Tuesday’s Babbitt city council meeting was well-attended, not an empty seat in the house.
The council approved a motion to raise property levies by 20% in 2026.
The issue was discussed at the previous city council meeting and also during a special meeting held on Dec. 9.
Mayor Andrea Zupancich encouraged public attendance at both meetings.
At the special meeting, professional grant writer Stephanie Teslow asked the council how aggressive the city has been in applying for grants, and said it is understandable to raise taxes only when grant avenues have been exhausted.
At this week’s meeting, Zupancich reiterated that “the options were very limited (on what budget areas could be cut).”
The motion to accept the resolution raising the levy passed unanimously. Last year the levy was raised to 3% for 2025.
Attorney Joel Lewicki presented a Memorandum of Understanding for Cathy Hoheisel and Kathy Vraa, stating their insurance plans would remain at the average-based rate.
A major contributor to the nearly three-hour-long meeting was the Babbitt Police Department.
The city is currently in search of a new police chief and additional patrolmen. Todd Heikkila is serving as interim Police Chief.
The police department issue featured heavily in discussion, from where to post job listings, whether the city of Babbitt is responsible for paying overtime to officers volunteering for shifts from other city agencies, rolling over unused vacation time due to officers being unable to take leave with understaffing issues, and repairs for a squad car.
The highlight of this week’s meeting was the West Babbitt Development, a project 12 years in the making, according to administrative assistant Kirsten Traut.
The city of Babbitt plans to sell a variety of regular and premium lots, priced from $49,000 to $69,000. The lots will be available for purchase by local residents for a period of three months, then the buyer’s pool will open to the public. The lots will be available to build on as soon as September 2026.
Terry Pernsteiner of Pernsteiner Builders and Developers, and Aaron Schweiger of Zenith Property Managementaddressedthecouncil with hopes to purchase the entire portion of lots once they become available.
The proposal includes plans to build a variety of single and multi-family homes. The plans are contingent upon receiving grant funding through Minnesota’s Department of Iron Range and Rehabilitation, or IRRRB.
Pernsteiner cited two buildings that were renovated through this grant program in Biwabik; before Pernsteiner’s work, the buildings were known as the “Felony Flats.”
Pernsteiner also repeatedly spoke on how many jobs the project would provide, stating that, “I pay better than these guys pay in the Twin Cities, there’s enough in it that I have a real interest in these people’s lives.”
Schweiger reiterated their interest, saying, “I have deep Iron Range roots…when your investments thrive and grow, our investments thrive and grow.”
The council received all of these plans favorably, with council member Jim Lassi (who also serves as a member of the Babbitt Planning Commission) stating he “certainly looks forward to working with (them), and doing whatever we can to move the project forward.”
City Hall also approved new hours to reduce overtime staff hours. City hall hours will be noon to 4:30 p.m. on Mondays, from 7:30 a.m. to 4:30 p.m. Tuesday to Thursday, and 7:30 a.m. to noon on Fridays, effective Jan. 1.
In other business the council:
• Heard from city attorney Joel Lewicki had no updates on either the Kurpius or Laine land purchases.
• After preliminary interviews, no new campground host has been hired. Lassi noted that the previous campground hosts had recommended an individual who hadn’t yet been interviewed.
• A motion was carried to have employees pay .44% of the .88% of Minnesota paid leave, with the caveat of sending an MOU to each of the three contracted unions with the city of Babbitt.
• Heard from Richard Evenstad, who reiterated his intent to purchase a parcel of land from the city totaling about 2.5 acres. Lewicki stated that since the land has not yet been surveyed, the city cannot proceed with the sale until July. Lassi stated for the record that this delay doesn’t affect the city’s intent to sell to Evenstad.
• The 2025 city of Babbitt department accomplishments will be published.
• Adopted the 2026 holiday schedule.
• Approved the police department request to rollover vacation and personal time into 2026; the recreation department was only approved for vacation to rollover into 2026.
• A resolution for delinquent utility bills will be discussed at the next meeting, pending final delinquent household numbers after the end of the year.
• Douglas Kremer’s resignation from the PD was approved.
• Funds were approved to move forward with the former dental office sheetrock repair.
• Lewicki’s 2026 contract was approved; the only major change is that the council needs to send notice for Lewicki to be in attendance of meetings
• Approved being a pass-through for DNR grants for cross-country skiing and snowmobiling.
• Decided to wait until the Jan. 2 meeting to designate a RAMS representative.
