Anoka City Council

September 27, 2021 (Worksession) Page 1 of 9 WORKSESSION OF THE ANOKA CITY COUNCIL ANOKA CITY HALL CITY COUNCIL CHAMBERS SEPTEMBER 27, 2021 1. CALL TO ORDER Mayor Pro Tem Barnett called the worksession meeting to order at 5:00 p.m. 2. ROLL CALL Present at roll call: Mayor Pro Tem Barnett, Councilmembers Weaver, Wesp, and Skogquist. Staff present: City Manager Greg Lee; Finance Director Brenda Smith; Community Development Director Doug Borglund; City Planner Clark Palmer; Engineering Technician Ben Nelson; Police Chief Eric Peterson; City Attorney Scott Baumgartner. Absent: Mayor Rice. 3. COUNCIL BUSINESS and/or DISCUSSION ITEMS 3.1 Discussion; Trunk Highway 10 Project; Neighborhood Traffic Impacts. (Example: Pleasant/Wingfield/Garfield). Engineering Technician Ben Nelson shared a staff report with background information stating spring of 2022 the City will be reconstructing U.S. Highway 10/169 from the west City limit line with Ramsey to 1,100 feet west of the Trunk Highway 47/169 Ferry Street interchange. The project will transform this signalized corridor into a freeway providing a roundabout interchange at Thurston Avenue, an underpass at Fairoak Avenue, and a reconstructed interchange at Main Street. There will be frontage road networks on both the north and south sides of the highway and the total estimated project cost was $73.5 million. He outlined benefits of this massive project then highlighted the project will include the replacing the U.S. Highway 10 bridge over the Rum River, transforming the Ferry Street interchange into a single point diamond interchange and the addition of auxiliary lanes between Ferry Street and 7th Avenue. He shared the total estimated project cost of this portion would be $64 million and outlined the benefits of this project. Dan Lonnes, Bolton Menk, presented on local neighborhood traffic impacts and options and tools to mitigate these concerns that will help address Council questions. He shared recommended next steps that included a public communication plan for local routes, mitigation steps, public outreach, and how to September 27, 2021 (Worksession) Page 2 of 9 respond to consistent comments and complaints as there will be impacts for the next two years but the result will be a good project. Councilmember Skogquist spoke about impacts to the Garfield neighborhood, the southwest area of Anoka, and others specific areas. Councilmember Weaver referred to the importance of police enforcement in specific areas, especially the single left turn lane going onto Ferry Street. Police Chief Eric Peterson agreed but noted it will be difficult to remain in the areas for enforcement, especially during difficult times. Mayor Pro Tem Barnett inquired about other mitigations that could be used including utilizing apps that would help suggest detours. Councilmember Weaver asked if MnDOT will help alleviate the situation with signal timing. Mr. Nelson said Anoka County and MnDOT will have a consultant to assist with ways to mitigate throughout the project, including signal timing. Marilyn West, Anoka, shared comments about traffic cutting through their neighborhood now, including large trucks, and suggested installing a convex mirror to assist at the blind intersections then asked if the streets were meant to support the axel weight that comes on the streets. Mr. Nelson noted City streets were designed for 10 tons. Michael Steel, 2733 Rivers Bluff Lane, shared comments about access and impacts in his neighborhood that has an older population in the event of an emergency and that traffic will use the asphalt pathway. Chris Olson, Anoka, spoke about the road closed area and concerns near AutoZone which was already difficult and needed to be addressed prior to the project beginning, then asked if formal notice of discussion meetings would occur in the future. Jeff Nelson, 2826 Wingfield, spoke about the difficulty in leaving his driveway during this project and how signage would not help and should be in the road instead of on the shoulder. City Planner Clark Palmer shared comments received via the Zoom chat that included the need for police enforcement in the southwest area, Slabtown that currently has a large amount of semi-truck traffic traveling to Federal Cartridge, and how Google traffic apps provided the best routes from 2-7PM which includes the Slabtown neighborhood which results in safety concerns. Holly Olson, 2827 Wingfield, reiterated how the signs helped slow traffic during the resurfacing project and slowed traffic to the same levels, including buses, then September 27, 2021 (Worksession) Page 3 of 9 spoke about a near incident with a semitruck who needed to back-up to exit the neighborhood and the need for clear signage. Councilmember Skogquist shared concerns about Garfield Street and those who wanted to avoid Main and Ferry Streets and the need to limit accesses when necessary. Councilmember Wesp inquired about the number of speeding tickets issued during road closures near Garfield Street when the railroad tracks were closed and concerns for safety in this area with east-west through streets and response times. Chief Peterson explained the speed trigger of 36 mph and how 8% of cars were tracked as speeding which demonstrated that while the department cannot stop all speeding, they could do a directed enforcement in the area even though this is a low area of enforcement for speed overall. Discussion was held on the need for signage throughout the project. Kelly Nelson, 2827 Wingfield, spoke about the need for enforcement during rush hour which starts as early as 2:30 p.m. Mr. Lee said staff can keep signs already in place to provide a baseline but the goal was to get signage installed at all locations for cut-through traffic and start detour signs then work with MnDOT on signage to include driver speed indicator signs and others as part of the project budget. He suggested Council assign a committee who can act quickly when changes are needed but still keep Council informed and the need to communicate regularly with residents, neighborhoods, and MnDOT, especially with current Google algorithms for traffic apps. Tara Olson, 2603 Wingfield Avenue, shared comments about the volume of cut- through traffic as well as mixed use, cars, semi-trucks and school buses and concerns for pedestrians and bikers coming from the railway. Mr. Lee suggested direct notification of neighborhoods going forward and how the City will establish an email list that can be shared City-wide. Mr. Nelson agreed, stating MnDOT will be coordinating communications of this project. 3.2 Discussion/River Lane Public Easement. Community Development Director Doug Borglund shared a staff report with background information stating in November of 2017 a resident brought forward concerns regarding the ability to utilize an existing 30-foot public walkway easement located between existing single-family residential parcels known as 442 River Lane and 502 River Lane at the end of 5th Avenue. The existing 30-foot walkway easement was put in place in 1979 at the time of platting the subdivision known as Sandra Terrace, allowing public access to the Mississippi River between 442 River Lane and 502 River Lane. The current property owner of 502 September 27, 2021 (Worksession) Page 4 of 9 River Lane during the time-period of 2007-2008 constructed a retaining wall and stairway with a majority of the private improvement located in the existing drainage, utility, and walkway easement area. After the November worksession the City received a petition to vacate the existing walkway easement from the owners of property adjacent to the existing easement that is directly impacted on December 26, 2017, then shared further comments on the impacts and how to move forward. City Attorney Scott Baumgartner shared comments about how this easement was unusual as it was between two private properties then provided further history on the situation to date. Councilmember Skogquist said he was in favor of the original easement as it was established in perpetuity and should not be vacated. Frank Manella, 502 River Lane, shared history of the situation and concerns from neighbors about the construction of a retaining wall built on City property. Dan Bodelson, 1120 5th Avenue, shared that he was in receipt of the recorded easement and the request to return but did not think the City should have to pay to remove the wall and that the wall can stay but expressed frustration that nothing was ever decided, adding the wall was on his property. Mr. Baumgartner said he believed that Council direction was clear that the City would record the easement and Mr. Manella’s attorney would prepare a quit claim deed and suggested entering into an encroachment agreement for access with Mr. Manella. Councilmember Weaver asked about liability with an encroachment easement. Mr. Baumgartner said any interest in a property can make the City liable then spoke about quiet title action to revert the property back to Mr. Manella. Mayor Pro Tem Barnett noted the residents just wanted to ensure the access easement and protect their best interests and suggested a meeting be scheduled with the neighbors with a short turnaround time for further direction. Mr. Lee confirmed the Council provided consensus in September 2020 to not remove the easement. Mr. Manella explained the easement was recorded but the property owner refused to sign then spoke about the confusion they have with deeded rights rather than the easement that a future Council could vacate. He shared frustration as the process started in 2007 and how he has provided access to the river. Councilmember Skogquist said he would not support vacating an easement as it provided citizens of Anoka access. September 27, 2021 (Worksession) Page 5 of 9 Mayor Pro Tem Barnett requested this item be included on the October 18 Council agenda for response or as soon after a neighborhood meeting could be scheduled. 3.3 Discussion; Development Update. Mr. Borglund shared a staff report with background information requesting Council provide direction on several City parcels, including 2nd Avenue and Van Buren Street then discussed a proposed concept development of high-density residential mixed-use development concept and tax increment analysis for this site. Dan Hebert, Gaughan Companies, shared a presentation about a proposed mixed use development concept that would include a restaurant on the river. He shared about their background, urban redevelopment impacts, then said the project would include 150 units market rate apartments, fitness center, and other amenities including a new location for the existing Historical Society with municipal parking and direct sidewalk access for units. Councilmember Skogquist said the site was currently not in a TIF district and how he wanted the right project brought forward that would be good for Anoka then asked about the parking ramp. Finance Director Smith said there was a $350,000 balance remaining for the municipal ramp that would be paid through increased principal payments over time until 2033, adding the balance was assumed to be paid for through future development. Keith Dahl, Ehlers and Associates, shared a proposed TIF analysis of the proposal then reviewed the development budget and proforma. He said the developer was seeking 15 years TIF but noted some adjustments could happen that resulted in 13 years or a $2.6 million TIF note that would generate approximately $300,000 annually that would go to the developer and the City would retain a portion of approximately 10% or $32,000 retained annually for administration fees. Councilmember Skogquist spoke about the possibility of adding a fourth level to the existing ramp in the future, concepts around 2nd and Harrison Street projects, potentially monetizing the parking ramp, and how the Historical Society would fit into this potential. Mr. Borglund said staff has met with the Historical Society who provided space and need information which has decreased as a result of COVID-19 and the use of technology. September 27, 2021 (Worksession) Page 6 of 9 Councilmember Weaver shared concerns with apartments in the downtown and would prefer owner-occupied, adding architecture will be extremely important to fit into the downtown with any project. Councilmember Wesp said Gaughan’s projects in Forest Lake and Shakopee were very nice but said the City has struggled with apartments getting old and the associated problems and said he would be more open to a mixed-use project. Mr. Hebert said they have worked hard to create a project for all income levels, including workforce housing, that provided a flexible lifestyle with nice units and a good way to share the river, including a restaurant. He noted high density housing is the highest tax base a city can ever get and how they were a developer/manager and have never sold an apartment before and would appropriately manage the property. He said materials were important to them as well and that they would work with police to manage and lease, adding they were an invested developer. Mr. Hebert added the market is different today with people seeking rentals and that the events and connections to the downtown area would be good for local merchants and with rent levels ranging between $900 and $1,800 a month and an overall $30 million investment this would be a good project for Anoka. Councilmember Weaver noted the parking ramp would be paid off in 2033 and this project would be done in 2035 and not offset the debt if already paid. Mr. Dahl explained a new TIF district would be housing or redevelopment and with housing the City could incorporate affordability, adding redevelopment could qualify increment generated at 90%. Mayor Pro Tem Barnett asked if this vacant parcel needed something as it would be a good fit for this type of product. Councilmember Skogquist agreed then shared comments about how high density was appropriate near the train station and while commercial with residential above would be best it would not be conducive for residential in the downtown area with special events and music and asked about other interests for this location. Mr. Borglund explained the last four developers proposed similar concepts as this is what the market was trending towards. Ms. Smith shared comments about the benefits of having this type of product, both for the residents and reinvestment in existing properties. Housing and Redevelopment Authority Commissioner Dave Bonthuis commented about the shared support for a proposed concept for potential empty nesters and the Historical Society. Planning Commissioner Borgie Bonthuis asked if the City could work to remove some of the current rentals in the City that were not meeting current standards. September 27, 2021 (Worksession) Page 7 of 9 Mayor Pro Tem Barnett shared comments about the importance of interest in this concept. Councilmember Weaver said he would not support rental units but did like relocating the Historical Society onto Main Street then added he was not fully supportive of TIF in this area as well as the intended goal was to generate funds to pay off the parking ramp. Councilmember Wesp agreed. Councilmember Skogquist shared concerns about letting the site remain vacant too long and liked the momentum. Councilmember Weaver commented about the need to do things right the first time. Council consensus was to continue seeking other development proposals for this site that did not include rental units. Mr. Borglund updated the Council on the 4th Avenue and Grant Street site and requested direction from the Council. He said the site continued to generate interest and that the property owner to the east did not want to sell and since the former warehouse has new owners it may present challenges to acquire. He said there was good interest in freestanding building proposals as well as likely market-rate apartments near the rail station and asked for direction. Councilmember Weaver supported market-rate apartments at this site. Mayor Pro Tem Barnett disagreed and suggested acquiring the entire parcel and sell as one large one parcel for a larger overall project. Councilmember Skogquist said he would be supportive of a market-rate apartment concept similar to the earlier proposal. Councilmember Weaver asked if only apartments or mixed-use could be on this site as he did not want to lose the ability to have a whistle-stop in Anoka. Council consensus was to pursue market-rate if it made sense and was the right product. Mr. Borglund spoke about interest in the River Lane vacant lot to build a single-family home since there has been a change in direction to develop this area as low density. Councilmember Skogquist asked about the parcel’s value, adding there was not really a need for this as part of a larger project and that he would support selling for a nice home. He said he would also support the Park Board’s input on something larger if they felt it could work. Mr. Borglund estimated the parcel would be $150,000 or higher based on its location and views. Councilmember Weaver said he would like to see this be part of a larger discussion with Aikin Park as with the potential for expanding slips more parking would be needed. Councilmember Wesp agreed. September 27, 2021 (Worksession) Page 8 of 9 Mayor Pro Tem Barnett asked for more data to see if the parking demand was consistent or just during nice weather then asked if the parcel could be issued a conditional use permit that would fit two to three townhomes. Commissioner Bonthuis suggested the Council consider rezoning for homes, adding owner-occupied on a park would be good. Council consensus was to gather more information on this parcel. Mr. Borglund said the former Dustbusters site is for sale on North Street east of 7th Avenue and that the owner has approached the City to find out if there is interest in acquisition before the site goes on the market. Councilmember Weaver said with the usable rail spur this site had a lot of value and asked about the long-term goal to hold both sites for potential redevelopment. Mr. Lee explained how rework of the road for a signal combined with development, office warehouse, business-oriented was envisioned and that currently an auto wrecking business could fit or other uses that have outdoor storage with 80% coverage. Councilmember Skogquist inquired about the validity of the appraisal as the site was likely contaminated and was differently-shaped lot. Councilmember Wesp suggested the City obtain a current appraisal then commented about the decrease in activity at Ready-Mix. Council consensus was to obtain an appraisal for further consideration of the site. Mr. Borglund asked about potential interest in acquisition of 2612 4th Avenue as the owner was interested in selling and if purchased would allow us to work with the property owner at both 2600 4th Avenue and 440 4th Avenue for reconfiguration. He spoke about encumbrances on our own site that could be addressed and how this could be part of a bigger project with a few more acquisitions to make a good project. Mayor Pro Tem Barnett concurred. Council consensus was to move forward with work to purchase 2612 4th Avenue. 3.4 Discussion; Flag Ordinance. Mr. Borglund shared a staff report with background information sharing City Council’s review and discussion of a draft amendment that would regulate the display of flags or similar objects or displays on City of Anoka owned buildings, sites, parks, community signs, light poles, and flagpoles, etc. September 27, 2021 (Worksession) Page 9 of 9 Mayor Pro Tem Barnett shared how she requested this item be brought forward as with current controversies throughout the country with special interest groups requesting flags be flown on City property, she wanted the City to be prepared to respond in a fair manner and not have these requests become politicized or expose the City to potential litigation. Councilmember Skogquist inquired if the proposed ordinance would affect the ad hoc memorial at Riverfront Park, signage supporting local police, and local chalk art then spoke about the difference between free speech and government speech. Mr. Baumgartner spoke on the difficulty of blurred lines between types of speech and in deciding who is allowed to express and who is not because it is subjective and risks discriminatory enforcement. He said with a policy in place it decreases the chance of being challenged and is ultimately fair and consistent and as neutral as possible. Councilmember Wesp supported an ordinance being drafted and suggested contacting organizers of the rock garden prior to inclusion on an agenda. Mayor Pro Tem Barnett suggested partnering with Haven for Heroes on the rock garden as a way to address its potential relocation. Council consensus was to bring forward the proposed ordinance for formal consideration. OTHER BUSINESS None. 4. ADJOURNMENT Motion by Councilmember Wesp, seconded by Councilmember Skogquist to adjourn the Worksession at 8:45 p.m. Motion carried. Submitted by: Cathy Sorensen, TimeSaver Off Site Secretarial, Inc. Approval Attestation: Amy T. Oehlers, City Clerk