Anoka City Council

WORKSESSION OF THE ANOKA CITY COUNCIL ANOKA CITY HALL CITY COUNCIL WORKSESSION ROOM NOVEMBER 25, 2019 1. CALL TO ORDER Mayor Rice called the worksession meeting to order at 5:00 p.m. 2. ROLL CALL Present at roll call: Mayor Rice, Councilmembers Barnett, Freeburg, Skogquist, and Wesp. Staff present: City Manager Greg Lee; Community Development Director Doug Borglund; Public Services Director Mark Anderson; Housing/Code Enforcement Inspector Mark Lucht; Engineering Technician Ben Nelson; City Attorney Scott Baumgartner; Associate Planner Clark Palmer; Officer Paul Schley; Finance Director Brenda Springer; Electric Utility Director Greg Geiger. 3. COUNCIL BUSINESS and/or DISCUSSION ITEMS 3.1 Discussion; US Highway 10/169 Improvement Project; Streetscape Requirements. Engineering Technician Ben Nelson shared a staff report with background information stating in 2009 and 2012 the streetscaping/landscaping for the Main Street sub-district was defined when East Main Street and West Main Street were reconstructed. During the planning and design of these projects, Anoka City Council branded the downtown area as “real classic”. In August 2017, a verbal commitment of $4M was received from the Anoka County Board of Commissioners for the combined projects of Highway 10/169 Fairoak Avenue Underpass and the Thurston Avenue Interchange. On November 5, 2018 City Council adopted a resolution approving the Joint Powers Agreement (JPA) with Anoka County outlining the availability and the disbursement of the $4M Anoka County committed to the City for the project. Mr. Nelson said with the US Highway 10/169 corridor’s proximity to downtown and the proposed West Main Street extension, staff has developed multiple concepts detailing potential aesthetic treatments for the bridges at Main Street, Fairoak Avenue, and Thurston Avenues, along with retaining walls and corridor streetscaping enhancements. Bridge aesthetic considerations include Bridge Treatment Option A “Standard Design”; Bridge Treatment Option B “Limestone Design”; Bridge Treatment Option C “Limestone & Red Brick Design”; and Bridge Treatment Option D “Red Brick Design”. Staff outlined Corridor Bridge/Interchange options for Thurston Avenue Interchange, Fairoak underpass, Main Street interchange, TH 10 roadway embankment retaining walls, streetscape and corridor enhancements, and financial impacts of all. He said staff is seeking input on any aspects associated with enhanced bridge treatment options, streetscaping or corridor landscaping enhancements being considered as part of the US Highway 10/169 Improvement project. Josh Shields, Landscape Architecture with Bolton & Menk, presented information on the proposed streetscaping/corridor landscaping concepts. Eric Johnson, Project Engineer with Bolton & Menk, shared proposed retaining wall concepts of a variety and mixture of materials and aesthetic treatments to local road improvements including Green Haven Parkway and Main Street such as landscaping and trees, ornamental fencing and decorative lighting. He spoke about the areas that would not be eligible for treatments. Councilmember Freeburg asked about plant material. Mr. Johnson said plant material would be included but had not been selected yet. Councilmember Barnett requested photos of brick selections in contrast with the retaining wall panels to ensure a streamlined look then asked about longevity and maintenance. Mr. Johnson spoke about the consideration of real brick versus manmade materials to better match the red brick used downtown as well as lessen the chance of staining. He said if installed correctly longevity should not differ between materials and would be easy to clean for instances like tagging. Councilmember Freeburg asked about maintenance costs and who owns the bridges. Mr. Nelson said the City would maintain the walls but MnDOT owned the bridges. Mr. Nelson spoke about the need for Council direction to select a bridge treatment option. City Manager Greg Lee reminded the Council that a funding source had been identified for all options and noted staff recommendation was based on continuation of the City’s “real and classic” branding. Councilmember Barnett said she believed Option A is not viable and agreed with staff’s recommendation as it flowed and continued the City’s branding but was concerned with maintenance and asked about longevity of the wall. Mr. Johnson said the wall would likely last more than 50 years but would follow-up with a proposed maintenance cycle. Councilmember Wesp said he liked Option B best with the limestone. Discussion was held on textured panels versus smooth panels and other options for consideration. Mr. Lee spoke about how this section would serve as an extension to West Main Street. Mr. Shields spoke about the need to start preliminary bridge plans in early 2020 and would follow-up with more concepts based on the two preferred options of brick and limestone mix for further consideration.  Mr. Nelson shared information on an open house for the project which would be held on December 10 and then again in spring of 2020 and said staff would bring back revised options for Council input in February 2020. Mayor Rice noted design should not be held up while the City finalized material selections. Council consensus was to review revised options in February for final design selection. 3.2 Discussion; 7th Avenue and Bunker Lake Boulevard Property. Community Development Director Doug Borglund shared a staff report with background information on development interest in the 7th Avenue and Bunker Lake Boulevard parcel then introduced the developer to share their proposed project. Patrick Daly, Ryan Companies, shared background on their 80-year old family firm and said they saw this site as a good location for a grocery store anchor and neighborhood shopping district. He explained their efforts to secure an anchor tenant after which they would focus on the remaining shops along Bunker Lake Boulevard. Mr. Borglund shared comments about the purchase agreement that included a traffic signal along 7th Avenue with cost sharing as well as necessary stormwater ponding expansion. Mr. Daly shared visuals of other projects such as Hy-Vee in Brooklyn Park. Mr. Borglund spoke about the concept of a liquor store option should an anchor like Hy-Vee be identified. Councilmember Skogquist asked if Ryan Companies would be the developer only or owner as well. Mr. Daly said that decision was still in discussion but that Ryan Companies may continue to hold this asset once developed. Councilmember Barnett asked about timeline and potential of contingencies. Mr. Borglund said the purchase agreement would be contingent upon all approval processes then reviewed a potential schedule that included first reading in January. Mr. Daly said once a purchase agreement was approved, they would begin full marketing then return to Council with a revised site plan based on interest received. City Attorney Scott Baumgartner asked about the possibility of a recession and not being able to secure a grocer and changing direction for site use. Mr. Daly said their intent was to be candid throughout the process but without an anchor they were not sure what the site would be and while they would work with the City on any revised version, their intent would be to wait until the market returned. He spoke about conditions in the contract and contingencies and the need for new approvals.  Councilmember Wesp spoke about a recent article in the Anoka County Union and pullback of Hy-Vee from the Anoka County area and asked how much Ryan Companies had been tracking this direction and if they were working with Coborn’s or other grocers. Mr. Daly spoke about Hy-Vee’s intent for store openings with some outside the metro area and how Ryan was not tied into one grocer but working the market. He said he believed this was a great site but spoke how grocers do analysis and sales projections for sites. Discussion was held regarding the possibility of a Hy-Vee in Andover and the challenges surrounding that decision due to site size and access. Planning Commissioner Borgie Bonthuis spoke about the Planning Commission direction which prohibited allowed uses such as gas stations on this parcel and Hy-Vee’s store model included a gas station. Mr. Borglund said should Hy-Vee be identified as the anchor there would be a need to review this area for zoning changes since the north portion has changed and amendments could be based on what the market says for the parcel. Council consensus was to move forward with a proposed purchase agreement approval after which the applicant would return to the Planning Commission and Council once market interest was received. Mr. Daly thanked the Council and said they would return with options for consideration. 3.3 Discussion; Property Maintenance Code and Rental Licensing Regulations. Mr. Borglund shared a staff report with background information stating staff would be presenting and introducing amendments to rental licensing/property maintenance regulations and process. He reviewed proposed fee changes related to rental licensing in detail and the need make changes related to revenue and the amount of services and expenses and economies of scale. Mr. Borglund reviewed other cities’ conversion fees for comparison to Anoka. Mr. Baumgartner commented about the nexus between administrative costs for licensing and staff time for processing the application along with conducting necessary inspections. Associate Planner Clark Palmer reviewed in detail proposed amendments that included rental licensing definition, limiting the number of exceptions, verification of compliance with the Kari Koskinen Manager Background Check Act, expanded language background checks, and the intent to utilize website capabilities to create a how-to-apply manual. Discussion was held on need for local contacts for rental properties and absentee property owners and the difficulty of enforcement for properties with relatives living onsite. They discussed the differences of occupied versus not sold and boarders which staff would like to eliminate as an exception to rental licensing as they were trying to close the gap on gray areas causing problems. Councilmember Skogquist asked about the number of relative homesteads in existence and the radius between them for cases to be used as a loophole. Mr. Baumgartner spoke about how to address the problem while balancing the ability to allow responsible relatives that live onsite as the City needed to be cautious about discriminatory housing issues. Officer Paul Schley spoke about owner-occupied units, relatives, and blended family members and rental licensing requirements. Mr. Palmer said staff would research more on the relative exception as it may be burdensome to require license. Mr. Baumgartner agreed, stating there needs to be a middle ground and suggested a less stringent process if a relative was involved such as a property registration with a reduced fee. Mr. Palmer reviewed proposed exceptions such as State-licensed institutions, rent-to- own, boarders, and others, then reviewed the proof of background and proof of the eight- hour crime free housing class. Officer Schley explained in detail the Kari Koskinen Law and reasons for the law then spoke about how anyone who had keys to a rental unit was required to have a background check based on the Kari Koskinen Law. Councilmember Skogquist asked what restrictions were in place for property owners with felonies. Mr. Baumgartner said those individuals could still obtain a rental license but would not have access to rented units. Officer Schley shared reasons why his work was so important for the safety of our residents and while there are many great property owners in the City there are others who are not and those are the ones the ordinance was created for, to make the City as safe as possible. Councilmember Barnett spoke about the importance of landlords being aware of who they were renting to, based on the required backgrounds as well as tenant conduct. Officer Schley reviewed the ordinance requirements which included review of tenant rosters and the right to inspect leases. Councilmember Barnett confirmed the City could request proof of completed background checks as well. Mr. Palmer reviewed proposed changes that included property owners being aware that rental licensing is required. Mark Lucht, Housing/Code Enforcement Inspector, said staff was seeking direction on the current property maintenance code and the request to include the International Property Maintenance Code (IPMC) in City Code as the current property maintenance ordinance outlined only minimum maintenance. Mr. Baumgartner asked if the IPMC was more restrictive. Mr. Lucht said the IPMC was more restrictive for safety-related reasons, adding cities can be more restrictive. He explained how this code would work well with the historic style of city, and shared other cities who adopted it that included Ramsey, Columbia Heights, Hopkins, Lino Lakes, and others. He shared photos of property maintenance examples identified in the City and how requirements of the IPMC were based on habitable square footage that would eliminate the event of overcrowding, such as all living in one bedroom and help staff address concerns in instances such as furnace maintenance, unsafe conditions regarding fire code, and exterior maintenance. Mr. Lucht shared the status of a particular property’s maintenance concerns and how use of the IPMC would assist in enforcement efforts then requested Council consider adoption at a future Council meeting of the IPMC with amendments to create clarity and efficiencies for enforcement. Mr. Baumgartner commented on the lengthy process needed to include the IPMC in court administration if adopted. Mr. Palmer said most property maintenance items would not require a criminal process. Mr. Lucht suggested directing staff to review potential amendments first then bring back for Council consideration. Councilmember Freeburg asked if staff currently cites those who park on yards and other property maintenance concerns, such as blight which can bring a City down very quickly and consideration of hiring additional staff may be necessary if more help is needed. Mr. Lucht explained while property maintenance is a continuing problem in Anoka, staff begins with an extensive administrative process first before resorting to any court process, adding the work has to be prioritized because of the volume. Mr. Baumgartner spoke about the nexus of fees with licensing, inspection and enforcement and the exploration of exemptions to rental licensing to provide clarity and eliminate loopholes which create challenges for enforcement and said he could review any proposed draft of the IPMC. Mayor Rice stated the entire City receives the benefit of consistent property maintenance. Mr. Lucht clarified staff was not suggesting changes to current City code but adopting the property maintenance portion of the IPMC. Councilmember Barnett said she was aware of several properties not licensed and asked how we address this concern as we do not want to set a precedent, adding we are past the point of being flexible such as providing grace periods. Discussion was held on ways to identify unlicensed rental properties through police, utility billing, and neighbor complaints but noted the concern of prioritizing with other work. Planning Commissioner Bonthuis said if fees were raised more staff could be hired then shared about a particular landlord who was in violation of the 10% cap. Officer Schley  reviewed his work through property tax records where he compared data with City records and identified unlicensed rental properties but that it was an extensive process which took a lot of staff time. Mr. Borglund noted rental licenses were non-transferrable. Councilmember Barnett commented that property owners get frustrated about the process and then just rent their properties without obtaining a license. Councilmember Barnett spoke about the importance that rental inspections occur in a timely manner, meet the benchmark of every three years to ensure compliance and stressing to landlords the importance of compliance and asked how often routine inspections occur. Mr. Lucht estimated inspections only occur every five years. Councilmember Barnett stated the City was not realistically set for success and that more staff help is needed. Councilmember Freeburg commented how blight was the biggest complaint and the cost to address blight was worth the result. Mr. Borglund said the balance with the COPPS unit was important and if we increase fees on rental licensing that would cover a portion of the cost for increased staffing. 4. OTHER BUSINESS 4.1 Staff Update. None. 5. COUNCILMEMBERS COMMENTS None. 6. ADJOURNMENT Councilmember Barnett made a motion to adjourn the Worksession. Councilmember Skogquist seconded the motion. Vote taken. All ayes. Motion carried. Time of adjournment: 8:05 p.m. Submitted by: Cathy Sorensen, TimeSaver Off Site Secretarial, Inc. Approval Attestation: Amy T. Oehlers, City Clerk