Anoka City Council

August 5, 2019 (Regular) Page 1 of 11 REGULAR MEETING OF THE ANOKA CITY COUNCIL ANOKA CITY HALL CITY COUNCIL CHAMBERS AUGUST 5, 2019 The Council met at 6:00 p.m. for the annual budget presentation. 1. CALL TO ORDER Mayor Rice called the meeting to order at 7:04 p.m., followed by the Pledge of Allegiance. 2. ROLL CALL Present at roll call: Mayor Rice, Councilmembers Barnett, Freeburg, Skogquist, and Wesp. Staff present: City Manager Greg Lee; Police Chief Eric Peterson; Community Development Director Doug Borglund; Housing Manager Darin Berger; Engineering Technician Ben Nelson; Electric Director Greg Geiger; Public Services Director Mark Anderson; Golf Manager Larry Norland. Absent at roll call: None. 3. COUNCIL MINUTES 3.1 Minutes of the July 15, 2019, Regular Meeting. Minutes of the July 22, 2019, Joint City Council and Planning Commission Worksession. Councilmember Barnett noted a correction was needed on Page 3, Paragraph 3 of the July 15, 2019, Regular Meeting minutes from Pete Turok to Bart Ward as Chairman and Interim Director for Haven for Heroes. Councilmember Skogquist said Councilmember Freeburg’s name was misspelled on Page 2, Paragraph 2 of the July 15, 2019; Regular Meeting minutes. Councilmember Skogquist said the street names on Page 7, Paragraph 1 of the July 22, 2019; Joint Worksession minutes should be 2nd Avenue and Harrison Street and that Akin Park was misspelled on Page 10, Paragraph 5. Motion by Councilmember Skogquist, seconded by Councilmember Barnett, to waive the reading and approve the July 15, 2019, Regular Meeting and the July 22, 2019, Joint City Council and Planning Commission Worksession, minutes as corrected. August 5, 2019 (Regular) Page 2 of 11 Vote taken. All ayes. Motion carried. 4. OPEN FORUM 4.1 Police Activity Update. Police Chief Eric Peterson shared condolences to the communities of El Paso Texas and Dayton Ohio for the recent mass shootings and shared how Anoka officers train annually for such events and that he was confident our officers would never hesitate to use the training if needed to protect the citizens of Anoka. Chief Peterson invited everyone to attend tomorrow evening’s Night to Unite events then shared photos of past events and spoke how they make our community vibrant and strong. He said the Heroes Walk 4 Women was held on Saturday August 3 to promote awareness of sexual and domestic violence with all proceeds going to Alexandra House. He shared the Anoka-Champlin Fire Department members walked the route in full turn-out gear then thanked Public Services Administrator Lisa LaCasse and Streets Supervisor Jon Holmes for their assistance as well as the Anoka Community Anti-Crime Commission for being a title sponsor. He shared the third annual Cookout with the Cops will be held on August 20 in George Enloe Park and spoke how this event helped build relationships and quality of life through public safety and thanked the Anti-Crime Commission and Anoka Ambassadors for their help. Councilmember Barnett asked for an update on the neighborhood watch program and how to get involved. Chief Peterson said there were approximately 10 watch groups in existence now and explained how new groups can use Night to Unite to qualify as their first meeting. He said while registrations were slower than they would like they plan to share and educate the benefits of the neighborhood watch program tomorrow evening to the community. 5. PUBLIC HEARING(S) None. 6. CONSENT AGENDA Motion by Councilmember Freeburg, seconded by Councilmember Wesp, to approve Consent Agenda 6.1 through 6.4. 6.1 Approve Verified Bills. 6.2 Revising and Setting Council Calendars. 6.3 Green Haven Parkway Phase I; Final Payment and Project Close-Out. August 5, 2019 (Regular) Page 3 of 11 6.4 Issuance of a Tobacco License for BP; AKA: Vikroh Resources LLC, 3770 N 7th Avenue. Vote taken. All ayes. Motion carried. 7. REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 7.1. Planning Items: None. 8. PETITIONS, REQUESTS AND COMMUNICATION None. 9. ORDINANCES AND RESOLUTIONS 9.1 RES/US Highway 10/169 Improvement Project: Demonstrate Project is Fully Funded. RESOLUTION Engineering Technician Ben Nelson shared that at the June 26, 2016 work session, City Council provided unanimous consent for the City of Anoka to lead the Highway 10/169 at Fairoak Avenue project and committed $2 million towards the project. On January 18, 2017, the Metropolitan Council notified the City of Anoka that this project ranked number one in the “Roadway Reconstruction/ Modernization category” of the Regional Solicitation Program and awarded $7 million in federal funds for the construction of the improvements along US Highway 10/169 at Fairoak Avenue. He outlined how the City must demonstrate to the granting agencies and Minnesota Management and Budget that all financing was in place to complete the project through the following funds: Metropolitan Council regional solicitation of $14 million, 17 new bond funds totaling $14 million, MnDOT Highway Freight Program of $20 million, MnDOT TED funds of $5 million, and State of Minnesota LRIP bonding funds of $15 million. Mr. Nelson said this project was now fully funded with $2 million of City funds, $4 million of County funds, $44.4 million of State funding and $34 million of Federal funding for a total of $80 million and explained about the $1.6 million in utility relocation and streetscaping and that Anoka Electric would fund any locates needed. He shared the project schedule and public engagement process which will begin November 21 with project completion in 2023 then shared concepts of the new interchanges, service road, and underpass. Councilmember Wesp shared his thanks to the then City Council for their approval to lead this project as it would not have happened without the City’s work and thanked staff for identifying the needed funding. He thanked City Manager Greg Lee for his leadership that resulted in expanding the project to what is proposed today. August 5, 2019 (Regular) Page 4 of 11 Mayor Rice shared comments on how Anoka took the charge to solve a problem for its residents but more for people who do not live in Anoka as this project will greatly reduce driving time through the City and for people in other communities. Councilmember Freeburg agreed, adding Ramsey should be contributing to this project as well then thanked Mr. Lee for his leadership. Councilmember Skogquist said this will be an amazing project with many benefits as it will extend West Main Street and relieve traffic from the neighborhoods. He said he was excited about the planning still ahead with aesthetics details and funding and asked when those decisions will occur. Mr. Nelson said plans will be made during the winter and staff will have sample designs and costs to share and will outline what is covered under the grant funding. Motion by Councilmember Wesp, seconded by Councilmember Freeburg, to adopt the resolution US Highway 10/169 Improvements Project; Demonstrate Project is fully funded. Mayor Rice said even though the construction period will be difficult he anticipated as traffic improves other projects will gain momentum and more projects will be completed. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Freeburg, Skogquist, and Wesp voted in favor. Motion carried. 9.2 ORD/Authorizing the Sale of $1,690,000 General Obligation Taxable Tax Increment Bonds, Series 2019A. (2nd Reading) ORDINANCE Housing Manager Darin Berger shared a staff report with background information to the Council stating the issuance of $1,690,000 in bonds will be used for purchasing properties for redevelopment within the expanded 2019 South Central Business Tax Increment District boundaries. Staff intends to assemble land, demolish existing structures and resell it as a buildable site. Debt service will also be paid from the tax increment revenues. Bonding will provide $1,690,000 to allow the City of Anoka Housing and Redevelopment Authority to purchase property and prepare the site for redevelopment. He said first reading of this ordinance was held on July 15, 2019, followed by brief discussion by the Council. Councilmember Freeburg shared his regret for the closing of Kings Wok but said he was looking forward to this project. Mr. Berger said staff was doing what they could to address Kings Wok’s concern but noted there is only so much retail space available and said they hoped they would return. August 5, 2019 (Regular) Page 5 of 11 Motion by Councilmember Skogquist, seconded by Councilmember Barnett, to hold second reading of and adopt an ordinance authorizing the sale of General Obligation Taxable Tax Increment Bonds, 2019A in an amount not to exceed $1,690,000 as corrected. Councilmember Barnett said someone needed to step in and address this site and said she appreciated staff’s work and looked forward to the result on this corner. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Freeburg, Skogquist and Wesp voted in favor. Motion carried. 9.3 RES/Amending Joint Powers Agreement: Anoka-Hennepin Narcotics and Violent Crimes Task Force. RESOLUTION Chief Peterson shared a staff report with background information stating City Council was requested approve an amendment to the Joint & Cooperative Agreement with Anoka-Hennepin Narcotics and Violent Crimes Task Force (AHNVCTF). This agreement replaces the previous Joint Powers agreement approved by the Anoka City Council in 2018. The AHNVCTF was organized in 1996 and the City of Anoka has had a Joint Powers Agreement with the member cities since its inception which includes Anoka, Blaine, Champlin, Columbia Heights, Coon Rapids, Fridley, Maple Grove, and Ramsey, Rogers and the County of Anoka. The AHNVCTF Advisory Board is made up of Police Chiefs and Sheriff from member cities and in 2018 the AHNVCTF recognized the need to have a dedicated Commander assigned to this Task Force to manage day-to-day operational and administrative decisions of the Task Force. The AHNVCTF advisory board approved the creation of a position to be appointed by the Board and serve as the Task Force Commander. This position is to be funded 50% from the Anoka County Sheriff’s Office and 50% from the state grant budget. Language in the Joint Powers Agreement with the AHNVCTF is required to change to allow the appointment of a full-time Task Force Commander and to reflect its funding source. Councilmember Barnett asked if this was an organizational position or was activity increasing in the area. Chief Peterson said there was a need for oversight with the many new regulations required of the Task Force and grant applications and management. Councilmember Wesp asked about the Task Force’s activities and how often they are used. Chief Peterson said the Task Force is used daily to develop leads, gather evidence and respond to tips in Anoka County and northern Hennepin County and how they participate in other task forces to supply and share information and surveillance. August 5, 2019 (Regular) Page 6 of 11 Councilmember Wesp shared a story of an undercover Anoka officer and how his appearance had to be changed making him unrecognizable for this important work and said the Task Force is greatly needed. Motion by Councilmember Wesp, seconded by Councilmember Freeburg, to adopt the resolution approving an amendment to the Joint & Cooperative Agreement for the Formation and administration of the Anoka-Hennepin Narcotics and Violent Crimes Task Force. Mayor Rice said arrests can be complicated as they depend on difficult evidence collection and how the Task Force was needed. Councilmember Wesp said this is exactly what we work on in the Anti-Crime Commission and spoke about the impact drugs have on our community and on the officers policing the activity. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Freeburg, Skogquist, and Wesp voted in favor. Motion carried. 9.4 RES/Purchase of Golf Simulators and Authorization of Interfund Loan. RESOLUTION Golf Manager Larry Norland shared a staff report with background information to the Council stating at the April 22, 2019, work session simulators were discussed for the third floor and that staff received direction to proceed to obtain them to be operational by this winter. He said this action was for the interdepartmental loan to allow staff to proceed with the necessary actions then reviewed the proposed expenses from the electric fund that included $109,537.60 for simulators and all necessary technology, $63,681.43 for constructions costs to finish the third floor, $17,500 contingency of 10% for any unforeseen issues, for a total of $190,719.03. He said the estimate for an elevator was $125,000 and was not being recommended for installation this year. Mr. Norland shared revenue projections as well as indirect benefits such as increased restaurant revenue of $60,000-$80,000 that would result in higher rents for the City, summer tournament opportunities, locker revenue and non-monetary benefits through improved teaching programs and amenities for existing members. Councilmember Skogquist said the loan request was for $190,000 but the resolution listed an amount of $250,000. Mr. Norland said because the building was older staff was requesting additional funds in case it was needed but added they do not anticipate any concerns. August 5, 2019 (Regular) Page 7 of 11 Councilmember Wesp confirmed the $190,000 included the purchase of the simulators and all the construction work with the exception of the elevator. Mr. Norland said that was correct, adding this was important because the construction would not be wasted and could benefit another use should the simulators be removed in the future. Councilmember Wesp asked about the costs for changing from a seasonal to year- round employee. Mr. Norland the additional $18,000-$20,000 will be partially covered by additional sales, club repair revenue and simulator revenue. Councilmember Wesp said he was pleased to see active pursuit of high school golf and cross-country skiing activities and asked for reports back on the results then shared some of the public’s concerns about Green Haven and asked why simulators are doing well in other locations. Mr. Norland said non-traditional golf offerings are on the rise because they opportunities for play during the winter months and connect existing customers as well as new customers, especially the younger population, adding facilities such as Top Golf have been a huge help to the golf industry. Councilmember Wesp said Green Haven is a beautiful facility and thanked staff for the work they have put into it and commented on how it has been difficult to get a tee time this season which is a good thing. Councilmember Freeburg said Green Haven is a course without a driving range so the simulators will complement the course and strengthen our weaknesses and expose our course and banquet facilities to new people. Councilmember Barnett said she has been skeptical about this project before but noted opening third floor will be good as it could be utilized in other ways such as a rental office for Gramercy. She said while she supported third floor construction she struggled because no outside firms wanted to operate simulators at Green Haven and she was concerned about the investment as technology changes so quickly and this model requires additional staff. She said Green Haven was different than a Top Golf or Bunker Hills/Kendall’s facility and that we need to measure investments against our space and while she understood the need for an investment of an elevator in the near future, she would not support the simulators. Mr. Norland said there were private individuals who were interested in operating the simulators and noted the investment would be recouped in a short amount of time then reviewed the non-revenue benefits such as a driving range in the future and club fittings. He agreed that technology changes quickly but that upgrades will not be as expensive as the purchase and while he respected the concerns and agreed there is always a risk, he believed this proposal would be a huge benefit as a whole. August 5, 2019 (Regular) Page 8 of 11 Councilmember Freeburg said other simulator operations are doing well and that he expected the same to occur at Green Haven. Mayor Rice agreed that Top Golf has generated interest in the game of golf and felt the simulators will be a benefit as well as increasing food purchases and providing a great opportunity to showcase Green Haven’s banquet facilities. Councilmember Skogquist said we have a lot of enterprise funds but felt that citizens want this use in Anoka because the space is not being utilized to its potential over the winter months. He said the restaurant is working out well and while that was a risk there has been more use and revenue and that the costs seem favorable. He requested good expense tracking to see where increases occur so we can best evaluate the benefits and expenses in order to make the best decisions going forward. Motion by Councilmember Freeburg, seconded by Councilmember Skogquist, to adopt a resolution for authorization of an interfund loan from Electric to the Golf Fund to purchase golf simulators and building upgrades. Upon a roll call vote: Mayor Rice, Councilmembers Freeburg, Skogquist and Wesp voted in favor. Councilmember Barnett voted nay. Motion carried. 9.5 RES/Identifying the Need for Livable Communities Demonstration Account Funding Authorizing Application for Grant Funds. RESOLUTION Community Development Director Doug Borglund shared a staff report stating the Volunteers of American (VOA) was requesting the City of Anoka assist with their efforts to move another phase of their campus forward by acting as the applicant and hosting Metropolitan Council grant funds which will be used to assist with site improvements including storm water management, landscaping, etc. He said the VOA was seeking $662,580.00 in funding and that the subject was the 2.5-acre site owned by the City. He explained the VOA’s option agreement to purchase from City that is valid through July 31, 2020 and how the site has been part of the of the VOA campus master plan. Mr. Borglund said the VOA was proposing a senior affordable development less than ¼ mile away from the North Star Commuter Rail Anoka Station of 80 units of senior housing to meet growing demand, 40 units at 50% AMI and 40 units at 60% AMI rent levels. The development will be located on an existing campus designed to provide easy access to a future on-campus Allina Clinic and allow residents of the neighborhood and the development to thrive and age in place. The proposed development and site improvement will include 64 underground dedicated parking stalls for residents and 96 parking stalls on grade for use by the residents, visitors, and employees of the overall VOA Homestead at Anoka Campus and will include a lounge area, outside space, dedicated fitness facilities and access to August 5, 2019 (Regular) Page 9 of 11 the overall Homestead at Anoka campus including a bistro located to the north of the proposed development. John Clevenger, Volunteers of America, presented the project that would complete their vision of continuum of care and keep young families coming to Anoka once residents sell their homes. He said the project would provide opportunities for those who could not afford the larger campus and want independent living on the Rum River. He spoke about no additional cut outs on the sidewalks and how the project would include a fitness center/gym. Councilmember Freeburg explained how the City worked with Anoka County on the land exchange negotiation to make the VOA happen and that he was excited to see how well the project was benefitting seniors. Mr. Clevenger said they were hoping to make the project even better for the community by not adding sidewalk cut outs, providing access to the Rum River, and making progress towards a transit center the City has been trying to accomplish. Councilmember Barnett asked questions about the funding, Mr. Borglund’s compensation and role in the process, and if the other phases were accomplished in this manner. Mr. Borglund said this funding process was not done before and that his role has been more as an ambassador or partner with one of the City’s major land owners helping them accomplish a significant investment in our community. He said he has worked on grant application processes before and that the VOA is providing all funding and assembling the applications but that he has been offering feedback and input and not spending a lot of additional time on the project. Councilmember Barnett asked about the risks since this was a newer model. Mr. Borglund said there were not any real risks and said that even though an agreement is needed the VOA is a group with significant resources who can execute a successful project just like the prior phases. Councilmember Freeburg asked if the structures are taxable. Mr. Borglund said they were taxable and are part of the TIF discussion for this district and future potential revenues based on the projections. He said they are working on another phase as well but with these projects it is not unusual for a developer to pull in additional resources as construction and labor costs are high and it is difficult to put together large projects such as this. Councilmember Skogquist said he was pleased with the net effect on parking of 40-50 additional spaces and asked if there are any concerns with probable underground parking for the next phase. He spoke about the TIF area revenue and how there is probably more available than needed then asked about restrictions when we go to sell the land. Mr. Borglund said we will have to evaluate those questions later as the project has not quite been formed in order to get an idea of value. August 5, 2019 (Regular) Page 10 of 11 Mr. Clevenger said the ghosted area would include independent living on top of the proposed Allina Clinic so underground parking will be needed. He said they have tried to maximize parking with visitors and staff and felt the calculation was sufficient, adding they will not be charging for parking. Councilmember Skogquist asked about parking restrictions on 5th Avenue. Mr. Lee said there currently are no parking restrictions on 5th Avenue at this time. Mayor Rice confirmed the City owns the properties east of 5th Avenue. Mayor Rice said this action does provide some risk but noted it was a reimbursement grant and confirmed the VOA was taking the risk and if the action counted against the City’s credit. Mr. Borglund said there is no credit impact to the City and explained the VOA would be submitting receipts for staff to send to the Metropolitan Council for reimbursement and that outside of grant management staff is not doing anything significant with this project. Mayor Rice asked about the concept drawings that show main level walk-outs. Mr. Clevenger said some units will have front areas but will not have doors to the streets or multiple accesses as it is a secure building. Motion by Councilmember Freeburg, seconded by Councilmember Barnett, to adopt a resolution identifying the need for Livable Communities Demonstration Account Funding and authorizing application for grant funds. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Freeburg, Skogquist and Wesp voted in favor. Motion carried. Mayor Rice thanked the VOA for their presence in Anoka and for their investment in our community. Mr. Clevenger said they looked forward to the continuing partnership with the City. 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. August 5, 2019 (Regular) Page 11 of 11 Public Services Director Mark Anderson said the river levels are now low enough to begin dam board installation as well as docks and buoys so the community can enjoy the river. He explained the process to install the boards and stressed the need for a dry, workable surface for safety reasons and how six weeks ago that was not possible. 13. ADJOURNMENT Councilmember Freeburg, made a motion to adjourn the Regular Council meeting. Councilmember Barnett seconded the motion. Vote taken. All ayes. Motion carried. Time of adjournment: 8:20 p.m. Submitted by: Cathy Sorensen, TimeSaver Off Site Secretarial, Inc. Approval Attestation: Amy T. Oehlers, City Clerk