations and supporting documents presented to council.
