Anoka City Council

June 24, 2024 (Worksession) Page 1 of 11 WORKSESSION OF THE ANOKA CITY COUNCIL ANOKA CITY HALL CITY COUNCIL WORKSESSION ROOM JUNE 24, 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 Weaver. Staff present: City Manager Greg Lee; Assistant City Manager Amy Oehlers; Finance Director Brenda Springer; Assistant Finance Director Liz Douglas; Police Chief Eric Peterson; Public Works Director Mark Anderson; Public Services Administrator Lisa LaCasse; Utility Director Del Vancura. Absent: Councilmember Wesp. 3. COUNCIL BUSINESS and/or DISCUSSION ITEMS 3.1 Discussion; Liquor License Review. Assistant City Manager Amy Oehlers shared a background report stating Council has requested a discussion on the overall liquor license requirements and fees. The information in this memo are not recommendations from staff but presented as ideas to help facilitate discussion among Councilmembers. For discussion purposes, staff has drafted up a potential list of categorized licenses, based on location, size, hours, etc. If Council chooses to develop different categories of liquor licenses, changes to the City Code would be required to create definitions and category descriptions. She reviewed definitions in Statute of a restaurant and minimum seating requirements for issuance of a license then shared a categorized license list to provide ideas on different square footage requirements dependent upon the type of license. The City may set their own regulations on square footage and seating, with the exception of an On-Sale Wine license. Current City Code requires that the principal part of the business must be the selling of food, which further means that not less than 35% of the total gross sales must be for the sale of food. Ms. Oehlers said the list provides ideas on different food requirements dependent upon the type of license and noted because Anoka only issues liquor licenses to restaurants we do not have a cap on the number of licenses issued. If the City amended Code to allow the issuance of liquor licenses to bars without a restaurant, we would be limited to 12 licenses of this type. However, in addition to those 12 licenses, we can still issue an uncapped number of licenses to restaurants. Historically, Anoka has only wanted to issue liquor licenses to restaurants and not allow liquor licenses for bars and/or nightclubs, June 24, 2024 (Worksession) Page 2 of 11 which don't serve food. She stated current liquor licensing fees have remained the same for over 20 years and noted fees were not covering the costs associated with the enforcement of liquor regulations. She outlined current fees and fines for violations of City regulations and Code then highlighted proposed progressive fines offenses occurring in the 12-month license period, up to and including suspension. Fines can be up to $2,000 for each violation per Statute, suspensions can be for up to 60 days, and revocations require a hearing before the City Council. Councilmember Weaver spoke about the split licenses issued in the past with a 2AM license and how after incidents occurred the 2AM licenses were revoked, noting at least one location didn’t meet the food requirements. Mayor Rice said the City had abolished the 2AM license due to enforcement costs and issues that occurred when establishments stayed open that late. Councilmember Skogquist thanked staff for their work then said they received feedback from business owners who liked the addition of a tiered approach to violations to provide equal enforcement and clear penalties. He spoke about license fees and how many have been the same for over 20 years and how certain areas require more work such as clean up and police involvement, stating there are a lot more services in some areas than others. Chief Peterson said staff has been monitoring activities for the last couple of months and some of the incidents that occurred such as fights or overserving was still an issue and how it was their job to prevent and address when they occur. He said they worked with business owners to create the right environment after 10PM and 1AM that was safe and added since they scaled back from the 2AM license activity has improved. Councilmember Scott thanked staff for their work and said 20 years was a long time to wait to review fee structures and associated costs and suggested we have what other cities have done for fines and response. An audience member asked what would constitute an offense as they didn’t want to be punished for calling the police when needed. Councilmember Weaver said while the City wants the social district to be successful it was important for rules to be followed and suggested a full license be up to $10,000. He said this will provide staff the tools to enforce while not punishing license holders. An audience member spoke about activity that occurs where it was dark and encouraged more lighting in the downtown area to help deter that type of activity. June 24, 2024 (Worksession) Page 3 of 11 Councilmember Weaver suggested lighting could be enhanced as part of the upcoming street reconstruction project and asked about the current lighting wattage and if it could be increased. City Manager Greg Lee said lighting improvements have already occurred in the parking ramp. An audience member expressed concerns about the potential revocation after a fifth offense and felt it was too extreme. Councilmember Skogquist said it was worth the time to research other cities with social districts similar to Anoka’s and asked what constitutes a violation. He said it will be important to learn what has worked and what hasn’t and agreed there needs to be something created on a graduated level to protect the public and police. Mayor Rice spoke about the differences when a patron walks in and a problem occurs and who is responsible as the proprietor, such as open containers leaving a bar. Chief Peterson spoke about not wanting to penalize someone for another person’s behavior and the importance of contacting the police to address but it not being a penalty. He agreed about increasing lighting where possible but said it could be difficult to do in some areas. He referred to people leaving with containers and encouraged bars to assist with that and stressed the need for education throughout this process, including alcohol service trainer. Senator Jim Abler spoke about service at Nucky’s Speakeasy and how to operate within the required parameters and the need for responsible business owners. An audience member shared comments about how they felt discouraged to contact the police in Blaine and the importance of a partnership in Anoka. Jess Hauf, 10K Brewing, felt the bars needed to be held to a higher standard to ensure customers feel safe to come to the downtown area and the importance of handling things through trained staff to de-escalate before the police had to be contacted. He said he didn’t support raising fees without data and noted Blaine doesn’t have a food percentage requirement. He said he was expanding his brewery to include a kitchen and how that would affect the current requirements around closing. An audience member shared concerns about the proposed license fee increase and suggested tips on de-escalating and server training programs. Chief Peterson supported expanding the training program for all servers. June 24, 2024 (Worksession) Page 4 of 11 Councilmember Weaver supported increased license fee and tiered penalty structure. He said he supported a full restaurant license allowing being open up to 10PM with the opportunity to obtain a 1AM license that wouldn’t cost more but give the City the ability to revoke the 1AM license issued if necessary. He said this would allow those who follow the rules to not be punished for calling the police but those where things need to be addressed the 1 AM license can be used as a tool. He noted once a reputation is received it is difficult to backtrack and address appropriately. Mayor Rice said the City was not trying to just increase fees but cover costs too and that more enforcement was needed because of more people in the downtown area which adds to the cost of business but how the City shouldn’t be subsidizing businesses. An audience member said he was not sure what the proposed $3,000 license fee would accomplish and asked for reasons for the differences in license types and their associated fees. Councilmember Skogquist agreed with the need for different fees and the participation with the owners to address behavior. A member of the Anoka Knights of Columbus spoke about the need for safety and how many wanting to become police officers, increases the need for oversight. Finance Director Brenda Springer added the fee includes more than police services such as Public Works clean up and other support. Ms. Oehlers said Anoka is a third-class city and without a restaurant we are capped but because we issue to restaurants there is no cap to the number of licenses. An audience member spoke about the 10PM license but how requests will be likely be for longer hours for special event nights. Chief Peterson said many establishments aren’t a concern and how the police just want to work with all and thanked those who responded as it was important to them. Mayor Rice encouraged business owners to call the police when needed as it was important to know what was occurring and provided the owners an opportunity to share concerns. Councilmember Weaver shared if they are successful everyone is successful and that the City has heard the business owners and wanted to work together as a team. June 24, 2024 (Worksession) Page 5 of 11 An audience member commented how business owners were concerned about their bottom line over safety and fairness and suggested using the fire capacity as a gauge for the tiered system, adding there are better ways to address the concerns that were fair to everyone. Discussion was held regarding parking and its impacts to the bars and the need for clean-up by closing instead of 6AM the next day. Mr. Lee summarized staff direction included exploring 10PM, 11PM, and 1AM licenses for additional days for holidays, fee increases on some level, and training requirements for further review at the July 29 worksession. 3.2 Discussion; Social District Review. Mr. Lee shared a background report stating the social district has been up and running for its first full season since May and that this would be a general discussion regarding the district including any concerns, issues, or potential changes. He noted there are now other districts that will come online and how they wanted to ensure Anoka was great and asked for input. He spoke about the pavilion trailer for rent for events and how that could be used in the district. Public Services Administrator Lisa LaCasse shared the 21 permits for music issued in five locations and the requirements for those permits. Mr. Lee spoke about shutting down the area for pedestrian walkways to ensure no vehicle traffic was present. Chief Peterson shared the proposed Jackson Street closure concepts in detail. Mr. Lee shared the CIP included a ramp to create another access on Golf Street for parking to be more available for entertainment events. An audience member said this could exclude some business owners from people wanting to go their restaurants too. Others shared the need for a reason to close the street such as music or other activities and additional seating. Councilmember Skogquist said it was important to create an atmosphere for activities and not just closing the area. Councilmember Scott spoke about the pedestrian plaza with seating for some activities to create the culture they want to foster. An audience member spoke about the fountain and how that could be another location for a music destination. Another member suggested a street dance be scheduled near the fountain and allow more area down Jackson Street. June 24, 2024 (Worksession) Page 6 of 11 Mr. Lee said the City was supportive of closing streets for events. Mr. Hauf agreed but added there was a challenge to apply for a special event license because of the requirements. An audience member suggested closing 2nd Avenue similar to the food truck festival then spoke about the east entrance on 3rd Avenue and Golf Street which would make it more easily accessible, adding keeping the entire area closed for events is best because it would provide for several bands throughout the area and provide more options. Mayor Rice noted overall there very few concerns during special events. Chief Peterson shared the larger area closed the more staff required to patrol. Councilmember Skogquist supported extending the closed area with the goal to gauge for results that included J barriers as a pilot and that he liked the pop-up bollards concept for deliveries and suggested closing half of Jackson Street for July to see how it works then adapt accordingly. Councilmember Scott noted providing enough seating will be important. Mr. Lee said the entertainment trailer will be set up at Castle Field for music on July 3 and that rental fees would need to be considered. Ms. LaCasse shared more about the trailer specifications and the intent to rent. Councilmember Weaver asked to move Item 3.5 forward to this point in the agenda. 3.3 Discussion; ARPA Funds. Ms. Springer shared a background report stating in 2023, the City received the first half of ARPA funds in the amount of $958,897.00 and the second half in 2024 of $958,897.00 for a total of $1,917,794.00. She shared a list of projects and capital expenditures funded with the ARPA money along with a list of possible additional uses for ARPA funds. She noted the remaining balance has to be spent yet this year and asked for Council feedback on proposed uses. Councilmember Skogquist spoke about the pool strainer baskets as an option to obtain them this year and said we already approved the river dredging and park chimneys within the park capital improvement plan (CIP) already so it was important to continue to add and not let these funds go. Discussion was held on the direction for dock revenue for the park CIP. Ms. Springer noted it was actually for stormwater once the docks were paid off, June 24, 2024 (Worksession) Page 7 of 11 adding the park CIP list will have to find other funding sources which would be used from the liquor store. Ms. LaCasse spoke about the bench and garbage/recycling bin replacements not needing to be one for one replacement and how some were from 1995 and included in the 2025 budget. She said cans for the social district could be done as 50/50 cost split. Council consensus was to support the allocations as presented. 3.4 Discussion; Options for 7th and Main Street Property. Senior City Planner Clark Palmer shared a background report stating this item has been requested by two councilmembers to be included on this agenda for discussion. The Council at the March 25, 2024 worksession provided the following direction: start marketing Option C (liquor store up front with commercial adjacent along Main Street and a second level of commercial space; present Option #3 zoning change to the Council for consideration of approval o Option 3; create a new EM3 subdistrict for the 4 corners at 7th and East Main currently zoned EM2, rename the existing/remaining EM3 to EM4; purchase the property – only after the zoning has been changed, present to the City Council a resolution to purchase the property for consideration. He outlined actions since March 25, 2024 in detail and said there was consensus to move ahead with a consultant to evaluate various locations deemed this the highest revenue generator he had analyzed within the City. After reviewing the first draft of the Purchase Agreement, the HRA requested the addition of a few contingencies for the sale of this property based on several conditions. At the February 20, 2024, regular meeting, Council discussed the purchase of 7th and Main from the HRA and after being presented with a Purchase Agreement for the property at 7th Ave and E. Main Street, the City Council requested this item be tabled and a work session be held to discuss this concept further. He shared the information submitted for the February 20, 2024 meeting for your reference and said since that time, staff has worked with CBRE, Inc. to market this 1.75-acre property for various uses. The current listing price is $950,000.00. Though there has been much interest, most of the interest was for uses not allowed in this zoning district, a greatly reduced purchase price or non-preferred uses based on HRA, Council and Planning Commission input. The HRA also signed a Purchase Agreement with a development group, spending a year working towards a favorable outcome to no avail. HRA and staff worked with Financial Consultant Ehlers, Inc. to analyze TIF revenue projections and other aspects of the potential deal. TIF revenues should exceed what it would take for the City to repay all HRA debt ($4,033,852 including interest), however, the actual TIF numbers will not be determined until a more specific plan is agreed upon. At the February 26, 2024, worksession, Council discussed and touched many variables and components related to the subject property at 7th and Main including acquisition, funding, future liquor store, site development, site layout, future users, etc. June 24, 2024 (Worksession) Page 8 of 11 Councilmember Weaver asked who would pay for the liquor store. Mr. Palmer shared the updated cost estimate for the building was $12.6 million for a 2025 project. Councilmember Weaver noted this project could get expensive quickly and likely wouldn’t attract downtown businesses but likely national brands instead. He said it could be difficult for the City to be a developer and a landlord and that this needed to be open to developers’ different ideas. Councilmember Scott said a developer could do the full project or a portion but the liquor store was a good option for this site as well as a good anchor tenant. Councilmember Skogquist said it would be good because now we have an amount and should begin discussions with developers to gauge interest. He said he was open to having a liquor store and good building but if it pays for itself that’s great. Councilmember Weaver cautioned the group because rent and common area charges could be quite high. Councilmember Scott said that would be the reason to have a strong, anchor tenant to draw other tenants to the building. Mayor Rice agreed then noted it would be expensive for the City to wait as well. 3.5 Discussion; Policy on Water Shut-Off Due to Lack of Payment. Ms. Springer shared a background report stating Councilmembers have asked to have this subject be discussed at a worksession then stated utility data was private data per Statute. Assistant Finance Director Liz Douglas shared how the Utility Department manages shut-offs when necessary then outlined City Code requirements for shut- offs but how it didn’t happen very often. Mr. Lee said if a shut off structure becomes uninhabitable then that changes direction. Councilmember Weaver said if power is turned off due to nonpayment and no garbage or gas services are provided and then tenants are living off a generator the City needs to say when is enough. He said we provide resources for assistance but nothing occurs and asked how long a neighborhood has to wait then suggested a policy be adopted. Ms. Douglas said there is no law that states someone has to electric service and that staff refers to code enforcement when concerns occur. She said there are procedures if there is no electric to a house during winter that June 24, 2024 (Worksession) Page 9 of 11 includes further investigation to see if property is occupied followed by assessing outstanding balances. City Attorney Scott Baumgartner shared resources from the League of Minnesota Cities (LMC) and options available to shut off water and assess back to the tax roll, which if not paid goes to tax forfeiture where the City is eventually paid. He said the LMC recommended certifying unpaid charges then shared statute options and the with an unsafe structure and how the City may have to remove the residents which could be seen as creating the unsafe environment. Ms. Douglas shared how a small number of customers are billed for water and not electric and that the billing system structure was difficult to apply partial payments to electric and water. Councilmember Skogquist asked if there was another way to collect the funds and if the loud generator sound could be addressed under the noise ordinance. Chief Peterson encouraged those experiencing the noise when it was occurring to contact the police to address. An audience member shared comments about the police being concerned about the noise instead of something worse and not wanting to hurt anyone. She said if a generator was in the back instead of the front the sound would be attenuated by fencing, trees, etc. and if they did call it would be after hours. She said something as constant as a generator is difficult to address as it doesn’t reach the level of an emergency and wouldn’t reach the level of a noise complaint but encouraged the Council to help the neighborhood. She said if you choose not to have electricity then some criteria should be imposed as this was different than back-up power and was being used an alternate source of power and should fit different criteria. Mayor Rice spoke about peaceful enjoyment of our own properties and noted 911 was not just for emergencies but to contact the police and encouraged neighbors to call to create a record of the concerns. Mr. Baumgartner noted there was a fine line between enforcing ordinances that are not violations with those that interfere with one’s specific property rights and cautioned about the potential ramifications. Mr. Palmer said the individual could bring this to court as there was a public nuisance law different than private nuisance law and reiterated that staff sent letters with resources such as energy assistance. The audience member noted the City provided resources to the complainant but stated while no one wants someone homeless as homeowners they feel powerless and that the City should assist. She noted some have the means to pursue actions civilly but others may not. June 24, 2024 (Worksession) Page 10 of 11 Councilmember Scott commented about the balance of occasional noise versus constant noise and suggested adding duration to the code. Mr. Baumgartner used the example of a windchime which can be constant too and the difficulty in defining someone else’s right of enjoyment against noise. Councilmember Weaver suggested defining generators such as not after 10PM unless after a storm. Mr. Baumgartner said that could be difficult for reasons such as medical or other. Councilmember Scott spoke about the difficulty of music or a hum of an air conditioner. Mr. Baumgartner agreed, adding what is offensive to one may not be offensive to another. He said it was difficult for the City to provide legal advice in instances such as this, adding the courts could issue an abatement which could result in a better outcome. Councilmember Skogquist asked if this action could fall under heavy machinery. Mr. Palmer responded likely not. Mr. Lee suggested turning the power back on until October because we’re going to get our money at some point. The audience member shared she was told they couldn’t cycle for only one customer and that the rule would apply to all. Utility Director Del Vancura said shutting power off gets the bill paid, otherwise we have to wait for the assessment process when the property is sold or taxes are paid then spoke about cycling options. The audience member noted it costs $600 for gasoline to power the generator and how the property owner likely won’t have enough money to put towards the electric bill already. Discussion was held on the benefits of turning on the electric to get the bill eventually paid, including payment of property taxes and potential tax forfeiture. Ms. Douglas referred to the income requirements for the cold weather rule and how it could result in having the power turned back on. Mayor Rice suggested turning the power back on when there are situations like this because the property will be assessed eventually anyway. The audience member noted this could be an incentive for others not to pay. Further discussion was held on additional options available because of the presence of children. June 24, 2024 (Worksession) Page 11 of 11 UPDATES/REPORTS/COUNCIL SUGGESTIONS FOR TENTATIVE FUTURE AGENDA ITEMS Mr. Lee updated the Council on the petition received from the haulers. 4. ADJOURNMENT Motion by Councilmember Skogquist, seconded by Councilmember Scott to adjourn the Worksession at 8:13 p.m. Motion carried. Submitted by: Cathy Sorensen, TimeSaver Off Site Secretarial, Inc. Approval Attestation: Amy T. Oehlers, City Clerk