Anoka City Council

October 17, 2022 (Regular Meeting and Closed Executive Session) Page 1 of 9 REGULAR MEETING AND CLOSED EXECUTIVE SESSION OF THE ANOKA CITY COUNCIL ANOKA CITY HALL CITY COUNCIL CHAMBERS OCTOBER 17, 2022 1. CALL TO ORDER Mayor Rice called the regular meeting of the City Council to order at 7:02 p.m., followed by the Pledge of Allegiance. 2. ROLL CALL Present at roll call: Mayor Rice, Councilmembers Barnett, Skogquist, Weaver and Wesp. Staff present: City Manager Greg Lee; Public Services Director Mark Anderson; Police Chief Eric Peterson; Public Services Administrator Lisa LaCasse; Senior City Planner Clark Palmer; Community Development Director Doug Borglund; Assistant City Engineer Ben Nelson; and City Attorney Scott Baumgartner. Absent at roll call: None. 3. COUNCIL MINUTES 3.1 August 8, 2022, Budget Worksession. September 26, 2022, Worksession. October 3, 2022, Regular Meeting. Motion by Councilmember Skogquist, seconded by Councilmember Wesp, to approve the August 8, 2022, Budget Worksession, September 26, 2022, Worksession, and October 3, 2022, Regular Meeting minutes as presented. Vote taken. All ayes. Motion carried. 4. OPEN FORUM 4.1 Proclamation; Harold Blair, October 22, 2022. Mayor Rice read the Proclamation into the record stating that at the age of 12, Harold Blair was taken by train to Washington D.C. to represent Anoka after winning a paper carrier contest, to present before Congress a Proclamation to designate Anoka as Halloween Capital of the World. He spoke about Mr. Blair’s military service and how he lost his life in World War II then presented the proclamation to Mr. Blair’s sister, Kate (Blair) Anderson, and thanked his family for his sacrifice. October 17, 2022 (Regular Meeting and Closed Executive Session) Page 2 of 9 Councilmember Weaver recognized the entire Blair family in attendance then spoke about the importance of history in Anoka and that everyone should know the story of Anoka Halloween. Councilmember Wesp spoke about how his father served in the Navy during World War II and saw Mr. Blair during that time and thanked his family for their sacrifice. 4.2 Police Activity Update. Police Chief Eric Peterson shared about the upcoming Anti-Crime Commission breakfast and Anoka Halloween events where police will be present throughout. He spoke about filling an upcoming vacancy then shared about recent crime events and the department’s assistance with a warrant from the City of Minneapolis/FBI. Chief Peterson stated the annual zombie pub crawl was well attended and while there were a few incidents all were handled well and that all Halloween events would be well staffed to help deter any concerns. Councilmember Skogquist asked how other agencies assist Anoka during large events such as Anoka Halloween. Chief Peterson explained that while agencies are not compensated through funding Anoka is available to help cover when they are in need and said we are grateful for the assistance. Councilmember Barnett asked about speeding and noise concerns on 5th Avenue and the need to monitor more as we become fully staffed then inquired about over intoxication arrests and communication with bar owners with upcoming events. Chief Peterson said staff had recently reviewed training with bar owners regarding the obligation to not overserving and said the few incidents that resulted with the thousands of people attending events was not a concern overall. 4.3 Highway 10 Anoka Construction Update. Assistant City Engineer Ben Nelson shared an update on construction status that included the project’s hotline contact information then reviewed current and upcoming closures, temporary signals, and further communications regarding construction projects. OTHER INFORMATION UNDER OPEN FORUM Gary Rathbun, 1933 State Avenue, spoke in support of Jess Hauf of 10K Brewing, stating he and his wife were part of kickstarting campaign to start the brewery and supported 10K’s desire to construct a new facility. He said the proposed partial brick façade emulates Anoka’s brick storefront history while the rest of the design supports the current modern look appropriate for today and into the future. He said 10K was a successful business with strong community October 17, 2022 (Regular Meeting and Closed Executive Session) Page 3 of 9 outreach and a great fit for Anoka. Mr. Rathbun spoke about the lack of geotechnical or environmental documentation for site construction which should have been shared with potential bidders for cost estimating and felt Council had delayed the process through closed sessions and urged the Council to accept 10K’s building proposal. 5. PUBLIC HEARING(S) None. 6. CONSENT AGENDA Motion by Councilmember Barnett seconded by Councilmember Skogquist, to approve Consent Agenda Items 6.1 through 6.4 as presented. 6.1 Approve Verified Bills. 6.2 Revising and Setting Council Calendars. 6.3 Approval of Anoka County – Contract 2023 Agreement for Residential Recycling Program. 6.4 Recommended Approval of an LG240B Bingo; Anoka Knights of Columbus, November 18, 2022. Vote taken. All ayes. Motion carried. 7. REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 7.1. Planning Items. None. 8. PETITIONS, REQUESTS AND COMMUNICATION 8.1. Request by Ed Evans to Have the Anoka Charter Commission Discuss Miscellaneous Items for the City Charter. City Manager Greg Lee shared a letter from resident Ed Evans requesting the City Council to direct the Charter Commission to consider amendments to the City Charter that would restrict appointments of people to boards/commission if they are related to one another or cohabitating. The Charter Commission will be holding their annual meeting later this month and Dr. Evans intends to attend the meeting in case the Council has any questions. October 17, 2022 (Regular Meeting and Closed Executive Session) Page 4 of 9 Councilmember Weaver, seconded by Councilmember Wesp, to direct Charter Commission to consider amendments to the City Charter that would restrict appointments of people to boards/commission if they are related to one another or cohabitating. Councilmember Skogquist spoke about the importance of potential conflicts but noted this amendment would not address other items such as through the code of ethics with family, financial, and legal relationships and suggested an amendment to the motion that included in order to avoid conflict of interest between elected Anoka City officials (i.e., Mayor, Councilmembers) and the Anoka City Manager, that the Anoka Charter Commission review Charter amendments to prohibit family, financial, and legal associates of the Mayor or any Councilmember from serving on City Boards, the Charter Commission, or any entity in which the City has a financial or legal association. He shared examples that included the Anoka Business Landowners Association (ABLA) and Councilmember Weaver’s family and businesses represented on ABLA. Councilmember Weaver asked how Councilmember Skogquist’s intends to control an outside board through a City action. Councilmember Skogquist said we can control the City’s relationship with ABLA by not contracting with a business with potential conflicts of interest. He said we cannot control who the business has but can control the relationship and perception, adding while all boards and commission do great things for the City this topic should be addressed now. Councilmember Weaver clarified the concern was with boards and commissions and said if his family’s business with the Chamber of Commerce and ABLA was a concern that they would remove their membership. Councilmember Wesp asked if this would be similar to Councilmember Skogquist serving on the Community Education Board and advocating for funds but not disclosing that fact and said he was not in agreement with the proposed amendment. Discussion was held on parliamentary procedure and process. Councilmember Weaver noted members of the Charter Commissioner were present and heard the discussion and would likely discuss the proposed amendments anyway. Bjorn Skogquist, former Anoka Mayor, spoke about the history of Council not wanting any members on the Windego Society and wanting an arms-length approach when taking this into account. Councilmember Barnett seconded the proposed amendment. October 17, 2022 (Regular Meeting and Closed Executive Session) Page 5 of 9 Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Skogquist, and Weaver voted in favor. Councilmember Wesp voted nay. Motion carried. Councilmember Wesp spoke about retorts and allowing the public to speak on this process and the importance of being transparent but said many people have deep roots in the community and the difference is when items are not disclosed before but now transparency seems to be important which is why he did not support the amendment. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Skogquist, and Weaver voted in favor. Councilmember Wesp voted nay. Motion carried. 9. ORDINANCES AND RESOLUTIONS None. 10. UNFINISHED BUSINESS None. 11. NEW BUSINESS 11.1 Volunteer Labor Wage Policy. Public Services Administrator Lisa LaCasse shared a background report for a proposed policy in order to include in-kind services and labor as part of the City’s matching funds contribution for the Board of Soil and Water Clean Water Fund Grant for the Mississippi River Community Park Riverbank Restoration Project, the City must establish a wage for volunteer labor by policy or resolution. Once established, volunteer labor maybe calculated and utilized as an “in-kind or non- cash” contribution counted toward the value of the required grant match. When applicable, in-kind services and non-cash contributions will be used to meet future grant matches. Staff is recommending the volunteer wage rate be established at different levels as the financial impact will vary based on volunteer contribution and project size. For example, a tree planting event with 20 volunteers for three hours would be valued at $1,453.20 while a donation of services from a local engineering firm of two surveyors for eight hours would be valued at $2,000.00. Mayor Rice said this policy was insightful and will be used in many areas. Motion by Councilmember Barnett, seconded by Councilmember Skogquist, to approve the volunteer wage rate policy as presented. Vote taken. All ayes. Motion carried. 11.2 Discuss Offers on Restaurant Pad North of City Hall. October 17, 2022 (Regular Meeting and Closed Executive Session) Page 6 of 9 Community Development Director Doug Borglund said there has been much attention given to the potential sale of the restaurant pad north of City Hall since the beginning of 2022. The City Council discussed this topic in open and closed sessions on several occasions pursuant to Minnesota Statutes 13D.05 for the purpose of discussing potential real estate transactions. The City has been marketing the idea of a 15,400-square foot restaurant pad north of City Hall for a number of years and over the course of the last nine months, the City Council had gone through a series of meetings to select one of two interested parties in the site. Staff was directed to work with the Eclectic Culinary Concepts Inc. who presented an offer of $45,000.00 for the site. The City Council had the real estate site appraised which resulted in a value of $154,000.00 and after review agreed on a sale price of $175,000. On October 12, 2022 the City Council gave direction that if negotiations came to an end with the Eclectic Culinary Concepts Inc., that all offers should be rejected based on the fact that those offers are less than the current asking price for the subject property. On October 13, 2022 the Eclectic Culinary Concept Inc. rejected the City’s counter offer of $175,000.00 and are not planning move forward at this time. Based on City Council direction, all offers and interests could be rejected at the October 17, 2022 regular City Council meeting. Councilmember Weaver confirmed he would be abstaining from discussion and vote on this item due to a potential conflict of interest but said should all offers be rejected then all closed information would become public and he would be allowed to participate in discussions at that time. Motion by Councilmember Wesp, seconded by Councilmember Barnett, to reject all restaurant pad site offers and interests on record with the City. Mr. Baumgartner confirmed the motion included all offers or particular offers. Councilmember Wesp confirmed he was referring to the two formal offers received by the City. Mayor Rice suggested a friendly amendment that included all proposals as there has been interest in the site since the formal offers had been received. Councilmembers Wesp and Barnett agreed to the friendly amendment. Mayor Rice spoke about the perception of closed meetings and how Statute allows for closed sessions in order to discuss real estate proposals to avoid the City compromising its position in real estate transactions, stating upon conclusion all information becomes public and the reason was so the City can do its best for the residents then said he objected to the term secret meetings which has been shared a lot online and in other manners. Mr. Baumgartner shared more about the open meeting law and exceptions allowed by Statute meetings, stating meetings must be closed when involving real estate transactions. October 17, 2022 (Regular Meeting and Closed Executive Session) Page 7 of 9 Councilmember Skogquist spoke about frustrations shared from the public with real estate transactions as the process does not allow the public to comment and said the public should be more involved at some point in the process and suggested going back to the parties to counter offer. Mayor Rice agreed but said since others have now expressed interest it would be best to reject all offers, publish the sale price, then allow anyone to bid. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, and Wesp voted in favor. Councilmember Skogquist voted nay. Councilmember Weaver abstained Motion carried. Councilmember Wesp shared comments about not handling the process correctly and apologized to the two entities involved but explained the Council made a decision in a closed session which was allowed by State law. He said he was troubled with the perception that Council was doing things wrong but said he held the Council in the highest regard and noted that anyone involved in a real estate action would want the same process to occur. Councilmember Wesp said he felt a meeting should be held on October 12 after staff was directed to obtain an appraisal but was objected to under the guise of ethics but was confirmed by the City Attorney and City Charter, adding Councilmember Skogquist abstained on action to enter into closed session. He said the Council discussed property value, property and the appraisal and noted neither party presented much value for the property at hand. He said this Council did not hold any secret meetings and thanked Mr. Hauf for what he’s done for Anoka but said he did not offer the best proposal and the other firm did not respond to the counter offer. Councilmember Weaver commented about the property and site being in a TIF district which generates funds to pay off the parking ramp and when a new building is constructed would generate $75,000 per year to retire the parking ramp debt. He said at $5 million with 10 years remaining construction would be good as currently the City has to take from the general fund to pay for the ramp to remain on schedule. He said it is important to generate funds to offset the payments and ultimately reduce the tax levy and said he advocated for a good development but noted any development would also result in losing 36 parking stalls. He encouraged Mr. Hauf to consider this in any future offers, adding the process is different with private versus public property and said he hopes Mr. Hauf will get involved again and requested the process be public as possible. Mayor Rice said two parties came forward in response to a property for sale and while he did not believe the process was incorrect both parties were hurt in the process which is not good business for the City. He said the City encouraged investment and that he regretted any hurt that resulted to the parties during the process but said the only way to protect them was to keep the information private. October 17, 2022 (Regular Meeting and Closed Executive Session) Page 8 of 9 Mr. Baumgartner said it appeared the offers came before the City was ready to negotiate and suggested the appraisal and asking price come first in the future which may help. Mr. Borglund shared there is interest by others in the site and said the reason why a value had not been established was because the lot was hypothetical because we did not know how much land we were going to want to sell. Mr. Lee suggested the November worksession include review of two possible processes moving forward, one being the one used for the Rum River Shores development and the other more restrictive and not allowing proposers to not know who else is proposing. He said it will also be important to know if the site will be included in the future social district, the value of the parking at $144,000 and if that should be included in any future proposal. Councilmember Skogquist agreed it is difficult when only four people could participate and suggested staff include all concerns and proposed processes then be frank on how to address. Mike Briggs, Anoka, said he has been interested in the site for a while and asked how to submit a proposal. Jesse Hauf, 10K Brewing, said he never felt the meetings were secret then addressed the campaign for 10K similar to campaigning for its inception. He said they have faced issues with the size of the site and the need for food since they opened and the pandemic resulted in wanting to construct a brewery in downtown Anoka. He said they reviewed other cities which were attractive but wanted to remain in Anoka then outlined his offer and how it would give back to the community and urged the Council to consider the best offer on the table as his. Mr. Skogquist asked the Council to consider the late Economic Development Director Carolyn Braun who always focused on the river and said the process should be as open as possible before meetings needed to close for real estate transactions. He said this property was for the public and suggested design charettes, public hearings, and other public involvement options for this next phase. Councilmember Barnett noted Mr. Hauf’s social media campaign started after Council direction and encouraged parties to contact the Council beforehand. She said the actions appeared retaliatory and aggressive and looked bad to other investors and said the Council had concerns with Mr. Hauf’s financial success but wanted to keep that information close and not open to the public but added his offer was very low and insulting to the City. 12. UPDATES AND REPORTS October 17, 2022 (Regular Meeting and Closed Executive Session) Page 9 of 9 12.1 Tentative Agenda(s). The Council reviewed the tentative agendas of the upcoming Council meetings. 12.2 Staff and Council Input. Mr. Nelson shared open house on 11-14 at Anoka Hennepin Education Center for the Highway 47 (Ferry Street and BNSF Railroad crossing/grade separation project for the preferred alignment. Councilmember Weaver asked if other alternatives would be presented and commented that the proposed alignment was not the City’s preferred alternate and that MnDOT was not being transparent in this then suggested sharing our non- support for municipal consent and being a partner and showing the City’s preferred route. Councilmember Skogquist encouraged the City and public to attend the open house and share reasons why we do not think MnDOT’s proposal is the best option. Mr. Baumgartner explained that MnDOT needs to follow their process but recognizes the City’s position and then will be able to say the City did not support the option and have a reason why the project is not moving forward as planned. CLOSED EXECUTIVE SESSION Councilmember Barnett made a motion to adjourn the Regular Council meeting to move to a closed executive session pursuant to Minnesota Statutes §13d.05, Subd 3, (c) for the purpose of discussing potential real estate transactions relating to the following PIDs: PID #30-32-24-34- 0007, PID #06-31-24-23-0010, PID #06-31-24-24–0069. Councilmember Wesp seconded the motion. Vote taken. All ayes. Motion carried. ADJOURNMENT Time of adjournment: 8:55 p.m. Submitted by: Cathy Sorensen, TimeSaver Off Site Secretarial, Inc. Approval Attestation: Amy T. Oehlers, City Clerk