Anoka City Council

January 28, 2019 (Worksession) Page 1 of 10 WORKSESSION OF THE ANOKA CITY COUNCIL ANOKA CITY HALL CITY COUNCIL WORKSESSION ROOM JANUARY 28, 2019 1. CALL TO ORDER Mayor Pro Tem Freeburg called the worksession meeting to order at 5:00 p.m. 2. ROLL CALL Present at roll call: Mayor Rice (arrived at 5:15 p.m.), Councilmembers Barnett, Freeburg, Skogquist, and Wesp. Absent: None. Staff present: City Manager Greg Lee; Community Development Director Doug Borglund; Associate Planner Clark Palmer; HRA Housing Manager Darin Berger; Public Works Director Mark Anderson; and City Attorney Scott Baumgartner. 3. COUNCIL BUSINESS and/or DISCUSSION ITEMS 3.1 Discussion with Planning Commission: 111 Harrison Street Property Use. Associate Planner Clark Palmer shared a staff report with background information explaining Darrin and Emily Larson have applied for a Conditional Use Permit (CUP) for the property located at 111 Harrison Street (Mill Site Building). The applicants are seeking to establish an event center use at the subject property. The property is located within the B-3 General Business zoning district and North Central Business District (NCBD) zoning overlay. He said the Planning Commission reviewed the application and held a public hearing on December 4, 2018, and recommended approval with the following conditions: 1. Parking shall comply with the approved parking plan. 2. A parking plan shall be developed that is found acceptable by the City Council. 3. An outside patio plan shall be developed and accepted by the City Council. 4. Hours of operation shall be set by the CUP and approved by the City Council. 5. Any new lighting shall direct light downward and away from adjacent properties and meet the heritage preservation guidelines for exterior renovations to historic buildings. Mr. Palmer said one of the primary concerns of the Planning Commission was parking because the proposed use is expected to generate a need for parking and dedicated off- street parking that serves the Mill Site Building is limited. The site is also unique because access to the building is over land owned by the City of Anoka and land owned by Anoka Independent Grain & Feed allowed through a cross-access easement agreement. At the December 4th Planning Commission meeting the applicants stated they believed the January 28, 2019 (Worksession) Page 2 of 10 available public parking would be adequate for the use and asked how they would prevent guests from parking in areas where they should not park. The applicants said they would supply their clients with a map that identifies where guests are allowed to park but the Planning Commission was still concerned about the lack of a parking plan. The concern is that if the use is approved, parking could at times become uncontrolled due to availability of abutting open space and lack of delineated property boundaries and Commissioners suggested that the City address what it wants to do with the adjacent City-owned property before taking action on the CUP application. Mr. Palmer said another topic that was discussed included the proposal for an outdoor patio along the west side of the building along the river but at this time the applicants have removed the patio request from the application so staff is recommending that Condition 3 of the Planning Commission’s recommendation be removed as a condition of approval. Any future plans for a patio would require an amendment to the site plan if the application is approved. Mr. Palmer shared photos of the site and commented on potential noise concerns as well. Councilmember Freeburg asked if the applicants have spoken with the Petersons of Anoka Independent Grain & Feed about leasing space for evening events. Councilmember Skogquist asked if there were any plans for parking improvements or will the area be left gravel. Emily Larson, applicant, said they intent to make improvements to the parking area they own with the eight stalls to the east of the building remaining City-owned. Councilmember Barnett said she liked the concept for the space and asked how many stalls the City would be able to lease along with the silos in partnership with the Petersons and if that would meet the required 50 parking stalls and suggested possible valet service as well. Mr. Palmer said the inclusion of those stalls would be close to meeting the parking requirement. Ms. Larson shared her 25 years of experience in hospitality and catering and explained their parking vision for the event center. She said the 14 stalls they control would be used for handicap, vendor and client parking who lease while guests use street and ramp parking within two blocks of the center. She said they want to improve and work on the City-owned easement and were requesting approval for street and ramp parking now while they continue to work on future agreements, adding their intent to purchase the building. Councilmember Wesp said the building has a lot of historic value and that parking is challenge and suggested selling a portion of the Anoka lot to address that concern. Mr. Palmer said while that might help it would not fully solve the parking concern, adding access for the feed mill needs to be reserved. Councilmember Barnett asked if there were extra 40 spaces available within the downtown area as she did not want to affect bar owners on a busy Friday or Saturday evening. Ms. Larson said there were 36 nearby parking stalls as well as the 12 parking stalls to the left of the police station that are not signed and noted there were 450 parking January 28, 2019 (Worksession) Page 3 of 10 stalls in total without restrictions and that the City was requiring only 40-50 stalls for this use, adding they would make valet service available for events. Planning Commission Chair Kjonaas said they supported the project but were concerned about parking and said the property could accommodate most cars but was currently not conducive as it was uneven, not paved or striped and could block access to the feed store. He acknowledged this use would bring people in from outside Anoka which is always good but that the City needs to have a parking plan in place first. Mayor Rice commented that most customers would park and walk to the event center. Councilmember Freeburg commented on the potential for removing the silos and grain bins as another way to provide more parking as currently only one grain bin was being leased. Mr. Larson said they could increase parking with the use of a valet but said they need to know what the parking requirement was in order to begin the Conditional Use Permit process. Ms. Larson said they do not want to have people view the event center as having a parking problem either and want approval to use the streets and ramp in the meantime while working to create better parking through signage, valets, etc. Councilmember Freeburg said he was supportive of the project as the historic building was in need of repair and this could be a way to accomplish that work. Councilmember Skogquist agreed but said we need to address parking concerns if mitigation does not happen. Jim Neilson, attorney, distributed copies of the plat and easement exhibits and commented on the adopted parking plan for the City. He said without the lot we would not have the businesses and spoke about the needs for the Johnson family and a need for parking. City Manager Greg Lee said we need to maximize parking for these properties and said things will only will get worse if not addressed and while he agreed this was a good development a parking plan should be made as other proposals to the south will be coming putting more demand on parking. Councilmember Freeburg agreed but felt confident we could continue with the process and adjust as needed. Mr. Lee said it would be better to create a parking plan now with the applicant who needs the parking so it does not result in having no available parking when another use comes forward. City Attorney Scott Baumgartner said his concern was liability, responsibility and maintenance of parking areas and if the City would be subsidizing a business by providing public parking. January 28, 2019 (Worksession) Page 4 of 10 Councilmember Barnett asked if the applicants would be leasing parking from the City. Community Development Director Doug Borglund said an agreement was already in place for parking. Councilmember Wesp noted the Planning Commission recommended approval with conditions, adding this is a use the City would want and that Council should give staff direction to move forward. Mark Lent, 2242 Ferry Street, shared comments regarding several landscaping additions in the neighborhood and how the cities of Brooklyn Park and Rosemount addressed their event centers’ parking and noise concerns. He said he was concerned about people looking into his back yard and said barriers would be needed. He asked that no outside sound amplification or events occur and stressed the need to address alcohol as it can affect how events are conducted. Mr. Lent stressed the need to be a good neighbor if the use is approved. Mayor Rice asked if use of the walking trail disrupts Mr. Lent’s use of his property. Mr. Lent said it is not truly a walking trail and was located behind vegetation and does not bother them. Planning Commissioner Brewer spoke about the public hearing and resistance to the patio because of noise concerns coming across the river and noted the patio concept has been withdrawn by the applicant. Chair Kjonaas said he was comfortable that noise would be addressed through the nuisance ordinance. Mayor Rice agreed and said alcohol consumption concerns would be addressed through ordinance as well. Mayor Rice left the meeting at 6:10 p.m. Ms. Larson confirmed there would be no outdoor music and that guests would gather on the south side of the building to help address noise concerns. Councilmember Barnett said she was comfortable with the plan and confirmed staff would be onsite to address noise and parking concerns. Ms. Larson said they intend to use a preferred vendor list who understood the rules and regulations of the event center and know what is expected. Members of the audience shared concerns about when events coincide with car show weekends and how the two-hour parking limit did not allow enough time for lunch and shopping. Planning Commissioner Bonthuis agreed with the possibility of removing the grain bins to provide more parking. January 28, 2019 (Worksession) Page 5 of 10 Council consensus was to move forward with consideration of the Conditional Use Permit as requested. 3.2 Discussion; Comprehensive Plan - Density. Mr. Borglund shared a staff report with background information to Council stating the draft 2040 Comprehensive draft plan has been completed and as part of that draft plan the Planning Commission reviewed and updated the future land use plan. He said Councilmember Skogquist has requested the Planning Commission and City Council discuss certain neighborhood areas where he has concern with density going into the future and highlighted the four specific areas that have been identified in the 2030 land use plan and again in the 2040 land use plan as high density. Changes to the areas identified may reduce the required overall density of five units per acre for the City and that density may need to be made up somewhere in the City to meet Comprehensive Plan requirements. He said graphics and maps of the areas and noted the 2040 draft land use plan guides these areas as high density residential. Councilmember Skogquist explained he wanted to review some areas as they currently have single family homes and would not like to see the City advocate these areas as higher density. He said he used to live in one of the higher density areas and we should use the opportunity to infill with single family if changes occur and limit further density because we already have the CRTV and downtown areas for higher density. Mayor Pro Tem Freeburg said the City has already downzoned some areas from R-2 to R-1 to allow a house to be converted back to single family, adding the goal is to resurrect homes. Councilmember Barnett commented on the change to higher density was to meet the Metropolitan Council’s goals for density and commented on how the Highland Park area is changing but said her fear is the two areas will not equate so she would like to see the Planning Commission prioritize a list of areas with the greatest need for density. Councilmember Skogquist commented on the area by Kings Park, Fairoak, and McDonald’s as commercial and how it ties in with density and that the apartments are not going away. Mr. Borglund noted this area has already been accounted for in density calculations and referred to anticipated densities in the TOD areas. Resident at 1811 2nd Avenue, Anoka, (did not sign in) said he and his neighbors know some in this area are problem properties but said these are their homes. He asked why this area had to be rezoned, adding all the homes are historic and that they have done their best to preserve these properties and it would be a travesty to have that history destroyed. Planning Commissioner Brewer explained how properties would not be removed in an area unless there was a willing seller. January 28, 2019 (Worksession) Page 6 of 10 Mayor Pro Tem Freeburg sometimes new development is needed because some properties need to go away but said these homes are not the types of homes that need to go away. Resident at 1811 2nd Avenue, Anoka, (did not sign in) asked what was the purpose then of rezoning for higher density housing. Mr. Palmer explained about urban sprawl and how a plan for density of five units per acre has to be identified but that it does not have to be high density, adding the City would first look at areas closer to the TOD district to meet housing goals. HRA Housing Manager Darin Berger explained how the HRA purchased two homes and demolished them because they needed to be torn down and that while designating this area as high density would meet the Metropolitan Council’s requirements this is not a first step for redevelopment. He said while he understands the neighborhood’s concern this is not a focused area for the HRA but if it were, we would meet and discuss and move forward only if they were willing sellers, adding it is not the City’s intent to force any change on this neighborhood. Councilmember Barnett asked what happens if we do not comply with the Metropolitan Council’s requirements. Mr. Borglund said it could affect access to funding and while we are required by law to meet certain standards, we are an urban community that is very dense already. Mayor Pro Tem Freeburg thanked everyone for their attendance and participation. 3.3 Discussion; 4th Avenue River Site. Mr. Borglund shared a staff report with background information to Council that illustrated an “urban streetscape” and concept layout that would coincide with the architecture for a new potential neighborhood/subdivision located on 4th Avenue on the Rum River across the street from the VOA just south of the Cottages. He said the asking price was $860,000.00 based on the 51-lot layout the developer proposes in concept. He explained the development parameters included detached townhomes, owner occupied (no rentals) in a price range of $335,000- $395,000. He said the homeowner’s association would maintain the grass and snow; however, individual homeowners will own their own lots and will maintain their own homes in all other respects. He said the developer’s hope is that the City would finalize a plat of approximately 51 homes and said the proposed concept plat provided a reasonable layout of how these homes could be developed. He explained the homes would be two- or three-story residences with square footages from 1700-2500 plus double attached garages are the intended home sizes, on slab foundations (no basements) with front gables, cantilevered elements, shutters, contrasting siding and trim colors, and significant brick will add to the individuality of each home’s front exterior. Mr. Borglund explained the private interior streets with ample parking provided for guests and the intention to intermingle the two- and three- story homes so that a varied view from the curb will be achieved. He said the product would be aimed at buyers in their 20’s and 30’s and the developer believed that the combination of the proximity/walkability to downtown Anoka, the aesthetics of the Rum January 28, 2019 (Worksession) Page 7 of 10 River, the Anoka- Hennepin School District and the proximity to the Northstar Commuter Light Rail station are all excellent reasons to expect a prompt sell-out of these homes. Councilmember Wesp confirmed the project would include private streets and buildable amounts comparable to Weston Woods, adding he was pleased the product would be owner occupied as that is the direction the City wants to go. Mr. Borglund said the Planning Commission spoke about driveway lengths and increased setbacks and said the City has a letter of intent from the developer and if consensus from the Council is received staff will bring forward a purchase agreement for formal review and then work through the development process with the Planning Commission and City Council. Major Pro Tem Freeburg stressed the importance of saving trees on this site wherever possible. Councilmember Skogquist agreed, stating he did not want to see clear-cutting occur like the Weston Woods project. Mike Holly, developer, shared information on the proposed project, stating they typically build upper bracket homes in the southwest suburbs. He said they were intrigued by this site and the concept for these detached townhomes came from a California architect. He said Anoka was a charming city and that buyers would choose their model and materials and the site would include amenities such as a gazebo, miniature golf course, jogging trails, and sport court. Council consensus to move forward with project as proposed. 3.4 Discussion; Sale of Woodbury House. Mr. Lee shared a staff report with background information to Council stating the City Attorney and staff have been working with Tim and Liz Koch of the Mad Hatter and their attorney to develop a purchase agreement for the sale of the Woodbury House. Staff provided an update related to those discussions and the status of the purchase agreement and asked for Council input prior to bringing an item forward for formal consideration. Mr. Borglund referred to the trail easement and how the Kochs had some concerns about conflicts with the public trail during special events such as weddings. Mayor Pro Tem Freeburg confirmed the stone wall would not need to move. Mr. Baumgartner said the Council understands they cannot commit to a trail location yet and that we want to keep both options open, adding if the trail easement goes along the bluff line it would be acceptable as long as the use remains a restaurant then the trail would not be open to the public. Councilmember Skogquist referred to the purchase price of $807,000 and asked about the value of the easement. Mr. Borglund said the appraiser recognized the easements but the January 28, 2019 (Worksession) Page 8 of 10 most recent easement was not accounted for and would go towards the tradeoff of reconstructing parking stalls. Councilmember Barnett asked if $47,000 was fair market value for the area being taken away. Mayor Pro Tem Freeburg said that was difficult to say as value is more in making something work and said he would be in favor of the easement in front. He asked if we have to have both easements and suggested using one as an option and the other on the bluff for potential new owners. Mr. Baumgartner said if the Council agrees not to utilize the bluff trail easement then it is just not used unless the parties agreed. He said they might find the value at some point to construct the trail at some point in the future. Councilmember Barnett asked what happens if the Kochs choose to sell. Mr. Baumgartner said the easement could be written to either run with the property or not. Attorney (did not sign in) for the Kochs, said if they become the property owners, they would want the condition to run with the land as it allows more flexibility in future sales. Councilmember Skogquist said while we may not know now what the best option is making the decision now may not be good, adding the option was to sell the property as a residential but then it was made commercial, adding a future residential property may not want a trail there either. Mayor Pro Tem Freeburg asked if both easements are recorded. Mr. Baumgartner said if the trail and bluff line easements are not used you are removing the option to place the trail in this location. Mr. Lee said the City would want to keep options open, adding while outdoor weddings and events are part of the business plan, we would want them to be successful but noted that business plan could change. Liz Koch said weddings were not the bulk of their business but they do conduct outdoor activities. Tim Koch said the trail would be a concern too for insurance reasons. Councilmember Barnett said she would support giving the space but was unsure about the future, adding this was not the same experience for the downtown trail walk and questioned about point of sale and bringing it back, adding we do not want this area locked in forever. Mayor Pro Tem Freeburg agreed we do not want to affect a river trail going forward 50 years. Attorney (did not sign in) for Kochs said the property could be sold in the future by the Kochs but operated the same way but if sold and no longer operated as a restaurant or in a way not envisioned by the City then the City could construct the trail. January 28, 2019 (Worksession) Page 9 of 10 Mr. Baumgartner said there was language included in the purchase agreement that if the property was not utilized as a restaurant it would trigger events that would lead to trail construction. HRA Chair Youngquist referred to history of the property and said the HRA lost an earlier buyer for this site as a single-family residence because of the potential trail. He commented that had he known this would become a commercial use he may have changed his vote and while he hopes all goes well, he is not pleased with the parking lot. Chair Youngquist said the façade easement was put in place to protect the property and felt the parking lot was an encroachment of that easement and that extension is being considered. He also expressed concern about the lack of down payment for this transaction. Mr. Baumgartner said the Kochs’ investment has been accomplished through remodeling and leasehold improvements and noted the City can still cancel the contract for deed. Mr. Koch outlined the work they completed including demolition and improvements and said they want to see the property protected as well. He said they worked hard to keep the integrity of the home intact and will continue to do so. Ms. Koch shared staff knew how hard they worked and that the façade easement was already addressed. Mr. Berger said façade easement encroachment was subject to interpretation and did not allow structures or parking lots parked up front. Mayor Pro Tem Freeburg asked if the new parking lot would be encroaching farther down the northern parcel. Mr. Borglund said this would be an encroachment based on definition. Mr. Lee said staff will review the easement again but noted it referred to view shed easement and erecting structures which implies an elevation difference. Mr. Neilson referred to the revenue provision of default and sale and would have suggested a down payment but was unaware of the sweat equity already in the project. Councilmember Skogquist said he did not like the City giving up the trail option and said while he knows that affects the value of the property, we need to keep the option open, adding this was the reason the property was not purchased in the first place. He said if we do want something on the southern half of the road there is the cost of the parking lot and the view shed easement and suggested those spaces be available in the Carpenter lot for the duration of the lease of the restaurant and then include 12 more City spaces outside the wall instead. January 28, 2019 (Worksession) Page 10 of 10 Mr. Baumgartner said that action would encumber the Carpenters’ lot. He shared the façade easement agreement and said encroachment is defined as something permanent obstructing the sight line. Mayor Pro Tem Freeburg said he does not believe the parking lot obstructs the view. Commissioner Bonthuis asked if there is a plan to put the trail through in the near future. Mr. Lee said a committee had been formed to review options for future Councils and that a decision will take a while. Mayor Pro Tem Freeburg said people will use the trail no matter what the use and said the easement should be removed from the sidewalk area. Mr. Lee commented how this site is one of the greatest success stories in Anoka based on the work from the HRA, City, and Kochs that resulted in a historic building being preserved that positively interacts with City history while generating new tax dollars with the sale returning tax dollars with interest. Park Commissioner Anderla commented that getting by the area safely is important and how we cannot build any closer to the bluff area anyway items such as a patio area. He said as a citizen he was concerned about who paid for the parking lot and the costs needed to relocate the sidewalk. Mayor Pro Tem Freeburg said those costs have been included in the sale price. Chair Youngquist said he was still concerned about interfering with the view of the house from Highway 169 as this site is the gateway into Anoka. Ms. Koch said the new parking plan only adds two more stalls and said cars are partially screened by the stone wall. Council consensus was to bring forward a purchase agreement for consideration on February 4. 4. OTHER BUSINESS 4.1 Staff Update. None. 5. COUNCILMEMBERS COMMENTS None. 6. ADJOURNMENT Mayor Pro Tem Freeburg adjourned the Regular Worksession meeting at 8:00 p.m. Submitted by: Cathy Sorensen, TimeSaver Off Site Secretarial, Inc. Approval Attestation: Amy T. Oehlers, City Clerk