Anoka City Council

October 21, 2019 (Regular) Page 1 of 18 REGULAR MEETING OF THE ANOKA CITY COUNCIL ANOKA CITY HALL CITY COUNCIL CHAMBERS OCTOBER 21, 2019 1. CALL TO ORDER Mayor Rice called the meeting to order at 7:03 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; Electric Director Greg Geiger; Finance Director Brenda Smith; Community Development Director Doug Borglund; Public Services Director Mark Anderson; HRA Housing Manager Darin Berger; and City Attorney Scott Baumgartner. Absent at roll call: None. 3. COUNCIL MINUTES 3.1 Minutes of the October 7, 2019, Regular Meeting. Minutes of September 23, 2019, Worksession. Councilmember Barnett requested corrections on Page 2, Paragraph 6: “…past felons felonies” and Page 7, Paragraph 4: “…restrictions and control over their homes but said she did not agree with the that the additional value be the basis and for enforcement and would not personally be interested in participating.” She also requested that comments made as part of new Open Forum topics be listed separately so they do not appear to be part of the Police Activity report. Motion by Councilmember Freeburg, seconded by Councilmember Barnett, to waive the reading and approve the October 7, 2019, Regular Meeting as corrected. Vote taken. All ayes. Motion carried. 4. OPEN FORUM 4.1 Police Activity Update. Police Chief Eric Peterson shared the 29th annual Anti-Crime Commission fundraising breakfast was held October 15 with 200 people in attendance to hear October 21, 2019 (Regular) Page 2 of 18 guest speaker Warden Eddie Miles outline Minnesota’s correctional facilities and was a success. He said the annual Zombie Pub Crawl sponsored by the downtown area bars resulted in two arrests and the annual Halloween Night Parade was well attended with no incidents. He said the department was preparing for the Grand Day parade that included 125 volunteers from other agencies and that the event could not occur without their assistance. Chief Peterson shared that staff attended the annual Crime Prevention Association conference in Duluth that highlighted community engagement and partnerships and said he looked forward to staff’s input on topics learned then explained about State-required mandatory training for police officers surrounding crisis intervention and de-escalation techniques. OTHER INFORMATION UNDER OPEN FORUM Councilmember Skogquist inquired about the lack of blockades at 4th Avenue and Madison Street during football games and if there had been changes regarding traffic and crowd control in this area. Chief Peterson said he would follow-up. Councilmember Wesp spoke about the Waterfowl for Warriors event and apologized for his omission to credit former Councilmember Jeff Weaver for his extensive work on this event. 5. PUBLIC HEARING(S) None. 6. CONSENT AGENDA Motion by Councilmember Wesp, seconded by Councilmember Freeburg, to approve Consent Agenda 6.1 through 6.2. 6.1 Approve Verified Bills. 6.2 Revising and Setting Council Calendars. Councilmember Barnett noted the calendar should include the Grand Day Parade on October 26. Vote taken. All ayes. Motion carried. 7. REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 7.1. Planning Items: None. October 21, 2019 (Regular) Page 3 of 18 8. PETITIONS, REQUESTS AND COMMUNICATION None. 9. ORDINANCES AND RESOLUTIONS 9.1 ORD/Recommencement of Existing Gas Franchise Fee with CenterPoint Energy. (2nd Reading) ORDINANCE Finance Director Brenda Smith said first reading was held on October 7, 2019 with no changes since first reading. The City reinstated the gas fee on September 8, 2015, effective from January 2016 thru December 31, 2019. The gas franchise fee more equitably assigns right of way costs with users, reduces reliance on state aids and taxes and provides funding for the street infrastructure replacement program. She said the fee provides approximately $382,000 annually to the street renewal program with direct assessment of properties, state aids, transfers from other funds and interest earnings making up the balance of funding sources. The various utility funds pay for the portion of infrastructure costs relating to the individual utility, i.e.; water, sewer, storm sewer and electric. Through the franchise fee the City of Anoka is able to charge private companies access to public right of way. Ms. Smith explained the alternative to a gas franchise fee would be to increase annual assessments or increase the tax levy to include street renewal costs. The City currently assesses R-1 and R-2 street renewal properties at $2,850 per unit plus $15 per foot frontage. Other properties are double that of residential properties. If the City were to consider an additional assessment to cover costs, the assessment for R-1 and R-2 properties would need to double as well as other properties doubling. If the City were to consider an additional tax levy it would impact an average home of $210,000 by $51 a year or $4.25 a month. This same property is currently paying $3.00 a month in a gas franchise fee; staff is proposing an increase to $3.48 per month. Motion by Councilmember Freeburg, seconded by Councilmember Barnett, to hold first reading of an ordinance recommencing and increasing the existing gas franchise fee within the City of Anoka, Minnesota (with CenterPoint Energy). Councilmember Wesp clarified the current amount was $3.00 per month for a home with a $210,000 valuation and if adopted the fee would increase to $3.48 per month then asked when the last increase occurred. Ms. Smith said the last increase occurred in September 2015. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Freeburg, Skogquist, and Wesp voted in favor. Motion carried. October 21, 2019 (Regular) Page 4 of 18 9.2 ORD/Christian Hill Historic District Boundary Amendment. (2nd Reading) ORDINANCE Associate Planner Clark Palmer shared first reading amending the boundary of the Christian Hill Historic District was held on October 7 and that no changes have occurred since first reading. He said the City established the Christian Hill Historic District in 2006 as an area of the greater Christian Hill Neighborhood including 15 properties. The historic district is a special overlay district where adopted heritage preservation regulations apply to properties within the district. The purpose of the heritage preservation district is to provide for the preservation of buildings, lands and areas that possess historical and architectural significance to the City and its residents. The heritage preservation regulations help to accomplish this by encouraging the use of traditional building materials and designs in renovations of historic buildings, as well as encouraging the rehabilitation of historic buildings instead of demolition. He outlined the properties currently in the district and said for several years it has been the goal of the Heritage Preservation Commission (HPC) to expand the Christian Hill Historic District. In 2015 and 2017, the HPC held neighborhood meetings to see if property owners within the greater Christian Hill Neighborhood would be willing to be part of a petition with the goal of expanding the existing district and one outcome was the identification of several property owners willing to be part of an expanded district, which included: 311 Monroe Street, 314 Monroe Street, 319 Monroe Street, 320 Monroe Street, 320 Madison Street, and 327 Monroe Street. Mr. Palmer said in accordance with City Code, the City received a petition in support of the proposed amendment from a majority of property owners within the existing and proposed district and the HPC held a public hearing on September 10, 2019, at which the HPC voted to recommend to the City Council approval of the proposed amendment including the six above-mentioned properties. Councilmember Freeburg said he would support the amendment since the property owners were voluntarily participating. Motion by Councilmember Freeburg, seconded by Mayor Rice, to hold second reading and adopt an ordinance amending the Christian Hill Historic District. Councilmember Wesp asked if someone opted in then wanted to make changes to their property that included removal of a tree or hedge would they work with the HPC on approvals. Mr. Palmer explained the process that included proposed construction and demolition permit review for architectural effects and noted further review would happen at time of building permit. October 21, 2019 (Regular) Page 5 of 18 Councilmember Barnett referred to the opt-out clause and the importance of not forcing property owners to participate and that she would support the amendment only because their participation was voluntary. Mr. Palmer said the amendment to the zoning map could be amended again in the future but would require a similar process. Councilmember Wesp asked if participation required disclosure of the district should a property owner wish to sell. Mr. Palmer said the zoning would be recorded at Anoka County and at City Hall and would likely need to be disclosed upon sale. City Attorney Scott Baumgartner said notification would also occur through title commitment at closing so new property owners would be notified then. Councilmember Skogquist said he would be abstaining as his home was located in this district but noted the designation would be a good selling point for property owners, help continue the character of this great neighborhood, and that he would support future expansions of the district. Mayor Rice asked about opting out and breaking continuity of an area. Mr. Palmer said that scenario would have to be considered if it affected the entire district but stressed the importance of not forcing property owners to participate. Councilmember Barnett asked if the HPC decides the levels of specifications and control and asked if future commissions possibly requiring items that were not realistic. Mr. Palmer said standards would not be as subjective as one may think as changes need to match the era and architecture and would not be completely left up to the HPC. Mayor Rice said like materials and architecture would help ensure and match expectations. Councilmember Freeburg confirmed requirements only apply to exterior changes and not interior remodels. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Freeburg, and Wesp voted in favor. Councilmember Skogquist abstained. Motion carried. 9.3 RES/2019 Combined Street Improvement Project; Adopt a Revised Assessment Roll (Street Renewal Project). RESOLUTION Engineering Technician Ben Nelson shared a background report stating on December 17, 2018, City Council held the assessment hearing and approved the assessment roll for the 2019 Combined Street Improvement Project (Street October 21, 2019 (Regular) Page 6 of 18 Renewal Project). The subject property 1514 5th Avenue is located within the construction limits of the project and was included in the adopted assessment roll in anticipation the parcel has a sanitary sewer service. As the project progressed, the contractor did not install a sanitary sewer service as part of the project. The property will have the sanitary sewer service unit assessment ($1,090.00) removed, given the service was not installed. The subject property of 850 South Street is located within the construction limits of the project and was included in the adopted assessment roll in anticipation the parcel has a sanitary sewer service and a water service. As the project progressed, no sanitary sewer service or water service was found or replaced as part of the project. The property will have the sanitary sewer service unit assessment ($1,090.00) and the water unit assessment ($2,400.00) removed, given the services were not installed. In addition to the above assessment adjustments, the ownership of some parcels located within the construction limits have changed. Councilmember Skogquist said 1514 5th Avenue is on a County road and when redone in the future people will not be part of the project. Mr. Nelson explained the service for 1514 5th Avenue goes north through 1520 5th Avenue so part of the project included an easement agreement to run their private line across and the private contractor ran the line so no assessments were needed. Motion by Councilmember Skogquist, seconded by Councilmember Wesp, to adopt a resolution approving the 2019 Combined Street Improvement Project; adopt a revised assessment roll (Street Renewal Project). Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Freeburg, Skogquist, and Wesp voted in favor. Motion carried. 9.4 RES/Green Haven Parkway Phase II; Accepting Feasibility Report, Order Project, and Authorize Preparation of Plans and Specification. RESOLUTION Mr. Nelson shared a background report with Council stating Green Haven Parkway Phase II is a portion of Green Haven Parkway, as identified in the Greens of Anoka Redevelopment Master Plan (2012) and the Highway 10 Access Planning Study (2014). In 2017, Green Haven Parkway Phase I was constructed between Thurston Avenue and West Garfield Street. A resolution was adopted by City Council on July 15, 2019, authorizing the preparation of a feasibility report for Green Haven Parkway Phase II. The City’s engineering consultant and staff have completed the feasibility report for the project which covers the scope of the proposed improvements; an estimate of the construction costs, an ultimate alignment, a project schedule, and the general cost-effectiveness of the proposed project for Council consideration. The proposed Green Haven Parkway Phase II is within the existing Highland Park neighborhood located on the west side of the City bounded by Garfield Street, Calvary Cemetery, US Highway 10/169 and October 21, 2019 (Regular) Page 7 of 18 Green Haven Golf Course & Event Center. At this time, the City has already purchased more than half of the properties needed for the project. The improvements include constructing a new public roadway between Verndale Avenue and Fairoak Avenue with bike and pedestrian accommodations. City Manager Greg Lee explained selection of Option A; the alignment impacts two other items later in the agenda regarding property acquisitions. Councilmember Wesp said the total amount was $2.3 million and asked if funds from Highway 10 could be overlapped and used. Mr. Nelson said the joint powers agreement says work has to be for Highway 10 interchanges and for streetscape and utility relocation which will likely be exhausted. Councilmember Wesp asked about the potential grant for $750,000. Mr. Nelson said a grant was received for Phase I and that the City could apply for Phase II for a maximum amount of $710,000. Mr. Lee noted any grant award would include the disconnection of Verndale from Highway 10. Councilmember Skogquist asked if we received the grant of $710,000 would the remaining $500,000 come from utilities and the SRP program. Mr. Nelson said the $1,275,000 would cover the remainder of the street portion of the project and utilities would be covered through the utility fund. Councilmember Barnett said either way Item 9.8 involves homes that have to be moved in order for the road to go through then spoke about the additional costs should these homes remain. Community Development Director Doug Borglund said if 2750 and 2752 Fairoak remain in place it would be difficult for the alignment to remain. Councilmember Barnett said she would not want two driveways on that corner as they would affect sightlines and traffic flow but in terms of costs for infrastructure the homes could be served off Fairoak without a concern. Councilmember Skogquist said goals for the area included Highway 10 relief, connections and neighborhood renewal and would not support the motion as he preferred Alignment B and believed there were other options. He explained he did not want to spend $700,000 to leave a substandard house in place and purchase 20-year-old homes to be demolished and replaced with a pond. Councilmember Wesp said it is challenging to work with a neighborhood that has worn out its ability to serve and said this was an opportunity to enhance the area around the golf course and provide for a major development for the City that typically is limited in new opportunities. He said the substandard homes need to October 21, 2019 (Regular) Page 8 of 18 be addressed and this action would provide a vision for Green Haven and while purchasing 20-year homes is difficult he liked Alignment A. Motion by Councilmember Wesp, seconded by Councilmember Freeburg, to adopt a resolution for Green Haven Parkway Phase II; accepting feasibility report, order project, and authorize preparation of plans and specifications, using Alignment A. Councilmember Barnett said the home across the street would involve eminent domain and this action would not force a property owner out and while a newer home the property owners were willing sellers. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Freeburg, and Wesp voted in favor. Councilmember Skogquist opposed. Motion carried. 9.5 RES/2020 Combined Street Improvement Project; Approve Feasibility Report and Set Public Improvement Hearing (Street Surface Improvement Project). RESOLUTION Mr. Nelson shared a background report with Council stating a resolution was adopted on July 15, 2019, authorizing the preparation of a feasibility report for the 2020 Combined Street Improvement Project. Based on the 429 process, an improvement on two or more streets or two or more types of improvement in or on the same street or streets or different streets may be conducted as one improvement. The feasibility report includes three project areas; Bob Ehlen Area Street Renewal Program (SRP) Project, Monroe Area Street Renewal Program (SRP) Project, and the Street Surface Improvement Project (SSIP). The structure of the report allows Council to take action on all or separately for each project area throughout the public improvement project process. The City’s engineering consultant and City staff have completed the feasibility report for the combined project with the next step for Council to accept each project in the report and set the public improvement hearing date. A neighborhood meeting was held at Green Haven Golf Course and Event Center on October 16, 2019 for the project with approximately 20 people in attendance. While overall residents were in favor of the project the main concerns shared included concerns with the proposed rain gardens along 38th Lane and 10th Lane, concern with the functionality of the existing storm sewer system and the lack of existing drainage was brought up along 40th Lane, uncontrolled intersection at 9th Avenue and 40th Lane, no street lighting at 7th Avenue and 40th Lane, and concern with parking during church events along Cutters Lane. Staff said residents were pleased to hear no assessments were proposed for the project. Councilmember Freeburg asked how much was invested in improvements to date. Mr. Lee estimated approximately $35 million had been invested in this overall area. October 21, 2019 (Regular) Page 9 of 18 Councilmember Barnett said the area was absent of modern-day storm water practices and noted the proposal looked good then asked about who would maintain the rain gardens. Mr. Nelson said the Anoka Conservation District designed the proposed rain gardens and were aiding in design and public outreach then noted maintenance would be placed to the property owners. Councilmember Skogquist said the rain gardens would help address low spots that affect pavement too then commented about how different neighborhoods built in the 1960s and 1990s had similar road conditions. Motion by Councilmember Skogquist, seconded by Councilmember Freeburg, to adopt a resolution for the 2020 Combined Street Improvement Project; approve feasibility report and set public improvement hearing (Street Surface Improvement Project). Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Freeburg, Skogquist, and Wesp voted in favor. Motion carried. 9.6 RES/2020 Combined Street Improvement Project; Approve Feasibility Report and Set Public Improvement Hearing (Bob Ehlen Area SPR Project). RESOLUTION Mr. Nelson shared a background report with Council stating a resolution was adopted by City Council on July 15, 2019, authorizing the preparation of a feasibility report for the 2020 Combined Street Improvement Project. He shared about the proposed Bob Ehlen Area SRP Project portion of the 2020 Combined Street Improvement Project that included a neighborhood meeting on October 16, 2019, where approximately 10 people attended. He said overall the residents were in favor of the project, although concerns raised at the meeting included speed and circulation of traffic within the neighborhood and speed of traffic on Bob Ehlen Drive during shift changes at Vista Outdoor and Nevent. Mr. Nelson said other proposed infrastructure changes and removal of boulevard trees for construction were explained and that a draft assessment role had been developed but not currently distributed. He said proposed residential assessments were shared and in general standard residential lot assessment would be approximately $7,570. It was explained the overall benefit is far greater than what is being assessed. The group agreed that while no one liked to pay assessments their neighborhood needs to be reconstructed and once complete would be good. Councilmember Barnett spoke about Polk Street and 7th Avenue Option 2 had the most support but there were strong feelings both ways and confirmed that the other options would be taken into consideration at the November meeting. Mr. Nelson said other options would be shared but noted staff was leaning towards the October 21, 2019 (Regular) Page 10 of 18 preferred option, similar to 7th Avenue on the center median on the north side of Highway 10. Councilmember Barnett confirmed there was 8th Street cul-de-sac would be part of project. Mr. Nelson yes, includes alleyway and infiltration basis and cul-de-sac is because of operations and provide more room. Councilmember Freeburg said there will be a lot of construction next year including 1st, 2nd, and 3rd Avenues and Monroe Street projects. Mr. Nelson agreed, stating feasibility studies for those projects will be scheduled for the November Council meetings. Councilmember Wesp said in the Bob Ehlen area on 7th Avenue no proposed light changes were proposed with the skew from Tyler as there was no way to correct it but asked if there was a way the lights could be manipulated to move traffic off Bob Ehlen onto 7th Avenue. Mr. Nelson said this issued was raised in the past and that the signal was already maximized, adding the no turn on red could not be eliminated and must remain. Mayor Rice asked if any exploration had been done about Harrison Street getting the signal and moving the signal from Bob Ehlen and Tyler Street. Motion by Councilmember Freeburg, seconded by Councilmember Barnett, to adopt a resolution for the 2020 Combined Street Improvement Project; approve feasibility report and set public improvement hearing (Bob Ehlen Area SRP Project). Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Freeburg, Skogquist, and Wesp voted in favor. Motion carried. 9.7 RES/2020 Combined Street Improvement Project; Approve Feasibility Report and Set Assessment Hearing (Bob Ehlen Area SPR Project). RESOLUTION Motion by Councilmember Freeburg, seconded by Councilmember Barnett, to adopt a resolution for the 2020 Combined Street Improvement project; set assessment hearing (Bob Ehlen Area SPR Project). Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Freeburg, Skogquist, and Wesp voted in favor. Motion carried. October 21, 2019 (Regular) Page 11 of 18 9.8 RES/Approving Purchase Agreement; City’s Purchase of 721 Jacob Lane. RESOLUTION Mr. Borglund shared a background report stating Council tabled this item at its August 21, 2019 meeting then held a closed session on September 23, 2019 to discuss the proposed acquisition, with direction to bring this item back in October for consideration. He said nothing has changed since the August meeting and stated the City has identified this property for acquisition in the Highland Park neighborhood. The City would demolish the existing buildings on site and utilize the property for roadway/redevelopment purposes. Under Minnesota Statutes, property owners who occupy the subject property and who must relocate are entitled to compensation sufficient to purchase a comparable property. The City of Anoka has obtained a real estate appraisal for 721 Jacob Lane determining its value at $232,000.00 and the seller has accepted the City’s offer of $250,000.00. Motion by Councilmember Freeburg, seconded by Councilmember Barnett, to adopt a resolution approving purchase of real property 721 Jacob Lane. Mayor Rice said this will be the 27th property acquired necessary for redevelopment of the area and reconstruction of the road. Mr. Borglund added this property has been vacant for some time and had been a rental property in the past. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Freeburg, and Wesp voted in favor. Councilmember Skogquist voted against. Motion carried. 9.9 RES/Approving Purchase Agreement; City’s Purchase of 2750 Fairoak Avenue. RESOLUTION Mr. Borglund shared a background report with Council stating they tabled this item at the August 21, 2019 meeting. He said a closed session was held on September 23, 2019 to discuss the proposed acquisition where staff was directed to bring this item back in October for consideration. The City of Anoka has identified this property for acquisition in the Highland Park neighborhood. The City would demolish the existing buildings on site and utilize the property for roadway/redevelopment purposes. Under Minnesota Statutes, property owners who occupy the subject property and must relocate are entitled to compensation sufficient to purchase a comparable property. The City of Anoka has obtained a real estate appraisal for 2750 Fairoak Avenue determining its value at $191,000.00 and the seller has accepted the City’s offer of $216,800.00. Motion by Councilmember Wesp, seconded by Councilmember Barnett, to adopt a resolution approving purchase of real property 2750 Fairoak Addition. October 21, 2019 (Regular) Page 12 of 18 Mr. Borglund said the property was vacant and historically rental. Mayor Rice asked why on a vacant property was the sale price 10% above the appraised value. Mr. Borglund explained the purchase price was reached during negotiations based on the existing investment of the property owner and their ability to replace that property in their portfolio. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Freeburg, and Wesp voted in favor. Councilmember Skogquist voted against. Motion carried 9.10 RES/Approving Purchase Agreement; City’s Purchase of 2752 Fairoak Avenue. RESOLUTION Mr. Borglund shared a background report stating the Council tabled this item at their August 21, 2019 meeting then held a closed session on September 23, 2019 to discuss the proposed acquisition where staff was directed to bring this item back in October for consideration. The City of Anoka has identified this property for acquisition in the Highland Park neighborhood and would demolish the existing buildings on site and utilize the property for roadway/redevelopment purposes. Under Minnesota Statutes, property owners who occupy the subject property who relocate are entitled to compensation sufficient to purchase a comparable property. The City has obtained a real estate appraisal for 2752 Fairoak Avenue determining its value at $191,000.00 and the seller has accepted the City’s offer of $216,800.00. Councilmember Skogquist said the reason we are paying more is due to the cost of getting a willing seller, commenting how unfortunately this is the way city negotiations occur. Motion by Councilmember Freeburg, seconded by Councilmember Wesp, to adopt a resolution approving purchase of real property 2752 Fairoak Avenue. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Freeburg, and Wesp voted in favor. Councilmember Skogquist voted against. Motion carried. 9.11 ORD/Zoning Map Amendment; 641 Jacob Lane. (1st Reading) Mr. Palmer shared a background report stating the maintenance building located at 641 Jacob Lane has approximately 8.59 acres and consistent with the Greens of Anoka Redevelopment Master Plan adopted in 2012, the City seeks to subdivide a portion of the property for development purposes. Gramercy Development Companies is interested in developing approximately four acres of the property with a multifamily senior housing cooperative. In order for the project to move October 21, 2019 (Regular) Page 13 of 18 forward, a zone change is needed from the existing zoning of R-1 single family. Staff is proposing a zoning map amendment of the property to be rezoned to R-3 high density residential, which would allow the proposed use, if approved, under a Planning Unit Development (PUD) and Conditional Use Permit (CUP). A review of the site plan for those separate applications would be made later if the rezoning is approved. Councilmember Skogquist said the change to R-3 makes sense but asked why a potential PUD was required. Mr. Borglund explained that during the fall of 2018 an amendment to the zoning ordinance affected many districts that resulted in higher density projects being required to obtain both a CUP and PUD to ensure the quality of building design and architecture that resulted in high-quality projects. Councilmember Skogquist asked if any project in an R-3 zone like this with a PUD addressed aesthetics or also setbacks. Mr. Borglund said with a PUD all elements were flexible, especially as there were multiple fronts so a benefit to negotiate the final design standards was important to make the project fit in between the golf course and the Health Partners site. Motion by Councilmember Freeburg, seconded by Councilmember Skogquist, to hold first reading of an ordinance amending the City of Anoka zoning map as proposed. 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 11.1 Review of Comments and Recommendation from Planning Commission Public Hearing Regarding 2040 Future Land Use Plan. Mr. Palmer shared staff is currently working on drafting the 2040 Comprehensive Plan update. Part of the Comprehensive Plan is the completion of a Future Land Use Plan which guides the use of all land within the City of Anoka through the year 2040. On February 26, 2019, the Anoka Planning Commission held a work session where they reviewed the draft 2040 Future Land Use Plan and how several areas in the City were guided under the plan. One area reviewed was just south of downtown Anoka between River Avenue (to the west) and 2nd Avenue (to the east), between Monroe Street (to the north) and Madison Street (to the south). This area consists of a number of existing single-family homes and undeveloped lots guided as either medium density residential or high density October 21, 2019 (Regular) Page 14 of 18 residential. Upon review and consideration, the Planning Commission felt this area was appropriately guided in the draft plan and did not recommend making any changes. This is consistent with past plans that showed the subject area zoned for high density residential going as far back as 1946. On June 4, 2019, the Planning Commission held a public hearing regarding the draft 2040 Comprehensive Plan. No comments were received by members of the public and the Planning Commission recommended approval of the draft plan. On June 17, 2019, the draft plan and Planning Commission’s recommendation was forwarded to the City Council for consideration and authorization for submittal to the Metropolitan Council. At the meeting, City Council authorized staff to submit the draft plan but with a condition that the above described area be re-guided from medium and high density residential to low density residential. That change was subsequently incorporated into the draft plan. However, some of the affected property owners were unaware of the change. The Planning Commission held another public hearing on October 1, 2019, where the City Council’s amendment to the 2040 Future Land Use Plan was discussed. Staff explained existing land uses were inconsistent with the Future Land Use Plan and affected zoning are considered legal nonconforming, meaning they were established legally at one time and may remain through repair/replacement indefinitely. Staff further explained a change in land use and zoning does not mean the has intentions on redeveloping any specific property. State Statute law requires the City update its Comprehensive Plan every 10 years including the adoption of an updated Future Land Use Plan. In that plan, the City is required to plan for residential development at a minimum of 5 units an acre, so part of the process in drafting the Future Land Use Plan is identifying areas that may be suitable for residential densities of greater than 5 units an acre. At the meeting, some residents who live in the affected area supported the City Council’s amendment, while another party who owns several properties between River Avenue and 1st Avenue objected. Upon their consideration and receipt of comments by members of the public, the Planning Commission affirmed their recommendation that the above described area was appropriately guided as medium and high density residential. If the City Council has no further amendments to the 2040 Future Land Use Plan, no further action is warranted. If the City Council would like to make any other amendments to the approved draft 2040 Comprehensive Plan, the resolution approved on June 17 authorizing its submittal to the Metropolitan Council will be brought back before the City Council at a future meeting for reconsideration. Councilmember Freeburg confirmed the area was not currently zoned R-1 and the land use was amended to current. Mr. Palmer said once the plan was adopted the City had nine months to update zoning and that land use is focused on residential densities and would be carried out through the zoning. He noted we have high density, legal non-conforming homes in this area. Councilmember Freeburg said if someone acquired the properties and wanted to develop it into townhomes would the area have to be amended with the Metropolitan Council. Mr. Palmer replied not at this time. October 21, 2019 (Regular) Page 15 of 18 Mr. Borglund said if Council’s recommendation stood based on the June meeting we would have to do a land use plan amendment and rezoning and that under the plan from the Planning Commission there is the ability for townhomes at River Avenue and 1st Avenue as medium density or high density that would allow some flexibility for upzoning as it would allow higher density. Mayor Rice said the action would require land use and rezoning, either of which have been changed at this point. Mr. Baumgartner said if we carried through the low-density land use change, we would have to put a vehicle in place for R-1 zoning. Mayor Rice said this Council will see those items sometime in the future to make these densities consistent with the land use plan. Councilmember Freeburg asked if the area would eventually be R-1 zoning. Mr. Borglund said the 2040 plan with amendments for this area as low density will be brought back for zoning amendment action for R-1 zoning. Councilmember Barnett clarified if the properties stood today and a party owned parcels between 1st Avenue and River Lane and acquired five properties to build medium density they would come back, look at the validity and make adjustments, but otherwise would be assuming R-1 low density zoning. Mayor Rice confirmed the seven lots affected would be zoned R-1 which was buildable and non-conforming. Mr. Borglund agreed this was the case for all small lots, especially those souths of Walker. Councilmember Wesp said with the land use change a public hearing was held that resulted in residents being in favor of the land use change but other property owners were caught off guard which resulted in being sent back to the Planning Commission. He said the City had no intentions of buying properties today but commented that some were holding properties to increase their value but others want the area to be R-1. He said when a property is down zoned from the past 70 years that is where property values decrease so he was not in favor of sending this to the Metropolitan Council for change. Mr. Borglund said if Council wished to reconsider, they could take action now to bring it back for reconsideration at the next meeting. Councilmember Skogquist said he did not agree with Councilmember Wesp then expressed frustrations about the many meetings regarding reconsideration. He said sometimes people do not agree and it was important to the neighborhood as it had been planned high density for 50 years and was full of single-family homes. He said he was in favor of leaving the area as is as one of the homes in the Highland Park area was R-4 and would result in paying $1 million to purchase. Councilmember Skogquist said we should allow residents to live there with peace October 21, 2019 (Regular) Page 16 of 18 of mind for 20 years who can invest in their homes, adding we can stop sitting on lots held for 20 years and keep the use in the Comprehensive Plan and remain single family homes. Councilmember Wesp said the previous process was not transparent as not all residents want to see the area single family and it was not our place to decide how property owners want to use their property or change why they purchased it in the first place. He said we are not asking anyone to move but are limiting how people can sell their property and to suddenly change direction after 50 years does not seem transparent, adding frustration regarding Councilmember Skogquist’s concerns about open discussions. Councilmember Freeburg said people should be able to live here forever and that nothing says they will be forced out but if someone sells and moves in someone could purchase a property as an investment and that over 50 years could redevelop the area. Motion by Councilmember Freeburg, seconded by Councilmember Wesp, to reconsider bring forward item for discussion at a future meeting for consideration. Mr. Lee explained that Council took action on June 17 and if they wanted that action to stand no action was needed. Mayor Rice used the analogy of property on Pleasant and Ferry Streets with assembled properties, inconsistent with zoning at time, and the intent to do new development but was not approved. He explained that property owners do not own the zoning and that this action was not slipped into the plan but spoke to the vision and future of the Council who voted 3-2. Mayor Rice said the zoning and Comprehensive Plan spoke to the future and citizens then referred to the land from the seven properties between River and 1st Avenues as medium density. He said the problem was that lot lines could disappear and high density would not be good here because an apartment building would not be good and zoning should change regardless. Mayor Rice said he was comfortable with the process and did not see a point in allowing a property owner to increase property value if the goal of the PUD was to change. He referred to earlier lost arguments and how this was a defining moment in this area with no zoning changes but included lower density in the midst and purchased by a single-family homeowner. He said while the action was not what was recommended by the Planning Commission high density should not be in this area and should be left to see what happens when people make proposals. Planning Commissioner Bonthuis said if nothing was done tonight the area would have to be reconsidered on November 4 or remains single family. She referred to one correction that those in favor were two landowners with one against who owned four properties. She said if left those properties on 1st and 2nd Avenues could stay as long as they want and remain single family, duplex or townhome if October 21, 2019 (Regular) Page 17 of 18 sold. She said if all properties were single family the Council was decreasing property values for all property owners. Commissioner Bonthuis said those on 1st and 2nd Avenues were down valuing and if a developer came in, they could make more money. She noted if we make that section all single family would be spot zoning and against past direction as it resulted in apartments like other areas. Mayor Rice said this was not spot zoning but a broad brush for R-4 zoning that invited that type of construction in neighborhoods. Discussion was held regarding attempts to make all areas consistent. Commissioner Bonthuis said this work makes this consistent if we make the neighborhood all R-1 and noted she was not disagreeing that some should not be R-2 but that not all should be R-1 as its devalued property if changed. Mayor Rice said any time property is down zoned it is devalued but it happens and is our responsibility to plan and zone and was not a homeowner’s ownership for a zoning designation. Jeremy Smith, 1803 1st Avenue, said he did most of the work on the houses in the area and would rather not see R-1 zoning. He said while he was unsure where he would be in 5-10 years, he did not want options taken away, adding parking and empty lots would remain that way for a long time. Councilmember Freeburg said leaving the area R-3 could allow for sale as a house. Mr. Smith agreed but said it would be very limited to the house built based on current setbacks and not appealing for a family of four due to the empty lots and parking lot. Mayor Rice agreed, adding while it likely has taken time to assemble properties if zoned R-1 the City-zoned properties would likely sell and we would see new single-family homes. Upon a roll call vote: Councilmembers Freeburg, and Wesp voted in favor. Councilmembers Barnett, Skogquist and Mayor Rice voted against. Motion failed. Mayor Rice noted this issue could come forward again at any time. 12. UPDATES AND REPORTS 12.1 Tentative Agenda(s). The Council reviewed the tentative agendas of the upcoming Council meetings. October 21, 2019 (Regular) Page 18 of 18 Staff and Council Input. Council invited the community to attend the upcoming Halloween parades. 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: 9:05 p.m. Submitted by: Cathy Sorensen, TimeSaver Off Site Secretarial, Inc. Approval Attestation: Amy T. Oehlers, City Clerk