Anoka City Council

December 12, 2022 (Worksession) Page 1 of 9 WORKSESSION OF THE ANOKA CITY COUNCIL ANOKA CITY HALL CITY COUNCIL WORKSESSION ROOM DECEMBER 12, 2022 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, Skogquist, Weaver, and Wesp. Staff present: City Manager Greg Lee; Community Development Director Doug Borglund; Police Chief Eric Peterson; Assistant Finance Director Liz Douglas; Assistant City Engineer Ben Nelson; Senior City Planner Clark Palmer; Greenhaven Golf Course & Event Center Manager Larry Norland; Police Chief Eric Peterson; Electric Utility Director Del Vancura; Public Services Director Mark Anderson; and City Attorney Scott Baumgartner. Absent: None. 3. COUNCIL BUSINESS and/or DISCUSSION ITEMS 3.1 Discussion; Zoning Map/Comprehensive Plan Amendments: - North of North Street between 7th Avenue and 9th Avenue - North of Madison Street between River Avenue and 2nd Avenue - North of Monroe Street between 5th Avenue and 7th Avenue - South of Jackson Street between 7th Avenue and 8 ½ Avenue Senior City Planner Clark Palmer shared a staff report with background information stating at the November 21 City Council meeting, the Council denied the proposed rezoning of four areas of the City which were proposed to be rezoned consistent with the adopted 2040 Comprehensive Plan, specifically the future land use map. He said staff needs to prepare amendments to the 2040 Comprehensive Plan so the future land use map is consistent with the zoning map and was seeking direction from the Council on the guiding of land use and zoning within each of the four areas. He reviewed each area in detail and asked for direction. North of North St. between 7th Avenue and 9th Avenue: This area was proposed to be rezoned from M-2 General Industrial to B-4 Limited Business (commercial). The future land use map shows the area guided for commercial. Staff is seeking direction on whether to rezone the area to a different commercial zoning district such as B-1 Highway Business or to maintain the industrial zoning which would December 12, 2022 (Worksession) Page 2 of 9 require an amendment to the future land use map. Mr. Palmer noted there would not be much of a change with the current business owners in this area if this direction was taken. Mayor Rice asked if B-1 was selected would all businesses would be in compliance. Mr. Palmer responded he heard from Bauer, North Star Towing, and others and how they would be conforming and if we want to re-guide to commercial or industrial that could be done but that B-4 failed at the last Council meeting. Councilmember Weaver asked if any zoning would change and a CUP required to operate how would it work if a business was passed on to another family member. Community Development Director Doug Borglund said the CUP runs with the property and not the owners and that the use could continue to operate no matter what the zoning was, adding the current CUP would actually help but if the activity ceased the use could not return. Discussion was held on the current uses and impacts should the zoning change. Logan Thompson, 3225 16th Avenue Colin Campbell, 3225 16th Avenue Jeff Hartwig, 701 North Street Jeff and Kelly Nelson, 2827 Wingfield Avenue Business owners shared frustrations regarding reasons for the considered zoning changes and how the change would no longer allow them rights to their current use and how apartments or townhomes would not be a good use in this area. Mayor Rice explained how the zoning would allow the current uses but restrict new uses the City did not wish to see in the future and how external factors affect property values. Property owner Rolow (not signed in) asked questions about their current CUP and if there was a need to change or update their CUP. Mayor Rice confirmed as long as they continue the use or sell and continue that same use the use is valid. Councilmember Weaver stated the City did not want to lose these long-standing family businesses as they were important. Rolow asked to confirm their CUP was good for 815 and 833 North Street. Councilmember Skogquist said the B-1 area makes sense as it does not change the legality of any current uses and leave the Comprehensive Plan as general December 12, 2022 (Worksession) Page 3 of 9 commercial. Mr. Palmer confirmed action would not require a comp plan amendment but rezoning to B-1 rather than B-4. A business owner (name not stated at meeting) made comments about Alter Metals and Redi Mix being gone and others spoke about the need for these uses. Mayor Rice said these uses are typically allowed in more rural areas of the City and what made sense 70 years ago no longer makes sense. North of Madison St., between River Ave and 2nd Ave. This area was proposed to be rezoned from a mix of R-3 High Density Residential/B-4 Limited Business to R-1 Low Density Residential. The future land use map shows this area guided for low density residential. Staff is seeking direction on the guiding of land use and zoning within this area. The Planning Commission recommends the area be zoned R-2 Medium Density Residential which would require an amendment to the future land use map and subsequent rezoning. Councilmember Skogquist said this area need to be consistent with the current homeowners and the need for the area to remain single family. He said a lot of neighborhoods allowed for R-4 zoning too but did not protect property owners’ investment in single family. Mayor Rice said the fear was not realistic and did not change the use as long as the property owner remains and lives in the home but if sold the use could change. Councilmember Wesp asked about current density. Mr. Palmer responded current zoning was R-3 and B-4 which allowed high density mix which was one reason to create consistency. Councilmember Weaver confirmed R-2 would not prohibit combining two lots for a single-family home. Councilmember Wesp noted the last property owners were concerned about zoning changes and wanted the ability to change and would be in favor of R-2. Councilmember Barnett said she was in favor of R-2 as well but said holding off improving properties should be discouraged the return on investment only helps result in a higher selling price. Mayor Rice noted 1803 1st Ave was zoned wrong for a garage. Mr. Palmer confirmed there was a variance granted for a garage and was built before this discussion. Councilmember Skogquist shared frustrations when properties were purchased and zoning changed that resulted in the City purchasing property owners’ homes and the need to have willing buyers and sellers and that property owners are frustrated by the repeated process. December 12, 2022 (Worksession) Page 4 of 9 Councilmember Wesp replied noted Marge Small at 1612 2nd Ave never sold her home to the City and that it was beneficial to the community because the property diminished in value and maintenance and was a better use from what was there. He expressed frustrations with posting on social media against this action and said he was in favor of R-2 zoning. Councilmember Weaver stated Riverspoint and Weston Wood had amazing residents who sold their single-family homes and moved to maintenance-free neighborhoods but remained in Anoka and that it was important to have those opportunities available which was the beauty of life-cycle housing. Council consensus was R-2 zoning. Mr. Borglund then said Comp Plan amendment to medium density. North of Monroe St. between 5th Ave. and 7th Ave.: This area was proposed to be rezoned from R-1 Low Density Residential to Main Street Mixed Use. The future land use map shows this area guided for mixed use. Staff is seeking direction on the guiding of land use and zoning within this area. The Planning Commission recommends the area be maintained as R-1 Low Density Residential which would require an amendment to the future land use map. Councilmember Weaver said clarified excluding one property and noted the lot was owed by the HRA. Mr. Palmer said 639 Monroe St. has been rezoned to mixed use and the remaining will be designated LDR. Councilmember Wesp said the south side of Monroe has an apartment complex and that he was in favor of keeping the area residential. Discussion was held on the need for infill standards. Mr. Borglund said this topic had been considered at legislative sessions in the past and included in bills and will likely continue. South of Jackson St. between 7th Ave. and 8 ½ Ave.: This area was proposed to be rezoned from R-2 Medium Density Residential to Mixed Use. The future land use map shows this area guided for mixed use. Staff is seeking direction on the guiding of land use and zoning within this area. The Planning Commission recommends the area be maintained as R-2 Low Density Residential which would require an amendment to the future land use map. Mayor Rice suggested no truck signs be posted in these areas. Mr. Lee those signs were not enforceable but could post axle weight limits instead. December 12, 2022 (Worksession) Page 5 of 9 3.2 Discussion; Lease Extension with The Tavern at Green Haven LLC, for Food and Beverage Services at Green Haven Golf Course and Event Center. Mr. Lee shared a staff report with background information stating The Tollettes, owners of The Tavern, who currently lease space at Green Haven, are requesting a two-year extension on their lease to December 31, 2025. This extension will allow The Tavern to book events out past the expiration of the current contract while The City and The Tavern negotiate a new contract. Under the current contract, The Tavern pays the city $3,000 in rent per month and 4% commission on gross sales. City staff identified expenses related to the operation of The Tavern and presented review of rent and expenses since 2019 and an analysis of space used by The Tavern, tenant area expenses that included property insurance, real estate taxes, utilities, and other items. Councilmember Barnett asked if the estimate includes the new food/beverage carts. Mr. Tollette noted two beverage carts were owned by the City but were no longer operational so staff leased another beverage cart. Mayor Rice confirmed the 4% would continue, noting no one could use that large of space all the time and that The Tavern is the group who actually uses the space. He said the formula allows for a base and motivates the user which benefits the City. Mr. Lee said the recommendation would be to remove the 4% and assign the actual costs instead for expenses, which right now would be 25%. Councilmember Barnett shared concerns about taxpayers subsidizing The Tavern and that the 4% was not equitable and something needs to be done. She agreed they should cover their portion of utilities and space and this additional $21,000 still benefits The Tavern and assists the taxpayers. Councilmember Weaver stated CAM charges were common in commercial leases and appropriate. Councilmember Skogquist said this would cover more expenses and have an increased revenue but noted this is a two-year lease and will be reviewed more. He said it was common for restaurants to have this percentage and we need to have a cut to make more investments too, adding it was important to have the tenant is successful. Mayor Rice noted a 14-year lease may be good but there is a need to review so two years would allow time to review the figures while giving the Tollettes the ability to book events. Mr. Tollette said he had no concerns with the lease but preferred a five-year term from a planning and staffing standpoint, especially since staffing was already fluid enough. December 12, 2022 (Worksession) Page 6 of 9 Councilmember Barnett confirmed the Council had no concerns with the Tollette and appreciated the partnership but that the City may want to make changes to the operations and needed time for our due diligence to review the business plan. She said she was comfortable with the two-year lease and would then work towards a five-year lease. Mayor Rice said the City would work to come back sooner if possible as they wanted The Tavern to remain for 14 years. City Attorney Scott Baumgartner appreciated how the City has to answer to residents about subsidizing businesses and said the two groups were not far apart in negotiations so proposed this concept. He said if Council was fine with CAM as a baseline as a percentage then staff can draft language for approval and not dissuade improvements to the property as that can help everyone. Ms. Tollette commented about investments already made to the building such as the dance floor and other items and how they may have to wait now until a longer lease was in place. 3.3 Discussion; Minnesota Department of Transportation Trunk Highway 47 (Ferry Street) and BNSF Railroad Grade Separation Project Open House Recap and Next Steps. Assistant City Engineer Ben Nelson shared a background report stating Trunk Highway 47 is proposed to be grade separated from the BNSF railroad crossing. The project shall improve traffic flow, decrease congestion, allow traffic to flow through the area better, expand mobility to the local community, and improve safety. Overall, the city’s preference is Alignment Alternative #2, which is the best and safest alignment for the traveling public as it reduces the curve radius, and reduces dangerous truck turning movements that occur near the curves in Alignment Alternate #5. Also, this alignment provides the maximum protection and preservation of the natural environment and also minimizes the adverse effects which would result from the road improvements. He reviewed both alignments in detail, the proposed schedule, then discussed next steps for municipal consent. Mr. Lee said Statute states no road should be constructed within 200 feet of a wild and scenic river area and that MnDOT is interpreting that the Statute did not apply to them. He noted the City should have been working with Alter all along as the road will be on the edge of the bluff. Mr. Baumgartner said it appears Statute applies to MnDOT and even if not, they need to answer as to why it does not then reviewed the appeals process and how it would be almost a binding arbitration. December 12, 2022 (Worksession) Page 7 of 9 Councilmember Skogquist said it was important to have the area and tracks addressed and fix problems and not create more in the future and while not in favor of that was still not supportive of Alternative #5. Mayor Rice said the Highway 10 project does so much good and while it did hurt some businesses and accesses it helped overall by moving people through safely, adding there needs to be a balance with other cities. Councilmember Barnett asked if we can get our voice out first with the media, etc., on how we are working to preserve wild/scenic and provide the best option and route and that the selected alternative was not the safest. Mr. Lee said staff intends to control the narrative and provide the reasons we the City does not agree and issue a position statement/press release. Councilmember Weaver suggested including an alternative solution in the statement as well. Mr. Baumgartner said the statement should be timed with municipal consent as the only reason for MnDOT is cost and that they cannot win with the wild/scenic argument. Councilmember Skogquist suggested waiting for the final plan before we respond. Councilmember Barnett agreed but said the statement needs to be ready immediately once received. Mr. Nelson said there was a 30-day notice for the public hearing with 15 days to schedule. Discussion was held on when a public hearing could be scheduled once MnDOT’s plans are received, most likely February 6 meeting. UPDATES/REPORTS/COUNCIL SUGGESTIONS FOR TENTATIVE FUTURE AGENDA ITEMS Police Chief Eric Peterson shared an update on Anoka County Joint Law Enforcement Committee (JLEC) in response to emails received on December 7 from some Anoka County Commissioners. He spoke in detail about fostering an effective inter-agency relationship then discussed the background of expiration of bonding/tax levy ending in 2023 which purchased items such as PSDS and megatower and the need for funding to protect in the event of civil unrest. He shared about a proposed agreement with Anoka County to have escorted digital access in the event of IT concerns but Anoka County denied the request then spoke further on how the Police Chiefs Association has been working on legislation and how Anoka County wanted to leverage public safety to obtain a memorandum of understanding for unfettered access which is not an option. He said the County is required to provide the 911 system then spoke about percentages of cost sharing. December 12, 2022 (Worksession) Page 8 of 9 Councilmember Wesp clarified Anoka County pays about 65% of costs because of the coverage. Chief Peterson agreed but said of that 31%, 5% is for PSDS and the other 60% is the 911 communications which they have to provide. He said the City adopted a resolution supporting statutory changes for public safety levy and all cities have or will do so very soon. He said they would like to propose to introduce for levy options extension but not unescorted access into PDSD and intend to change voting requirements to be 2/3s vote for JLEC, adding they want to continue collaboration for all Anoka County systems. Councilmember Wesp further explained the system and funding and how the creation was very clear then noted the email was not from the entire Board but only from a couple members. He said he was unsure why access was being requested then spoke about the need for integrity and security then shared comments about how could be part of work to help secure another jail at some point in the future. Chief Peterson said when they meet as cities and chiefs the intent is not to force other organizations but to benefit the whole and how one dissenting vote was not good. Councilmember Wesp agreed, stating that takes away from the premise of JLEC since its inception in 1970, adding technology has evolved and advanced for that very reason, even before 911 went in place and was forward thinking. Councilmember Weaver said JLEC is the envy of all other counties in the State and to see this divisiveness action is counter-intuitive, adding that while there are small areas of the County that are rural, everyone is treated the same and that he hoped Council stays steadfast with the police chiefs in this matter. Mr. Baumgartner said the benefit of having the County participate is for the taxing authority and suggested exploring how JLEC could be the taxing authority then shared comments about the possible goal regarding the jail and ways to come up with another opportunity to address, such as legislation. Chief Peterson said if unable to levy the drawback will be coming back to Council for budget requests for items such as the data system and if not then do some type of fire district scenario. Councilmember Weaver said that would be a great option but tragic to have to go that route and said while he cannot share much, he has some idea as to the motivation for these actions. Mayor Rice said there should be no concern because JLEC is offering escorted access which answers the request as long as a need is demonstrated. 4. ADJOURNMENT December 12, 2022 (Worksession) Page 9 of 9 Motion by Councilmember Wesp, seconded by Councilmember Skogquist to adjourn the Worksession at 7:48 p.m. Motion carried. Submitted by: Cathy Sorensen, TimeSaver Off Site Secretarial, Inc. Approval Attestation: Amy T. Oehlers, City Clerk