Anoka City Council

February 19, 2019 (Regular) Page 1 of 17 REGULAR MEETING OF THE ANOKA CITY COUNCIL ANOKA CITY HALL CITY COUNCIL CHAMBERS FEBRUARY 19, 2019 1. CALL TO ORDER Mayor Rice called the meeting to order at 7:00 p.m., followed by the Pledge of Allegiance. 2. ROLL CALL Present at roll call: Mayor Rice, Councilmembers Barnett, Freeburg, Skogquist, Wesp. Staff present: City Manager Greg Lee; Police Captain Jay Anderson; Community Development Director Doug Borglund; Associate Planner Clark Palmer; Communications and Recycling Manager Pam Bowman; Water and Sewer Department Supervisor Pete Klingenberg; Public Services Administrator Lisa LaCasse; Public Services Director Mark Anderson; and Recording Secretary Cathy Sorensen. Absent at roll call: None. 3. COUNCIL MINUTES 3.1 Minutes of the February 4, 2019, Regular Meeting. Councilmember Skogquist noted a correction was needed to Page 10, first paragraph: Mayor Rice said this parcel is essential for “parking” access… Councilmember Wesp confirmed there was no need for minutes from the February 7 goals session. Motion by Councilmember Wesp, seconded by Councilmember Barnett, to waive the reading and approve February 4, 2019, Regular Meeting minutes as corrected. Vote taken. All ayes. Motion carried. 4. OPEN FORUM 4.1 Police Activity Update. Police Captain Jay Anderson thanked Public Works staff for their great work ensuring City roads were safe and clear for residents and for emergency responders. He shared about the recent increase in tax scams and cautioned people to be aware of such scams. February 19, 2019 (Regular) Page 2 of 17 Nicole Neis, Police Department, shared about the City’s first Safety Camp which will be held on June 25 at George Enloe Park. She said 90 3rd and 4th graders will learn about safety with the goal to teach ways to avoid unintentional injuries. She thanked the current partners in the event that included the Anoka/Champlin Fire Department, Allina Health, and others Councilmember Barnett asked when registration will begin. Ms. Neis said registration will open mid-April both online and through the schools. 5. PUBLIC HEARING(S) 5.1 On-Sale Wine/Strong Beer/3.2 Malt Liquor License; Ambi Wine Bar LLC, 2015 2nd Avenue, Anoka. RES/Issuance of an On-Sale Wine/Strong Beer/3.2 Malt Liquor License; Ambi Wine Bar LLC, 2015 2nd Avenue, Anoka. RESOLUTION City Manager Greg Lee shared a staff report with background information stating the City has received an application for an On-Sale Wine/Strong Beer/3.2 Malt Liquor License from Ambi Wine Bar LLC, 2015 2nd Avenue. Staff has conducted the necessary background investigations and inspections and no concerns or objections have been expressed. The premise is undergoing some remodeling, so a final Certificate of Occupancy has not yet been issued by the Building Official. Mayor Rice opened the public hearing at 7:11 p.m. Jessica Pratt, Ythan Pratt, and James Good, owners, presented their plans for this new business and thanked the City for their consideration. They said they were very excited to be in Anoka and said Ambi Wine Bar had vast potential, will be a very good fit, and will serve the public well. Being no other comments Mayor Rice closed the public hearing at 7:13 p.m. NOTE: By motion from Councilmember Freeburg, which was seconded by Councilmember Wesp, and by a unanimous vote of the Council, agenda item 9.1 was moved up on the agenda and acted upon at this point. Motion by Councilmember Freeburg, seconded by Councilmember Barnett, to adopt a resolution approving the issuance of an On-Sale Wine License with Strong Beer Authorization and On-Sale 3.2 Malt Liquor to Ambi Wine Bar, LLC, dba; Ambi Wine, 2015 2nd Avenue, Anoka, Minnesota. Councilmember Freeburg said he was excited to have Ambi in the City and wished them the best of luck. February 19, 2019 (Regular) Page 3 of 17 Councilmember Skogquist said he looked forward to attending their opening event and to see their success. He noted he would be abstaining from consideration of this item due to being related to one of the owners. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Freeburg, and Wesp voted in favor. Councilmember Skogquist abstained. Motion carried. 5.2 Wellhead Protection Plan and Public Hearing. Water and Sewer Department Supervisor Pete Klingenberg and Mark Sherrill from SEH stating the City is in the process of updating the Wellhead Protection Plan for its drinking water supply wells. This is a requirement of the Minnesota Department of Health (MDH). The Wellhead Protection Plan must include delineation of the Wellhead Protection Area, Drinking Water Supply Management Area (DWSMA) boundary, Well and Drinking Water Supply Management Area Vulnerability assessment, and an educational component. Mr. Klingenberg said the Wellhead Protection Plan is used to identify and rate wells for their vulnerability based on factors identified by the MDH. This results in a standardized rating structure for all Wells. The City has eight Drinking Water Supply Wells that provide water for our residents and Wells 1 and 2 have been idled for several years due to the difficulty in daily operation as well as the need for equipment upgrades. The remaining six wells produce water to meet the demands of the City and this daily demand will range from 1.5 million gallons a day (MGD) to as high as 6 MGD in the heat of summer. He explained which wells were listed as vulnerable and non-vulnerable and how the City places the greatest importance on the production and distribution of safe and quality drinking water. Councilmember Freeburg referred to the number of water towers and asked about the possibility of running out of water in the future. Mr. Sherrill spoke on management strategies for wells and best management practices and said the Twin Cities was in good shape with 300 feet of aquifer and that there were no concerns about water amounts any time soon. Councilmember Skogquist asked questions regarding Wells 3, 6 and 8 and the potential to high risk due to location of privies. Mr. Klingenberg said specific well locations were protected for security purposes. Mr. Sherrill explained the MDH’s vulnerabilities status and what is allowed that includes surveys twice a year with management strategies to remove drainfields if needed. Councilmember Skogquist said he was surprised by the number of private wells in the City and asked if they were all active. Mr. Klingenberg said some wells were still active and that the MDH monitors and makes that determination. February 19, 2019 (Regular) Page 4 of 17 Mr. Sherrill spoke how the MDH tracks all wells and updates the database once confirmation of wells sealed. He spoke on the DWSMA and outlined the 10-year travel cycle of water, emergency preparedness and vulnerabilities. Mayor Rice opened the public hearing at 7:28 p.m. Being no comments Mayor Rice closed the public hearing at 7:28 p.m. 5.3 Vacating a Portion of Drainage and Utility Easement for Lot 6, Block 2, Anoka Enterprise Park Second Addition, 3601 Thurston Avenue. RES/ Vacating a Portion of Drainage and Utility Easement for Lot 6, Block 2, Anoka Enterprise Park Second Addition, 3601 Thurston Avenue. RESOLUTION Associate Planner Clark Palmer shared a staff report with background information stating in 1994, the City of Anoka approved the Anoka Enterprise Park Second Addition plat which included the property located at 3601 Thurston Avenue. As part of the plat, drainage and utility easements surrounding the property were dedicated. In 1995, the subject property obtained a site plan approval for a proposed office building. A small portion of the building was constructed within the dedicated drainage and utility easement. The owner of the property, Hakanson Anderson Building Partners, is asking for a vacation of the portion of the drainage and utility easement encroached upon by the building. Currently a storm sewer is centered within the existing drainage and utility easement. Anoka engineering staff advised, if approved, the vacation will not affect the City’s ability to maintain the storm sewer line because a 15-foot separation would remain between the existing storm sewer pipe and nearest corner of the building. Mayor Rice opened the public hearing at 7:34 p.m. Being no comments Mayor Rice closed the public hearing at 7:34 p.m. NOTE: By motion from Councilmember Freeburg, which was seconded by Councilmember Skogquist, and by a unanimous vote of the Council, agenda item 9.1 was moved up on the agenda and acted upon at this point. Motion by Councilmember Freeburg, seconded by Councilmember Wesp, to adopt a resolution vacating a portion of drainage and utility easement for Lot 6, Block 2, Anoka Enterprise Park Second Addition/3601 Thurston Avenue. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Freeburg, Skogquist, and Wesp voted in favor. Motion carried. 6. CONSENT AGENDA February 19, 2019 (Regular) Page 5 of 17 Motion by Councilmember Wesp, seconded by Councilmember Barnett, to approve Consent Agenda 6.1 through 6.5. 6.1 Approve Verified Bills. 6.2 Revising and Setting Council Calendars. 6.3 Recommended Approval of an LG220 Gambling Permit for Church of St. Stephen, 525 Jackson Street, April 27, 2019 (Raffle). 6.4 Approval of a Temporary On-Sale Liquor License for Church of St. Stephen, 525 Jackson Street, April 27, 2019 (Spring Fling). 6.5 Issuance of a Massage Therapist License for Brianna Moliter of Anoka at Anoka Massage and Pain Therapy, 710 East River Road. Vote taken. All ayes. Motion carried. 7. REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 7.1 Parks and Recreation Advisory Board 7.1.A. Annual Park Project Review. Public Services Administrator Lisa LaCasse introduced Parks and Recreation Advisory Board Chair Steve Nelson who shared the annual park project review. He outlined the Board’s role in the City with the recent Comprehensive Plan review, shared details and photos of Riverfront Memorial Park, Veterans Plaza/stage, Anoka Aquatic Center, and 2019 goals and thanked staff for their outstanding work. Chair Nelson shared about the West Rum River trail “Riverwalk” concept plan grant funding that they will be trying for again. He outlined the Mississippi Community Park wood planter box replacement with landscape blocks, the Comprehensive Plan 2040 update, and the aquatic center’s new hexapod play structure and improvements to the lobby, desk and lighting, outdoor lockers, deck chairs, etc. He updated the Council on the Anoka Nature Preserve buckthorn cutting and treatment, downtown décor, 2018 programs and special events that included Winterfest, Waterfowl for Warriors and Youth Waterfowl Day Hunt, American Legion Legacy Ride, Halloween Pickle Ball Tournament and other Halloween events including the KARE 11 Sunrise broadcast, Veterans Day celebration and park dedication, and the annual tree lighting ceremony. He recapped donations from ARAA for the baseball field, memorial bench on the Rum River trail, and interpretive signs at Mississippi River Community Park, and introduced Eagle Scout William Johns from Troop #233 who completed his Eagle Scout project in the City. February 19, 2019 (Regular) Page 6 of 17 William Johns thanked City staff for their assistance in making the project go so smoothly. Councilmember Wesp shared about a similar Purple Line project many years ago and thanked Mr. Johns for his commitment to the City. Councilmember Skogquist thanked the donor for the memorial bench and shared his congratulations with Mr. Johns. Chair Nelson outlined proposed 2019 projects that included tennis court reconstruction at George Green Park and Sunny Acres, trail system maintenance, Anoka Nature Preserve pond excavation, Station Park dredging for canoe launches and Riverfront Memorial Park parking. Councilmember Barnett inquired about expansion of rental boat slips. Ms. LaCasse said that will likely occur in 2020 and that staff is currently reviewing the demand and whether they need to expand at Aikin Park or another park location first. 7.1.B. Rudy Johnson Park Master Plan. Ms. LaCasse shared the planning process for Rudy Johnson Park located at 611 Polk Street just south of Highway 10 at the intersection of 6th Ave and Polk Street. This 2.7-acre park serves as the neighborhood south of Highway 10 to Main Street and from the Rum River to 9th Avenue. In addition, the park is the primary outdoor physical education space for the Washington Campus of the Anoka Middle School. As part of the Rudy Johnson Park master planning process, staff and Bolten & Menk, Inc. met with representatives from Anoka- Hennepin Schools (AHS), provided an online survey for the neighborhood, and held an open house at the park in an effort to gain input, generate excitement for the plan, and garner community support. The City mailed over 350 postcards to the residents within the neighborhood requesting participation in the survey and open house and received 70 survey responses with four people attending the open house. She outlined existing park features and timeline of public input and shared results about which facilities were currently used most and what new amenities would be used such as a multi-purpose trail. Ms. LaCasse shared Concepts A, B, C that included items such as pickle ball courts and a dog run/park area and stated the Park Board approved a hybrid of the three proposed plans that included an updated playground, building improvements and walking track, updated hockey rink and picnic equipment, pickle ball courts, walking loop, and new lighting for the skating facility. Ms. LaCasse shared the $800,000 cost estimate and said phasing would likely be necessary. Councilmember Wesp asked if the youth athletic association rents the fields. Ms. LaCasse said the association typically does not rent the field as it is not large enough. February 19, 2019 (Regular) Page 7 of 17 Councilmember Wesp asked if the school district rents the fields. Ms. LaCasse replied no but that they do utilize the fields during off-peak times during the day and that the District is currently evaluating potential funding for this project. Councilmember Skogquist referred to the playgrounds at Washington School with the leverage to remove the play structure and said he was pleased with the result as the school district was happy with the multi-purpose area. He commented on the confined general skating area and asked about Rudy Johnson skating rink usage. Ms. LaCasse said usage was steady with a good group of regulars using the rink for broom ball, etc. Councilmember Barnett asked if the add-on options were included in the overall estimate and asked if the chain link fence was for the school or parents’ and asked about delineations of the walking path. Ms. LaCasse said the estimate did not include add-ons and that the fence was not a key feature for the school as they want an open play area and walking loop. She said the hard-court hockey surface would be good for the school for other uses such as pickle ball and that lighting would provide night skating. She noted the parking lot could be phased as well and that the building needs attention. Councilmember Freeburg inquired about including pickle ball courts. Ms. LaCasse said they did not believe the neighborhood could support pickle ball based on current demographics and that tennis courts at Sunny Acres or Sorenson Park would be better suited for pickle ball. She noted they could include access to temporary netting though that would allow matches for 4-6 people. Councilmember Wesp inquired maintenance of the rinks and warming houses and if the school district was allowed to use them for skating events, similar to the band shell at George Enloe. Ms. LaCasse confirmed the proposed plan suited the district’s needs. Councilmember Wesp asked how future Highway 10 construction will affect this park. Mr. Lee said the construction will have no impact to this park. Councilmember Freeburg asked if funds were set aside through park dedication. Ms. LaCasse said funds were identified for 2020 and 2021 but that not enough has been budgeted which is the reason for the phased plan and that further financial analysis would be needed and funds identified. Councilmember Freeburg said this was an important park to this neighborhood and thanked the Park Board and staff for their work on this plan. Motion by Councilmember Freeburg, seconded by Councilmember Skogquist, to approve the Rudy Johnson Park Master Plan as presented subject to allocation and identification of funding. February 19, 2019 (Regular) Page 8 of 17 Mayor Rice asked if the current irrigation will soften the area enough as the ground surfaces were quite hard. Ms. LaCasse said irrigation would not be enough and that the grade will have to be reestablished. Councilmember Barnett thanked staff for conducting the online survey and engaging the public in unique ways as it was very impactful, adding a 20% response rate is great on any survey. Mayor Rice commented on school–aged children and the popularity of smaller rinks for boot hockey and use by both the neighborhood and outside the neighborhood. Ms. LaCasse said the survey was sent to school and staff as well and agreed that smaller rinks are actually more popular and versatile than full sheets. Councilmember Skogquist was pleased the rinks nets could be moved to make smaller skating areas and noted people were very happy to be asked for their input and that this park is in need of repair. He said improvement to the playground and multi-purpose areas will be big asset to the City. Vote taken. All ayes. Motion carried. 8. PETITIONS, REQUESTS AND COMMUNICATION None. 9. ORDINANCES AND RESOLUTIONS 9.1. RES/Issuance of an On-Sale Wine/Strong Beer/3.2 Malt Liquor License; Ambi Wine Bar LLC, 2015 2nd Avenue, Anoka. ACTED UPON AFTER PUBLIC HEARING 9.2 Wellhead Protection Plan and Public Hearing. ACTED UPON AFTER PUBLIC HEARING 9.3 ORD/Establishing Chapter 2, Article VI, Division 7, Relating to the Waste Reduction and Recycling Board. (1st Reading) Communications and Recycling Manager Pam Bowman shared a staff report with background information to the City has after several discussions, Anoka’s Waste Reduction & Recycling Board (WRRB) has determined it is necessary to update Resolution No. 1998-37, Establishment of Waste Reduction & Recycling Board and convert it to an ordinance, to better accommodate the Board’s needs. Instead of updating the Resolution, a new section of the City Code is being proposed for February 19, 2019 (Regular) Page 9 of 17 establishment. The majority of our Boards/Commissions are established and designated within the City Code; therefore, staff is proposing that the Waste Reduction & Recycling Board also be included within the City Code. Ms. Bowman outlined the significant changes including document signing, attendance, and increasing the Board size from 5 to 7 members and stated meeting agendas will be prepared accordingly. Motion by Councilmember Barnett, seconded by Councilmember Freeburg, to hold first reading of an ordinance establishing Chapter 2, Article VI; Boards and Commissions, Division 7. Waste Reduction & Recycling Board of the Code of the City of Anoka Minnesota. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Freeburg, Skogquist, and Wesp voted in favor. Motion carried. 9.4 RES/Approving Agreement for collection of Soft Recyclables with Great Lakes Recycling, Inc., dba Simple Recycling. RESOLUTION Ms. Bowman shared a staff report with background information to the Council stating Anoka’s Waste Reduction & Recycling Board (WRRB) continues to seek additional ways to make recycling convenient for City residents while finding ways in which to achieve its annual recycling tonnage goal. The WRRB received information about a curbside collection program of clothing and household goods called Simple Recycling. After research, discussion, and review, the WRRB approved the Agreement to move forward with this program which allows residents a simple, easy and free way to recycle clothing, shoes, accessories and other household discards such as kitchenware, tools, toys, and home goods, and books. This keeps these items out of a landfill. This curbside service is for properties of one to four households (about 4,600 households in Anoka). This program is managed by Simple Recycling, with City staff assisting with education to inform residents. Simple Recycling will handle all details, customer inquiries, etc. There is no cost to the City or to the residents. Simple Recycling is a for profit business. Items received from residents are not considered a donation and therefore, residents will not receive a tax donation form. Residents do not have to use the service, it is provided as a convenience option and to help detour items from the landfill. She confirmed no cost to the City and hope to roll out in the spring. Councilmember Barnett asked if this contract would divert many textile donations instead towards for-profit. Ms. Bowman said they would work to share marketing materials that if there is good-quality product to continue to donate and that this service would stress poor-quality textiles towards the for-profit so organizations do not suffer. February 19, 2019 (Regular) Page 10 of 17 Councilmember Barnett cautioned against using the drop off bins as there are too many already and lead to maintenance concerns. She also asked about collection in apartment dwellings. Ms. Bowman said that apartments were challenging and that the firm has not yet identified a collection process within any city yet at this point. Motion by Councilmember Freeburg, seconded by Councilmember Skogquist, to adopt a resolution approving agreement for collection of soft recyclables with Great Lakes Recycling, Inc. dba Simple Recycling; to collect, haul, recycle and/or properly dispose of soft recyclables from the City of Anoka service area. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Freeburg, Skogquist, and Wesp voted in favor. Motion carried. 9.5 ORD/Sale of Woodbury House, 1632 S. Ferry Street. (2nd Reading) ORDINANCE Community Development Director Doug Borglund shared a staff report with background information stating the City Council held first reading and made one change to the proposed Purchase Agreement/Contract for Deed to reflect that the buyers have been and will continue to be responsible for property taxes. The City has been in discussions with TLK Enterprises regarding property known as 1631 Ferry Street or the Woodbury House. The City considering entering into a Purchase Agreement/Contract for Deed to sell the historic property to TLK Enterprises LLC (Liz and Tim Koch owners of the Mad Hatter Restaurant). The Koch’s currently lease the Woodbury House from the City to operate their well- known restaurant. The subject property is made up of one parcel equaling 2.30 acres in size and includes a two story, 4,169 square foot building that has been renovated and preserved by the City of Anoka. The City had the property appraised in the spring 2018. The property appraised for $807,000.00. The City has received an offer of $807,000.00 for the land and building contingent upon the City Council’s approval to entering into an agreement with TLK Enterprises. He stated closing would occur in the spring. Councilmember Skogquist said he was pleased with the process but said it was important to leave options available regarding the bluff, adding the home has been on the site since the 1800s. He suggested amending Item 7(j) to state so long as the structure was operated as a restaurant by TLK Enterprises or Tim and Liz Koch as owners or for 10 years. Motion by Councilmember Skogquist, seconded by Councilmember Freeburg, to hold second reading and adopt an ordinance to convey real estate property to TLK Enterprises, LLC as amended. February 19, 2019 (Regular) Page 11 of 17 Councilmember Freeburg stated it seems late to be making this change. Jim Baumgartner, attorney for Jim and Liz Koch, commented on the proposed amendment and said they want to maintain the status quo they have now and be allowed to use the structure as a restaurant without the river bluff trail becoming public. He noted the 10-year condition was not discussed and that the owners intend to operate as a restaurant. Mayor Rice confirmed the action was about the trail easement and agreed with Councilmember Skogquist that the City should reserve its right to the trail easement but that based on the good faith displayed between the City and the Kochs public use of the trail easement will not occur unless the Kochs are no longer owners. Councilmember Freeburg said he understood the easement would not be used as long as the Kochs remain and operate as a restaurant but if the property was sold a trail could be created. Councilmember Wesp said if we chose to move forward with the trail sometime in the future the Kochs would have to agree to enact the easement. Councilmember Skogquist said the $807,000 was based on an unrestricted trail easement and if not changed would allow the ability for anyone in the future to restrict trail access. He said there was no change in price but they are increasing their rights to the property including anyone after the Kochs who could stop a trail from going through. He said he wanted to protect the Kochs but did not want any potential future restaurant owners to be able to restrict trail access. Mayor Rice said the property will likely always be operated as a restaurant and if this motion fails, we still need to amend language in wording in Item 7(j) as the purchase of the house included a trail easement to protect the legacy of the most historic house in Anoka and it was important to have a trail easement which currently was not the case and that we should then start over with the appraisal. He said 10 years was a reasonable estimate and if we do not include, then it sunsets when the Kochs sell and could be renegotiated with the new owners. Mr. Baumgartner said the earlier purchase agreement fell through because of this same issue and his clients were aware this was an issue as it impacts use of the property but shared how their guests were concerned should they rent the backyard area for events and public use of a trail would impact events and their use of the property. Mayor Rice said the Kochs’ concerns would be quieted if they saw how little people use the trail on the other side of the river. February 19, 2019 (Regular) Page 12 of 17 Councilmember Wesp said he has seen undesirable activity along the trail and this was a chance to get the parcel back on the tax rolls while continuing its use as a restaurant. Upon a roll call vote: Mayor Rice, Councilmember Skogquist voted in favor. Councilmembers Barnett, Freeburg, Wesp voted nay. Amended motion failed. Motion by Councilmember Freeburg, seconded by Councilmember Wesp, to hold second reading and adopt an ordinance to convey real estate property to TLK Enterprises, LLC as proposed in the staff report. Councilmember Freeburg said this is a great opportunity to renovate this building and that Public Services Director Mark Anderson did great work overseeing renovation of this project. He said the concerns will all work out 15 years from now and that presently they were addressing a sale of a historic property to good people and that trying to change the terms at the last minute was not good business. Councilmember Skogquist said he had shared his concerns at both worksession and the last Council meeting and would not support the motion as proposed. He said he did not want to make it difficult for the Kochs but was concerned about how any future owners would cooperate. He said this property was a wonderful asset to the City and it was important to preserve the easement. Councilmember Barnett said she did not to jeopardize the agreement and wanted the easement to stay with the Kochs but also wanted to preserve space for the City. Councilmember Wesp said the Kochs could walk away from this purchase, adding they have been good tenants during this five-year lease and good stewards of the property, adding if the sale falls through, we will be responsible for maintenance of the site. He said when someone sells sometimes things are given up in exchange. Mayor Rice said he was confident this action would not affect the sale as the Kochs are motivated. He said both sides appreciate the mutual relationships but we cannot surrender the property in perpetuity and encumber future City Councils. Councilmember Wesp asked if the Kochs would be supportive of an amendment saying they agree to a future trail or give up their right to the easement until they sold. Mr. Baumgartner said that was not their understanding of the agreement and that the entity purchasing the property was separate from the restaurant operator, adding their concern would be should they try to sell to a future owner who would be concerned about the trail easement too. February 19, 2019 (Regular) Page 13 of 17 Councilmember Wesp said it was not good practice to change things from first reading. Mayor Rice said that is why two readings are held and that this should not be that much of a surprise to the Kochs. He said the City has made tremendous sacrifices with this property that have provided for this business to be successful and they should know that we will continue to do so. Councilmember Freeburg said but if we had not assisted, we would have had a failing project and building. Mayor Rice agreed but noted the City also constructed a parking lot for the site. Upon a roll call vote: Councilmembers Freeburg, Wesp voted in favor. Mayor Rice, Councilmembers Barnett, Skogquist, voted nay. Motion failed. Mayor Rice said the Kochs attorney will present the City’s concerns to his clients for reconsideration and suggested language amendment that included protecting the City’s right and not vacating the easement. He said he apologized for the change but felt strongly including the word “and” in Item 4(j) was important to protect the City’s rights and not vacate the easement and that this should not be that big of a concern to them. Councilmember Freeburg asked if Mayor Rice was okay if the sale fell through. Mayor Rice replied the City would still own a property appraised at $807,000 and that there are other users who would relish an opportunity to use the building at this location. Councilmember Freeburg noted restaurant businesses are very risky. Motion by Councilmember Skogquist, seconded by Councilmember Barnett, to hold second reading and adopt an ordinance to convey real estate property to TLK Enterprises, LLC, amending 7(j) removing the 10-year requirement and allowing the easement to remain unused as long as the restaurant is operated on the property by TLK Enterprises with Tim and Liz Kochs as owners. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Freeburg, and Skogquist voted in favor. Councilmember Wesp voted nay. Motion carried. 9.6 RES/Adopting 2019-2020 Goals. RESOLUTION Mr. Lee shared a staff report with background information to the Council stating at the Goals Session on February 7, 2019, the City Council discussed overall City goals for 2019-2020. Based on that discussion, the City Council goals for 2019- 2020 are established in the proposed Resolution that incorporated goals around development, redevelopment, housing, finance, parks, trails, rivers, roads, transportations and included all councilmembers boards, commissions. He stated February 19, 2019 (Regular) Page 14 of 17 staff will provide the City Council with a Goals Status Report throughout the year and communicated to all City staff. Motion by Councilmember Freeburg, seconded by Councilmember Barnett, to adopt a resolution adopting the 2019-2020 City goals. Councilmember Wesp commented on the accomplishments in 2018 and thanked all City employees for their tremendous work in being goal-oriented. He said there was significant work also with the City’s Boards and Commissions and thanked staff for the great work they do facilitating their work. Mayor Rice a lot going on in the city and nice to see the direction. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Freeburg, Skogquist, and Wesp voted in favor. Motion carried. 9.7 ORD/Purchase Agreement; City’s Sale of City Owned Parking Lot Area. (2nd Reading) ORDINANCE Community Development Director Doug Borglund shared a staff report with background information stating the City Council held first reading on February 4, 2019 at its regular meeting and had no concerns. The City has been in discussions with DJL Properties LLC (Jerry and Dione Leone) regarding property to be known as Parcel A, That part of Lot 6, Pillsbury-Washburn Subdivision. The property is zoned Main Street Mixed Use West Main Sub-district. The subject property is made up of one parcel equaling 4, 017 square feet in size created by the City. The buyer DJL Properties LLC is the owner of property and a multi- story commercial building known as 2040 Ferry Street and/or the Leone’s commercial building. The plan is to sell the existing parking lot area adjacent to the commercial building, which will create permeant parking for the existing building. Historically, this same parking lot area had been leased to DJL Properties LLC. DJL is in process of trying to sell the commercial building. The City has received an offer of $2.50 per square foot or a total of $10,000.00 for the 4,017 square foot parcel contingent upon the City Council’s approval to enter into a purchase agreement. This offer is consistent with the estimated value as established by the City Appraiser. The City Attorney from a legal perspective is satisfied with the purchase agreement. Councilmember Skogquist confirmed the 5-foot trail easement would allow movement of the parcel line to the east for pavement and edge of parking for maintenance. Mr. Borglund confirmed the applicant was meeting the setback and the easement would allow for the trail. February 19, 2019 (Regular) Page 15 of 17 Councilmember Skogquist asked how much land was between the edge of the parking lot and edge of the bank. Mr. Borglund the area was approximately 25 feet and provided sufficient space. Motion by Councilmember Skogquist, seconded by Councilmember Barnett, to hold second reading and adopt an ordinance to convey real estate property to DJL Properties, LLC. Councilmember Barnett stated the action would provide more space, result in no maintenance, and was a good business decision. Mr. Borglund agreed, adding it was a good economic development tool as well as parking was essential. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Freeburg, Skogquist, and Wesp voted in favor. Motion carried. 9.8 RES/Dedication of a Trail Easement for That Part of Lot 6, Pillsbury-Washington Subdivision. RESOLUTION Mr. Borglund shared a staff report with background information to the Council stating staff has been working with the owners of 2040 Ferry Street who would like to purchase property from the City. Prior to the City a considering purchase agreement and selling the subject property, a Pedestrian Trail Easement for that part of Lot 6, Pillsbury-Washington Subdivision, Anoka County, Minnesota should be considered. The Pedestrian Trail Easement would provide for adequate space for a future bituminous trailway across the property. Motion by Councilmember Freeburg, seconded by Councilmember Skogquist, to adopt a resolution approving the dedication of pedestrian trail easement for Lot 6, Pillsbury-Washburn, Anoka County, Minnesota. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Freeburg, Skogquist, and Wesp voted in favor. Motion carried. 9.9 RES/Development Agreement Between City of Anoka and BRB Development LLC. RESOLUTION Mr. Borglund shared a staff report with background information to the Council stating staff along with the City Attorney have drafted a Development Agreement between the City of Anoka and BRB Development LLC which encompasses the construction of a 4 story, 103,000 square foot indoor storage building and necessary site improvements to be known as "The Lock Up". This site is 2.00 acres in size and is located at 11th Avenue and North Street. The site is being sold February 19, 2019 (Regular) Page 16 of 17 to BRB Development LLC from the City of Anoka. The agreement includes the following points of interest: under this agreement, the Developer will be required to construct the project as approved by the City of Anoka City Council through its development review process; the developer will be responsible for the construction and all cost associated with the extension of private sewer to serve the development site and other necessary utilities; BRB Development LLC will pay normal development fees including building permit, utility connection charges, and any other financial requirements stated in this agreement. The BRB Development LLC has been provided a copy of the draft agreement for review. At this time, there are no recommended changes. The City Attorney has approved this document. Councilmember Skogquist asked about a remedy if not started by a certain date. Mr. Borglund explained there was typically a buy-back clause included for the same purchase price. Councilmember Skogquist asked if North Street was still a City street or County road and noted that designation should be included under Item 4(7). Mr. Lee confirmed the road was still designated a City street. Motion by Councilmember Freeburg, seconded by Councilmember Wesp, to adopt a resolution approving the approving a Development Agreement between the City of Anoka and BRB Development LLC. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Freeburg, Skogquist, and Wesp voted in favor. Motion carried. 10. UNFINISHED BUSINESS None. 11. NEW BUSINESS None. 12. UPDATES AND REPORTS 12.1 Tentative Agenda(s). The Council reviewed the tentative agendas of the upcoming Council meetings. 12.2 Staff and Council Input. Mr. Lee shared about the winter storm warning issued earlier that will result in 4- 10 inches of snow. He stated Anoka Public Works plows streets better than any other city and thanked staff for their work. February 19, 2019 (Regular) Page 17 of 17 Mayor Rice agreed and thanked Public Works for their hard work. Public Services Director Mark Anderson noted residents have been sharing their appreciation lately as well and explained how they staff 22 people for a large snow event that results in streets usually being drivable by 10 a.m. Councilmember Freeburg confirmed the City has enough space for snow storage. Councilmember Barnett asked about the City’s sidewalk policy. Mr. Anderson explained staff assists with the removal of snow on sidewalks but that it can take 2-3 days after a snowfall and may not occur if less than two inches of snow falls and that City Code requires clean-up fall back to the property owner as well as deicing. 13. ADJOURNMENT Councilmember Freeburg, made a motion to adjourn the Regular Council meeting. Councilmember Skogquist seconded the motion. Vote taken. All ayes. Motion carried. Time of adjournment: 9:47 p.m. Submitted by: Cathy Sorensen, TimeSaver Off Site Secretarial, Inc. Approval Attestation: Amy T. Oehlers, City Clerk