The Cottage Grove City Council met in regular session Wednesday, Aug. 6 at 7p.m. in city hall. With the council meeting in the St. Croix Room, Council member David Thiede pulled item I from the night’s consent agenda for further discussion. The item related to $50 million issuance of conduit debt Real Estate Equities LLC was explained by Cottage Grove Finance Director Brenda Malinowski.
“It is issued by the city as a conduit between the borrower and the lender,” she said explaining the term and its meaning. “In this case the borrower is Real Estate Equities, so we act as that conduit.” Last undertaken for the Legends of Cottage Grove, the finance tool allows for projects that might not otherwise be possible. The conduit debt does not affect the city’s credit or statutory maximum to issue debt, nor does it cost the city anything, as the city merely acts as a conduit between issuer and borrower.
“So again, we’re just acting as that conduit between the issuer and the borrower,” Malinowski said of conduit debt issuance. Malinowski explained that the council had previously issued $32 million in conduit debt to Real Estate Equities in 2024, the request to increase this to $50 million including both an increase along with $8 million recycled through the Washington County Community Development Agenda tied to the Trellis Bluestem project on 80th Avenue. The increase in conduit debt allows Real Estate Equities to have lower borrowing costs as it seeks to meet multifamily housing needs in the city. A public hearing on the matter will be held at the next city council meeting, with an additional meeting before the increase in debt is fully approved.
“Not everybody can do it,” Malinowski said of conduit debt. “It has to have that public purpose.”
Speaking in public comment Aug. 6 before the approval of the consent agenda meanwhile were five city residents, including four on the presence of ICE in the community.
First to speak in public comment was Cottage Grove resident Cindy Gish.
“I’m here tonight to talk to you about Cottage Grove’s HERO Center and ICE enforcement,” she said.
“And while you’re probably going to hear a lot of comments from a lot of different people, I’m here to present to you a little different perspective.
Gish then held up a picture frame.
“In 1945,—this is my parents. My dad, my grandparents, and my uncles, in a prison camp in Germany. They were Latvian citizens, taken during World War II and placed in this camp.”
Gish then held a different portrait up.
“This is the picture three years later, in the United States of America, in a displaced person’s camp in Hebron, Nebraska, where good decent Americans offered them a place to be, work, eat, and to raise their family, one of which later came to be me.
“I don’t know in all of the political rhetoric, if anyone ever stops to think, that as first generation Americans, or fifteenth generation Americans, this is very real. If we behaved in the United States of America then, as we behave today, my family would not be here. As a matter of fact if my grandparents were still alive today, they would probably be in a place like Alligator Alcatraz, because they died with only their green cards. They could afford to have all of their children get their citizenship and they worked diligently at that, but they did not have the funding or opportunity because they needed to work all the time, to get it themselves. But yet my grandparents worked and paid into the taxes and social security that they never collected. They raised good, decent citizens. They volunteered at food shelves, they often at times gave up their own food in order to help other people that were coming to this country that didn’t have any.
“In my family we’re big Nebraska Cornhusker fans, and we watched a lot of football. And there was never a single time that if the National Anthem came on that we were not expected to stand on our feet, put our hands on our hearts, and pledge loyalty to this nation. Those are the people that are being swept up and taken away. And while I understand that there’s been some kind of a contract and all sorts of other political things that happened, and as a 30 year resident of this city, I wish I would have known. You would have heard from me sooner. Maybe in a different perspective. But I don’t want us—Cottage Grove Minnesota—to be that. We’re better than that. We don’t need to encourage ICE, and have them here, doing harm to people, scaring my students, I’m a teacher in this district. Giving me a script to say that if ICE shows up at my school building what to say. What we need is to say, ‘how do we embrace American ideals and make you welcome here?’ How do we fix it? It isn’t with guns,” she said, the three minute timer going off. “So please reconsider.”
“Thank you,” Mayor Bailey said.
Speaking next was city resident Peggy Nelson, who started by introducing herself to the council.
“Hi,” Nelson said. “I’m Peggy Nelson and I live in Cottage Grove. We sent a letter to all of you on the city council with resolutions that we wanted all of you to put on the agenda and vote on it. That didn’t happen.” Answered with an email from the mayor, the resolution sent by Nelson and others but not on the night’s council agenda for August 6, reads as follows:

“Resolution 2025- xx
Adopt a Resolution to prohibit the City of Cottage Grove from providing Federal ICE Agents entering our City of Cottage Grove.
Furthermore, adopt a Resolution to prohibit ICE Agents to use our HERO Center in the City of Cottage Grove to train.
Furthermore, adopt a Resolution calling for the Trump administration to end its campaign of mass deportations and family separations.
WHEREAS, the Trump administration has called for the largest mass program in U.S. history, seeking to separate 3,000 families per day; and
WHEREAS, the Trump administration has made multiple references to the Eisenhower administration’s racist campaign against immigrants, which resulted in over 1 million deportations, including the deportations of many U.S. citizens; and
WHEREAS, numerous federal agencies within the Trump administration, including the U.S. Immigration and Customs Enforcement (ICE) has increased arrest of U.S. citizens, asylum seekers, and other immigrants regardless of immigration status and public safety record; and WHEREAS, the Trump administration has invoked the Alien Enemies Act of 1798 and has explored suspending the writ of habeas corpus to deny due process; and
WHEREAS, the United Nations states that “Human rights violations against migrants can include a denial of civil and political rights such as arbitrary detention, torture, or lack of due process;” and
WHEREAS, the rhetoric of mass deportations has driven many families into the shadows, with children afraid to go to school and play and their parents afraid to go to work, essential medical appointments, and to the grocery store; and
WHEREAS, the Minnesota Chamber Foundation has concluded that “The Success of Minnesota’s economy, both now and in the future, is intrinsically linked to Minnesota’s immigrant communities;” and
WHEREAS, we firmly believe that immigrants built Minnesota, continue to build Minnesota, and show the best of what Minnesota can be;
NOW, THEREFORE, BE IT RESOLVED, that we call upon the Trump administration to end its campaign of mass deportations and family separations.
BE IT FURTHER RESOLVED, that we stand with immigrant families and will work to further defend immigrant rights.

Not being on the night’s council agenda, the resolution was not adopted. Nelson continued with the letter response she had received.
“The Mayor sent us at All Saints Lutheran Church an email, and in it I’ll read,” she said. “Thank you for providing a template of a resolution towards the current administration and it’s handling of immigrants and ICE. I have kept a pretty straightforward thought process on resolutions like the one you propose. I have continued not to support or approve resolutions that are critical of groups of people, individuals, or political parties. Though I may agree with your concerns and stance with what is currently happening, we’ve had other groups approach us for resolution request to have us identify groups of people—Israel, Palestinian, Muslims, etc. you get the picture. I applaud your passion to make a difference in this stance. However, I will not support the resolution for the city of Cottage Grove.”
Nelson went on.
“This was also copied to Miss Levitt, the city administrator. Miss Levitt, I would like to make an appointment to see you and discuss this. The other part is, Mr. Mayor, this is written in ‘I’ statements, not ‘we’ statements. We statements are part of the Constitution, We the people, for the people. And I find that very misleading and sabotaging, because you’re the only voice on here, and there are one, two, three, four, five of you that are voting members. And I would really like to remind you that the definition of sabotage is deliberately destroy, damage, obstruct something especially for a political purpose or military advantage. I would like you to reconsider, and allow us to be on the agenda, and have you vote for this in public, in this chamber, on that camera.”
Mayor Bailey later elaborated via email on his reasons for not supporting the proposed resolution.
“Thank you for asking the question,” he wrote Journal staff. “Over the years I have been the mayor, I/the city has received various requests to support different groups or causes. We try to stay out the national/international political field with different resolutions. Peggy was asking for us to adopt a resolution condemning the current administration and demand that ICE not be in our city. ICE has been using our police training facility in the past, going back to previous administrations. I responded to Peggy by stating similar comments I mentioned above. She was mad at me for using the term "I" when responding. She sent the request to every city council member. Legally, I can only speak for myself. Any council member could have spoken up or asked for the resolution be brought forward. No one did. I believe the reason no one did, is we are trying to stay out of this politically charged issue. My example would be if we approved her resolution, what is to stop a group that supports what ICE is doing to ask for a resolution in support of ICE? I am not a supporter of the tactics that are being used to round up and hold immigrants. However, I do support ICE working on sex trafficking issues, drug smuggling, and illegal sales.”
Back at the Aug. 6 Council meeting, city resident Kathy Kuchar spoke on her concern over ICE’s presence in Cottage Grove.
“I’m concerned about ICE in Cottage Grove,” Kuchar said. “Immigrants are a big part of our community, and I want people to feel safe here. We are asking the council to consider the resolution brought forth by Peggy Nelson, perhaps changing the contract for ICE. I am asking for ICE to have proper identification and be unmasked. It is a scary scenario for ICE to be in our community, especially with mass deportations we are seeing across the country. I do not want hate or fear spread in our community. With $170 billion going into immigration enforcement ICE is becoming cruel and inhumane, tearing families apart, without even due process of law or basic human dignity.”
Last to speak on ICE in public comment was Ruth Jones.
“I am here totally about that resolution as well,” she said of the suggested resolution sent to council by email. “It’s been adopted by Minneapolis—same thing. It’s been adopted by Columbia Heights. St. Paul City Council is looking at it right now as we speak. Fully expect that they also will adopt it. So the adoption of this wouldn’t set us apart from other Minnesotans. This is Minnesota. We are seen as a safe haven, and I want us to stay that way. And I particularly would like that Cottage Grove would stay that way. That’s why I’m here. Also, I really, really value free speech and the ability to speak to you, so thank you all for listening.”
“Thank you,” Bailey said when Jones had finished, asking if anyone else wanted to speak. City resident Diane Anderson then spoke on a situation with her neighbor involving dead trees, asking for the council’s assistance in code enforcement to take down dead trees for safety reasons.
“My big ask today is to ask the city to please make a code enforcement for people to take down dead trees,” she said, receiving assurances of followup on the matter.
Closing out the Aug. 6 meeting, council member Justin Olsen took time in council comment to thank residents for hosting Night to Unite parties.
“A couple things here,” he said. “First of all I want to thank all of the residents who hosted Night to Unite parties, either during the afternoon or after, at some of the retirement communities in town. And then of course Night to Unite last night. It’s always one of my favorite things of the year. We got lucky last night, the weather was great…last night was beautiful and it was really fun to get out and visit with the neighbors.
Thank you also to everyone who took the time in the course of their parties to help gather school supplies for the kids going back to school, on behalf of either basic needs or our food shelf. Because they look forward to donations every year and there are a lot of generous people.”
Olsen went on to mention the inaugural Hometown Heroes golf tournament at River Oaks Golf Course tournament of the previous Friday sponsored by the Mississippi River Chapter of Beyond the Yellow Ribbon, as well as VFW and Cottage Grove Lions.
“It was a resounding success,” he said. “We had terrific weather, great turnout, a lot of really awesome sponsors who came out to support the event. River Oaks as always did a bang up job of organizing and it really went off well, and we were really grateful to raise over $20,000 to help our veterans, military families, and first responders in this community,” he said, noting that the Woodbury Lions came down to help as well.
Olsen also put a word in for the initial ‘Walk, Run, Ruck 4 Heroes’ fundraiser, scheduled this Sept. 13 at 8 a.m. in Kingston Park and put on by Beyond the Yellow Ribbon. Participants can do either a 5K or 10K, with those interested in signing up directed to https://runsignup.com (search term “Cottage Grove”) as well as the Beyond the Yellow Ribbon Mississippi Valley Facebook page.
Thiede spoke next, also voicing praise for Night to Unite.
“Thank you for everybody who helps put that together and I think that’s a great event.,” he said. Thiede also mentioned that Movies with Mo was coming to Highland Park August 15 at 7 p.m., the movie being “Moana 2.”
Council member Monique Garza spoke next in council comment, mentioning Night to Unite and the corresponding “Noon Outs” as well, and putting a word in for The Cottage Grove Farmer’s Market on Thursdays in Cottage Grove.
“They’re flavored bacon is the best,” she said. Mayor Bailey closed out with more Night to Unite stories, then allowing new Met Council member Mark Jenkins to introduce himself as representing Cottage Grove and surrounding areas.
“Thank you Mayor,” Jenkins said. “Thank you for all the leaders up here at the dais here for being community leaders and my opportunity to serve the city and your citizens, and al of South Washington County, and eastern Dakota County, and four square miles of Maplewood…is my way of trying to pay it back to the cities and citizens in my region. I’ll be your advocate at meetings and then I’ll come back and be the bearer of mainly good news I hope,” he said. “ I look forward to our partnership and working together with the city administrator and the council.”
“Glad to have you representing us and look forward to some great things over the years,” Bailey told Jenkins.
The Cottage Grove Council then went to Item 13-A, moving to the training room for the draft 2026-2030 Capital Improvement Plan (CIP), with public present being invited to join council for the draft 2026-2030 CIP.