Hibbing City Council approves alley vacation, Habitat assessment waiver and multiple contracts

Hibbing — The Hibbing City Council on Oct. 2 approved a slate of routine and project-specific items, including a resolution to vacate an unused alley in the Second Addition to Kelly Lake, a request to waive city assessments on three parcels to enable a transfer to North Saint Louis County Habitat for Humanity, and several procurement and contract awards for public works projects.

During a public hearing the council considered a request to vacate the alley between 2nd Avenue North and 1st Avenue North (Lots 22–23 and 17–18, Block 3). A city staff member told the council the alley is not used by the city and that vacating it would remove the city’s interest in the right-of-way. The council adopted Resolution No. 24-10-07 to vacate the alley on a unanimous voice vote.

Community Development Director Betsy Alleghante asked the council to waive city assessments totaling $1,589.79 on three tax-forfeit parcels (parcel IDs 140-0050-04080; 140-0096-00850; 140-0220-03170) so they can be transferred to North Saint Louis County Habitat for Humanity for homebuilding. Alleghante said the parcels were cleared in partnership with St. Louis County and are suitable for single-family construction; she noted that homes constructed there will pay property taxes and return as ratepayers to the utility. "These were all tax forfeit properties that we partnered with St. Louis County and the IRRR to take down structures on these properties," Alleghante said. The council approved the assessment-waiver resolution; Alleghante said the Public Utility Commission will consider any associated utility assessments at a future meeting.

The council also authorized city staff to grant AEOA access to the city-owned NARTEC property on the Beltline to allow AEOA to evaluate whether the building could host consolidated services; Alleghante emphasized the authorization is limited to a site review and does not commit the city to sell the property.

On staffing and benefits, Finance Director/Treasurer Sheena Mollmer recommended moving the city’s 2025 health plan to a self-funded arrangement with Pareto. Mollmer said the change would increase the 2025 budget by about 10 percent but "there will be no change to the network, the deductible, or [employee] contributions." Council approved the recommendation.

Several land-use and utility items advanced on planning staff recommendations. The council approved conditional-use permits for a Minnesota Power substation off Rainy Road and for a Hibbing Public Utilities substation at 1841 41st Avenue after the planning commission found both proposals met conditional-use criteria. The council also rezoned the property at 520 West 31st Street (the Cap Cook water tower site) from R-1 to I-1 to reflect existing utility uses; the rezoning and its subsequent conditional-use approval were adopted unanimously.

Public-works procurements and project approvals included a Compass Minerals road-salt quote at $83.71 per ton for up to 450 tons (estimated $37,669.50, with $42,750 budgeted for the purchase), approval to order a 2025 Elgin Pelican street sweeper at state-contract pricing for $322,492, and authorization to lease a seasonal Elgin sweeper for approximately $14,500 per month. Councilors also approved payment of $11,751.70 to Hart Electric for Raceway electrical work and accepted substantial completion of the Mindview buildings project, authorizing a final pay application to Max Gree Construction of $130,333.86.

Bids for the Cary Lake Campground project were awarded separately: George Bogolis & Sons Company received the septic design/build contract for $133,200 and the clearing/grubbing contract for $68,617.50, and Mark’s Well and Pump received the well-drilling contract for $19,775. Staff said bids returned favorably compared with engineer estimates.

The council approved several event permits, including a Campus Life block party (Oct. 14) and a STEM showcase at the Memorial Building (Oct. 4). Councilors also corrected and reapproved a raffle permit for the Hibbing Tourist Center Senior Citizens Inc., changing the raffle dates to Oct. 1–Nov. 30, 2024.

The council entered closed session under Minnesota Statute 13D.05 subdivision 3(c)(3) to discuss two parcels (140029000619 and 140027001318) related to potential purchase or sale. After returning to open session, the council authorized the community development director to submit a public bid on parcel 140029000619 up to the amount committed by the HRA and authorized offering the appraised value for parcel 140027001318.

The meeting concluded with an announcement about a public open house on Oct. 8 for the proposed Regional Public Safety Building and adjournment. The council set its next regular meeting for Oct. 16, 2024.

Votes at a glance (selected items approved):
- Resolution 24-10-07 to vacate alley (adopted, unanimous voice vote)
- Resolution 24-10-03 waiving $1,589.79 in city assessments for transfer to North Saint Louis County Habitat for Humanity (adopted, unanimous voice vote)
- Pareto 2025 self-funded health plan for active employees and early retirees (approved, unanimous voice vote)
- Conditional-use permits for Minnesota Power and Hibbing Public Utilities substations (approved, unanimous voice votes)
- Purchase of 2025 Elgin Pelican street sweeper for $322,492 (approved)
- Cary Lake Campground contracts: septic $133,200; well $19,775; clearing $68,617.50 (approved)

The council did not record roll-call tallies in the meeting transcript; most approvals were taken by unanimous voice vote.

Sources: Hibbing City Council meeting transcript, Oct. 2, 2024.