Babbitt City Campground rates are set to rise from $50 to $65 for daily site rentals and $80 for weekend and holiday rentals.
These changes will come into effect for the 2026 season and will include a three-night minimum stay for holidays and a two-night minimum reservation on weekends.
The changes come after last month’s budget meeting in which members of the public expressed discontent with the city’sannualcampgroundbond payment. The bond expense is set to be sourced from tax revenue - rather than department rents - beginning next year.
Rising campsite prices bring hope that the campground will generate higher profits moving forward, helping to close the gap between annual expenses and seasonal revenue.
In addition, two seasonal sites - numbers 10 and 11 - will convert to daily sites in accordance with popular demand.
“The campground host said that those are the two most requested for daily rentals,” said administrative assistant Kirsten Traut, “People who travel in groups are always asking for those sites to book as a daily site.”
The two sites are among five seasonals that did not renew for summer 2026, Traut said. The additional three will open to waitlist members. Reservations for daily sites will open on Nov. 1.
Council member Jim Lassi brought updates from the planning commission for the proposedMoonAcretinyhomes living community.
The commission recommends an area on the western side of the West Babbitt Development Project for the homes. However, the community is expected to take much less space than recommended, and the exact area delineations are still up in the air.
Council member Joe White brought up concerns with the proposed location’s proximity to the ATV trail.
“That’s a public hot spot right there,” said White.
Lassi said the planning commission would address those concerns once they zero in on "a more defin itive location.”
“This is just a concept plan right now,” Lassi said, “This is going to be a long process to figure this out and what’s going to work for them.”
Lassi added that Moon Acre may use up to a third or a quarter of the proposed area, which could require the commission to “re-adjust our plots for potential streets and lots” on that side of the West Babbitt project.
The council approved a motion to send a preliminary map to the tiny homes project representatives and extend an invite to join the next planning commission meeting.
Lassi additionally presented information from the commission’s prior meeting in which changes to land use covenants for development districts were discussed.
The council voted to amend the zoning ordinance and add cannabis production, operations and processing as permitted activities within the Industrial Park.
For West Babbitt, new zoning alterations account for the larger lot sizes present in this development as compared to other neighborhoods. Maximum garage size will be 1,600 square feet, rather than the standard 1,100 square feet, which Lassi hopes “will require no variances.”
Buildings must be set back at least 20 feet from the property line, and no short-term rental houses will be permitted within the first five years after purchase.
The council also heard an update from clerk-treasurer Nancy Sanford on program options for providing required paid leave to city employees in 2026.
“The Minnesota Paid Leave Program becomes effective Jan. 1, 2026, and we do have to offer this program, or a comparable or better program, to the employees,” Sanford said.
The program - which is already anticipated in the budget - would cost the city an additional $13,300 for the upcoming year.
“That’s the maximum the program would cost the city. Then, the state funds if an employee takes that leave,” Sanford said.
Sanford questioned the council on whether they would prefer to keep the current program, or authorize research into an alternative program which could minimize costs while still fulfilling state requirements.
The council moved to hold a study session to discuss program details and options, pending further research from staff.
In other business, the council:
• Authorized Sanford to spend $4,250 on system upgrades and a laptop for purposes of security, remote work and ease of document sharing across staff. This sum will be covered within the pre-existing 2025 administrative budget.
• Hired two teen center attendants.
• Approved a marina project contract amendment to fix a mis typed date.
• Waived rental fees and approved the use of the Municipal Center for Lion’s Club/Peter Mitchell Days Trunk or Treat and Haunted Hallway on Oct. 31.
