BEMIDJI CITY COUNCIL

City manager details possible changes to Parks and Recreation Department

TJ Rhodes — Fri, 27 Jun 2025 16:06:29 GMT

BEMIDJI — Changes to the city of Bemidji's Parks and Recreation Department could be coming soon.

During Monday's regularly scheduled Bemidji City Council work session, City Manager Rich Spiczka hosted a discussion regarding city operations. Here, Spiczka detailed a new, three-word mission that will guide city operations moving forward.

The new mission is "Service. Efficiency. Connectivity," and essentially boils down to best serving the community while building better connections between staff, council and the public.

Spiczka listed a few different options to help accomplish the new mission.

One option aims to split the Bemidji Parks and Recreation Department into two — the Parks and Trails Department and the Recreation Department.

"In order to best serve our city, we need to be strategic about its structure and realize when changes need to be made," Spiczka wrote in a memo to the council. "I think it is imperative to separate Parks and Recreation to pivot to our current needs, set us up to handle future growth and most importantly, to promote efficiency in both departments."

Spiczka notes that the Parks and Recreation Department has seen an exponential rise in costs compared to other departments, but has continued to offer more services, justifying the additional costs.

He believes that consolidating the departments will help prevent costs from rising as much in the future and will increase the impact of funds and resources.

"The separation will allow us to better manage both by providing focused attention and assuring we understand what it takes in resources for each to stand on their own," he wrote.

Spiczka recommends making the change immediately so that the two new departments can operate independently for the remainder of 2025. This would allow the city to evaluate the two and alter them as needed.

The city would not need to hire anyone new to accomplish this goal. Additionally, this is an item that does not need to be approved by the council. Spiczka asked for feedback and could make the change soon.

New job positions

Spiczka detailed two new job positions that he feels the council should consider: a communications and engagement director and a community development director.

The communications and engagement director would be an entirely new position that focuses on telling the city's story, communicating with the media, notifying the public and heralding a "go-to" section for information and responses. The 2024 audit shows that the city is under budget and can afford this position.

The community development director would be a returning position that was cut in the past due to budgetary constraints.

"In order to facilitate growth and keep up with the needs of our community, we need to be open for growth," Spiczka wrote. "We need a professional to engage those requesting feedback on potential projects. We need a professional to seek out potential opportunities and help potential partners navigate."

Spiczka proposes funding the position entirely through building department fees.

He requested council feedback and will look for a vote of approval during the next council meeting. If approved, an application process would ensue.

Neilson Reise Arena revitalization

The Bemidji Indoor Sports Commission (BISC) is comprised of three organizations: Bemidji Girls Fastpitch Softball, Bemidji Youth Baseball and Bemidji Youth Soccer. The BISC is leading a project to revitalize the Neilson Reise Arena, which is located at city park in the Bemidji Curling Club building and was closed in 2020.

The council first heard of this project in July 2024. A project proposal was presented to the council in December 2024. Since then, the BISC was awarded a George W. Neilson Foundation grant for $250,000 to begin the project.

All council members expressed support for the project, which aims to add artificial turf, retractable batting cages and a walking track.

Overall, a handicap accessible lift, fire alarm system, keyless entry, protective film on spectator windows, fresh paint, updated locker room and workout spaces are also set to come to fruition.

Operating costs would be supported through membership fees of the three organizations that make up the BISC. The BISC plans to offer hourly rentals that would boost revenue.

But in order for the BISC to operate the facility, it must enter a lease agreement with the city. Thus, the council will look at approving a lease agreement during the next week.

The facility could be open to the public as soon as October 1, 2025.

The council will next meet for a regular meeting at 6 p.m. on Monday, July 7, at City Hall. All meetings can be viewed on the city website.

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Bemidji extends Local Emergency by 2 weeks, reacts to widespread storm damage

TJ Rhodes — Tue, 24 Jun 2025 14:40:37 GMT

BEMIDJI — Many Bemidjians made their way outside to witness the wreckage caused by a storm early Saturday morning. No one could be sure how extensive the damage was at that point.

Bemidji Mayor Jorge Prince ventured outside at the same time as everyone else. He noticed that the damage in his neighborhood was extensive, especially considering that debris prevented him from using his vehicle.

He reached out to city staff. Immediately, a process to begin organizing and planning out how the city would handle the storm was underway.

Hours later, Prince hitched a ride from a neighbor to reach downtown. He recalled that when the storm first entered the area, he didn't think much of it, but quickly realized its danger and spent time in his basement.

Now that he saw the damage outside of his neighborhood, he knew that the storm was far larger than what he initially envisioned.

However, one thing stuck out: there was not one reported death following Bemidji's storm. Prince later referred to this as an "act of God."

“The top of all this is, as far as we know, no one lost their life in the storm, which is a miracle," Prince said. "It is hard to comprehend the damage we all sustained. Knowing that it's summer and we have an unhoused population. We have people camping in our area, like all of the stuff is going on, and not one fatality that we know of. I just, I still can hardly believe that.”

Prince believes that this allowed the city to move past a phase of shock and enter a phase of immediate response, where a clean-up effort ensued.

This should lead to incredible stories of community togetherness, Prince believes.

"I think we all know Bemidji is not going to look the same," he said. "If you've been to Diamond Point, you can see that. If you've been to Paul Bunyan Park, you can see that. If you've been down Lake Avenue, you know that. So on the one hand, you can mourn that. But at the same time, we're all still here, which means whatever it is we're going to build, we get to do it together.

"Our city's not going to be the same, but if there was ever an opportunity for it to be different and for all of us to be able to do it together, that's what's in front of us, and I'm really grateful for that, because it could have been so much worse.”

Local emergency declaration

Beltrami County declared a State of Emergency on Saturday evening to address the storm. The city of Bemidji followed suit with a Local Emergency declaration.

When a Local Emergency is proclaimed, it allows the city to access equipment and labor alongside different funding streams that will aid in its recovery effort.

But a declaration only lasts for 72 hours.

Thus, during Monday's Bemidji City Council work session, a resolution to extend the Local Emergency status by two weeks was unanimously approved. On July 7, the council will reevaluate its declaration.

This occurred thanks to swift action by city staff.

“I can't say enough about city staff and also county staff," Prince said. "The storm had barely abated, and they were organizing and getting ready. The response that we've had ... that doesn't happen unless you have a great team that's working together, and I think all levels did a phenomenal job."

In the next two weeks, the council will have a chance to examine the damages and look toward the future. If deemed necessary, the council may extend the declaration past July 7.

Throughout it all, the city has received support from its local and state legislators.

This includes Rep. Bidal Duran, Rep. Steve Green, U.S. District 8 Rep. Pete Stauber, U.S. Sen. Amy Klobuchar and U.S. Sen. Tina Smith.

Additionally, Governor Tim Walz's team has been in contact with the city since the beginning, according to Prince. Walz visited Bemidji during an impromptu visit on Tuesday to receive a briefing on the situation and assess the damage.

The recovery process

The city mobilized quickly to handle the severe storm. This plan required help from all departments. And during Monday's work session, the council received an update from four department heads, including Fire Chief and Emergency Manager Justin Sherwood.

"I actually have to say that this is one of the first major events that I've encountered in my 23 years of service at the city of Bemidji," Sherwood said. "It's probably one of the career events. So, I want to say thank you to individuals who I get to work with every day."

Sherwood's position as emergency manager is a new one that took some time getting used to.

"I like to talk about things in operational periods," Sherwood began, "and so in the first 12 hours of our operational period, all city staff were taxed, and I mean overwhelmed, very quickly. We were calling people all over in an effort to try to find some foundation upon which we could work.

"As your fire chief, I had to quickly learn how to take my hat off as a fire chief, delegate those duties to others and step into that emergency management role."

Sherwood then detailed the plan.

"We knew that thoroughfares — access points — especially to hospitals, was of the utmost importance," he explained. "Working with the police chief (Mike Mastin), (City Engineer) Sam (Anderson) and Marcia (Larson), we began putting our resources together to try to determine when and how we were going to start opening up these thoroughfares. And the first one we really focused on was Irvine Avenue. As the event progressed, we again relied on the city staff to begin a plan of securing power lines, gas lines, access ways. Then, we also started responding.

"Now today, I'm actually starting to feel a little bit of weight coming off our shoulders."

This was more than a communal effort.

The Bemidji Fire Department was assisted by 14 different fire departments from around the state. On Tuesday, these additional departments exited Bemidji to return home.

Police Chief Mike Mastin followed Sherwood and expressed his gratitude toward city staff, detailing their efficient work.

"It was nice to have Chief Sherwood step into the role as emergency manager," Mastin said. "When I first got to the Public Works building, Sam's staff, they already had motors out and they were they were heading out. They knew what needed to be done, even though we didn't have communications for this group set up at that time."

The engineering department spent ample time clearing roadways as quickly as possible, which aided emergency vehicles.

Conversely, the Parks and Recreation Department spent time assisting in communication. This helped ensure that all essential actions were planned for at a time when communication between departments was challenging.

Spiczka believes that the willingness to embrace roles not on the job description ensured the clean-up effort went as smoothly as possible.

Now, Parks and Recreation Director Marcia Larson is shifting focus to deal with damage sustained at city parks. Larson estimates that around 100 trees were downed between Library, Paul Bunyan and Diamond Point parks, creating much work for the department in the future.

Still, Larson believes that the parks will open soon and future events should continue as planned.

What's next?

Many folks have downed trees and power lines still lingering in their yards following the devastating storm. The city is offering curbside pickup for the entire city to manage this issue.

The city will collect logs that are shorter than eight feet, roughly, and ask that residents place tree debris no more than 10 feet from the curb for easy access. The city will only pick up tree debris — it will not pick up debris from structure damage.

This process will take some time.

"We will be working our way through neighborhoods that (are accessible)," City Manager Rich Spiczka explained. "But you know, that'll be going on for weeks, because people need time. All the tree services in town are booked with people, so getting the stuff to the curb is going to take different amounts of time, depending on where you are."

Residents can haul tree debris to the Beltrami County demolition landfill site to avoid waiting. The county landfill is open from 7 a.m. to 7 p.m. and is located at 2331 North Plantagenet Road SE. Beltrami County is planning to open a site behind Target to allow debris drop-off as well.

The city landfill is closed to residents to allow city staff to utilize it.

During the storm, the Sanford Center operated as an overnight shelter for those in need. Now, the center has transitioned into a resource center and will no longer offer overnight services. The New Day Center has regained power and can offer such services.

The Sanford Center will soon offer legal resources to help folks file insurance claims related to the storm.

Finally, mail delivery was slowed due to the storm. As of Tuesday, mail delivery is back on route.

Those with additional questions related to the storm can reach out to the city at (218) 759-3560.

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Bemidji City Council passes resolution to apply for housing infrastructure grant

TJ Rhodes — Tue, 10 Jun 2025 14:58:10 GMT

BEMIDJI — The Bemidji City Council approved a resolution during a Monday special council meeting that allows the application of a housing infrastructure grant. If awarded, a significant housing project that immediately brings 39 mixed-income units to Bemidji would follow, with additional phases set for the future.

The Headwaters Regional Development Commission is leading the application process to develop a potential housing project on Beltrami County Housing and Redevelopment Authority land. The HRDC can secure up to $500,000 for its proposed project; the city must match the awarded grant.

The match initially led to concern when the application was first proposed during a May 27 council work session.

Some councilmembers wondered if the city could afford a $500,000 pledge. City Manager Rich Spiczka explained that the city could utilize Tax Increment Financing to fund the project, but did not have an official figure. Thus, the council asked for an official figure before an official vote.

And during Monday's meeting, Spiczka explained that the city would be able to use roughly $448,000 of TIF for the project. Additionally, the Beltrami County HRA pledged $100,000 toward the project.

The city would still need to pay its portion of the funding up front, as TIF is awarded after a project concludes. To accomplish this, Spiczka said the city could use enterprise funds.

Mayor Jorge Prince asked if the city could fund its portion of the project any other way and Spiczka confirmed that the city could.

Since Spiczka demonstrated that the city could afford an up to $500,000 pledge, the council unanimously voted to approve the resolution. Each councilor expressed support for the grant and the project, while demonstrating a need for housing in the area.

The HRDC will submit its application before the June 12 deadline. Once the HRDC knows the outcome of the application, it will provide an update. Conversely, the council will determine how it will pay for its portion of the project if the HRDC is awarded the grant.

This was the only item considered during the special council meeting.

The council will next meet for a regular meeting at 6 p.m. on Monday, June 16, at City Hall. All meetings can be viewed on the city website.

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Bemidji City Manager raise, extended severance package approved by council

Pioneer Staff Report — Tue, 03 Jun 2025 16:31:20 GMT

BEMIDJI — Following a vague motion passed at a recent Bemidji City Council meeting regarding the city manager's pay and benefits, the Pioneer has gathered more information on what took place during the meeting.

During a closed meeting on May 12, the city council held a non-annual review of City Manager Rich Spiczka, and over the next week, the council reviewed the performance evaluation before taking action during a May 19 meeting.

Here, the council approved three separate salary increases for Spiczka in a 5-1 vote — Ward 4 Councilor Emelie Rivera voted against the motion and Ward 1 Councilor Gwenia Fiskevold Gould was absent.

The council also approved a motion to alter Spiczka's severance package, providing six months of benefits rather than four, in a 4-2 vote — Rivera and At-Large Councilor Audrey Thayer voted against the motion.

Rivera and Thayer did not elaborate on the reasoning for their votes.

Details of each motion were not provided during the meeting, leading the Pioneer to file a data request to review the details of each motion.

The information provided clarifies that Spiczka will receive an initial pay increase of more than $16,000, followed by two subsequent pay increases that will total over $10,000.

Spiczka's contract shows that he was hired on Dec. 5, 2023, with a starting wage of $154,241 and three months of severance benefits. Minutes from a July 15, 2024, council meeting detail Spiczka's first performance evaluation. Here, Spiczka received a $4,627 wage increase and an additional month of severance benefits.

Following the May 19 council decision, Spiczka's first pay increase since July 2024 was set for June 2, 2025. Spiczka's salary increased from $158,868 to $175,285, which moved Spiczka from the city's 2024 pay scale to its 2025 pay scale.

Spiczka's second increase is set for July 1, 2025. Following this date, his salary will be $180,544. He will receive a third increase on July 1, 2026, which will raise his salary to $185,960.

Spiczka will be subject to an annual review, which is set during the summer of each year. Subsequent pay increases could follow the annual reviews.

Additionally, his severance package was set to be increased from four to six months following the May 19 meeting. This requires altering Spiczka's contract. The city will work with Flaherty and Hood P.A. to make this change.

Severance benefits are provided if an employee is terminated but is willing and able to continue working.

Spiczka's severance benefits include a last paycheck, a lump sum cash payment valuing six months of his salary and continued insurance coverage until the six months conclude.

The city could refuse to pay the benefits based on a myriad of reasons listed in Spiczka's contract.

Spiczka's contract was not altered in any other way.

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Bemidji City Council, HRDC discuss housing infrastructure grant opportunity

TJ Rhodes — Wed, 28 May 2025 20:47:53 GMT

BEMIDJI — More housing units could be on Bemidji's horizon.

During the Bemidji City Council work session on Tuesday, Sandy Hennum, Community Development Specialist of the Headwaters Regional Development Commission, discussed a grant opportunity that could partially fund a significant Bemidji housing project.

The opportunity comes from the Greater Minnesota Housing Infrastructure grant program, which provides funds for affordable, multi-family, workforce housing projects across the state.

Councilors were handed a preliminary proposal before the work session and provided feedback. Now, the HRDC will finalize a proposal and seek council approval before the June 12 application deadline.

The HRDC plans to request the maximum grant amount of $500,000. Bemidji would be required to match the grant, meaning a proposed project could total $1 million.

Ward 2 Councilor Josh Peterson asked if the city could afford a $500,000 pledge.

City Manager Rich Spiczka explained that the city has a few different options to fund the project, but faces a challenge.

"Municipal governments, there's a heavier lift for us than there's ever been, and I don't think that's going away anytime soon," Spiczka said. "If you want housing or you want projects, the city is going to have to come help. That's just the reality.

"I think (Tax Increment Financing) is a definite player here. Depending on how it looks, it's usually 26 years. It just means that we're deferring collecting tax until utilities are basically paid for. So, it makes it affordable. I think because (the project is) infrastructure, there are enterprise funds that can be used as well. We're not looking straight at the levy. We also have housing dollars ... I think we have a multitude of options."

Currently, exact figures for TIF are not known. Mayor Jorge Prince asked if the HRDC and the city could provide this figure before council approval.

"It would be good to have that number," Prince said, "because if we were just able to fund this fully off TIF, for me, that's an easy decision; that becomes a no-brainer. If we have to pull dollars from housing funds or from utility accounts, then the (return on investment) question starts becoming a little bit more complex."

Prince then asked if the HRDC could afford a lower pledge, if deemed necessary by the council.

Hennum explained that even if the HRDC applies for $500,000, there is no guarantee that it would receive that amount. Thus, if the HRDC receives less than $1 million, whether from a lesser pledge or grant, it would downsize the project's scope as needed to ensure affordability. The project would not cease.

Overall, this opportunity is monumental, according to Hennum. Historically, Northland cities struggled to receive this grant as the majority of the funds did not leave the metro. Now, after successful lobbying efforts, 50% of the funds are set aside for greater Minnesota, giving Bemidji a chance.

"I would say on this grant, the fact that it's isolated to greater Minnesota almost never happens," Spiczka said. "With the climate and the space we have right now, with funding being shut down and frozen, or whatever, when we have a chance to at least attempt to get some (funds), I think we should think hard about that."

All present council members unanimously expressed support for a project after sharing thoughts and concerns — Ward 1 Councilor Gwenia Fiskevold Gould and At-Large Councilor Audrey Thayer were absent.

"I think this is a really good thing," Ward 4 Councilor Emelie Rivera said. "I just want to make sure that anything that we put forth as an application has a realistic representation of what (the city) can do and what is within the guidelines."

Prince later mentioned a housing study that could be published during the summer.

"It'll be interesting once we get our housing study back to see what we're short on," Prince began. "But boy, (this project) could go a long way to meeting those (needs)."

The HRDC will finalize its proposal, which should include all relevant information regarding a proposed project, grant amount, potential timeline and more. The council will review this proposal and cast a vote before the June 12 deadline.

The council will next meet for a regular meeting at 6 p.m. on Monday, June 2, at City Hall. All meetings can be viewed on the city website.

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Process to consolidate Bemidji recycling sites approved by the Beltrami County Board

TJ Rhodes — Fri, 23 May 2025 14:30:00 GMT

BEMIDJI — Beltrami County currently operates two recycling sites in Bemidji and 12 across the county. Now, a third site situated at Fern Street has been approved.

Eventually, the Fern Street site will operate as the sole Bemidji drop-off location and the two existing sites will close, consolidating services.

The Bemidji City Council and the Beltrami County Commissioners agreed to a Memorandum of Understanding, allowing Beltrami County to further the project. The MOU notes that Beltrami County is responsible for all funding and work associated with the project.

The MOU was approved at a May 19 council meeting and a May 20 county board meeting. Additionally, the Beltrami County Board approved bids for the project, which came in at roughly $10,000 under the allocated project budget.

A grant will also help with funding.

The Minnesota Pollution Control Agency awarded Beltrami County a $162,278.50 Minnesota Pollution Control Agency grant, as part of a Greater Minnesota Waste Reduction, Reuse, Recycling and Composting grant program.

The grant will fund 75% of the project, allowing the county to purchase a compactor and containers, prep the site and educate the community on the project.

Currently, Beltrami County has not specified where exactly the Fern Street site will be located. However, the project was deemed necessary as the Northdale Oil drop-off site has been interrupted due to road construction. Once the Fern Street site is operational, the Northdale Oil site will close.

"That road is being redone, and we need to remove that site from that location," District 1 Commissioner Craig Gaasvig explained during the Tuesday meeting. "That is one of the primary reasons why we needed an alternate location for that site, because the road change and the road being redone there is making us move that. Ultimately, (the Fern Street site) will end up replacing the Target site as well. It'll be a mutual spot for both of those."

District 2 Commissioner Joe Gould was not in favor of approving the project initially, citing a lack of community input.

"I have concerns about these, lack of community input," Gould exclaimed. "There wasn't a survey done, I know I wasn't kept informed of the proceedings on moving this recycling site."

Gould's effort was for naught, and each motion passed 4-1.

Five other communities across the state received a similar grant to conduct work, in a state effort to promote "positive economic and environmental impact on the communities they serve, helping to tackle the state’s growing waste problem," according to a release.

To learn more about the grant program, folks can visit the MPCA's website. Beltrami County's recycling sites can be reviewed on the county website.

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Resolution to file petition to annex approved by the Bemidji City Council

TJ Rhodes — Tue, 20 May 2025 16:26:57 GMT

BEMIDJI — On Monday, the Bemidji City Council passed a resolution to file a petition with the Minnesota Office of Administrative Hearings to annex a portion of Northern Township following a closed session.

Image and PDF Viewer

Click the image above to view the full PDF document.

Bemidji's decision follows a string of events, the most recent of which saw the Northern Township board approve a motion to file its petition to incorporate with the state during a May 12 meeting.

Northern Township's proposed wastewater treatment project plays a role in the city's decision as well.

Bemidji's resolution states that the city feels the incorporation of Northern Township would fix boundaries and prevent the city from growing or serving the area in the future.

The resolution also mentions that the city has invested millions of dollars to handle area growth and meet environmental standards, including work at the wastewater and water treatment facilities.

Because of this, Bemidji feels the Northern Township proposed wastewater facility is a "unnecessary and wasteful" duplication of services and that it is better served to provide municipal sanitary, sewer and water services for township properties along the Lake Bemidji shoreline

Bemidji will file its annexation petition no sooner than May 22, after Northern Township files its incorporation petition. Once both petitions are filed, the state will pair the two together and make one ruling for the area.

Either Northern Township will become a city and permanently set its boundaries, allowing the construction of the proposed wastewater facility, or Bemidji will be granted permission to annex a portion of Northern Township along the Lake Bemidji shoreline, preventing incorporation and the wastewater project.

A decision will be made within one year following the initial petition filing.

Following the resolution, the council approved a motion to appoint Mayor Jorge Prince, Ward 4 Councilor Emelie Rivera and At-Large Councilor Audrey Thayer as liaisons for any future discussions with Northern Township. Ward 3 Councilor Mark Dickinson was chosen as an alternate.

City manager evaluation

On May 12, the council held an impromptu meeting for a non-annual evaluation of City Manager Rich Spiczka. The council chose to wait one week before taking any action deemed necessary from the evaluation.

During Monday's regular meeting, the council revisited the topic and Prince summarized the evaluation.

"The city council chose to conduct a non-annual performance evaluation of City Manager Richard Spiczka," he began. "City Manager Spiczka is doing an effective job and is a good fit for the city. He's doing well with the communities he was supposed to. His temperament and composure facilitate strong leadership. He's improving the culture and stabilization and proficiency in handling the overall management of the city. He can improve on and be better and more timely and consistent in communications and responses, follow through on city council priorities and updates to the city council.

"Goals include being dedicated to service to the community, finding efficiencies and service in the budget and connectivity within all areas of the city and community. The mayor and city council are grateful to have Rich in this position, and thank Rich for his hard work on behalf of the city."

Following the summary, the council approved a step scale pay increase for Spiczka. His salary will incrementally increase over a time frame approved by the council. The specific amount and percentage of increase were not clarified during the meeting. The motion passed 5-1, with Rivera voting against. Ward 1 Councilor Gwenia Fiskevold Gould was absent due to illness.

Then, the council approved to alter Spiczka's contract to extend his severance package from four to six months. This motion passed 4-2, with Rivera and Thayer as the two dissenting votes. Neither expounded on their reasoning for voting against.

The council also discussed altering Spiczka's contract to add an evaluation or check-in every six months as opposed to the one annual evaluation, but did not move forward with the motion.

Spiczka did not comment on the motions during the meeting.

All �� Reunion

The council received a special event permit request for the Bemidji All �� Reunion in July, but did not initially approve it. Instead, the council held a discussion to hear recommendations from City Engineer Sam Anderson and Police Chief Mike Mastin that would alter the event.

Anderson requested that the event utilize street signage, which would direct traffic around closed streets.

Mastin requested that event organizers sign a contract with the Bemidji Police Department to hire two dedicated police officers for event safety.

In the past, the All �� Reunion has worked with the police department, so the recommendation was not unfounded.

The event is working with a private organization to provide event security. Event volunteers noted that this is cheaper, while providing more bodies than the recommended two. They also expressed a fear that a contracted city officer would leave the event if an emergency happened elsewhere.

Mastin countered that if necessity arose, hired security would not have the authority to use force, detain or arrest anyone. He then stated that a contract with the police department would ensure two officers would be at the event for the contracted hours, unless an emergency called for all officers on hand.

Dickinson asked if the department would be at the event regardless. Mastin answered that police may be there, either as spectators or via a routine patrol, but the contract guarantees their presence.

Ward 2 Councilor Josh Peterson spoke in favor of not requiring either recommendation to ensure the event continues without an additional or unplanned expense.

"This whole event, it's happened going on 30 years; we've had it 15 times successfully, without issue, historically, from what I've known," Peterson said. "I'm glad we really emphasize that these are recommendations, not requirements, because if they were requirements, they should be in the ordinance, and they should be directed in policy."

Ward 5 Councilor Lynn Eaton agreed with Peterson's comments and added that the council could hold a future conversation to discuss whether or not the police department should be in attendance for events that include alcohol.

Peterson also questioned if the department could handle the extra work since there is a shortage of officers. Mastin followed that the department cannot force officers to work overtime, but would figure it out.

Eventually, Prince was able to find a compromise. This requires contracted services with the Bemidji Police Department following Mastin's recommendations, but alters the hours served to save the event money.

Peterson made the motion to approve the event permit with the listed alterations.

Road reconstruction project

The council also approved a bid from Reierson Construction Inc. at $4,351,818 for the Middle �� Drive NW and Hannah Avenue NW reconstruction project.

This was initially the city's portion of the Trunk Highway 197 road reconstruction project in conjunction with the Minnesota Department of Transportation. However, the project was split during a March 10 council meeting due to a federal funding freeze.

This project will begin on Monday, July 7, and will take place throughout two construction seasons, concluding in September 2026. The first construction season will focus on a stretch of Middle �� Drive NW, including the construction of a roundabout at the intersection of Middle �� Drive NW and 23rd Street NW.

The project has not changed much since it was reevaluated in March; however, there is one new detail.

Otter Tail Power Company will now construct light poles along two streets in need, including Conifer Avenue NW and a portion of Hannah Avenue NW. Otter Tail expects to have new light poles installed by the end of 2025, but cannot guarantee the timeline. Thus, the poles could be operational by the end of 2025 or 2026.

The council will next meet for a work session at 5:30 p.m. on Tuesday, May 27, at City Hall to accommodate Memorial Day. All meetings can be viewed on the city website.

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Bemidji liquor store sales totaled $8.4 million, 2023 report shows

TJ Rhodes — Thu, 15 May 2025 21:49:03 GMT

BEMIDJI — The two city of Bemidji liquor stores earned high marks from Financial Director Donna Coe during a May 5 Bemidji City Council meeting. Here, Coe detailed Bemidji-specific highlights from the Office of the State Auditor's 2023 Municipal Liquor Store Report.

A new municipal liquor store report is published each year, detailing city-owned liquor store profit margins. In 2023, 176 Minnesota cities operated 210 liquor stores with a combined net profit of $31.6 million.

This year's report displays 2023 municipal liquor store trends alongside relevant comparisons, which is valuable for the cities involved. The report is used by a city to gauge the financial condition and feasibility of its liquor store operations to make future decisions.

Only 31 of the 176 cities saw a net loss, with 28 sprinkled across greater Minnesota. Bemidji was not one of these cities, however, and did quite well.

Coe shared three highlights and expressed one area that should improve during her presentation.

Bemidji ranked eighth in total sales at $8.4 million — this is referred to as the operating revenue. Additionally, Bemidji ranked seventh in gross profit at $2.7 million and ninth in highest operating income at $721,000.

The gross profit is calculated by subtracting product costs from the revenue. Conversely, the operating income is calculated by subtracting the combined cost of products and operations from the revenue.

Overall, Bemidji liquor stores accounted for 7.6% of total city revenue, at $631,000. This ranked 59th and was listed as the main area for improvement.

"The highest net profit as a percentage of revenue ... was only 7.6% of our revenue," Coe explained. "I take it as a challenge to try and make it better, to make it a larger bottom line number."

A few different things factor into the final revenue figure detailed in the report.

In 2023, the city paid $104,000 in bond interest.

Bemidji also paid credit card fees associated with liquor store purchases. These fees cost roughly $200,000, but will soon cost less.

During an Aug. 26, 2024, work session, the council discussed whether or not credit card fees should be passed along to consumers. Then, during an October 2024 meeting, the council approved a new credit card processing system that splits the fees. The system was implemented a month later.

Now, consumers pay 3% of the fee and the city pays the rest. The fee varies depending on the processing network — American Express, MasterCard, Visa, Discover, etc. Consumers who use cash avoid the fee altogether.

The 2023 report was affected by credit card fees, and the 2024 report will also be affected. The 2025 report will be the first to fully reflect this change.

Reserve balance fund

Each year, the council budgets its liquor store operation at $0. This is possible because of a reserve balance, which sits comfortably at around $2.5 million with $1.8 million available.

Staff restricts a portion of the fund to ensure principal and interest payments, which clocked in at $20,000 in 2023. This restriction also adds a level of security to Bemidji's liquor store operation.

"If we had a very catastrophic year, we're still going to have a fund balance," Coe explained.

The reserve balance fluctuates each year depending on how liquor store revenue is used. For example, $305,000 was added in 2021; $126,000 was transferred out in 2022 and the city spent $16,000 more than liquor stores profited in 2023.

Ward 4 Councilor Emelie Rivera asked if losing reserve balance funds in 2022 and 2023 was a concern.

Coe explained that it was not a concern since the fund is estimated to remain stable.

City Manager Rich Spiczka further explained that a negative balance one year doesn't necessarily mean the liquor store operation lost money.

"If that number is negative on the balance after the year's transaction, it doesn't mean the operations of the liquor store lost money," he said. "It's just we spent more money that year out of that fund than it made."

A third liquor store

The council reevaluates the $0 budget each year. However, it is unlikely that it will increase beyond the $1.8 million figure since funds are not set aside.

Thus, the city is continually exploring options to ensure the liquor stores are profitable and can operate independently, preserving the balance. This includes looking into the credit card fees, exploring insurance options and adding THC to store shelves.

It also includes exploring a third location, which, according to Coe, could result in a higher profit.

She explained that cities with three liquor stores tend to have a higher profit due to an obscure Minnesota law. The three locations could be two stores and a warehouse or three stores. Regardless, when a city has three locations, it can purchase for all three at once, giving it better buying power.

Cities with two stores cannot do this and must purchase products separately.

Coe mentioned that Bemidji's system is very strong, but if there were a third location, it could lead to higher profits.

At-Large Councilor Audrey Thayer spoke in favor of exploring a third location while expressing caution.

"It sounds like if we went for the third store, it'd be awesome," Thayer said. "But of course, I have my feelings about where we spend our money. We have a lot of drinkers. This is my opinion: I really feel that we are missing the boat in helping nonprofits that are helping that situation."

Ward 2 Councilor Josh Peterson prefaced that adding a third location doesn't necessarily mean a larger profit.

"We have not done a deep dive into rent, build, staffing, anything like that, to actually see that we would actually make an additional profit," he mentioned. "It's not a guarantee that a third location makes us come out stronger and more profitable."

Coe agreed with Peterson's sentiment, adding that it was an initial idea.

Peterson then spoke about alcohol problems within the community.

"These liquor stores are profitable for us, but I also personally believe that we can become an enabler in our community where we have strong alcohol and substance abuse issues," he said. "I feel like a percentage of these funds should be dedicated to recovery programs, and that's just my personal feeling ... I know that's not what (the funds) were intended for, but I feel it would be the right thing to at least (explore)."

No action was taken during this meeting and the city is not exploring the option to operate three locations at this time.

Overall, councilors expressed gratitude for the report.

"This is a nice report, it's nice to learn," Ward 5 Councilor Lynn Eaton remarked. "(I am) really pleased with the results."

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Bemidji Rail Corridor project moves forward following PUD review

TJ Rhodes — Tue, 13 May 2025 19:24:08 GMT

BEMIDJI — A project to bring a YMCA to the Bemidji Rail Corridor received a boost during Monday's City Planning Board meeting when a Planned Unit Development preliminary review was unanimously approved.

Marco McLane Development, which is representing Greater Bemidji as the project's main driver, detailed the PUD.

A PUD includes three stages of review. The preliminary review follows a concept review and precedes a final review. The Bemidji Planning Commission heard the concept proposal during an April 24 meeting and approved it, moving the process forward. A final review will occur at a future Planning Board meeting.

The review process answers specific questions to ensure the PUD aligns with city values. It could include residential, mixed-use or commercial developments. In this case, Marco McLane Development and Greater Bemidji are requesting a mixed-use development.

Once finalized, a PUD acts as a blueprint, which outlines the scope of a project while granting increased land use ordinance deviation. This ensures the project is "shovel-ready," meaning it is fully planned, prepared for and ready for construction.

The Bemidji City Council is not involved with the PUD process. The YMCA project as a whole was approved during a Feb. 18 council meeting. Thus, approval of the PUD is not approval of the project. It simply makes development easier.

Project details

The PUD details specifics of the Greater Bemidji YMCA project slated to develop the Bemidji Rail Corridor area. The project will feature two distinct phases, with the first being split into two sections. The Beltrami County Historical Society and Veterans Memorial Park are not expected to be affected by the project.

Phase 1A includes the construction of the YMCA Community Wellness Center. The development of two future sites will be available for immediate construction during Phase 1B. This includes a "future building" east of the YMCA facility within the same lot and a "future development" site east of Minnesota Avenue.

Phase 2 will encompass all other potential developments. This includes development sites east of Minnesota Avenue and west of a stormwater pond that will be constructed as part of the project. Phase 2 will also include the construction of a future park or green space, which will be privately owned.

There is no set timetable for the phases. Each phase would be approved before it begins, however. The PUD allows flexibility in this process.

And many other options still exist for this wide-scope project.

Project details note that the Minnesota Energy parking lot could be acquired, though no such deal has been finalized. The project could also include connecting Midway Drive to Minnesota Avenue, which has been discussed but not finalized.

Additionally, no traffic study has been conducted as of yet, which Bemidji Engineer Sam Anderson recommends for this project.

"A traffic impact study allows review of items such as site egress and ingress, trip generation (number of vehicles per day), impacts of neighboring intersections, potential impacts to pedestrian facilities and assistance in phasing of future public and private infrastructure to meet the needs of the proposed site development," he wrote in a memo to the board.

Finally, Anderson recommends revisiting plans for a paved trail that travels through the corridor.

"The current concept displays relocating the current paved trail that travels through the rail corridor and relocates it to an eventual on-road trail along Minnesota Avenue NW and Second Street NW before intersecting back with the existing paved trail, leaving the rail corridor," he wrote. "My recommendation would be to have this proposed relocation revisited to provide an off-road trail location that works within the development to function closer to how it sits currently. The trail accommodates both motorized and non-motorized activities currently."

The board will next meet at 5:30 p.m. on Monday, June 9, at City Hall. Additionally, the board will reconvene as the Bemidji City Council for a regular meeting at 6 p.m. on Monday, May 19, at City Hall. All meetings can be viewed at ci.bemidji.mn.us.

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Residents provide input on incorporation during Northern Township event

TJ Rhodes — Fri, 09 May 2025 18:09:52 GMT

BEMIDJI — On Wednesday, Northern Township hosted its second town hall in the last month and a crowd of roughly 300 filled the Beltrami County 4-H building with curiosity about the proposed wastewater treatment facility, the incorporation process and neighboring Bemidji's involvement.

Northern Township Attorney Mike Couri and Administrator Chris Lahn presented before welcoming attendees to a microphone for a public comment period.

Here, attendees were encouraged to share comments, ask questions and express support or opposition without concern for a time limit.

One notable voice was Bemidji Mayor Jorge Prince. Prince stressed that he spoke as a citizen and not for the Bemidji City Council.

"When I walked in here, I saw a lot of faces I knew," he said. "Why? Because we send our kids to the same schools. We cheer at the same football games. We shop at the same stores. We're neighbors. We were neighbors before this; whatever the outcome is, we will be neighbors after."

He asked the Northern Township Board to rescind its bid of incorporation. In turn, the city would rescind its bid to annex, allowing the two sides to reenter wastewater negotiations.

"The reason I'm asking you (to reconsider) is that none of us can predict what the outcome of a court case will be," Prince continued. "The choices that get made at the council and the town board won't just change what's going to happen in our community for a week, or a month, or a year, we're talking about changing our community for generations. If that's not worth a pause to take a little extra time to see whether or not we can figure this thing out, then I don't know what is. I think our community deserves that and I think they expect that from us.

"I really hope we get a chance to talk again before we end up at court and allow one person, one judge, to decide the future for all of us."

Prince's comment is a microcosm of the entire situation.

The topic sparked when Ruttger's Birchmont Lodge learned that its septic system was failing in 2021. Ruttger's reached out to Bemidji, asking to connect to existing infrastructure. Ruttger's, in Northern Township, is the reason both Bemidji and the township initially entered negotiations in 2021.

Bemidji and Northern Township failed to come to an agreement that would have connected some Northern Township homes in 2023. Northern Township decided to use secured federal grants to construct a new wastewater facility.

Then, on April 14, 2025, Northern Township issued a notice of intent to incorporate to become a city. This would establish boundaries and prevent further annexation to ensure the wastewater plant can be paid in part by a set taxpayer base.

Bemidji responded with a notice of intent to annex on April 21, 2025. This would annex two portions of the township that need wastewater services along Lake Bemidji, including Ruttger's. The city's petition, if successful, could interrupt or cancel the new wastewater facility and prevent Northern Township from incorporating.

Bemidji hoped that Northern Township would reenter negotiations. However, it seems that Northern Township will not shift course, meaning both sides will publish a petition with the state 30 days after it was issued, resulting in a combined trial with one ruling.

The Minnesota Office of Administrative Hearings adjusts boundaries in cases of annexation, detachment or consolidation. The boundary adjustment law is in Chapter 414 of the Minnesota statutes. Once Northern Township files its petition, the state will have 30 days to assign a judge. A ruling will come within one year. An appeal could follow, though standards are high and unlikely to yield a different result, according to Couri.

Challenges to incorporation are uncommon, making this case unique. The last township to incorporate was Empire in 2023. Empire actually gathered support from neighboring cities.

Town hall

All of the moving pieces made the additional town hall necessary. Residents used the time to share questions and opinions on incorporation, annexation, the proposed wastewater facility and negotiations with Bemidji.

Why not reenter negotiations with Bemidji?

The township believes the city will not negotiate without annexation.

"I just want to take a quick second here to respond to the mayor," Northern Township board member Michael Kelly began. "I just want everyone in here to know that this town board (has) recently — November (and) January — tried to set up additional meetings with the city ... In those recent meetings with them, (we) were told there's no policy change; no extension of services without some form of annexation. And so nothing changed."

"We'd be better off incorporating now, while we still have the federal grant and can install sewer service at a cost cheaper than we believe the city can," Couri said at a different time during the meeting.

What happened in closed or impromptu meetings can not be verified. However, the council passed a resolution to issue an intent to annex. The resolution states that Bemidji would rescind its petition if Northern Township did the same. If this happened, negotiations would ensue for municipal boundary adjustments, "including but not limited to an orderly annexation agreement."

Will residents have a voice or a vote in the process?

Sort of. Residents will not vote on incorporation or the proposed wastewater facility. However, if incorporated, the township board would be absolved and residents would vote to form a Northern City Council. A council would consist of four councilors and one mayor.

This means no annual meetings and a truth and taxation hearing every December. Job functions and personnel would not change. A future council could divide Northern into wards, but the first council would consist of at-large councilors.

Additionally, a trial will feature a public comment. Northern Township plans to provide details for this town hall when they become available.

Would taxes increase following incorporation?

Couri and the board believe the tax levy will fluctuate as normal, but will not be increased. He stated that incorporation does not require tax hikes, but additional city services could raise taxes.

"There is nothing in the statute that says when you become a city, you have to raise your taxes," Couri explained. "It's the city council that you elect that decides, 'Are we going to provide more services? Are we going to raise your taxes to do it?' It's entirely dependent on the people you elect."

Beltrami County property taxes could increase county-wide, due to economic pressure from both the federal and state governments, however. If the county does raise the tax levy, this would impact the entire county, not just Northern Township.

What will the assessment fee for the wastewater project cost?

Assessments are only for the proposed wastewater treatment project and will only be assessed to the residents who are in the project area. The assessment fee does not correlate with incorporation.

The total assessment is estimated at $5 million. This will cost $165 per equivalent benefited linear foot (EBF). The average township property clocks in at 85 EBF, meaning the average property-applicable resident will be assessed $14,025, or a $55 monthly fee for 15-20 years.

What will the incorporation process cost?

Couri estimates the incorporation process will take around eight or nine months and will cost around $200,000 to $300,000. This includes legal fees, among other costs. Couri stated it will cost more because it is being contested. Northern Township must pay this, regardless of the outcome.

Couri stated that taxes are not expected to increase due to these costs.

He also believes that if the township successfully incorporates, it will secure Local Government Aid, something not available for townships. This is estimated to be a six-figure number, which would help pay the incorporation cost.

What will happen to fire services if Northern incorporates?

“The township has a contract with Rural Fire Service, along with a number of other communities that are part of that,” said Couri. “(Northern has) a contract with the city of Bemidji Fire Service, that will not change. That contract will stay in place. The same response that you have now, you'll have then.”

This also applies to contracted sheriff services provided by Beltrami County.

Are local townships affected by this?

No, but that could change. If Northern becomes a city, local townships that share a border could be annexed in the future. Couri mentioned that this is extremely rare.

Would Northern Township addresses change if incorporated?

Physical addresses would not change. Township homes addressed to Bemidji would change to Northern. Future mail addressed to Bemidji would not be lost. Couri believes that over time, these discrepancies would dissipate.

Is the wastewater project a requirement to incorporate?

No. Couri does feel that incorporation solidifies the tax base, which is expected to bear some of the cost.

What is the estimate to connect to the Bemidji facility, independent of Northern Township?

Northern Township can not estimate what it would cost for residents to connect to Bemidji infrastructure without reentering negotiations.

Would it make more sense to connect to the Bemidji wastewater plant?

"Bemidji already has a city treatment plant. ... It seems to me that it makes more sense and is more efficient to utilize that plant," said a Northern Township resident, who asked the board to reenter negotiations.

The Northern Township perspective is that Bemidji would not negotiate without annexation and that constructing a new facility is both cheaper and easier. Again, it is impossible to compare unless both sides work together.

Is it possible to reclaim previously annexed Northern Township land?

Couri stated that Northern Township land annexed by Bemidji, "is the city of Bemidji, and it's going to stay that way."

Who does not support incorporation?

During the May 5 Bemidji City Council meeting, two township residents spoke in opposition to incorporation. Their main concern was an increase in taxes. The two also believed that connecting to the Bemidji wastewater facility is more practical.

Bemidji mentioned some residents have come to the city to share similar sentiments. Northern Township mentioned dissent as well, stating it is a small minority.

Who supports incorporation?

Incorporation is supported by Minnesota House 2A Rep. Bidal Duran, R-Bemidji, who is helping the township secure more grant funding, according to Lahn.

It is also supported by Beltrami County GOP Chair Doug Henry. Henry spoke during the town hall right after a speaker who received negative crowd feedback.

“This meeting is deteriorating and this has gone on long enough. We need to make a decision ... I have one other comment: why is the city of Bemidji so anxious not to have us incorporate? Well, that's pretty obvious,” Henry implied while drawing verbal support from the crowd.

Northern Township Board Chair Jess Frenzel ended the event by asking for participation. He first asked for folks who support annexation to raise their hand — only a handful of attendees did so. Frenzel then asked folks who support incorporation to raise their hand — a majority of folks raised their hand.

A Lakeland PBS poll on Facebook did the same thing, and saw split support from 152 votes.

Both of these informal surveys only represent a sample size and are not representative of the entire township.

To stay updated with potential future town halls, visit northerntownship.com. Additionally, folks can ask questions or share feedback at info@northerntownship.com or (218) 751-4989. Administrator Chris Lahn can be contacted directly at (218) 444-1857.

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