Anoka City Council

September 25, 2023 (Worksession) Page 1 of 10 WORKSESSION OF THE ANOKA CITY COUNCIL ANOKA CITY HALL CITY COUNCIL WORKSESSION ROOM SEPTEMBER 25, 2023 1. CALL TO ORDER Mayor Rice called the worksession meeting to order at 5:01 p.m. 2. ROLL CALL Present at roll call: Mayor Rice, Councilmembers Scott, Skogquist, and Weaver. Staff present: City Manager Greg Lee, Community Development Director Doug Borglund, Senior City Planner Clark Palmer, Public Works Director Mark Anderson, Public Services Administrator Lisa LaCasse, Public Works Supervisor Jon Holmes, Recreation Manager Nickie Jenks, and Utility Director Del Vancura. Absent: Councilmember Wesp. 3. COUNCIL BUSINESS and/or DISCUSSION ITEMS 3.1 Discussion; Social District Review. Community Development Director Doug Borglund shared a staff report with background information stating the Social District became active on September 6, 2023 and will be active through October 7, 2023. He shared some of the issues/concerns/feedback staff has gathered so far including State Statute/Social District Enabling Law that requires qualified businesses in the Social District to sell alcohol from a brick a mortar facility/storefront. The Statute does not recognize City special events within the Social District where alcohol is being sold and falling under a different set of rules at the local level and sales are not from a brick and mortar facility. He said the law was silent on patios and outdoor seating areas are located in both the public realm and in the Social District geographic boundary. He spoke about how businesses preferred to serve in 20 oz. cups vs. 16 oz. cups as it seemed to be the norm for beer but maximum serving size is 16 oz. within as stated in the law. Business will be allowed to serve in containers of their choosing when serving patrons within their patio areas. All alcoholic beverages outside the patio areas that are within the Social District common area will be contained within the prescribed 16 oz. social district cup. He spoke about the use of glass containers on patios prohibited under the City’s outdoor seating ordinance but how most of the businesses have been using glass containers for serving containers and has not been an issue. The Police Department has stated that the Social District is going well with minimal issues. The Police have been educating the public regarding someone without the correct Social District cup or bringing a cooler containing alcohol to the park area, which September 25, 2023 (Worksession) Page 2 of 10 is no longer allowed because the park is in the Social District area. The Public Services has stated that clean up in the Social District has not been an issue and that staff has not heard any negative feedback from businesses. There were some concerns regarding use of Social District cups and patios/outdoor seating areas with Social District participating businesses, but that was sorted out. Staff has spoken to Pete Turok at the Chamber of Commerce who shared a very positive response to the Social District. The calls the Chamber of Commerce is receiving are asking general question about the district or Chambers around the State who have communities that want a Social District. Staff has not heard negative feedback directly from the public and media coverage has been positive during the pilot month for the both the City and the businesses in the Social District. He noted a few unplanned entertainers popped up spontaneously in the Social District. City Manager Greg Lee said staff will create and organize parameters around pop up entertainment for next year. Councilmember Weaver supported amending the ordinance to allow for glass containers on patio areas. Councilmember Scott stated some businesses have expressed a desire to provide their own cups, including aluminum as an alternative to plastic, and was pleased with the trash cleanup that occurred. Mr. Borglund explained part of the issue around cups was the expense due to the limited timeframe this year. Public Services Administrator Lisa LaCasse shared more about pricing and wholesale costs for the cups. Public Works Supervisor Jon Holmes said staff has not seen a large increase in cleanup as a result of the district. Councilmember Skogquist thanked the police officers for their work and presence educating the public about the rules which helped. Mayor Rice spoke about the use of the social district cups but allowing the bars to use their own in some cases and suggested signage be posted explaining what was and was not allowed. Mr. Borglund explained the bars were amenable to that suggestion and that signage could be included on all tables, both indoor and out. Councilmember Weaver stressed the importance of police presence during the social district hours. 3.2 Discussion; Miller Building Update. Mr. Borglund shared a staff report with background information the City has acquired property known as 2939 6th Avenue or the Miller Manufacturing September 25, 2023 (Worksession) Page 3 of 10 building. Since closing on the contract-for-deed on August 10, 2023 the City has been working on the property maintenance and added the property to the lawn maintenance and snow plowing schedule. Snow plowing will be limited to an access drive along the south side of the building and will connect to Johnson Street. Staff will continue daily visit to the building exterior looking for irregularities and building maintenance items. Staff has installed a building security alarm system throughout the building and fire protection to the building will be drained and therefore inoperable. Sewer will be left as is and will be removed at the time of building demolition. Water to the building will be shut off at the gate valves serving the building. Water will be drained from the building domestic water system. Electric Services have been minimized/taken out of service to eliminate the previously high-power user/monthly utility charges. The building now has 1- 208/.12v service panel. Staff is planning to not heat the building in the winter months and therefore will remove water from the fire protection and domestic water systems within the building. Snow plowing will be limited to an access drive along the south side of the building and will connect to Johnson Street. The City will need to close on the contract-for-deed by mid- November. Currently, staff is working to secure a closing date now that the City has secured and obtained its necessary funding to complete the transaction. Staff believes the closing will be scheduled in the next couple of weeks. Staff has requested the seller to schedule removal of the large for sale sign as well. The City Council could discuss the timing of demolition of this property. The estimated cost of demolition is $500,000.00. As part of the proceeds to close on the subject property there are demolition funds available. Our understanding from the demolition contractor is that winter is the best time of year to remove this size of a building. Currently, there is a moratorium in place from a zoning perspective to study industrial uses in the TPD zoning District where the subject is location. Also, there is a need to update the redevelopment plan and development a vision for the site. The cost to complete the moratorium study and master plan work with market analysis is $71,000.00 and staff is working Hoisington Kegler who did the original Anoka Station Master Plan that was adopted in 2012. Nick Conlon of Gramercy Development, Matt Alexander of North Shores Partners Development, and Kyle Whittier of American Cooperative updated the Council on their Anoka Transit Hub proposal. They shared they have until year end to close which may be difficult based on the current market and lack of extension opportunities but felt this area was an important part of the overall redevelopment of this area, which included the Miller building site. They shared medical office and corporate office possibilities, multi-family and townhome/rowhome concepts which would match with the David Weekley project across the street and creation of a food hall across from the transit station which will be an important amenity. They provided an update on Site A and their interest in playing a master development role in this project. Councilmember Scott said he liked the transition from the Weekley project to the transit site to reduce noise impacts to the homes and proposal for the Miller September 25, 2023 (Worksession) Page 4 of 10 building and asked questions regarding Site A’s challenges and potential interest rate increase. Mr. Alexander responded they had the flexibility and their equity investors’ timing and convergence on construction pricing relative to interest rates and the need to respond quickly. He said they have a lot of capital in this project to date and the possibility of losing the site was difficult to consider. Councilmember Weaver spoke about deadlines for Site A and asked if the group was interested in the City assuming the purchase agreements based on a specific amount because if so, the City would need to discuss as the price would be substantial following the purchase of the Miller building. Mr. Conlon responded that was something they were interested in having the City consider in likely a closed session then shared the price per square foot was less expensive then the Miller building. Mr. Whittier said this could be a very attractive market rate project that complemented other phases, adding the demand for coops is still strong and that they hoped to find the right fit. Councilmember Weaver said he liked medical uses on the Miller site near life cycle housing and appreciated the rowhouse proposal as it was important the City decreased apartments in Anoka and supported scheduling a closed session soon. Councilmember Skogquist asked about research or discussions for this proposal and the likelihood of a TIF request which he would not want to support as part of this project. Mr. Conlon said they have a preliminary anchor now and will work to refine and try to find some other users but their work to find an anchor first can be costly. Mr. Borglund noted TIF cannot be used with the use of abatement bonds. Councilmember Weaver said the building should be demolished soon to get any project going and reduce maintenance costs. Councilmember Skogquist said he did not want to demolish an asset without plans to cover our debt first. Mayor Rice agreed, stating the building is too large of an asset and can be used to inspire development. Mr. Conlon said they were here because they knew Anoka has a big vision and hoped this opportunity will work. Councilmember Scott said once we get a serious tenant for the manufacturing space then the entire development will start. Councilmember Weaver encouraged the Council to consider demolishing the building now to save money instead of waiting until spring. Mr. Conlon shared their team had lots of experience in Anoka and were confident they could get a project done. September 25, 2023 (Worksession) Page 5 of 10 Mr. Borglund spoke about the possibility to rework the transportation in the area to soften traffic in neighborhoods and create better patterns and reduce costs so not to redo Johnson Street or Golf Street for example. He said given the study we committed to a moratorium with funding from land sales. Discussion was held on scheduling a closed session to further discuss direction. Mr. Conlon said if we knew interest rates next year that would help but once the clock starts, we have to contribute more dollars so timing is very important as the risk is great. October 9 closed session at 5:00 p.m. do not move forward with any demolition at this time. Discussion held on the study moving forward. Mr. Borglund said we closed on the property but still have a firm interested then spoke about the possible litigation risk during this moratorium. Councilmember Skogquist said the parking ramp has been paid for over the last 15 years and that we should be able to wait a couple more months for demolition of the building. Councilmember Weaver said the parking ramp was key to the downtown area. Council consensus was to schedule a closed session for October 9 at 5:00 p.m. and not pursue the study until after closed session direction. 3.3 Discussion; Outdoor Ice Skating Rinks. Recreation Manager Nickie Jenks shared a staff report with background information stating Anoka has five warming house locations with various outdoor recreation activities or offerings, including George Enloe Park, Lincoln Elementary, Rick Sorenson Park, Rudy Johnson Park, and Wilson Elementary George Enloe is typically open longer due to the usage of the sledding hill. She shared the average of days open and attendance for the past 11 seasons noting seasons were weather dependent. Prior to the 2022/2023 season, staff worked with Anoka Hennepin Schools facility maintenance to reduce the skating rink footprint on Lincoln Elementary School. Staff was in touch with the facilities maintenance staff at Lincoln Elementary throughout the season to ensure there were no issues with school staff and rink operations. Along with this, staff adjusted ice maintenance schedules so as not to interfere with school drop off, busing, and recess. Staff brought this adjustment for discussion to the Parks and Recreation Advisory Board on October 20, 2020 when talking about adjustments for during COVID with specific discussion on Lincoln, and on December 21, 2021 with discussion of adjustments per the school district. The Board also receives a post season annual report. The report includes park usage by patrons and staffing and season information. She shared in an average 56-day season, expenses include preseason set-up, ice maintenance, rink attendants, program September 25, 2023 (Worksession) Page 6 of 10 administration, portable toilets, and postseason takedown and asked for Council input on the rinks. Councilmember Scott said he used to serve on the Park Advisory Board and voted to vacate the Lincoln site. He said while we’re a hockey state and rinks are needed this was an underutilized site and if eliminated still leaves a rink in every quadrant. He said he spoke with the teacher at the school who felt it would work to grow grass in this area for use by more students. Park Board Chair Steve Nelson said he was curious why the item was being considered before Park Board discussion and instead waiting to find out the school district’s opinion first. He said there has been discussions about direction from the principal, school district, and members of the PTA outside the Park Board and was curious about the process. Councilmember Skogquist said the Park Board recommended no rink to the Council who agreed but the rink was set up again the following year because some felt the school district was not a good community partner which was not true. He shared his frustration with this and said it was important that we invest in a way that makes sense. Chair Nelson said we tried to keep an attendance record and review better cost adjustments along with other potential rinks but having a principal say what was happening outside of the Park Board was frustrating and felt we should look at ways to increase attendance first. Councilmember Weaver said he was a large advocate for hockey rinks and suggested making Lincoln a premier spot like it used to be and that we shouldn’t remove opportunities for youth, especially in this quadrant of the City. Ed Evans, Anoka, said he worked in Parks for 15 years and spoke about the liability with skate rentals then shared concerns about staff being isolated in this warming house alone working as an attendant and lack of access to the rink from Lincoln School and the nearby park and felt the rink does not work. He suggested condensing usage of Rudy Johnson and get more people to use that rink instead. Councilmember Scott said he supported sending the topic back to the Park Board and clarified he had not been in contact with district staff but was just looking at data. Chair Nelson said he was not pleased with the suggestion 2-3 years ago and not certain of the commitment from the high school and didn’t want to decrease rink locations because hockey is so important. He said the Park Board has had similar discussions and agreed access is difficult at Lincoln but not sure what can be done. September 25, 2023 (Worksession) Page 7 of 10 Councilmember Weaver said the City owns a building on school district property and did not want to abandon that asset and supported keeping the rink and work creatively to generate more energy. Borgie Bonthuis, Anoka, spoke about the many changes in the area south of East River Road. Ms. LaCasse shared the potential of moving the softball field onto school property then shared aerials of the site that was used for snow stacking which affected the grass area once we reduced our footprint. She shared different offerings of each rink and negotiations with the district on this site and their efforts to work with them and be the best partner. Councilmember Skogquist shared photos of rinks then said he’s spoken to users and did not want to see the principal become a scapegoat because there have been many involved in this result and that this not a great rink anymore. He said we need to do things to attract families to Anoka and provide the best possible opportunities and should be smart about this and move the rink elsewhere to better use resources and supported having the item go back to the Park Board before the season starts. Councilmember Weaver asked if the photos were shared at a school board meeting before being shared with Council. Councilmember Skogquist said he had shared with Council his intent to speak to the school board who said they weren’t going to invest in the area as long as the City wants to retain the rink. Mayor Rice agreed the rink was underutilized at times and that kids don’t to walk to the rink and that there were many reasons the rink was hindered such as more recreation offerings but the rink is valuable even if underutilized, similar to the aquatic center as swimming was important to know. He suggested reducing the size of the rink to similar to Rudy Johnson instead. Council consensus was to return the item to the Park Board for their October 17 meeting and report back to Council. Mayor Rice left the meeting at 6:44 p.m. 3.4 Discussion; Mississippi River Corridor Critical Area 9MRCCA) and New Legislation on Managed Natural Landscapes. Senior City Planner Clark Palmer shared a staff report with background information stating staff was currently drafting an update to the Mississippi River Corridor Critical Area (MRCCA) ordinance and was seeking input from the City Council concerning fences. Staff will also brief the City Council concerning pool regulations. He said staff was seeking input on what type of fences should be allowed between principal structures and the river, how close to the edge of the September 25, 2023 (Worksession) Page 8 of 10 river should fences be allowed, should fences be restricted within the bluff impact zone, and should fences be restricted within the regulatory floodplain. He explained the Minnesota rules which the City’s ordinance must be consistent with allows up to 6-foot fences to be located between principal structures and river. At a previous work session, the City Council directed staff to lower the height limit to no more than 4 feet. Staff has incorporated that change into the draft ordinance. Staff also added the requirement that fences not be opaque, meaning the types of fences that would be allowed include chain-link, wrought iron, split rail, or similar and asked if Council was agreeable with fences between principal structures and the river (OHWL) being limited to 4 feet tall and non-opaque. He said staff was seeking direction on how close to the edge of the river should fences be allowed as the current draft ordinance language says fences are not allowed within the Shore Impact Zone (SIZ). Restricting or allowing fences within the SIZ will impact nearly all riparian lots. He shared effective July 1, 2023, municipalities are required to allow property owners and occupants to install and maintain managed natural landscapes then outlined the law in detail that managed natural landscapes may exceed 8 inches in height and be allowed to go to seed, but must be maintained and cannot include noxious weeds. He said managed natural landscapes does not include turf-grass lawns left unattended for the purpose of returning to a natural state. Councilmember Weaver said all other cities are 6 feet away and asked why Anoka was being more restrictive at 4 feet. He said many lot owners have pools which require 6-foot fences for liability insurance so we should amend the ordinance then stop when approaching the flood plain. He also suggested a medical exemption for those who may have a loved one with dementia where fencing is used to protect them from wandering away. Councilmember Scott spoke about the need for non-opaque fencing to deter dogs from barking at each other too. Mr. Palmer said staff believed Council direction was 6 feet to 4 feet but could change that height then discussion was held on proposed fence heights in both front, back, and side yards. Mr. Palmer noted allowances were built in for visual ways. After discussion, Council consensus was they were comfortable with non-opaque fencing of 50% or less, height similar to neighboring cities, and the need to designate riverside versus front yard/street side. They said they did not want to be more restrictive than neighboring cities and that 4-foot fences could be change to 6-foot fencing if needed such as for a pool. Councilmember Scott asked how many homes would be in violation of these rules once adopted. Mr. Palmer said all properties would be legal non-conforming once adopted but noted there were not a lot of properties that would be in violation overall. September 25, 2023 (Worksession) Page 9 of 10 Council consensus was they were less concerned with the bluff impact zone and suggested using grades of 18% or greater or not within 40 feet and suggested not allowing fencing in the bluff. They also supported no fencing in the flood plain but allowed up to the edge of the river depending if in a floodplain and the topography of the lot. Mr. Palmer shared pools are considered pools to be structures and must meet structure setbacks or 100-foot setback and noted property owners could apply for a variance or amendment to the code but the DNR is working to treat all communities fairly and to date no deviations have been granted. Mr. Borglund spoke about the MRCCA and residential lawns and where areas can be mowed and heights based on the new law. Borgie Bonthuis, Anoka, asked how you eliminate those just wanting to stop maintaining their yards that results in weeds. Mr. Borglund explained they would submit a site management plan and through definitions will help determine what can and cannot be allowed. Councilmember Skogquist shared photos of managed landscapes and said he did not have concerns with setbacks if the area is doing well and there was no long grass obstructing sidewalks. Discussion was held on different setbacks in different areas. Mr. Borglund said staff did not envision a complicated process but just have a plan in place to approve based on the new law and will work with property owners if there is an issue. He said the goal is to establish natural areas and not be focused on raised beds and other uses. Councilmember Weaver reiterated he did not want MRCAA rules to be more restrictive than neighboring cities to remain consistent throughout the northern areas. UPDATES/REPORTS/COUNCIL SUGGESTIONS FOR TENTATIVE FUTURE AGENDA ITEMS Mr. Bonthuis asked for an update on the former CVS Pharmacy building. Mr. Borglund explained there has been no recent response regarding this topic. Ms. Bonthuis asked for an update on the Anoka County ramp being built for the jail expansion. Mr. Lee said a worksession will be held next week with Anoka County regarding this topic. 4. ADJOURNMENT September 25, 2023 (Worksession) Page 10 of 10 Motion by Councilmember Skogquist, seconded by Councilmember Scott to adjourn the Worksession at 7:31 p.m. Motion carried. Submitted by: Cathy Sorensen, TimeSaver Off Site Secretarial, Inc. Approval Attestation: Amy T. Oehlers, City Clerk