Anoka City Council

April 22, 2024 (Worksession) Page 1 of 5 WORKSESSION OF THE ANOKA CITY COUNCIL ANOKA CITY HALL CITY COUNCIL WORKSESSION ROOM APRIL 22, 2024 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 Scott, Skogquist, and Wesp. Staff present: City Manager Greg Lee, Assistant City Engineer Ben Nelson, Finance Director Brenda Springer; Public Works Director Mark Anderson; Utility Director Del Vancura; Community Development Director Doug Borglund; City Attorney Scott Baumgartner. Absent: Councilmember Weaver. 3. COUNCIL BUSINESS and/or DISCUSSION ITEMS Item 3.2 was heard at this point in the agenda. 3.1 Discussion; Trunk Highway 47 Corridor and BNSF Railroad Grade Separation Projects; Update and Next Steps. Assistant City Engineer Ben Nelson shared a staff report stating the Trunk Highway 47 BNSF Railroad Crossing and Corridor Project consisted of two separate projects for Highway 47 north of Highway 10/169 to Bunker Lake Boulevard (CSAH 116). He reviewed the State’s Highway 47 BNSF Grade Separation Project and the City’s Highway 47 Corridor Improvements Project. The Highway 47 BNSF Grade Separation Project (State Project) was initiated by the State of Minnesota Department of Transportation (MnDOT) in 2015. The project is located on Trunk Highway 47 from Pleasant Street to just north of Garfield Street. Project benefits of removing the at-grade railroad crossing will reduce severe and fatal crashes, improve operational efficiencies, relieve congestion, and increase emergency response time. Additional benefits include improving safety for pedestrians and bicyclists by providing a multi-use trail connection. As identified by the U.S. Department of Transportation Railroad Administration, this crossing is considered one of the worst crossings in the State of Minnesota. Mr. Nelson reviewed the Highway 47 Corridor Improvements Project (City Project) was initiated by the City of Anoka in 2017. The City began a partnership with MnDOT to study the segment of MN Highway 47 (St. Francis Boulevard) north of the Anoka County Fair Grounds to Bunker Lake Boulevard with a goal of improving access and safety for all users while preserving or April 22, 2024 (Worksession) Page 2 of 5 enhancing the community. The study was completed based on public feedback regarding concerns about corridor deficiencies north of the railroad from the open house events MnDOT held for the Highway 47 BNSF Grade Separation Project. The Trunk Highway 47 BNSF Railroad Crossing and Corridor Project will identify a community supported vision aimed at improving transportation safety, mobility and efficiency on Highway 47, while balancing the needs of a healthy natural environment, local and regional economies, outdoor recreation and overall desired livability. He reviewed the financing and funding sources and project schedule in detail and said staff was seeking input and direction on the implementation and leadership for the Highway 47 corridor, specifically, whether the City Council wants the City of Anoka to take the lead of the project and continue applying for funding for the combine Trunk Highway 47 BNSF Railroad Crossing and Corridor Project. Eric Johnson, Consultant Bolton Menk commented about combining both projects into one that would be City-led and ensure all partners were supporting the project and arriving at one solution. He spoke about completing the environmental process, modifying and broadening the project’s purpose, and ensuring community values were prominent in the vision and execution. He explained that while this was a State road that MnDOT typically should lead the project but how this was an option. He reviewed the potential funding secured through MnDOT, BNSF, and regional solicitation funds and the resulting $49 million gap with a potential City contribution of $1.1 million for a total project cost of $89 million. Mr. Nelson shared an estimated cost based on past projects for a signal at McKinley. City Manager Greg Lee noted the City would have to pay a portion of this signal anyway. Ashley Hudson, Consultant Bolton Menk explained there is more opportunity today then during the Highway 10 project as funds are aimed at actual construction then reviewed upcoming funding opportunities and funding plan for 2025 and later. She said BNSF has a 5% commitment for grade separation and wants to see the crossing addressed and will likely assist lobbying efforts for federal funding. Eric Johnson shared how the City could apply for more funding opportunities that would include design and development, which would likely be flexible as well. Mr. Nelson noted funding commitments were mostly secured already. Councilmember Skogquist referred to the $4 million from Anoka County for Highway 10 that was flexible for matching, decorative elements etc. and asked if they would be interested in this project as well. Mayor Rice said most of the costs would go to land acquisition and relocation costs. April 22, 2024 (Worksession) Page 3 of 5 Mr. Lee noted this intersection has been rated as the most dangerous intersection in Minnesota so there should be great motivation for participation then noted the road is in a wild and scenic area and has many similarities with the Highway 10 project and how this fits best in our community. He said Bolton and Menk draft 13 different options for crossings and supports the City stepping in too to get the best project for Anoka. Ashely Hudson shared the anticipated proposed project schedule with construction starting in 2027. City Attorney Scott Baumgartner confirmed if RAISE funds are awarded but the project is not successful that the City is not obligated to move forward anyway or pay back those funds. Mr. Nelson said staff is seeking direction on implementation and leadership for the Highway 47 corridor project, including applying for funding for the $89 million combined project. Councilmember Skogquist said he supported moving forward as this was the best way to achieve the most funding. Council consensus was to direct staff to begin implementation to lead the Highway 47 corridor project. 3.2 Discussion; Cannabis Overview. Community Development Director Doug Borglund shared a staff report stating the 2023 MN State Legislature created new State Statute legalizing Cannabis in Minnesota as of August 2023. The legislation creates the framework for adult-use cannabis in Minnesota and established a new Office of Cannabis Management, which will regulate cannabis (including for the adult-use market, the Medical Cannabis Program, and for lower-potency hemp edibles) and issue licenses and develop regulations outlining how and when businesses can participate in the industry. Staff and the City Attorney are currently developing a draft cannabis ordinance based on what the City knows it can regulate at this point. Staff believes it would be best to wait on adoption of an ordinance until the end of the 2024 State Legislative Session as there continues to be discussion and proposed amendments to State Law as the rulemaking process progresses. The current discussion item for the work session is to review the distance requirements within the law. He noted the House bill included an amendment for cities to have a cannabis license in addition to a private license then shared a proposed map that showed potential locations 500 feet from a school to be reasonable and included the B1 Highway Commercial zoning on City owned sites included Green Haven and the former Wright Tire site, B5 Regional Business identified as the future liquor store site, EM2 7th Avenue and East Main Street intersection, B6 April 22, 2024 (Worksession) Page 4 of 5 Neighborhood Commercial on East River Road at the existing liquor store site, Highway 47/Highway 10 for B6 Neighborhood Commercial, West Main/Mauer Main area zoned MSMU, the southwest corner of Round Lake and Bunker Lake Boulevards, and B3 General Business. He said all areas have a 500-foot radius from a residential treatment facility, playgrounds, etc., and the only reduction was schools then outlined locations of the eight current cannabinoid licenses. Councilmember Wesp asked if any of the current cannabinoid licenses could apply for a cannabis license. Mr. Borglund said no because of the proximity to St. Stephen’s School. Councilmember Scott confirmed with the new law the low-dose product will not change and amendments to the law will allow cities to have a license if we want but still have to allow a private license as well. Mr. Baumgartner stated the Office of Cannabis Management will be the licensing entity for both and that there are no distance requirements for low-dose then said if a city wanted a license it wouldn’t count against the one we are required to have. He said we still are not sure whether cities will have a priority as the State was still developing on how to award licenses which is currently a lottery. Councilmember Scott noted these licenses will result in taxes for the City so we will want private licenses to be successful. Councilmember Skogquist supported the proposed zoning areas as presented for potential locations and supported the 500-foot radius because 1,000 feet in Anoka would not allow enough locations. Mr. Borglund said once the legislature adjourns staff will make final amendments to the draft and forward for formal Council consideration unless significant changes occur. Mr. Baumgartner said it will be important to have an ordinance in place when the application process opens. Mayor Rice said many of the proposed areas are retail areas and suggested having the final map available for the public. Jamie Coyle, 1919 2nd Avenue, asked if the City was assuming every park attracts minors regularly and therefore all parks have to have a radius. Councilmember Scott said the radius will only apply for parks that contain a playground or sports field of some sort. Councilmember Skogquist said the session adjourns May 20 and asked staff to provide an update once adjourned to share with the public. April 22, 2024 (Worksession) Page 5 of 5 UPDATES/REPORTS/COUNCIL SUGGESTIONS FOR TENTATIVE FUTURE AGENDA ITEMS Councilmember Skogquist asked about the social district and potential closures one weekend a month for entertainment nodes and pop up for bands and suggested the area by Van Buren and Second Avenue. Mr. Lee said no dates have been established yet but staff is working with businesses to come up with events such as the 100 Club fundraiser and closing Jackson Street for a larger event. He said staff was working on how to partner in these such as Serum’s hosting a larger band in the parking lot then shared a plan to open another ingress/egress from the parking ramp off Golf Street for next year. Public Works Director Mark Anderson outlined the $125,000 design fees for the ingress/egress project for construction in 2025, adding there will be weekend work needed. Councilmember Scott asked if there were plans to survey the neighborhood near the west liquor store for their input on the project. Mr. Lee said that was not staff’s intention to survey because there were only three offers received for the site and one was slightly higher from a local business in the industrial park which we would want to retain. He said this business would have zero impact to the nearby neighborhood and that staff was drafting a purchase agreement for Council consideration on May 6. Mr. Baumgartner highlighted the other offers received and how staff felt this was the best fit and will start working on the purchase agreement once directed. 4. ADJOURNMENT Motion by Councilmember Wesp, seconded by Councilmember Scott to adjourn the Worksession at 6:05 p.m. Motion carried. Submitted by: Cathy Sorensen, TimeSaver Off Site Secretarial, Inc. Approval Attestation: Amy T. Oehlers, City Clerk