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River protection case in Hudson goes to court

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A lawsuit that brought river protection concerns against a proposed four-story building in downtown Hudson seemed to find support Friday from a St. Croix County Circuit Court judge, who in a hearing said he found one of the city’s arguments for approving a variance for the building project “ridiculous.”

The lawsuit, filed by the Wild Rivers Conservancy of the St. Croix and Namekagon and several neighbors of the project, said the city’s board of appeals granted five variances for a building project proposed by landowner Ron Gagnon in violation of state statutes and city ordinances that implement the federal Wild and Scenic Rivers Act.

Among the suit’s allegations: the proposed mixed-use building is too tall, lacks appropriate setbacks, and got variances without consent from the Wisconsin Department of Natural Resource as required by state law for projects within the special “riverway” zone near the St. Croix River where Gagnon wants to build.

An attorney representing the city’s board of appeals said there was no record of the DNR asserting that provision of law: “The WDNR theoretically had the right to make that assertion but didn’t at any point, and for that reason I don’t believe there’s any merit” to the suit’s complaint about DNR approvals, argued Mary Nelson of Crivello, Nichols & Hall.

Circuit Court Judge R. Michael Waterman wasn’t having it, saying the state statute clearly says the city’s board of appeals needed DNR approval.

“You’re basically saying the city can do anything it wants as long as nobody objects,” he said to Nelson. “That’s ridiculous.”

The case stems from a series of board meetings last summer, when Gagnon approached the city with plans for a project at 307 to 321 Second Street and 100 Commercial Street. The four-story building with sidewalk-level commercial space, a fitness center, and 109 housing units above would take up the city block bordered by Second, Commercial, First and Wisconsin streets. It would have underground parking for 143 vehicles with access on Wisconsin and Commercial streets. A shuttered bank and a retail framing shop, Lakefront Framing, are the only structures on the block. Gagnon’s limited liability corporation bought some of the property in 2022, according to court documents. The project’s architect is Bob Loken-ESG Architecture and Design, the developer is Ari Parritz-Reuter Walton.

The city originally planned to hold a variance hearing in November of 2022, but that meeting was cancelled after the Wisconsin DNR and the Wild Rivers Conservancy filed letters of opposition. A public hearing was held in May of last year, and the board of appeals initially denied a height variance to allow the building to rise 57 feet, 12 feet higher than allowed within the riverway zone designated by the Wild and Scenic Rivers Act of 1972, which created the Lower St. Croix National Scenic Riverway. That zone extends west to the river from Hudson’s Second Street, including the sites for Gagnon’s project. The board then reconvened in July, reversed their decision on the building’s height and approved other project variances.

Attorney Einar Hanson, representing the petitioners, said the city violated the Rivers Act protections when the board of appeals granted variances for the proposed building’s “height, width, mass, density, landscaping, location, and other components.” The lawsuit argued that the board’s approval of this project sets a precedent that could see similar projects rise within the rivertown zoning districts.

Hanson said the board of appeals seemed to be swayed by the project’s size, and that in order to be viable, the building had to rise to 57 feet.

“Economic viability are no basis for a variance,” said Hanson. “Yet, when you read the transcript, you get the sense the board was so dazzled by this project that they were willing to follow any rationale that allowed them to grant variances.”

Attorney Nicholas Vivian, representing the board of appeals, said the volunteer board deserved credit “because this is a group of citizens dealing with a difficult set of circumstances.” Hanson responded that the lawsuit took issue with the project, not the board: “There’s no attack by the petitioners on the good citizens on the Board of Appeals,” he said.

The petitioners including two businesses located across the street from the proposed project who said the size and mass of the Gagnon building would obscure their view of the St. Croix River. Petitioners Todd Ellingson, Joel and Carol Skinner are nearby property owners who say the development would harm their property values and block river views. Petitioner Genie Castro is a Hudson resident and business owner who said the project would harm the city’s historic river town feel.

“I really think Hudson can keep up with progress and still keep our town with its rivertown charm,” she said in an email. “The proposed building that Gagnon wants to put in will span from sidewalk to sidewalk and consume a whole downtown block.”

After hearing arguments from both sides, Waterman said he would issue a written ruling.



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Former Medtronic consultant gets 18 months federal prison for insider trading

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A former Medtronic consultant received an 18-month prison sentence this week for his role in a scheme linked to the $1.6 billion acquisition of an Israeli medical device company in 2018.

A federal jury in February convicted Doron “Ron” Tavlin, 69, of Minneapolis, of one count of conspiracy to engage in insider trading and 10 additional counts related to securities fraud. That same jury found David Jay Gantman, 58, of Mendota Heights, not guilty of all charges against him. A third defendant — Afshin “Alex” Farahan, 57, of Los Angeles — pleaded guilty in 2022 and has yet to be sentenced.

“His crime was cynical and brazen. It was also reckless,” Assistant U.S. Attorney Matthew Ebert wrote in a memo calling for a 3-year prison term. “Tavlin’s conduct had the potential to blow up a deal that a team of executives and financial advisers had been diligently negotiating for months.”

Tavlin is now scheduled to self-surrender Jan. 5 to begin his prison term, which will be followed by 320 hours of community service.

According to the evidence presented at trial, Tavlin learned about a secret, pending acquisition by Medtronic of Mazor Robotics, where he worked as vice president of business development, in 2018. Tavlin also previously worked as a consultant to the Ireland-based Medtronic, which also has a headquarters in Fridley.

Tavlin illegally tipped off Farahan, his friend, about news of the imminent acquisition and told him to keep the news secret. Farahan knew the deal would likely result in a boost to Mazor’s stock price and quickly bought more than $1 million of the company’s stock throughout August and September 2018. Medtronic announced plans to acquire Mazor, which specialized in robotics for spinal procedures, in September 2018 and the deal closed three months later.

Prosecutors said Farahan netted more than $245,000, and Gantman made $255,000 in profit by selling the securities quickly after the deal was publicized. Farahan paid Tavlin for the secret information about the pending deal — including a $25,000 kickback about a year later —according to prosecutors.

U.S. District Judge Donovan Frank, who sentenced Tavlin Monday, also ordered Tavlin to pay a special assessment fee of $1,100 – or $100 per each count. Frank did not impose a fine.



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Charges detail assault in Minneapolis that led to shooting rampage, killing one in Kandiyohi County

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Another friend of the ex-girlfriend arrived to help. He pulled up in a car as the group exited the apartment and Matariyeh immediately pointed a gun at him before pounding on the windshield with the gun. Everyone fled as Matariyeh ran back inside the apartment.

The two men met in a parking lot before attempting to return to the apartment. That’s when they looked up and saw Matariyeh on the balcony. Matariyeh immediately began firing multiple shots at them as they took cover behind parked cars.

It was around this time that Minneapolis police officers arrived and made contact with Matariyeh’s ex-girlfriend. She believed he was still inside the apartment, but officers later learned that he had fled. They reached him on the phone. He told officers he was going to kill innocent people if he couldn’t speak with his ex-girlfriend or see his daughter, who was at daycare at the time. He later told police negotiators that “he wanted to go out by ‘suicide by cop.’”

All the while, Matariyeh was speeding westbound.

Police officers pursued him near Cosmos in Meeker County after being alerted that Matariyeh might have stolen another vehicle at gunpoint in Carver County.

Around 2 p.m. he pulled into the rural driveway of Peter Mayerchak in Lake Lillian. Mayerchak, who was in his yard placing hay over his septic mound, went and greeted Matariyeh, who shot him in the chest.



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DFL’s last-minute push to keep their trifecta

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Mixing progressive dreams with dire warnings, a group of DFL leaders riled up a group of volunteers in St. Paul on Thursday morning, urging them to push on through the day’s freezing rain and fatigue in the remaining days before the election.

Several elected officials including Lt. Gov. Peggy Flanagan and U.S. Sen. Amy Klobuchar told the group of about 150 campaign staffers, volunteers and union members about how meaningful their work is to keeping DFL control of the Legislature, as the electeds start a statewide bus tour to turn out votes.

“We are here to keep our trifecta here in Minnesota,” U.S. Rep. Ilhan Omar told volunteers on Thursday. “We’ve got five days, people!”

On the Republican side, House Minority Leader Lisa Demuth, R-Cold Spring, said earlier this month that the House Republican Campaign Committee had raised a record $2.7 million ahead of the election and she said Republicans have also set records in volunteering and door-knocking as they work to break DFL control.

Minnesota Democrats hold a rally before starting a bus tour around the state to get voters excited, including Rep Ilhan Omar, Sen Amy Klobuchar, Lt. Gov. Peggy Flanagan, House Speaker Melissa Hortman, Senate Majority Leader Erin Murphy, Rep Betty McCollum and Sen Tina Smith on Thursday. (Glen Stubbe/The Minnesota Star Tribune)

“Republicans have the momentum and resources heading into the final stretch to win the majority and restore balance to Minnesota,” Demuth said in a statement. “Minnesotans are ready to move on from the expensive two years of Democrat one-party rule.”

House Speaker Melissa Hortman, DFL-Brooklyn Park, said she thought voters preferred action to the gridlock of divided government. “They’re looking for people who can get things done,” she said.

These last-minute get-out-the-vote efforts come as Democrats around the country push to keep control of state legislative chambers and try to flip a few statehouses that Republicans hold by just a few seats.

The Democratic Legislative Campaign Committee, the arm of the national Democratic party that works on statehouse races across the country, has spent $500,000 on Minnesota races this year, including House races and the state Senate contest.



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