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Crosslake Council accepts $2.5 million state grant for National Loon Center, approves audit and routine motions
Summary
At its May 6 meeting the Crosslake City Council accepted a $2.5 million state capital grant to acquire and design a National Loon Center, accepted the 2025 audit showing stronger-than-expected revenues, and approved a slate of routine motions including liquor license renewals and a Corps of Engineers policing contract.
The Crosslake City Council on May 6 accepted a $2,500,000 capital grant awarded in the 2023 state bonding/capital bill to acquire property and to predesign and design a National Loon Center that will include visitor, education and exhibit facilities and adjacent outdoor public-space improvements.
The grant acceptance, adopted by Resolution No. 26-24, was part of a meeting in which the council also voted unanimously to accept the City’s audited financial statements for the year ending Dec. 31, 2025. Mary Reedy, audit principal with Clifton Larson Allen, presented the audit and highlighted about $1.19 million in higher-than-budgeted revenues, roughly $50,000 under budgeted expenditures, $173,000 in prepaid assessments collected, and $203,000 favorable variance in interest income. The Sewer Fund reported positive cash flow from operating activities and an increase in cash by roughly $163,000. The council approved the audit by voice vote (MOTION 05R-05-25).
Why it matters: the grant clears a pre-design and design phase for a project that the resolution describes as intended to provide visitor, education and exhibit facilities, and it designates the City of Crosslake as the fiscal agent responsible for implementing the project under state grant requirements.
Votes at a glance: the meeting included a series of routine motions and approvals, each carried unanimously unless noted. - MOTION 05R-01-26: Approve additions to the agenda (mover: Sandy Farder; second: Robin Sylvester) — carried, all ayes. - MOTION 05R-02-26: Approve consent calendar including minutes, April 2026 financials, department reports and bills totaling $1,058,234.58 (mover: Bob Heales; second: Jayme Knapp) — carried, all ayes. - MOTION 05R-03-26: Adopt Resolution 26-22 to accept multiple donations for library, community center and fire equipment (mover: Sandy Farder; second: Robin Sylvester) — carried, all ayes. - MOTION 05R-04-26: Approve purchase of 9 flags/posts for City buildings (~$830) and add funds to 2027 budget for Town Square flags (mover: Sandy Farder; second: Jayme Knapp) — carried, all ayes. - MOTION 05R-05-25: Accept 2025 audit (mover: Sandy Farder; second: Robin Sylvester) — carried, all ayes. - MOTION 05R-06-26: Place Jonah Smith into full-time status and approve a step increase effective May 17, 2026 (mover: Bob Heales; second: Robin Sylvester) — carried, all ayes. - MOTION 05R-07-26: Approve initial lower-potency hemp edible retailer registration applications for Jenson’s Ye Olde Wharf and Ox Lake Tavern LLC (mover: Jayme Knapp; second: Bob Heales) — carried, all ayes. - MOTION 05R-08-26: Abate special assessment of $2,200 for Parcel ID #14090727 (mover: Sandy Farder; second: Robin Sylvester) — carried, all ayes. - MOTION 05R-09-26: Adopt Resolution 26-23 to renew liquor licenses for 2026–2027 pending receipt of required documents and county tax verification (mover: Jackson Purfeerst; second: Sandy Farder) — carried, all ayes. - MOTION 05R-10-26: Adopt Resolution 26-24 to accept State grant for National Loon Center (mover: Sandy Farder; second: Robin Sylvester) — carried, all ayes. - MOTION 05R-11-26: Approve contract for law enforcement services with U.S. Army Corps of Engineers May 13–Oct 15, 2026 for $9,685.20 (mover: Sandy Farder; second: Bob Heales) — carried, all ayes. - MOTION 05R-12-26: Donate old radar trailer to Crow Wing County Sheriff’s Department (mover: Jackson Purfeerst; second: Jayme Knapp) — carried, all ayes. - MOTION 05R-13-26 / 05R-14-26 / 05R-15-26: Approve painting quote for City Hall, include cemetery/city hall sign estimates in 2027 budget, and accept sealcoating/crack-filling estimates for walking paths/roads (movers/second varied) — all carried, all ayes.
Council comments and context: City Administrator Lori Conway told the council the Street Maintenance Fund could cover a sidewalk request by the owner of Grand Champion Meats; council asked that the owner submit the request in writing and that staff bring it to the Public Works Commission for review. Planning & Zoning Director Jody Grund said staff will add grass-height to the city’s nuisance ordinance and will work with the city attorney to establish enforcement procedures.
What’s next: The grant acceptance authorizes staff to execute agreements necessary to implement the design phase; the resolution requires compliance with state grant conditions and environmental/legal requirements. The council’s routine motions mean the city will proceed with the audit recommendations, budget-noted capital items and the Corps contract on the stated schedule.
