Anoka City Council

December 13, 2021 (Worksession) Page 1 of 8 WORKSESSION OF THE ANOKA CITY COUNCIL ANOKA CITY HALL CITY COUNCIL CHAMBERS DECEMBER 13, 2021 1. CALL TO ORDER Mayor Pro Tem Barnett called the worksession meeting to order at 5:02 p.m. 2. ROLL CALL Present at roll call: Mayor Pro Tem Barnett, Councilmembers Weaver, Wesp (attending remotely), and Skogquist. Staff present: City Manager Greg Lee; Finance Director Brenda Springer; Community Development Director Doug Borglund; Public Services Administrator Lisa LaCasse; City Planner Clark Palmer; Engineering Technician Ben Nelson; Public Services Director Mark Anderson; Communications Manager Pam Bowman; Electric Utility Director Greg Geiger; Police Captain Andy Youngquist; Larry Norland, Green Haven Golf; Senior Engineering Technician Ben Nelson. Absent: Mayor Rice. 3. COUNCIL BUSINESS and/or DISCUSSION ITEMS 3.1 Discussion; Green Haven Golf Course Redesign Concept. Doug Borglund, Community Development Director shared a staff report with background information stating the City Council has been discussing property acquisition and development of a driving range at Green Haven Golf Course. The Greens of Anoka Redevelopment Plan, which was adopted in 2012 encourages the City to continue long-term commitment to Green Haven golf course. On- going investment in the course to improve the overall aesthetics and enhance the play-ability of the course should be considered, to keep the course competitive and respond to changes in the golf marketplace. The Greens of Anoka Redevelopment Plan provides directive regarding investment in a driving range and redesign of the course to maximize its potential. Most significantly, the addition of a driving range and redesign of the course could lead to increased foot traffic and revenues from both an operations stand point and the ability to continue to attract larger events and outings, new activities, and further complementing the renovations that have been made to the clubhouse/restaurant/banquet facilities as well as planned renovations. These have all been objectives of the City Council. Mr. Borglund outlined points of interest the City Council should discuss and shared the proposed design follows the essence of the Green of Anoka plan that was developed with the idea of using an improved Green Haven as a driver of redevelopment in the Highland Park December 13, 2021 (Worksession) Page 2 of 8 Neighborhood and surrounding area. The current iteration of the plan included a double ended driving range and an improved golf course layout that improves the flow of daily play as well as enhances the playing characteristics of the overall course. The driving range improvements and benefits and the inclusion of a dedicated multi-purpose recreation area would result in an indirect benefit to the City with increased foot traffic at the facility and increased utilization of the food/beverage services during the non-golf season while these activities are occurring. The delivery of non-golf or off-season adult/pub style recreational activities such as curling, lawn bowling, disc golf, cross country skiing, or bar games such as corn hole/Kubb, should not be expected to be substantial revenue generating activities but could generate smaller amount of revenue as illustrated below. He spoke about league or tournament fees that may be able to be sufficient enough to pay for initial equipment purchases (2-3 year pay back) and/or the staff time required for maintenance, direct delivery, or administration of a tournament or league such as winter disc golf, lawn bowling, and outdoor pub curling. Other activities could include cross country skiing, bean bag/corn hole leagues, and maximize activity and return. Finance Director Brenda Springer spoke about relocation of existing Garfield Street west and costs, real estate land acquisition, real estate development and building a golf course community, and financing detail that included the total cost of the project could range from $10.6-$11.1 million for the land purchases, road realignment, and golf course redesign. She outlined financing for the land purchases of NorthStar Fence and Buldoc) and how the City could use current and future land sales to cover the $2.3 - $2.9 million in land acquisitions. Ms. Springer shared proposed funding sources, including land sales and potential TIF financing, enterprise funding, and abatement bonds. She reviewed future income opportunities as a result such as curling, bags income, additional commission on food and drink sales, banquet opportunities, and others. Mr. Borglund outlined 10 preliminary critical path items for Council consideration and a proposed timeline then asked for feedback. Larry Norland, Green Haven Golf, shared aerials of the existing site and the 2012 approved Greens of Anoka Plan and proposed concept redesign. He spoke about the proposed dual-ended driving range that would have a limited width but enough tees and turf conditions throughout the season and the dual-purpose area with restrooms at the trail head for cross country skiing, golf academy, and entertainment venues. He spoke about need to accommodate buses and youth and how this would help increase the number of non-traditional golf users who would use the course as the plan would include a concept similar to TopGolf and provide four seasons of entertainment with golf practice, curling, wedding venue, and lawn bowling. He spoke about the contiguous cart path and connect to homeowners with golf carts who would use the path to come to the clubhouse for food and beverages then spoke about their signature hole that goes around the water and speed of the current road and the need to address. December 13, 2021 (Worksession) Page 3 of 8 Engineering Technician Ben Nelson explained the proposed road improvements and how the trail could be utilized and replace the connection on the southside of the golf course. Mr. Borglund spoke about the need to acquire property to accomplish this project, and noted the City would be closing on the two parcels from North Star Fence on December 15 and was currently negotiating with Buldoc on one parcel. He spoke about staff’s work with MI Homes to create a detached village home concept that would maximize use and tax base. He reviewed a proposed schedule which would be in conjunction with the Highway 10 project with final completion in June 2024 then commented about the goal of the range and project would provide more community and social opportunities. Mr. Norland shared once Highway 10 was complete there will be no other course that had easy access to parking like as Green Haven which would bring more people to the course then outlined its history which was built in 1935 originally as Anoka Recreation. Councilmember Weaver asked about the longevity of this project. Mr. Norland said the project would be good because there would not be much maintenance or upkeep and would likely last 10 years before changes were needed and turn a profit of $150,000 in the first year. Councilmember Weaver asked where the high school golf team practices. Mr. Norland said they practice at Northfork in Ramsey because there is no driving range then shared how the hitting bays could be used in the winter. Councilmember Wesp spoke about how Bunker Hills in Coon Rapids had changed plans and moved forward with the current $10 million project instead as they recognized the property had more to offer than just golf and that Anoka should realize that too. He said he believed there were people interested in this proposal then spoke about what to do with the 11-14 acres for redevelopment and how this was one option. He said based on current borrowing rates as well as how the project would complement the American Club and redesign Garfield which would likely happen anyway the project could be done at the same time as Highway 10 and should move forward so its complete and ready to utilize. Councilmember Skogquist asked more about tax abatement bonds and how they would work and said he would like to know more about the costs and understand the business and proposed revenue as we need more return in order for this to make sense. Ms. Springer shared high-level estimates for Council information with a payback of 45 years for the redesign and land purchases but not reconstruction of Garfield because that project would occur no matter what happens with this project. December 13, 2021 (Worksession) Page 4 of 8 Councilmember Weaver asked more about abatement bonds and the ability to capture from the new development and not affect existing taxpayer base at all because then more people will use and result in more buy-in. Public Services Administrator Lisa LaCasse cautioned the Council as we were basing plans on different golf courses model but said if successful, we could create a following that would provide extra revenue through fat tire biking, winter disc golf, and food and beverage. She said items like these would be considered loss leaders as they would require a minor investment but drive people to the facility. Councilmember Barnett asked when the City hired a golf course architect was a golf consultant ever considered as well. Mr. Norland said a consultant was not included as part of the project for operations. Councilmember Barnett spoke how the course has historically lost money and now would be community-focused and not just for golf but said she did not want to subsidize the course for those outside the City as there would be a need to cover resources of police, parks, and roads and should not be affected. She commented how TopGolf revenue came from food and beverage and to capitalize on that would there be a tunnel or walkway from the range to the clubhouse. She said while she liked the City being unique and special, we also do not need to be the best as we still have to answer to the taxpayers. Mr. Norland explained how they could build a covered walkway that would allow people to order food and beverage. Mike Brual said he worked at Green Haven for 20 years which had a makeshift range in the beginning but did not work well and how the City needed a range to keep golfers at Green Haven. He spoke about the current upscale restaurant and how the range would be a great addition. Jason Tollette, operator of Tavern, spoke about how the younger demographic relates to TopGolf and the need to institute this technology to bring this younger people to Green Haven. Chris Olson, President of Green Haven Men’s Club, said he represented 280 golfers who were passionate and fully supported this range concept which would draw other activities too. Councilmember Skogquist asked how much of the expense of the project was to have the range close to the clubhouse and said he wanted to better understand the concept because if we can do something else and still have a good project at a lesser cost that may be a possibility. December 13, 2021 (Worksession) Page 5 of 8 Mayor Pro Tem Barnett said she understood the need to decide quickly so we do not miss out on the Highway 10 project timeframe. Councilmember Weaver said he supported the project as he saw the potential of combining with the clubhouse and food service and suggested offering naming rights as a possibility. Mr. Norland said staff could gather more information for presentation to Council regarding food sales but land acquisition and driving range construction is moving forward in order to make way for the range. Former President of Men’s Club (not signed in), said he would hate to see a project done halfway that the City would regret and encouraged them to move forward with the project as proposed. Mr. Lee suggested the a special worksession be held on January 10, 2022, to continue this discussion and provide Council with further data. 3.2 Discussion/4th Avenue and Johnson Street Development Concepts. Mr. Borglund shared a staff report with background information stating the City Council provided direction to staff earlier this year regarding the 4th Avenue and Johnson Street development site owned by the City and was open to a non-owner- occupied market rate product. Staff has been discussing the site with MWF Properties regarding a non-owner-occupied market rate product. The site is 2.55 acres in size and currently hosting the surface lot leased to the Met Council next to the North Star Rail parking ramp. Matt Yetzer, MWF, shared their background and work which included a majority of workforce housing mostly in the Twin Cities and Rochester. He said MWF created high quality construction including market rate projects similar to what they were proposing in Anoka. He said they wanted to create a transit-oriented development that would focus on market rate rental demand which was currently underserved and increase opportunity for future commercial near the transit stop. Mr. Yetzer spoke about market rate rental demand and how they proposed 131 units over four stories that would include a combination of unit types and amenity spaces with fitness, game rooms, and others. He shared the preliminary timeline that could have project completion and occupancy by November 2023. Councilmember Weaver noted this area was in a TIF district and believed we can use 25% of revenues generated to bring funding to other areas. Mr. Borglund said if purchased with non-TIF funds that would be different but said he was not opposed to market rate apartments. Councilmember Skogquist agreed but shared feedback that the elevation should capitalize on the transit aspect and have more street focus. December 13, 2021 (Worksession) Page 6 of 8 Mr. Borglund said they would also like to explore Amtrak-style construction and funding for a whistle stop as part of this project. Mr. Lee said that work should start on the whistle stop as it will likely need to be connected to the pedestrian overpass. Councilmember Wesp spoke about the uniqueness of their community that started with a golf course constructed by the WPA and now a potential whistle stop and said he would support this proposal. Mayor Pro Tem Barnett said she envisioned something bigger and did not want to piecemeal a project and cautioned while this was a nice product the property values will not decrease and said they should hold out for something else as she would prefer owner-occupied in this area. Mr. Lee said staff will work to refine the site plan and address concerns and bring back when Mayor Rice has returned for full Council direction then noted parking would have to be addressed in any case as part of a transit station. Councilmember Skogquist asked about relocating the bulk oil function. Mr. Borglund said there currently was no other location for this facility and that staff had hoped to acquire this site and then lease back to gain control of the site at some point in the future. 3.3 Discussion; 7th Avenue and Bunker Lake Boulevard/Ryan Companies. Ms. Borglund shared a staff report with background information stating the City and Ryan Companies have entered into a purchase agreement for the 14-acre site at 7th Avenue and Bunker Lake Boulevard. Ryan Companies has been working to attract a grocery store user to the site then introduced Patrick Daily of Ryan Companies to discuss points of interest with the City Council being brought forward by Ryan. Patrick Daily, Ryan Companies, spoke about their work to create a grocery- anchored shopping district and impacts of the pandemic on shopping. He said it may make sense on a growth plan but currently was not high enough on their project list and said as they build out their store plan, they will keep the City posted. He said in the meantime they have had interest in the outlots and suggested considering those prior to any grocer. He outlined proposed uses that included service-based retail, car washes, and coffee shops and how to retain them and not lose them to other cities. He said there is sufficient area to develop the front half and still leave flexibility in the back then spoke about reverse development instead and how this could still bring a grocer to the City. He said grocery interest in the site has been quieter than anticipated and noted they have been in contact with all the qualified national, regional, and local operators, and most of them have been quick to say the location is light on critical mass and additional traffic drivers, today; however, they do think this could be a good December 13, 2021 (Worksession) Page 7 of 8 grocery location at some point in the future. Mr. Daily spoke about the opportunity to begin ‘place making’ this neighborhood shopping district. Mr. Borglund said staff understands the community wants a grocery but the market is very competitive as there are grocers in neighboring cities and the developers do not believe a grocer would be supported in Anoka at this time. Mayor Pro Tem Barnett asked if the reverse could be true and drive grocers away. Mr. Daily said they were assured that would not be a problem with a grocery. Councilmember Weaver asked if we sell off the front outlots would this eliminate the potential for Hy-Vee in this location then shared concerns with lighting and noise as result of any project for the nearby neighborhood. Mr. Daily said they have a relationship with Hy-Vee but noted they have slowed their growth then spoke how product offerings have changed over 20 years such as including grocery at Target. He said this site is for a neighborhood grocery and that Hy-Vee has never had a full store offering on a small site like Anoka then said whatever develops they would ensure noise and lighting would be addressed as well as the service area in the backs of buildings. Mr. Borglund confirmed groups were interested in this site, including the possibility of municipal liquor, but site constraints will make this difficult. Mr. Lee agreed, stating staff did not see the expansion of municipal liquor as it would be on the wrong side of the road. Mayor Pro Tem Barnett said she would be comfortable with more options being presented but would not support a use such as a carwash on this site. Mr. Lee confirmed all stormwater issues had been address with the library site. Mr. Daily said they also have ponding available onsite to provide more flexibility. Mr. Borglund spoke about the need for a signal which would be split with Andover and the City as well as Anoka County. Councilmember Wesp said he understood we may have to change direction regarding this site which could develop similar to the Kwik Trip on 7th Avenue and noted the goal will be to make whatever occurs business and neighborhood friendly. Council consensus was to move forward with developing the smaller outlots as proposed. OTHER BUSINESS December 13, 2021 (Worksession) Page 8 of 8 Mr. Lee said going forward a regular Council update would be included on the worksession agendas then shared that homeowner Len Sonsby wanted to connect his utility to the City of Anoka for his single-family home. 4. ADJOURNMENT Motion by Councilmember Weaver, seconded by Councilmember Skogquist to adjourn the Worksession at 7:05 p.m. Motion carried. Submitted by: Cathy Sorensen, TimeSaver Off Site Secretarial, Inc. Approval Attestation: Amy T. Oehlers, City Clerk