2025.04.01 Council Meeting Packet
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
Posted: March 28, 2025
City Council Meeting Schedule
Tuesday, April 1, 2025
Time Meeting Location
6:30 p.m.
City council work session to discuss:
1. Charitable gambling proceeds.
2. City donations.
3. Crystal Frolics.
4. Constituent issues update.
5. New business.
6. Announcements.
Council chambers/Zoom
7 p.m. City council meeting Council chambers/Zoom
Immediately
following the city
council meeting
Economic Development Authority (EDA) meeting Council chambers/Zoom
Immediately
following the EDA
meeting
Continuation of city council work session, if necessary
Council chambers/Zoom
The public may attend the meetings via Zoom by connecting through one of the methods identified below.
Topics: Crystal City Council work session, city council meeting, EDA meeting, continuation of city council work
session, if necessary.
Time: April 1, 2025, 6:30 p.m., Central Time (US and Canada)
Join Zoom meeting: https://us02web.zoom.us/j/88252801045?pwd=wfFdJMTPHbaztoZayChPWtSAuKc8s4.1
Meeting ID: 882 5280 1045 | Passcode: 4141
Dial by your location: 1-312-626-6799 US (Chicago)
Find your local number: https://us02web.zoom.us/u/kbLAEWhrVJ
Auxiliary aids are available upon request to individuals with disabilities by calling the city clerk at
(763) 531-1145 at least 96 hours in advance. TTY users may call Minnesota Relay at 711 or 1-800-627-3529.
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
Posted: March 28, 2025
City Council Work Session Agenda
Tuesday, April 1, 2025
6:30 p.m.
Council Chambers/Zoom
Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City Charter,
the work session of the Crystal City Council was held on Tuesday, April 1, 2025, at ______ p.m. in
the council chambers at city hall, 4141 Douglas Dr. N., Crystal, MN and via Zoom. If the agenda
items are not completed in time for the city council meeting at 7 p.m., the work session will be
continued and resumed immediately following the Economic Development Authority meeting. The
public may attend the meeting via Zoom by connecting to it through one of the methods identified
on the City Council Meeting Schedule for Tuesday, April 1, 2025.
I. Attendance
Council members Staff
____ Cummings ____ Bell
____ Deshler ____ Tierney
____ Eidbo ____ Therres
____ Kamish ____ Elholm
____ Kiser ____ Larson
____ Onesirosan ____ Revering
____ Budziszewski ____ Hubbard
____ Struve
____ Sutter
____ Serres
II. Agenda
The purpose of the work session is to discuss the following agenda items:
1. Charitable gambling proceeds.
2. City donations.
3. Crystal Frolics.*
4. Constituent issues update.*
5. New business.*
6. Announcements.*
III. Adjournment
The work session adjourned at ______ p.m.
* Denotes no documentation included in the packet.
Auxiliary aids are available upon request to individuals with disabilities by calling the city clerk at
(763) 531-1145 at least 96 hours in advance. TTY users may call Minnesota Relay at 711 or 1-800-627-3529.
Memorandum
DATE: March 20, 2025
TO: Mayor and City Council
FROM: Adam R. Bell, City Manager
SUBJECT: Charitable Gambling Contributions
BACKGROUND
The purpose of this work session discussion is to have an overview of how charitable gambling
contributions work and how the city expends and can expend the funds. To explain simply,
charitable gambling organizations are required under law to contribute 10% of their net profits
to the city. Under city code, they are also required to expend a minimum of 15% of their funds
in the trade area of the city. As an example, the West Metro Firefighters Relief Association must
contribute 10% of its net profits to the City of Crystal, but they must also expend 15% overall
between Crystal and New Hope.
Because gambling revenue varies from year to year and each organization may have other
factors that impact the net proceeds amount, the contributions are not a regular stable
amount. Generously, the gambling organizations also regularly make donations to the city for
various activities, events, and causes beyond the contribution amounts.
Under state law, gambling organizations are limited in how they can expend the proceeds. In
turn, cities are also limited in how they can spend the funds. See the attached Lawful Purpose
Expenditure Summary (LPES).
An organization can donate as much as it wants to a city under Section 10 of the LPES, but
ultimately, the city has to use those funds for a lawful purpose. Cities are limited to Sections 1-
7, 10-15, and 19 of the LPES. (*NB - supporting food shelves is an allowed expenditure for
gambling funds).
Historically, there has been much confusion on the part of the gambling organizations as to
how the contributions work in conjunction with donations.
When a gambling organization pays its contribution, it cannot direct how those funds are used
by the city. As noted, the city is limited by the state law on which lawful purpose expenditures
the funds can be spent. On the other hand, donations can be restricted to a specific purpose.
The city must also adopt a resolution accepting donations and agreeing to any specified
purpose. If the donations are gambling funds, the LPES applies, but the general public purpose
rules would apply if the funds are not gambling proceeds. For many years the contributions
have been earmarked for specific things, such as Frolics and the Airport Open House.
Fortunately, the city has been aligned and supported those events, but it has created an
expectation that the majority of all the gambling proceeds are functioning as simply pass-
through dollars for Frolics. In 2023, I spoke to the VFW gambling manager about the
contributions, but I am not aware of any recent conversations with the WMFRA. Neither
organization has appeared to understand how the process is supposed to work and have been
sensitive to critical feedback. This is a result of the city allowing it to develop this way.
City Code References
1130.09. Distribution of proceeds. Subd. 1. City fund. Each organization lawfully
permitted to conduct gambling within the city shall contribute to a fund
administered and regulated by the city, without cost to such fund, for distribution
by the city for purposes authorized under Minnesota Statutes, section 349.213,
subdivision 1, an amount equal to ten percent of the organization’s net profits
derived from lawful gambling at premises within the city. For purposes of this
subsection the term “net profits” means profits less amounts expended for
allowable expenses; the terms “profits” and “allowable expenses” have the
meanings given them by Minnesota Statutes, chapter 349 and rules and
regulations promulgated thereunder. Payments to the fund shall be made
annually on or before March 1 for the prior calendar year and shall be submitted
together with verifiable supporting documentation.
Subd. 2. Trade area. Each organization conducting lawful gambling within the city
must expend 15 percent of its lawful purpose expenditures on lawful purposes
conducted or located within the trade area of the city. For the purposes of this
subsection, the term “trade area” means the area within the boundaries of the
city and within the boundaries of the cities of New Hope, Robbinsdale, Golden
Valley, Brooklyn Center, and Brooklyn Park; provided that a contribution to
Independent School District No. 281 is deemed to have been made in the trade
area of the city. This subdivision applies only to lawful purpose expenditures of
gross profits derived from lawful gambling conducted at premises within the city.
On or before each March 1, each organization must file with the city the following
reports: (a) A report listing all lawful purpose expenditures in the prior calendar
year, the name of the entity to whom each check was written, and the city location
of the recipient; and (b) A report prepared by an independent certified public
accountant documenting compliance with this subdivision. Subd. 3. Election. Each
organization conducting lawful gambling within the City may apply the ten percent
net profits contribution requirement of subdivision 1 of this subsection against the
15 percent lawful purpose expenditures requirement of subdivision 2 of this
subsection. Such election shall be clearly disclosed in the report required by
subdivision 2 of this subsection.
Additional financial details will be provided at the work session. It may be helpful for the council
to adopt a new policy that specifically states what events, activities, or other lawful purposes
for which charitable gambling contributions may be expended. This would help provide the
council and gambling organizations with greater clarity and perhaps better align future
priorities.
RECOMMENDATION
The council should decide if it would like to take any action on how the charitable gambling
funds are used by the city. If there are any changes or affirmative actions that are desired, the
council should direct staff to propose a resolution or public expenditure policy amendment for
its consideration and include any applicable amount and/or intended recipients.
ATTACHMENT
• Lawful Purpose Expenditure Summary.
• 2023 Letter from City Attorney regarding charitable gambling.
Offices in
Minneapolis
Saint Paul
St. Cloud
150 South Fifth Street
Suite 700
Minneapolis, MN 55402
(612) 337-9300 telephone
(612) 337-9310 fax
www.kennedy-graven.com
Affirmative Action, Equal Opportunity Employer
CR205-30-863005.v2
TROY J. GILCHRIST
Attorney at Law
Direct Dial (612) 337-9214
Email: tgilchrist@kennedy-graven.com
Also: St. Cloud Office
501 W. Germain Street, Suite 304
St. Cloud, MN 56301
(320) 240-8200
March 21, 2023
Adam Bell, City Manager VIA EMAIL ONLY
City of Crystal
Re: Gambling Proceeds Provided by the Firefighters’ Relief Association
Dear Adam:
I was asked to provide an opinion on how the gambling proceeds provided by the Firefighters’
Relief Association are to be treated for the purposes of the distribution of proceeds requirements
in Crystal city code, subsection 1130.09. The code section requires each organization permitted
to conducting gambling within the city to:
contribute to a fund administered and regulated by the city, without cost to such fund, for
distribution by the city for purposes authorized under Minnesota Statutes, section
349.213., subdivision 1, an amount equal to ten percent of the organization’s net profits
derived from lawful gambling at the premises within the city.
The code also requires each organization operating in the city to “expend 15 percent of its lawful
purpose expenditures on lawful purposes conducted or located within the trade area of the city.”
The trade area essentially includes the surrounding cities and a school district. Both of these
requirements imposed by the city are authorized by Minnesota Statutes, section 349.213.
I understand one of the questions is whether contributions of gambling proceeds by the Relief
Association to the West Metro Fire-Rescue District (“Fire District”) count toward the required
10% contribution to the city fund. The thought being that since the Fire District was established
by a joint powers agreement entered into between the cities of Crystal and New Hope, the
contribution should be considered as being made to the city. However, it is clear that only
contributions made directly to the city to be placed in the city’s fund established for this purpose
actually satisfies the 10% contribution requirement.
Under Minnesota Statutes, section 349.213, subdivision 1(f)(2), the 10% contribution must be
placed in “a fund administered and regulated by the responsible local unit of government without
Adam Bell
March 21, 2023
Page 2 of 2
CR205-30-863005.v2
cost to such fund.” The city is the responsible local unit of government as it is the entity that
imposed the 10% contribution requirement. Only a contribution made directly to the city and
placed in the fund can be counted toward the 10%. While the city participated in creating the
Fire District, the Fire District exists as a separate legal entity and is not the “city” for the
purposes of the 10% requirement. Gambling proceeds placed in the city’s fund can only be used
for the purposes set out in the statute, which includes, but is not limited to, fire services.
I understand another question is whether a contribution of gambling proceeds directly to the Fire
District can count toward satisfying the 15% trade area requirement. The Fire District is located
within the defined trade area, so the answer is yes. However, the 10% contribution requirement
to the city must still be satisfied. The city code allows the contributions made to satisfy the 10%
requirement to count towards the 15% requirement, meaning once the 10% requirement is
satisfied an organization can elect to only contribute an additional 5% in the trade area to reach
the total 15% trade area requirement.
Finally, I understand there is some question about whether the Relief Association can earmark
the funds it gives to the City for the Fire District or for another specific purposes. The answer is
clearly no with respect to the funds provided to satisfy the 10% requirement. The City places the
gambling proceeds in its fund and then decides how to distribute them for the purposes
authorized by the statute. As to other contributions of gambling proceeds, I am not seeing any
authority for the Relief Association to limit use of the funds for a particular purpose.
Lawful gambling organizations are limited to contributing their gambling proceeds only for a
“lawful purpose.” The definition of that term includes “a contribution to the United States, this
state or any of its political subdivisions, or any agency or instrumentality thereof other than a
direct contribution to a law enforcement or prosecutorial agency.” Minn. Stat. § 349.12, subd.
25(a)(10). When an organization contributes to a local government, it fills out and the city signs
form LG555 that simply indicates the funds were provided to a unit of government without
specifying a particular use (other than acknowledging it was not for one of the expressly
prohibited uses). Once the city receives the funds, it is then limited to using the funds in the
same manner as any other city funds (i.e., for an authorized public purpose) without any
particular restrictions. The difference is, of course, a gambling organization is not required to
provide the city a contribution beyond the required 10% and so it is up to the gambling
organization to choose whether to contribute additional funds to the city.
Feel free to let me know if there are any other questions.
Sincerely,
Troy J. Gilchrist
Memorandum
DATE: March 20, 2025
TO: Mayor and City Council
FROM: Adam R. Bell, City Manager
SUBJECT: Charitable Donations
BACKGROUND
The City Council has voiced interest in providing donations to local charities, such as those that
address food insecurity. This practice was done several years ago but was ended as part of an
effort to reduce budgetary costs. Historically, the funds used to make the donations were from
charitable gambling proceeds the city received when a surplus occurred.
In Minnesota, cities are generally prohibited from donating public funds to private individuals,
organizations, or charities unless there is specific statutory or charter authority permitting such
expenditures. This principle ensures that public funds are used for public purposes, as required
by law.
Authorized Expenditures:
While direct donations to charities are typically restricted, Minnesota law does allow cities to
allocate funds for certain purposes that may involve collaboration with nonprofit organizations.
Examples include:
• Artistic Organizations: Cities may appropriate money to support artistic endeavors.
• Historical Societies: Cities can provide annual appropriations to county historical
societies affiliated with the Minnesota Historical Society.
• Senior and Youth Centers: Funds may be allocated to support facilities, programs, and
services of public or private, not-for-profit senior citizen or youth centers.
• Public Recreation Programs: Cities are permitted to spend funds on public recreation
programs and facilities, which can be conducted independently or in partnership with
nonprofit organizations.
• Contracting for Services:
o Instead of making outright donations, cities can enter into contractual
agreements with nonprofit organizations to provide specific services that benefit
the public. In such cases, it's advisable to have a written agreement detailing the
services to be rendered in exchange for payment.
• Acceptance of Donations:
o Cities are permitted to accept donations from individuals or organizations,
provided these contributions are not intended for religious or political purposes.
Acceptance requires a two-thirds majority vote by the city council, along with a
resolution acknowledging both the donation and any terms set by the donor.
• Fundraising Activities:
o Generally, cities and their departments do not have the authority to conduct
fundraising or solicit donations. However, exceptions exist, such as permitting
firefighters to solicit contributions for charitable organizations while off-duty.
Cities must adhere to statutory guidelines when considering donations to charitable
organizations. Direct donations are typically prohibited unless explicitly authorized by law.
However, the city can support community initiatives by funding specific programs or
contracting services that serve a public purpose.
Crystal Charter Authority for Expenditures
The City Charter provides:
Section 12.10. Authority for Expenditures. The council may establish a public
expenditure policy (“Policy”) to identify certain types of expenditures as being for
a public purpose and within the city’s authority to expend city funds on. The Policy
shall not limit the authority of the city to make expenditures otherwise authorized
by law. If adopted, the council shall review the Policy periodically and update it as
needed. In establishing, reviewing, and approving the Policy, the council shall
consider whether the expenditures to be authorized by the Policy: 1) benefits the
community as a whole; 2) are directly related to governmental functions; and 3)
primarily benefits the public interest, not a private interest. In establishing,
reviewing, and approving the Policy, the council shall consider the opinion of the
city attorney and statewide sources of authority, which may include judicial
determinations, Minnesota Attorney General opinions, and findings of the Office
of the State Auditor.
Expenditures related to any of the following activities shall be deemed authorized
if the Policy expressly provides authorization: international, cultural, and
economic development programs; community events, festivals, and celebrations;
miscellaneous employee benefits; employee recognition; and funding for
conference attendance. The council may also provide specific authorization
regarding any other expenditure. [emphasis added] (Added, Ordinance No. 2021-
04, November 2, 2021)
As stated, Section 12.10 of the City Charter outlines the City Council's authority regarding public
expenditures. This section allows the Council to establish a public expenditure policy to identify
certain types of expenditures as serving a public purpose and thus falling within the city's
authority to fund. The policy should consider whether the expenditures:
1. Benefit the community as a whole
2. Are directly related to governmental functions
3. Primarily benefit the public interest, not a private interest
Additionally, the Council is advised to consult the city attorney and consider statewide
authorities, including judicial determinations, Minnesota Attorney General opinions, and
findings of the Office of the State Auditor, when establishing or reviewing the policy. Staff have
not had a specific discussion with the city attorney yet regarding making a donation to a charity.
The charter section and the current public purpose expenditure policy further state that
expenditures related to specific activities are deemed authorized if expressly provided for in the
policy. These activities include:
• International, cultural, and economic development programs
• Community events, festivals, and celebrations
• Miscellaneous employee benefits
• Employee wellness programs
• Employee recognition programs
• Public relations
• City marketing
• City publications
• City volunteer recognition
• City council and staff training and development
• Memberships in professional organizations
• Payment of dues and subscriptions
• Food and beverages for meetings
Importantly, the charter section concludes with the provision: "The council may also provide
specific authorization regarding any other expenditure." This clause suggests that the Council
has the discretion to authorize expenditures beyond those explicitly listed, provided they align
with the criteria for serving a public purpose.
Application to Donations Addressing Food Insecurity:
Given this framework, the City Council could potentially authorize an expenditure to a nonprofit
organization addressing food insecurity if it determines that such funding:
• Benefits the community as a whole
• Is directly related to governmental functions
• Primarily benefits the public interest, not a private interest
To proceed, the council should:
1. Develop a separate policy or amend the public expenditure policy to explicitly include
support for initiatives addressing food insecurity; and
2. Consult with the city attorney to ensure the proposal complies with state laws and
regulations.
RECOMMENDATION
The council should decide if it would like to provide any donations to local charities. If so, they
should direct staff to propose a resolution or public expenditure policy amendment for its
consideration and include the amount and recipients.
Page 1 of 2
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
Posted: March 28, 2025
City Council Meeting Agenda
Tuesday, April 1, 2025
7 p.m.
Council Chambers/Zoom Meeting
The city manager’s comments are bolded.
1. Call to Order, Roll Call and Pledge of Allegiance
2. Approval of Agenda
The council will consider approval of the agenda.
3. Consent Agenda
The council will consider the following items, which are routine and non-controversial in nature,
in a single motion:
3.1 Approval of the minutes from the following meetings:
a. The city council work session on March 13, 2025.
b. The city council work session on March 18, 2025.
c. The city council meeting on March 18, 2025.
3.2 Approval of disbursements over $25,000 submitted by the finance department.
3.3 Approval of the list of license applications submitted by the city clerk.
4. Open Forum
The city council appreciates hearing from citizens about items of concern and desires to set aside
time during each meeting for open forum. To provide ample opportunity for all, speaking time is
limited to three minutes and topic discussion is limited to ten minutes. The mayor may, as
presiding officer, extend the total time allowed for a topic. By rule, no action may be taken on any
item brought before the council during open forum. The council may place items discussed during
open forum onto subsequent council meeting agendas.
5. Regular Agenda
5.1 The council will consider the second reading of ordinances related to amending the liquor
and tobacco licensing regulations and resolutions approving summary language for
publication:
a. Ordinance No. 2025-03: An Ordinance Amending Chapter XII of the Crystal City Code
Pertaining to the Maximum Number of Off-Sale Licenses, Training Requirements and
Presumptive Penalties.
b. Ordinance No. 2025-04: An Ordinance Amending Chapter XI, Section 1105, of the Crystal
City Code Pertaining to Tobacco Sampling, the Maximum Number of Tobacco Licenses
and Presumptive Penalties.
c. Resolution Approving Summary Language for Publication of Ordinance No. 2025-03.
d. Resolution Approving Summary Language for Publication of Ordinance No. 2025-04.
Page 2 of 2
At the March 18 meeting, the council approved the first reading of the proposed ordinance
amendments following the discussion of the issues at the Feb. 4 work session about liquor and
tobacco licensing regulations. These proposed amendments establish a cap on the number of
licenses, clarify training requirements, and specify the method for computing penalty timelines,
aiming to enhance regulatory clarity, ensure consistency in enforcement, and uphold public
safety standards. Recommend approval of the second reading of the ordinance amendments
and the resolutions authorizing summary publication language.
5.2 The council will consider a resolution establishing new penalties for liquor license and tobacco
license violations.
As part of the proposed ordinance amendments for liquor and tobacco licensing regulations, the
council is asked to amend the respective administrative penalties. These changes would align
the penalty structures for alcohol and tobacco violations. Recommend approval of the
resolution authorizing changes to the administrative penalties for liquor and tobacco license
violations.
6. Announcements
a. The city council will hold a work session on Thursday, April 10 at 6:30 p.m. in the upper
community room at city hall and via Zoom.
b. Due to construction occurring in the City Council Chambers, the next city council meeting is
Tuesday, April 15 at 7 p.m. in the upper community room at city hall and via Zoom.
c. Also due to the construction, the next Planning Commission meeting is Monday, April 14 at
7 p.m. in the upper community room at city hall and via Zoom.
d. City council meetings and work sessions are open to the public. Current and previous
meetings are available for viewing and listening at www.crystalmn.gov.
7. Adjournment
*Denotes no supporting information included in the packet.
Have a great weekend; stay healthy. See you at Tuesday’s meeting.
Crystal City Council work session minutes March 13, 2025
Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City Charter,
the work session of the Crystal City Council was held at 6:30 p.m. on March 13, 2025, in the upper
community room at city hall, 4141 Douglas Dr. N., Crystal, MN and via Zoom. Mayor Deshler called the
meeting to order.
I.Attendance
The city manager recorded the attendance for city council members and staff:
Council members present: Onesirosan, Budziszewski, Cummings, Deshler, Eidbo, Kamish and Kiser.
City staff present: City Manager A. Bell, City Attorney R. Tierney, Police Chief S. Revering, Public
Works Director/City Engineer J. Struve and Community Development Director J. Sutter.
Also present was Parker Zee from Woda Cooper, regarding the proposed development concept at
6000 56th Ave. N.
II.Agenda
The council and staff discussed the following agenda items:
1.Development concept for apartment building at 6000 56th Ave. N.
2.Littering, panhandling, and overnight parking.
III.Adjournment
The work session adjourned at 9:29 p.m.
Julie Deshler, Mayor
ATTEST:
Adam R. Bell, City Manager
3.1(a)
Crystal City Council work session minutes March 18, 2025
Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City Charter,
the work session of the Crystal City Council was held at 6:31 p.m. on March 18, 2025, in the council
chambers at city hall, 4141 Douglas Dr. N., Crystal, MN and via Zoom. Mayor Deshler called the
meeting to order.
I.Attendance
The city clerk recorded the attendance for city council members and staff:
Council members present: Budziszewski, Cummings, Deshler, Eidbo, Kamish, Kiser and Onesirosan.
City staff present: City Manager A. Bell, City Attorney R. Tierney, Assistant City Manager K. Therres,
Recreation Director J. Elholm, Police Chief S. Revering, West Metro Fire-Rescue District Fire Chief S.
Larson, Assistant Fire Chief J. Kunde, Public Works Director/City Engineer J. Struve, Community
Development Director J. Sutter and City Clerk C. Serres.
II.Agenda
The council and staff discussed the following agenda items:
1.West Metro-Fire Rescue District quarterly update.
2.Council liaison reports.
3.Constituent issues update.
At 6:50 p.m., Mayor Deshler recessed the work session and continued it until immediately after the
Economic Development Authority meeting.
Mayor Deshler reconvened the work session at 6:55 p.m. to continue discussion of the following
agenda item:
4.City manager update.
At 7:01 p.m., Mayor Deshler recessed the work session and continued it until immediately after the
council meeting.
Mayor Deshler reconvened the work session at 8:12 p.m. to continue discussion of the following
agenda items:
5.New business.
6.Announcements.
III.Adjournment
The work session adjourned at 8:24 p.m.
Julie Deshler, Mayor
ATTEST:
Christina Serres, City Clerk
3.1(b)
Crystal City Council meeting minutes March 18, 2025
Page 1 of 4
1.Call to Order
Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City Charter,
the meeting of the Crystal City Council was held on March 18, 2025, at 7:01 p.m. in the council
chambers at city hall, 4141 Douglas Dr. N. in Crystal, MN and via Zoom. Mayor Deshler called the
meeting to order.
Roll Call
Mayor Deshler asked the city clerk to call the roll for elected officials. Upon roll call, the following
attendance was recorded:
Council members present: Budziszewski, Cummings, Deshler, Eidbo, Kamish, Kiser and Onesirosan.
City staff present: City Manager A. Bell, City Attorney R. Tierney, Assistant City Manager K. Therres,
West Metro Fire-Rescue District Chief S. Larson, Assistant Fire Chief J. Kunde, Police Chief S. Revering,
Lieutenant P. Underthun, Public Works Director/City Engineer J. Struve, Community Development
Director J. Sutter, Recreation Director J. Elholm and City Clerk C. Serres.
Pledge of Allegiance
Mayor Deshler led the council and audience in the Pledge of Allegiance.
2.Approval of Agenda
The council considered approval of the agenda.
Moved by Council Member Budziszewski and seconded by Council Member Kamish to approve the
agenda.
Motion carried.
3.Consent Agenda
The council considered the following items, which are routine and non-controversial in nature, in a
single motion:
3.1 Approval of the minutes from the following meetings:
a.The city council work session on March 4, 2025.
b.The city council meeting on March 4, 2025.
3.2 Approval of disbursements over $25,000 submitted by the finance department.
3.3 Approval of the list of license applications submitted by the city clerk.
3.4 Adoption of Resolution No. 2025-30, accepting a donation.
3.5 Adoption of Resolution No. 2025-31, authorizing an application for a Hennepin County Tree
Canopy Grant.
3.6 Adoption of Resolution No. 2025-32, approving plans and specifications and advertisement for
bids related to the Twin Oaks Park project.
3.7 Adoption of Resolution No. 2025-33, awarding a contract to Bolton & Menk, Inc. for feasibility
study services related to the Joint Water Commission Douglas Drive Watermain Improvement
Project.
3.8 Adoption of Resolution No. 2025-34, to apply for a Department of Natural Resources Outdoor
Recreation Grant for a soccer field in North Lions Park.
3.9 Adoption of Resolution No. 2025-35, to apply for a Department of Natural Resources Outdoor
Recreation Grant for improvements in Woodland Park.
3.1(c)
Crystal City Council meeting minutes March 18, 2025
Page 2 of 4
Moved by Council Member Budziszewski and seconded by Council Member Kamish to approve the
consent agenda.
Motion carried.
4. Open Forum
The following person addressed the council:
• Jeff Dahl, 6319 Mason Ave. N.E., Otsego, on behalf of Ray Dahl, regarding donating historical
memorabilia to the city.
5. Public Hearing
5.1 Mayor Deshler announced the purpose of the public hearing:
To receive comment, and council consideration of an off-sale liquor license for Gurung Spirits,
LLC dba Liquor Barrel located at 2728 Douglas Dr. N.
City Clerk Chrissy Serres addressed the council. Applicant Nir Gurung also addressed the council.
Mayor Deshler opened the public hearing for testimony.
There being no one wishing to appear before the council to give testimony, Mayor Deshler
declared the public hearing closed.
A written comment was received from Jill Scholz in opposition to approving the liquor license.
Moved by Council Member Kamish and seconded by Council Member Kiser, to approve the off-
sale liquor license for Gurung Spirits, LLC dba Liquor Barrel located at 2728 Douglas Dr. N.
Voting aye: Budziszewski, Cummings, Deshler, Eidbo, Kamish, Kiser and Onesirosan.
Motion carried.
6. Regular Agenda
6.1 The council considered the second reading of an ordinance amending the requirement for
mandatory facility boarding for all animal bites, and a resolution approving summary language for
publication.
Police Chief Stephanie Revering addressed the council.
Moved by Council Member Eidbo and seconded by Council Member Cummings to adopt the
following ordinance:
ORDINANCE 2025 - 02
AN ORDINANCE TO AMEND CHAPTER IX PUBLIC SAFETY, SECTION 910
ANIMAL CONTROL
And further, that this is the second and final reading.
Voting aye: Budziszewski, Cummings, Deshler, Eidbo, Kamish, Kiser and Onesirosan.
Motion carried.
Moved by Council Member Eidbo and seconded by Council Member Cummings to adopt the
following resolution:
3.1(c)
Crystal City Council meeting minutes March 18, 2025
Page 3 of 4
RESOLUTION NO. 2025 – 36
RESOLUTION APPROVING SUMMARY LANGUAGE
FOR PUBLICATION OF ORDINANCE NO. 2025-02
Voting aye: Budziszewski, Cummings, Deshler, Eidbo, Kamish, Kiser and Onesirosan.
Motion carried, resolution declared adopted.
6.2 The council considered a resolution awarding the contract for the 2025 Mill and Overlay project.
Public Works Director/City Engineer Jesse Struve addressed the council.
Moved by Mayor Deshler and seconded by Council Member Budziszewski to adopt the following
resolution:
RESOLUTION NO. 2025 – 37
AWARD CONTRACT FOR 2025 MILL AND OVERLAY PROJECT
Voting aye: Budziszewski, Cummings, Deshler, Eidbo, Kamish, Kiser and Onesirosan.
Motion carried, resolution declared adopted.
6.3 The council considered the first reading of ordinances amending the requirements for liquor and
tobacco licensing regulations.
City Manager Adam R. Bell addressed the council.
Moved by Council Member Onesirosan and seconded by Council Member Budziszewski to adopt
the following ordinance:
ORDINANCE 2025 - 03
AN ORDINANCE AMENDING CHAPTER XII OF THE CRYSTAL CITY CODE
PERTAINING TO THE MAXIMUM NUMBER OF OFF-SALE LICENSES,
TRAINING REQUIREMENTS AND PRESUMPTIVE PENALTIES.
And further, that the second and final reading will be held on April 1, 2025.
Voting aye: Budziszewski, Cummings, Deshler, Eidbo, Kamish, Kiser and Onesirosan.
Motion carried.
Moved by Council Member Onesirosan and seconded by Council Member Budziszewski to adopt
the following ordinance:
ORDINANCE 2025 - 04
AN ORDINANCE AMENDING CHAPTER XI, SECTION 1105, OF THE CRYSTAL CITY CODE
PERTAINING TO TOBACCO SAMPLING, THE MAXIMUM NUMBER
OF TOBACCO LICENSES AND PRESUMPTIVE PENALTIES.
And further, that the second and final reading will be held on April 1, 2025.
Voting aye: Budziszewski, Cummings, Deshler, Eidbo, Kamish, Kiser and Onesirosan.
Motion carried.
3.1(c)
Crystal City Council meeting minutes March 18, 2025
Page 4 of 4
7. Announcements
The council and staff made announcements about upcoming events.
8. Adjournment
Moved by Council Member Budziszewski and seconded by Council Member Kiser to adjourn the
meeting.
Motion carried.
The meeting adjourned at 8:10 p.m.
___________________________________
Julie Deshler, Mayor
ATTEST:
_____________________________________
Christina Serres, City Clerk
3.1(c)
DATE: March 25, 2025
TO: Adam R. Bell, City Manager
City of Crystal City Council
FROM: Jean McGann, Contracted Finance Director
RE: Expenditures over $25,000
Payee Amount
GMH Asphalt Corporation 2024 Mill & Overlay $38,115.29
LOGIS Software & IT Services $207,198.40
Xcel Energy City Building Electricity & Street Lights $26,023.62
Municipal Builders Inc JWC Pump House Improvements (Pass-Through Cost )$80,825.95
MN PERA Employee & City Required Contributions for 3/14/25 Pay Date $75,561.26
IRS - EFTPS Federal & FICA Withholding Taxes for 3/14/25 Pay Date $73,940.32
$657,033.70
Description
Waste Management (HRG)New Hope, Brooklyn Center, & Crystal January & February
Recycling $155,368.86
3.2
Page 1 of 1
City of Crystal Council Meeting
April 1, 2025
Applications for City License
Rental (new)
3809 Adair Ave. N. – Richard Ayuk (Conditional)
5213 Jersey Ave. N. – CAG MN Funding II LLC (Conditional)
Rental (renewal)
4212 Brunswick Ave. N. – Crystal Holdings
5115 Edgewood Ave. N. – Mario Chauca (Conditional)
5141 Edgewood Ave. N. – Kingdom Results (Conditional)
4825 Georgia Ave. N. – James Carroll
2717 Hampshire Ave. N. – Blake Flettre
4529 Hampshire Ave. N. – Lawrence Johanns
4818 Hampshire Ave. N. – Reese Pfeiffer
5724 Hampshire Ave. N. – Jessica Souvannalath (Conditional)
2826 Idaho Ave. N. – Jeff Reiser
4518 Jersey Ave. N. – Invitation Homes
6048 Jersey Ave. N. - Invitation Homes
5401 Louisiana Ave. N. – HPA II Borrower 2021-1 LLC (Conditional)
4840 Nevada Ave. N. – Brett Hulett
3160 Welcome Ave. N. – Dominic Nzara
4408 Yates Ave. N. – Ryan Hardy
5724 45th Ave. N. – Yeah LLC (Conditional)
6600 46th Pl. N. – Reese Pfeiffer
5109 48th Ave. N. – Glenn Williams
6604 57th Ave. N. – David Pascoe (Conditional)
Tobacco
Gurung Spirits, LLC dba Liquor Barrel 2728 Douglas Dr. N., Crystal, MN 55422
Tree Trimmer
Jeff Hoheisel Professional Tree Services, 34214 Hwy. 27, Hillman, MN 56338
Midwest Tree Experts, 11670 Fountains Dr. #200, Maple Grove, MN 55369
3.3
Memorandum
DATE: March 19, 2025
TO: Mayor and City Council
FROM: Adam R. Bell, City Manager
SUBJECT: Consider the second reading of ordinances related to amending the liquor and
tobacco licensing regulations, and resolutions approving summary language for
publication.
BACKGROUND
The City Council approved the first readings of the proposed amendments to the Liquor and
Tobacco licensing regulations. The key amendments contained in the proposed ordinances
establish a cap on the number of licenses, clarify training requirements, and specify the method
for computing penalty timelines.
Summary of Amendments
1.Cap on Licenses:
o The liquor ordinance (Chapter XII, Section 1200.06) now sets a maximum of four
(4) off-sale liquor licenses.
o The tobacco ordinance (Chapter XI, Section 1105.19) limits the number of
tobacco licenses to ten (10). No new licenses will be issued beyond these caps.
o The respective caps will not affect current establishments that already possess a
license in good standing. Additionally, established businesses will be allowed to
sell the business and change ownership as long as the businesses remain
operating.
2.Training Requirements:
o Liquor licensees, managers, and employees serving alcohol must complete city-
approved training before licensure, prior to serving, and annually thereafter
(Section 1200.35).
o Tobacco violations may require educational seminars for individuals under 21
found purchasing or possessing tobacco products (Section 1105.13).
3.Standardization of Administrative Penalties:
o Both ordinances clarify that violations may result in fines, suspensions, or
revocation, and the City Council has discretion to modify penalties based on
mitigating or aggravating factors.
o The presumptive penalties for liquor and tobacco violations are now aligned
(Crystal City Code, Appendix IV – Item 5.2).
4.Clarification on Time Computation for Repeat Violations:
o For both liquor (Section 1200.35, Subd. 4) and tobacco (Section 1105.13, Subd.
6), the timeframe for determining repeat violations is standardized. A second
5.1
violation within 36 months is counted as a second offense, and subsequent
violations within 48 months escalate penalties accordingly.
5. Address “Loophole” on Tobacco Sampling:
o The tobacco ordinance (Chapter XI, Section 1105.11) ends the ability of new
tobacco license holders to provide samples for free or a nominal fee. It also
prohibits the smoking, including sampling, of any licensed products indoors at
any newly licensed establishment.
These amendments aim to enhance regulatory clarity, ensure consistency in enforcement, and
uphold public safety standards. The administrative penalties are proposed to be increased and
made the same for both types of licenses.
RECOMMENDATION
Recommend approval of the second reading and adoption of the ordinances amending the
requirements for liquor and tobacco licensing regulations and the resolutions approving
summary language for publication. Each item must be a separate action as follows:
a) Recommend approval of the second reading and adoption of An Ordinance Amending
Chapter XII of the Crystal City Code Pertaining to the Maximum Number of Off-Sale
Licenses, Training Requirements, and Presumptive Penalties.
b) Recommend approval of the Resolution Approving Summary Language for Publication of
Ordinance No. 2025-03
c) Recommend approval of the second reading and adoption of An Ordinance Amending
Chapter Xi, Section 1105 of the Crystal City Code Pertaining to Tobacco Sampling, the
Maximum Number of Tobacco Licenses, and Presumptive Penalties.
d) Recommend approval of the Resolution Approving Summary Language for Publication of
Ordinance No. 2025-04
ATTACHMENTS
• An Ordinance Amending Chapter XII of the Crystal City Code Pertaining to the Maximum
Number of Off-Sale Licenses, Training Requirements, and Presumptive Penalties.
• Resolution Approving Summary Language for Publication of Ordinance No. 2025-03
• An Ordinance Amending Chapter Xi, Section 1105 of the Crystal City Code Pertaining to
Tobacco Sampling, the Maximum Number of Tobacco Licenses, and Presumptive
Penalties.
• Resolution Approving Summary Language for Publication of Ordinance No. 2025-04
5.1
CR205\30\1011609.v2
CITY OF CRYSTAL
ORDINANCE NO. 2025-03
AN ORDINANCE AMENDING CHAPTER XII OF THE CRYSTAL CITY CODE
PERTAINING TO THE MAXIMUM NUMBER OF OFF-SALE LICENSES, TRAINING
REQUIREMENTS, AND PRESUMPTIVE PENALTIES.
The City of Crystal ordains:
ARTICLE I. Chapter XII, section 1200.06 is hereby established to read as follows:
1200.06. Cap on number of off-sale liquor licenses. The maximum number of off-sale
liquor licenses, as defined under section 1200.05, subdivision 1 (b), that the city may issue is
four (4). No new off-sale license will be issued in excess of this number.
ARTICLE II. Chapter XII, section 1200.35 is hereby amended to read as follows:
1200.35. Conditions of license; penalties.
Subd. 1. Conditions of license. The failure of a licensee to meet any one of the conditions of the
license specified below shall result in the application of penalties as provided in this subsection.
(a)Licensee Training: All licensees holding any on-sale or off-sale license issued under
this chapter, operating managers, and employees or agents employed by the licensee
that sell or serve alcohol, shall complete, to the city’s satisfaction, a city-approved or
provided liquor licensee training program. Both the city’s approval of the training and
the required training shall be completed:
(1)Prior to licensure or renewal for licensees and managers,
(2)Prior to serving or selling for any employee or agent, and
(3)Every year thereafter.
Within 90 days after employment, every person selling or serving liquor in an
establishment which has an on-sale license shall receive training regarding the selling
or serving of liquor to customers. The training shall be provided by an organization
approved by the city council. Proof of training shall be provided by the licensee.
(b)All licensees shall maintain documentation evidencing that the training required in
paragraph (a) above has been met and must produce such documentation as part of each
application for licensure or renewal and upon reasonable request made by a peace
officer, or other designated employee of the city. An applicant’s or licensee’s failure to
comply with this provision in its entirety is sufficient grounds for denial or nonrenewal
of a requested license.
5.1
2
(c) Every licensee is responsible for the conduct of the place of business and the conditions
of sobriety and order in it. The act of any employee on the licensed premises is deemed
the act of the licensee as well, and the licensee shall be liable for all penalties provided
by this Crystal city code and the law equally with the employee.
(d) Every licensee shall allow any peace officer, health officer, city employee, or any other
person designated by the city council to conduct compliance checks and to otherwise
enter, inspect, and search the premises of the licensee during business hours and after
business hours during the time when customers remain on the premises without a
warrant.
(e) No on-sale establishment shall display or sell liquor to the public during hours when
the sale of liquor is prohibited.
(f) Compliance with financial responsibility requirements of state law and of this Crystal
city code is a continuing condition of any license. Compliance with all laws, rules, and
regulations related to the retail sale of intoxicating liquors, including the provisions of
Minnesota Statutes, chapters 297F and 340A, Minnesota Rules, chapter 7515, and the
Crystal city code.
Subd. 2. Penalties.
(a) Misdemeanors. A person who violates this section is guilty of a misdemeanor unless
otherwise provided by law.
(b) Presumptive revocation. The city council may revoke a license, following, notice and
an opportunity to be heard, on the first violation for the following types of offenses:
(1) Commission of a felony by licensee or an employee of licensee related to the
licensed activity authorized by this chapter and Minnesota Statutes, chapter 340A.
(2) The sale of alcoholic beverages on the licensed premises while a license is under
suspension or revocation.
(c) Administrative civil penalties. If a licensee or an employee of a licensee is found to
have violated any of the provisions of state law or this section, the city council may
impose an administrative penalty, including a civil fine and/or suspension of the
license, in such amounts and for such periods as set out Crystal city code, appendix IV.
Subd. 3. Presumptions regarding administrative penalties. The administrative penalties described
in subdivision 2 of this subsection and set out in Crystal city code, appendix IV are the presumed
sanctions for the violations indicated. In the event of any license suspension imposed under this
section, the city council may select which days a suspension will be served. Notwithstanding any
of the provisions contained herein, a license may be revoked for any violation of this section when
in the judgment of the city council it is appropriate to do so. The city council may impose lesser
penalties under subdivision 2 of this subsection when in the judgment of the city council it is
appropriate to do so. Other mandatory requirements may be made of the establishment including,
5.1
3
but not limited to, meetings with the police department staff to present a plan of action to assure
any observed problems will not continue, mandatory education sessions with crime prevention
staff, or other actions that the city council deems appropriate. These penalties are presumed to be
appropriate for every case; however, the city council may deviate in an individual case where the
city council finds that specific mitigating or aggravating circumstances exist, making it more
appropriate to deviate. When deviating from these standards, the city council will provide written
findings that identify the facts that support the penalty selected. In addition to any presumptive
penalty, the city council may also impose reasonable license conditions in response to the facts
surrounding a specific case.
Subd. 4. Computation of time for violations under the presumptive penalties in Crystal city code
appendix IV. A second violation within thirty-six (36) months must be treated as a second
appearance, a third within forty-eight (48) months treated as a third appearance, and a fourth within
forty-eight (48) months treated as a fourth appearance for the purpose of determining the
presumptive penalty. Measurement of the time period must be as follows: The beginning date shall
be the earliest violation’s date of appearance before the city council, and the ending date shall be
the date of the occurrence giving rise to the new violation. In case of multiple new violations, the
ending date to be used shall be the date of the new violation first in time.
ARTICLE III. Incorporate. City staff is authorized and directed to update the table of contents
and to make such other changes as are necessary to incorporate the amendments adopted by this
Ordinance into the Crystal city code.
ARTICLE IV. Effective Date. This ordinance is effective thirty (30) days following its passage,
approval, and publication.
Adopted this 1st day of April 2025.
BY THE CITY COUNCIL
Julie Deshler, Mayor
ATTEST:
Christina Serres, City Clerk
Double underlined material is being added and stricken material is being deleted.
5.1
4
First Reading: March 18, 2025
Second Reading: __________, 2025
Council Adoption:_________, 2025
Publication:
Effective Date:
5.1
CR205\30\1012637.v1
CITY OF CRYSTAL
MINNESOTA
RESOLUTION NO. 2025-__
RESOLUTION APPROVING SUMMARY LANGUAGE
FOR PUBLICATION OF ORDINANCE NO. 2025-03
WHEREAS, the Crystal City Council adopted Ordinance No. 2025-03 “AN ORDINANCE
AMENDING CHAPTER XII OF THE CRYSTAL CITY CODE PERTAINING TO THE
MAXIMUM NUMBER OF OFF-SALE LICENSES, TRAINING REQUIREMENTS, AND
PRESUMPTIVE PENALTIES” (“Ordinance”) at its meeting held on April 1, 2025; and
WHEREAS, Section 3.12 of the Crystal City Charter and Subsection 110.13 of the Crystal
City Code indicate that ordinances approved by the City Council will be published in summary
form and that the City Council is to approve the form of the summary to ensure the summary
reflects the purpose and effect of the ordinance.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Crystal that the
following summary language is hereby approved for publication of the Ordinance:
CITY OF CRYSTAL
ORDINANCE #2025-03
AN ORDINANCE AMENDING CHAPTER XII OF THE CRYSTAL CITY CODE
PERTAINING TO THE MAXIMUM NUMBER OF OFF-SALE LICENSES, TRAINING
REQUIREMENTS, AND PRESUMPTIVE PENALTIES
SUMMARY OF ORDINANCE No. 2025-03
The maximum number of off-sale liquor licenses that will be issued in the City is
four (4), and no licenses in excess of that amount will be issued. The training
requirements for owners, operators and employees of all establishments licensed
under this chapter have been clarified. The regulations regarding presumptive
administrative penalties for violations related to liquor licenses have been amended.
Ordinance No. 2025-03 was approved by the city council on April 1, 2025. A printed copy of the
full text of the ordinance is available on the city’s website and may be obtained by contacting the
city clerk’s office.
BE IT FINALLY RESOLVED, that the city clerk is hereby authorized and directed to do
each of the following:
1. Publish the approved summary language once in the city’s official newspaper;
2. Place a copy of this Resolution, the full text of the Ordinance, and the affidavit of
5.1
2
CR205\30\1012637.v1
publication of the summary language in the city’s ordinance book;
3. When possible, make the full text of the Ordinance available for public inspection in the
office of the city clerk during the city’s regular business hours;
4. Incorporate the text of the Ordinance into the Crystal City Code; and
5. Post the updated Crystal City Code on the city’s website.
Adopted this 1st day of April 1 2025.
BY THE CITY COUNCIL
Julie Deshler, Mayor
ATTEST:
Christina Serres, City Clerk
5.1
CITY OF CRYSTAL
ORDINANCE NO. 2025-04
AN ORDINANCE AMENDING CHAPTER XI, SECTION 1105 OF THE CRYSTAL
CITY CODE PERTAINING TO TOBACCO SAMPLING, THE MAXIMUM NUMBER
OF TOBACCO LICENSES, AND PRESUMPTIVE PENALTIES.
The City of Crystal ordains:
ARTICLE I. Chapter XI, section 1105.11, is hereby amended as follows:
1105.11 Prohibited sales and use.
Subd. 1. Unlawful sale. It is unlawful to sell, offer for sale or deliver tobacco, tobacco-related
devices, electronic delivery devices, or nicotine or lobelia delivery devices to a person under the
age of 21 years.
Subd. 2. Use by persons under 21. It is unlawful for any person under the age of 21 years to
purchase, possess, or consume tobacco, tobacco-related devices, electronic delivery devices, or
nicotine or lobelia delivery devices.
Subd. 3. Vending machines. The sale of tobacco, tobacco-related devices, electronic delivery
devices, or nicotine or lobelia delivery devices by vending machines is prohibited.
Subd. 4. Individual packages. It is unlawful to offer for sale or to sell cigarettes packaged in units
smaller than a carton containing ten packages, or single packages of smokeless tobacco in open
displays that are accessible to the public without the intervention of a store employee.
Subd. 5. Sampling. Any establishment holding a license which was initially granted after April 1,
2025 is prohibited from any of the following:
(a) Samples prohibited. No person shall distribute samples of any licensed product free of
charge or at a nominal cost. The distribution of licensed products as a free donation is
prohibited.
(b) Smoking prohibited. Smoking, including smoking for the purpose of the sampling of
licensed products, is prohibited within the indoor area of any retail establishment
licensed under this chapter.
The provisions of this subdivision which allow for the continuation of the practice of limited
sampling to occur in establishments licensed in good standing as of April 1, 2025, shall only apply
to qualifying license holders as of that date which offered sampling and only so long as the
qualifying licensee retains and renews its business license at the same premises and operates in
compliance with all applicable laws and ordinances.
5.1
2
ARTICLE II. Chapter XI, section 1105.13 Administrative Civil Penalties, is hereby amended as
follows:
1105.13. Administrative civil penalties.
Subd. 1. Individuals. A person who sells, gives or otherwise furnishes a covered product to a
person under the age of 21 years is subject to an administrative penalty identified in Crystal city
code, appendix IV, after the individual has received notice, served personally or by mail, of the
alleged violation and been provided an opportunity for a hearing.
Subd. 2. Licensee. If a licensee or an employee of a licensee is found to have sold, given or
otherwise furnished a covered product to a person under the age of 21 years, or committed a
violation of Minnesota Statutes, chapter 297F, the city council shall impose administrative
penalties on the licensee as provided in Crystal city code, appendix IV. Prior to imposing an
administrative penalty, the city shall provide the licensee written notice of the alleged violation
and provide an opportunity for the licensee to be heard by the city council.
Subd. 3. Defense. It is an affirmative defense to a charge of selling, giving or otherwise furnishing
a covered product to a person under the age of 21 years in violation of this section that the licensee
or individual making the sale relied in good faith upon proof of age as described in Minnesota
Statutes, section 340A.503, subdivision 6.
Subd. 4. Education and training. In addition to or in lieu of any other penalty imposed under this
section, any person under the age of 21 years who purchases, possesses, or consumes a covered
product shall attend an educational seminar approved by the chief of police regarding the legal and
medical implications of using a covered product.
Subd. 5. Presumptions regarding administrative penalties. Though the administrative penalties
described in this subsection are presumed, in no event shall the amount of any fine or period of
suspension be less than the amounts and periods required in Minnesota Statutes, section 461.12,
subdivisions 2 and 3. These penalties are presumed to be appropriate for every case; however, the
city council may deviate in an individual case where the city council finds that there exist specific
mitigating or aggravating circumstances, making it more appropriate to deviate. When deviating
from these standards, the city council will provide written findings to identify the facts that support
the penalty selected. In addition to any presumptive penalty, the city council may also impose
reasonable license conditions in response to the facts surrounding a specific case.
Subd. 6. Computation of time for violations under the presumptive penalties in Crystal city code
appendix IV. A second violation within thirty-six (36) months must be treated as a second
appearance, a third within forty-eight (48) months treated as a third appearance, and a fourth within
forty-eight (48) months treated as a fourth appearance for the purpose of determining the
presumptive penalty. Measurement of the time period must be as follows: The beginning date shall
be the earliest violation’s date of appearance before the city council, and the ending date shall be
the date of the occurrence giving rise to the new violation. In case of multiple new violations, the
ending date to be used shall be the date of the new violation first in time.
5.1
3
ARTICLE III. Chapter XI, section 1105.19 is hereby inserted by adding the double underlined
material as follows:
1105.19 Maximum Number of Tobacco Licenses. The maximum number of tobacco licenses that
the city may issue is ten (10). No new license will be issued in excess of this number.
ARTICLE IV. Incorporate. City staff is authorized and directed to update the table of contents
and to make such other changes as are necessary to incorporate the amendments adopted by this
Ordinance into the Crystal city code.
ARTICLE V. Effective Date. This ordinance is effective thirty (30) days following its passage,
approval, and publication.
Adopted this 1st day of April 2025.
BY THE CITY COUNCIL
Julie Deshler, Mayor
ATTEST:
Christina Serres, City Clerk
Double underlined material is being added and stricken material is being deleted.
First Reading: March 18, 2025
Second Reading: __________, 2025
Council Adoption:_________, 2025
Publication:
Effective Date:
5.1
CR205\30\1012635.v1
CITY OF CRYSTAL
MINNESOTA
RESOLUTION NO. 2025-__
RESOLUTION APPROVING SUMMARY LANGUAGE
FOR PUBLICATION OF ORDINANCE NO. 2025-04
WHEREAS, the Crystal City Council adopted Ordinance No. 2025-04 “AN ORDINANCE
AMENDING CHAPTER XI, SECTION 1105 OF THE CRYSTAL CITY CODE PERTAINING
TO TOBACCO SAMPLING, THE MAXIMUM NUMBER OF TOBACCO LICENSES, AND
PRESUMPTIVE PENALTIES” (“Ordinance”) at its meeting held on April 1, 2025; and
WHEREAS, Section 3.12 of the Crystal City Charter and Subsection 110.13 of the Crystal
City Code indicate that ordinances approved by the City Council will be published in summary
form and that the City Council is to approve the form of the summary to ensure the summary
reflects the purpose and effect of the ordinance.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Crystal that the
following summary language is hereby approved for publication of the Ordinance:
CITY OF CRYSTAL
ORDINANCE #2025-04
AN ORDINANCE AMENDING CHAPTER XI, SECTION 1105 OF THE CRYSTAL
CITY CODE PERTAINING TO TOBACCO SAMPLING, THE MAXIMUM NUMBER
OF TOBACCO LICENSES, AND PRESUMPTIVE PENALTIES
SUMMARY OF ORDINANCE No. 2025-04
Sampling of tobacco products is prohibited in licensed establishments, except
licensed establishments that permitted sampling as of April 1, 2025. The maximum
number of tobacco licenses in the City will be ten (10), and no licenses in excess of
that amount will be issued. The regulations regarding presumptive administrative
penalties for violations related to a tobacco licenses have been amended.
Ordinance No. 2025-04 was approved by the city council on April 1, 2025. A printed copy of the
full text of the ordinance is available on the city’s website and may be obtained by contacting the
city clerk’s office.
BE IT FINALLY RESOLVED, that the city clerk is hereby authorized and directed to do
each of the following:
1. Publish the approved summary language once in the city’s official newspaper;
2. Place a copy of this Resolution, the full text of the Ordinance, and the affidavit of
5.1
2
CR205\30\1012635.v1
publication of the summary language in the city’s ordinance book;
3. When possible, make the full text of the Ordinance available for public inspection in the
office of the city clerk during the city’s regular business hours;
4. Incorporate the text of the Ordinance into the Crystal City Code; and
5. Post the updated Crystal City Code on the city’s website.
Adopted this 1st day of April 2025.
BY THE CITY COUNCIL
Julie Deshler, Mayor
ATTEST:
Christina Serres, City Clerk
5.1
Regular Agenda #5.1 and #5.2
Memorandum
DATE: March 19, 2025
TO: Mayor and City Council
FROM: Adam R. Bell, City Manager
SUBJECT: Consider a resolution establishing new penalties for liquor license and tobacco
license violations
BACKGROUND
At the April 1 meeting, the City Council considered the second readings and adoption of the
proposed Liquor and Tobacco licensing regulations ordinance amendments. As part of the
proposed ordinance amendments for liquor and tobacco licensing regulations, the council
desires to amend the respective administrative penalties and align the penalty structures for
alcohol and tobacco violations.
Summary of Amendments
1.Standardization of Administrative Penalties:
o The presumptive penalties for liquor and tobacco violations are now aligned (Crystal
City Code, Appendix IV).
o Both ordinances clarify that violations may result in fines, suspensions, or
revocation, and the City Council has discretion to modify penalties based on
mitigating or aggravating factors. If deviating from the prescribed standard penalty,
the council must provide written findings that identify the facts that support the
penalty selected.
2.Clarification on Time Computation for Repeat Violations:
o For both liquor (Section 1200.35, Subd. 4) and tobacco (Section 1105.13, Subd. 6),
the timeframe for determining repeat violations is standardized. A second violation
within 36 months is counted as a second offense, and subsequent violations within
48 months escalate penalties accordingly.
These amendments aim to enhance regulatory clarity, ensure consistency in enforcement, and
uphold public safety standards. The administrative penalties are proposed to be increased
and made the same for both types of licenses. Both 3-day and 5-day suspensions are offered.
RECOMMENDATION
Recommend approval of the resolution amending Crystal City Code Appendix IV
establishing penalties for liquor license and tobacco license violations.
ATTACHMENTS
•Resolution Amending Crystal City Code Appendix IV Establishing Penalties for Liquor and
Tobacco License Violations
5.2
Option A – 3 Day Suspension
CR205\30\1012133.v1
CITY OF CRYSTAL
MINNESOTA
RESOLUTION NO. 2025 -__
RESOLUTION AMENDING CRYSTAL CITY CODE APPENDIX IV
ESTABLISHING PENALTIES FOR LIQUOR LICENSE AND TOBACCO LICENSE VIOLATIONS
WHEREAS, the City Council has amended Chapter 1200 related to liquor licenses to establish a cap on the
number of off-sale liquor licenses, clarify the requirement for training, clarify how penalties will be determined,
and clarify how time will be computed when determining an appropriate penalty; and
WHEREAS, the City Council has also amended Chapter 1105 related to tobacco licenses to establish a cap on
the number of tobacco licenses, clarify how penalties will be determined, and clarify how time will be
computed when determining an appropriate penalty; and
WHEREAS, the City Council believes that the penalties for liquor license and tobacco license violation should
be the same; and
WHEREAS, the City Council wishes to update Appendix IV of the City Code to establish new penalties; and
WHEREAS, city staff have proposed the following amended penalties:
Type of Violation Appearance
1st 2nd within 36
months of 1st
3rd within 48
months of 1st
4th within
48 months of 1st
Liquor license
(Chapter 1200) $750 $1,000 fine
1-day suspension
$1,500 fine
3-day suspension
$2,000 fine
10-day suspension
Revocation
Tobacco license
(Chapter 1105) $300-750 fine
$1,000 fine
1-day suspension
$600 -1,500 fine
5-day 3-day
suspension
$1,000 - 2,000 fine
7-day 10-day
suspension
Revocation
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Crystal, approves the above
schedule for penalties for liquor licenses and tobacco licenses.
Adopted by the Crystal City Council this 1st day of April 2025.
____________________________________
Julie Deshler, Mayor
ATTEST:
________________________________
Christina Serres, City Clerk
5.2
Option B – 5 Day Suspension
CR205\30\1012133.v1
CITY OF CRYSTAL
MINNESOTA
RESOLUTION NO. 2025 -__
RESOLUTION AMENDING CRYSTAL CITY CODE APPENDIX IV
ESTABLISHING PENALTIES FOR LIQUOR LICENSE AND TOBACCO LICENSE VIOLATIONS
WHEREAS, the City Council has amended Chapter 1200 related to liquor licenses to establish a cap on the
number of off-sale liquor licenses, clarify the requirement for training, clarify how penalties will be determined,
and clarify how time will be computed when determining an appropriate penalty; and
WHEREAS, the City Council has also amended Chapter 1105 related to tobacco licenses to establish a cap on
the number of tobacco licenses, clarify how penalties will be determined, and clarify how time will be
computed when determining an appropriate penalty; and
WHEREAS, the City Council believes that the penalties for liquor license and tobacco license violation should
be the same; and
WHEREAS, the City Council wishes to update Appendix IV of the City Code to establish new penalties; and
WHEREAS, city staff have proposed the following amended penalties:
Type of Violation Appearance
1st 2nd within 36
months of 1st
3rd within 48
months of 1st
4th within
48 months of 1st
Liquor license
(Chapter 1200) $750 $1,000 fine
1-day suspension
$1,500 fine
3-day 5-day
suspension
$2,000 fine
10-day suspension
Revocation
Tobacco license
(Chapter 1105) $300-750 fine
$1,000 fine
1-day suspension
$600 -1,500 fine
5-day suspension
$1,000 - 2,000 fine
7-day 10-day
suspension
Revocation
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Crystal, approves the above
schedule for penalties for liquor licenses and tobacco licenses.
Adopted by the Crystal City Council this 1st day of April 2025.
____________________________________
Julie Deshler, Mayor
ATTEST:
________________________________
Christina Serres, City Clerk
5.2
AGENDA
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL
REGULAR MEETING
TUESDAY, APRIL 1, 2025
IMMEDIATELY FOLLOWING THE 7:00 P.M. CITY COUNCIL MEETING
CRYSTAL CITY HALL
COUNCIL CHAMBERS
1. Call to order *
2. Roll call *
3. Approval of minutes from March 18, 2025 regular meeting
4. Receive 2024 Annual Report
5. Consider approval of 2025 Work Plan
6. Preview of upcoming EDA items *
7. Property status update *
8. Other business *
9. Adjournment *
*Items for which no materials are included in the packet
Page 1 of 3
Minutes of the
Economic Development Authority of the City of Crystal
Regular Meeting
Council Chambers
March 18, 2025
1. Call to Order
President Eidbo called the meeting of the Economic Development Authority of the City
of Crystal (EDA) to order at 6:50 p.m.
2. Roll Call
Upon call of the roll, the following Commissioners were present: John Budziszewski,
David Cummings, Julie Deshler, Forest Eidbo, Traci Kamish, Therese Kiser and Taji
Onesirosan.
The following staff were present: Executive Director Adam Bell, Deputy Executive
Director John Sutter and City Attorney Rachel Tierney.
3. Approval of Minutes
Moved by Commissioner Budziszewski (Kamish) to approve the minutes from the
January 21, 2025 regular meeting and March 4, 2025 work session. Motion carried.
4. Façade Improvement - 6225 42nd (Access)
The EDA considered approval of a façade improvement deferred loan repayment
agreement for 6225 42nd Ave. N. (Access Veterinary Care).
Moved by Commissioner Deshler (Kiser) to approve a façade improvement deferred loan
repayment agreement for 6225 42nd Ave. N. (Access Veterinary Care).
5. Property Status Update
Staff updated the board on the status of the Daiso store going into 5632 West Broadway
and the Wing Stop going into 351 Willow Bend.
6. Other Business
Page 2 of 3
There was no other business.
7. Adjournment
Moved by Commissioner Budziszewski (Kiser) to adjourn the meeting. Motion carried.
The meeting adjourned at 6:55 p.m.
Page 3 of 3
These minutes of the March 18, 2025 meeting of the Crystal Economic Development Authority
were approved by the Authority on ________________ ___, 2025.
______________________________
Forest Eidbo, President
ATTEST:
______________________________
Traci Kamish, Secretary
April 1, 2025
John Sutter
Community Development Director
(763) 531-1130
john.sutter@crystalmn.gov
www.crystalmn.gov
EDA/City Lots
Redevelopment
2021:
•4741 Welcome sold for
$100,000 (four-unit bldg.)
•3556 Major sold for $25,000
(single family home)
2023:
•4824 56th sold for $100,000
(single family home + ADU)
•3401-3415 Douglas Dr sold for
$200,000 (8 townhomes)
2024:
•6110 Lakeland sold for
$112,500 (single family home
+ ADU)
EDA/City Lots Redevelopment
85 grants in 2024
96 in 2023
$3,094 average grant in 2024
$2,864 in 2023
$15,470 average project in 2024
$14,320 in 2023
$262,992 spent on grants in 2024
$274,978 in 2023
$50,926 spent on admin in 2024,
16.2% of total expenditures
$53,997 in 2023, 16.4% of total exp.
$313,918 total expenditures in
2024
$328,975 in 2023
Home Improvement Grants
Redevelopment
5240 Apts (Sand Companies)
58 unit, 4 story building on 1.75
acres at 5240 West Broadway
Units range from 1BR 1BA to
4BR 2BA
All units affordable at or below
60% of area median income
Opened late August 2024
Housing TIF district approved in
2023 but canceled in 2024
State law change reduced property
taxes for affordable apartments,
thus less tax increment to be
generated by this development
Development costs were lower than
anticipated so TIF was not needed
Redevelopment
4824 56th
Lot sold in 2023
Construction
started in January
2024, completed
in June
New house sold
for $670,000
3401-3415
Douglas Dr
Lot sold in 2023
Construction
started in April
2024, completed
in December
Eight townhomes
House with ADU
Redevelopment
6110 Lakeland -House with ADU
Previous house demolished in June 2024
Lot sold and construction started in
November 2024
Anticipated completion summer 2025
4741 Welcome -Four-unit building
Lot sold in October 2021
Construction started in June 2023
Exterior completed in fall 2024
Owner is finishing basements so each unit
will have 4BR 3½BA when completed
Anticipated completion summer 2025
Other Activities
Business support
STS litter removal
Neighborhood
improvement
Cabinet wraps Beautification -
mulch beds and
flower boxes
City property at end of 2024 (north half)
City property at end of 2024 (south half)
Economic
Development
Authority
2025 Work Plan
April 1, 2025
John Sutter
Community Development Director
(763) 531-1130
john.sutter@crystalmn.gov
www.crystalmn.gov
Work plan elements added 2017-2024
Listed in approximate chronological order
• Douglas Dr & West Broadway train horn quiet zones at CPKC crossings
• Neighborhood signs with city flag
• Bass Lake Road Streetscape Reconstruction
• City flag banners on light poles
• Planter boxes and bowls (30 new + 7 existing)
• Becker Park Reconstruction
• City entrance signs with city logo and updated population
• Love Local small business promotion during the holidays
• Ribbon-cuttings to promote new businesses
• Contract with Senior Community Services (blight prevention)
• Contract with Sentenced to Service (litter cleanups) -may expand
• Storefront façade program -may suspend
• Added Small Business Brainteasers to Love Local promotion
• Contract with Elevate Hennepin (business assistance)
• Contract for landscape bed maintenance and planter box watering
• Artwork on traffic signal cabinets -10 in 2024, proposing 4 in 2025
Black =
permanent
infrastructure
or semi-
permanent
fixtures
Green =
ongoing
programs,
presumed to
continue
unless
otherwise
noted
Sentenced to Service Litter Cleanups
Current 2025 contract (same as 2024):
•One day per week in April
•One day every two weeks in May-Oct.
•$7,229 total cost (18 days at $402/day)
•Red, non-highlighted segments on the map
This does not mean that each segment gets picked up every
week. The crew comes out and does as much as they can in a
day. The next time they come out, they start where they left off.
Proposed 2025 contract:
•One day per week for the whole season (April-Oct.)
•$12,048 total cost (30 days at $402/day)
•Would add the highlighted segments on the map
This would not mean that every segment gets picked up weekly.
The additional segments would be picked up at roughly the same
frequency as the existing segments under the current contract.
Proposed additional corridors
are highlighted in yellow
Storefront Facade Enhancement Incentive
2022-2023 projects: Elision Playhouse, B&R
Auto Repair and Wine Thief & Ale Jail
2025 projects approved: Elision Playhouse
and Access Veterinary Clinic
•2025 projects would use $20,000 of the
$25,000 in county funds that are only for
areas on Bass Lake Road, 42nd and Douglas
•2025 EDA budget included $25,000 to be
available citywide -none used so far
2025 program activities:
Complete the two recently approved
projects
Close the program to new applications
Remove program from future EDA budgets
Apply again for county funding at the next
opportunity
Areas eligible for Hennepin
County funding of façade grants
2025 artwork on traffic signal cabinets
•Four traffic signal cabinet wraps in 2025
•$8,268 total cost (the same $2,067 per cabinet as in 2024)
•Staff recommends artwork provided by a Crystal resident for three of the cabinets
•Open process for the fourth cabinet (in Crystal but owned by Robbinsdale)
47th & Douglas 56th & Regent
Artwork: Welcome Park photo Artwork: MAC Park photo
32nd & Winnetka 36th & Noble
Artwork: Valley Place Park photo • Signal owned by Robbinsdale
• Artwork submittals to be
sought from residents of
Crystal and Robbinsdale
Long Term Issue -Home Improvement Grant Program
•TIF fund balance is anticipated to be depleted around mid-year 2029
•Replacing TIF with EDA funds would put the EDA into deficit each year thereafter
•EDA fund balance would be depleted by 2037
Alternative -Do not use EDA funds to replace TIF funds
•Would likely mean ending the Home Improvement Grant Program in 2029
•Staff could explore using other outside funding sources to continue the program in
some form, such as Local Affordable Housing Aid, but there are many uncertainties:
May require special legislation
Assumes this state funding will always be there
Inadequate to fully fund the program -would be roughly half of today’s level
•Other govt. agencies have home improvement programs available in Crystal
•Original intent at program creation in 1999 was to preserve our neighborhoods by
helping low-moderate income homeowners maintain and improve their homes
After 25 years of this program, our neighborhoods are generally pretty solid
It’s our commercial areas that are of greatest concern to the community
•There are other priorities for EDA -the fund balance will be needed for other things
•TIF funds running out will be an easily understandable reason to end the program
No action at this time -EDA decision likely not needed until 2027
Long Term Issue -Home Improvement Grant Program
EDA Budget Detail
Revenues
EDA Budget Detail
Expenditures
EDA Budget Detail
Net Revenue and Cash Balances