Red Willow Heights housing discussions continue at city council
News | Published on January 20, 2026 at 1:51pm EST | Author: frazeevergas
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By Robert Williams
Editor
Red Willow Heights resident Chris Peluso returned to the city council on Wednesday, Jan. 14, to speak during the open forum against the Economic Development Authority’s (EDA) attempt to change the covenants of the development to allow multi-family housing. ¶ The EDA has consecutive Tuesday meetings coming up on Jan. 20 and Jan. 27 from 5-7 p.m., at the Event Center to display renderings of the proposed project and allow residents to speak directly with EDA members and representatives of the developer. ¶ Residents and business owners inside Red Willow Heights have most of the say on what is developed on the front four lots that are currently zoned single-family or commercial only. To change the covenants to allow multi-family construction, the EDA needs to gather support from 75 percent of lot owners. ¶ Peluso stated he could get 80 percent to vote against the change right now and showed little interest in hearing any more information about the project.

“You can dress it up all you want; we just don’t want it,” said Peluso.
The original zoning for the property allowed for multi-family housing when Frazee had only one residential zone that encompassed all types of construction. Since then, the zoning was changed, removing multi-family and adding the covenants that give the decision-making power to residents of Red Willow.
Peluso challenged the need for more rentals in Frazee sparring with City Administrator Stephanie Poegel who phrased the issue as a lack of housing. Mayor Mike Sharp stepped in to try to explain the situation.

Chris Thorson
“The big issue, Chris, is quality rental housing; it’s something that we’re really lacking and it’s trying to find a space that works best for everyone,” Sharp said. “Red Willow is one option that the EDA has looked at. There are other options, as well, to look at for multi-family housing. It is something that is needed long-term. We need some quality rental housing; it’s just the best place and where to put it?”
Should Red Willow residents shut down the proposed covenants change, Poegel will recommend to the EDA to change the zoning from single-family to commercial, which was not rebuffed by Peluso.
“That’s fine; I’d rather have commercial than multiple-family housing,” he said.
Construction
More construction is on the way in 2026 for Frazee residents. City Engineer Chris Thorson presented a feasibility report on the following improvement locations:
• Elm Avenue from 2nd Street NW to 5th Street NW
• Fir Avenue from 3rd Street NW to 5th Street NW
• 5th Street NW from Birch Avenue to Hickory Avenue
• Lift Station near elementary school on Hickory Avenue
• 2nd Street NW from Ash Avenue to Elm Avenue
• Birch Avenue from 2nd Street NW to 3rd Street NW
• Ash Avenue from Lake Street to 2nd Street NE
• Alley by Frazee Event Center from Lake Street to 2nd Street NE
• Birch Avenue from Lake Street to 2nd Street NE
• 2nd Street NE from Birch Avenue to Main Avenue East
• Parking lots at the Event Center/Liquor Store
• Juniper Avenue East from Lake Street to 2nd Street SE
“What this project will do is clean up the 1950’s, 1960’s old sewer pipe, old water main pipe that’s in the ground and turn those into PVC,” Thorson said. “We’re getting to the end of replacing pipe in the city and making it all PVC. So, that’s a good feeling. You’ve come a long way in the last 30ish years.”
The council passed a resolution to accept the report and move the process forward on the assessment procedure. A public hearing will be held Wednesday, Feb. 11, at the Event Center, for those who will be affected by the assessments to discuss the project and go through the dollar amounts and relative costs.
After the February meeting, engineers will move forward with design leading to proposals for bids later in the spring.
Donations
Kathy Carter via Edward Jones donated $200 to the Frazee Fire Department.
Liquor
Liquor Store Manager Amanda Young announced an increase in sales in 2025.
“Overall, I would say this year was very successful as most liquor stores saw a decrease in sales,” Young said.
Total combined sales were up 6.2 percent, $753,664.47 versus $706,924.78 in 2024. Young provided a sales breakdown for the year:
• Liquor 13.94 percent $103,442.00
• Beer 19.74 percent $144,796.25
• Wine 0.05 percent $381.00
• Misc 0.05 percent $345.07
• Pop 0.58 percent $4,436.50
• Snacks 0.03 percent $263.00
• Clothing 0.01 percent $69.00
• Pizza 0.94 percent $7,093.00
• Food 6.19 percent $45,296.21
• Liquor Offsale 16.86 percent $129,077.07
• Beer Offsale 37.10 percent $283,993.39
• Wine Offsale 2.53 percent $19,342.36
• Misc Offsale 0.56 percent $4,304.06
• THC Seltzers 1.42 percent $10,825.56
Total $753,664.47
Fire
December calls for service: one structure fire, three alarms, one rubbish/garbage fire, one life flight, one mutual aid to Vergas fire.
Police
One new ordinance violation. Couch in front of a residence.
One motor vehicle crash in town.
One possible landlord violation.
Rescue
Rescue Chief Matt Johnson reported on the improvements created by the latest department vehicle purchase.
“In just a few months of operation, the addition of a Quick Response Vehicle (QRV) has significantly improved response times across our service area,” he stated in his report. “When combined with the continued investment in the equipment issued to our members, allowing them to go directly to a scene and efficiently treat patients, response times are the best they have ever been.”
In 2025, Rescue was dispatched to a total of 327 calls, an increase of 63 calls compared to last year (2024: 264 total calls).
December 2025 calls: five Burlington, 19 City of Frazee, three Erie, one Height of Land, five Silver Leaf, Total 33 calls.
Two members submitted resignations: Ken Miosek effective Jan. 5, 2026 and Brandon Wiirre effective Dec. 31, 2025. Miosek was thanked for his three decades of service with the Rescue Department and he plans to continue working with the department in a civic capacity helping out on community outreach activities. Miosek had been on the squad since 1996.
Multiple members of the council, including Mayor Sharp, were highly complimentary on the efforts of the Rescue department and Johnson’s leadership.
Payments
The council passed a resolution adopting the following policy on payment acceptance:
1. The City of Frazee shall not accept post-dated checks for any payments owed to the city.
2. The City of Frazee shall not hold checks for future deposit under any circumstances.
3. All checks submitted to the City must be dated for the date on which they are presented.
4. Payments received by the city shall be processed and deposited promptly in accordance with standard financial and auditing procedures.
5. Payments submitted in violation of this policy shall be returned, and the payer must submit an acceptable form of payment to satisfy the obligation.
Public Works
The department reported on getting the ice skating rink ready for use during the holiday season.
Despite a few snowfalls in December, city streets were kept in fair driving conditions during this period, along with water meter reading that takes place at the end of the month.
Superintendent Larry Stephenson also reported on an emergency call on Christmas morning from Becker County where a resident who was watching a home for someone in which basement flooded with around four-feet of water occupying that space,
“We figured it had around 116,000 gallons of water that had leaked into the basement, not sure how long it had been leaking but we shut off the curb stop to the property until further notice,” Stephenson said in his report. “Even with the leak that happened during the month our water usage seems to be at an acceptable amount at the water treatment plant and we’ll continue to monitor monthly usage very closely.”
