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Waterville council denies zoning change, awards road contract and OKs development agreement framework

Waterville City Council · June 3, 2025
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Summary

The Waterville City Council on June 3 denied a rezoning request, accepted a $95,780 bid to reclaim and repave North Shore Drive, approved a change order for construction oversight, and authorized a development agreement to pass Minnesota Housing grant funds to a private developer; all motions passed unanimously.

The Waterville City Council on June 3 denied a request to change a parcel from R2 to R1, accepted a low bid of $95,780 for North Shore Drive improvements and authorized staff to finalize a development agreement that will let Fort Road Construction and Stone LLC receive an allocation of Minnesota Housing grant funds through the City.

The council voted 5-0 to deny the zoning change after Administrator Teresa Hill summarized Planning and Zoning’s recommendation and City Attorney Jason Moran explained that the petition to rezone lacked required signatures and that approving the change could constitute illegal spot zoning. Councilmember Jennifer Grobe moved to follow the commission and attorney advice; the motion carried 5-0.

Engineer Femrite told the council four bids were opened for the North Shore Drive reclaim-and-repave project; Crane Creek Asphalt submitted the low base bid of $82,130 with an alternate to retain milled material for $13,650, bringing the total to $95,780. Administrator Hill and Femrite recommended accepting the alternate to keep the city’s access material; Tim Smith moved to accept the recommendation and the council approved it unanimously.

On housing and grants, City Attorney Jason Moran described a draft development agreement with Fort Road Construction and Stone LLC, which would allow the company to receive a three-draw allocation of Minnesota Housing grant funds with the City acting as the pass-through agent. Administrator Hill said roughly $100,000 had been allotted; the council authorized the mayor and administrator to enter the agreement with the dollar amount to be filled in later. The motion passed 5-0.

The council also approved a change order to add construction-management oversight work to Knutson Construction’s contract for the Fire Hall project and directed staff to solicit quotes for dust control on a list of streets, with results to return in July. All motions on those items carried 5-0.

The actions follow routine housekeeping earlier in the meeting: approval of the agenda and consent agenda (which included disbursements totaling $253,423.61 and two donation-acceptance resolutions). The council briefly entered closed session later for litigation discussion and returned without taking further action; Attorney Moran will notify the affected party by letter.

Next steps: Crane Creek Asphalt is the awarded contractor for North Shore Drive and the city will move forward with contracting. The Fort Road development agreement will be finalized with the grant amount filled in before execution; staff will return in July with dust-control quotes and the Street Supervisor’s recommendation.