Anoka City Council

April 7, 2025 (Regular) Page 1 of 10 REGULAR MEETING OF THE ANOKA CITY COUNCIL ANOKA CITY HALL CITY COUNCIL CHAMBERS APRIL 7, 2025 1. CALL TO ORDER Mayor Pro Tem Scott called the regular meeting of the City Council to order at 7:00 p.m., followed by the Pledge of Allegiance. 2. ROLL CALL Present at roll call: Mayor Pro Tem Scott, Councilmembers Campbell and Rostad. Also present: City Manager Greg Lee; Police Sergeant Derek Nelson; Public Works Director Mark Anderson; Assistant City Engineer Ben Nelson; Senior City Planner Clark Palmer; Community Development Director Doug Borglund; City Attorney Scott Baumgartner; Utility Director Del Vancura. Absent at roll call: Mayor Skogquist and Councilmember Weaver. 3. COUNCIL MINUTES 3.1 March 10, 2025, Special Meeting. March 17, 2025, Regular Meeting. March 24, 2025, Worksession. Motion by Councilmember Rostad, seconded by Councilmember Campbell, to approve the minutes of the March 10, 2025, Special Meeting, the March 17, 2025, Regular Meeting, and the March 24, 2025, Worksession as presented. Vote taken. All ayes. Motion carried. 4. OPEN FORUM 4.1 Proclamation; National Lineman Appreciation Day April 18, 2025. Mayor Pro Tem Scott read the Proclamation in full into the record. Electric Utility Director Del Vancura shared that on April 10, 2013, the 113th Congress adopted Senate Resolution 95 recognizing linemen, the profession of linemen, the contributions these brave men and women make to protect public safety, and expressing support for the designation of April 18 as National Lineman Appreciation Day. He introduced members of the department then shared about required training including pole top//bucket rescue, mutual aid assistance from Hurricane Milton, storm response from last year’s storm in April 7, 2025 (Regular) Page 2 of 10 Anoka, Highway 10 project support, and other projects. He shared about the upcoming retirement of Jeff Dale after 25 years of service as a lineman and wished him all the best. Councilmember Campbell thanked all the linemen for their work and dedication and said most of their work occurs under difficult conditions. Councilmember Rostad thanked everyone for their work and response in getting service back online so quickly when outages do occur. Mayor Pro Tem Scott thanked Jeff Dale for his service and shared his appreciation for the support from mutual aid when needed. 4.2 Police Activity Update. Police Sergeant Derek Nelson shared a patrol update that included officer training updates, recent use of the FLOCK camera system that led to an arrest, then shared an investigations update regarding numerous mail thefts and the successful arrest of a suspect. He said Chief Youngquist will be issuing oaths of office for the new officers and newly appointed captain at the next Council meeting. OTHER INFORMATION UNDER OPEN FORUM Bill Folkes, Anoka business owner, voiced his opposition to the current parking ordinance then shared Statutes that allows for due process for the public and how he learned at the June Parking Advisory Board meeting that a citation is not a uniform citation but an administrative citation in Anoka. He shared a document from the State Auditor’s Office about State pre-emption for cities creating their own local programs and their position that local governments lack the administrative powers to issue citations. He stated a resolution must be passed before any administrative citation program is implemented that includes an opportunity for an appeals process which he was unsure Anoka had completed. Mr. Folkes shared an incident where someone had asked to appeal a parking ticket that wasn’t in place and the importance of timing of incidents that needs to include a chalk-in/chalk-out procedure. Mayor Pro Tem Scott agreed parking needs to be reviewed in conjunction with future operation changes at Anoka County and the possible jail expansion. Joelle Alverud, Anoka, asked for clarification on rules for open forum for items not on the agenda and if people have the opportunity to speak on items that are on the agenda. She commented how the code of ethics policy should have been drafted by staff then reviewed and approved by the Council and hoped Council would consider attending League of Minnesota Cities training as she felt it was important. She commented how the proposed code of ethics policy was infringing on First Amendment Rights and encouraged all Commissioners to read April 7, 2025 (Regular) Page 3 of 10 the policy and view the letter from John Kysylyczyn at the past worksession packet and share comments with the City Clerk as she felt their rights were being challenged. Councilmember Rostad asked staff for an update from a recent meeting staff and Mayor Skogquist attended. City Manager Greg Lee shared they attended a Metro Area Management Association meeting where League of Minnesota staff presented on codes of ethics and how they should include a mission statement and be consistent with Council’s goals. Mayor Pro Tem Scott said they are currently reviewing the draft policy which will ultimately be approved by the Council. 5. PUBLIC HEARING(S) None. 6. CONSENT AGENDA Motion by Councilmember Campbell, seconded by Councilmember Rostad, to approve the Consent Agenda as presented. 6.1 Approve Verified Bills. 6.2 Revising and Setting Council Calendars. 6.3 Issuance of a Tobacco License for Main Street Gas N Shop LLC, 750 W. Main Street. 6.4 Issuance of a Cannabinoid License for Main Street Gas N Shop LLC, 750 W. Main Street. 6.5 Issuance of an Off-Sale 3.2 Liquor License for Main Street Gas N Shop LLC, 750 W. Main Street. 6.6 Issuance of 2025 Social District Licenses. 6.7 Issuance of a Tree Care/Arborist License; Born2Trim, LLC, Princeton, Minnesota. 6.8 Recommended Approval of an LG220 Gambling Permit; Ducks Unlimited, Bingo and Raffle Event at the American Legion, 430 W. Main Street, May 31, 2025. 6.9 Resignation from Parking Advisory Board; Jesse Hauf. April 7, 2025 (Regular) Page 4 of 10 Councilmember Rostad confirmed the backgrounds were successful for the cannabinoid licenses. Mayor Pro Tem Scott thanked Mr. Hauf for his service on the Parking Advisory Board and encouraged residents to apply for the vacancy. Vote taken. All ayes. Motion carried. 7. REPORTS OF OFFICERS, BOARDS AND COMMISSIONS None. 8. PETITIONS, REQUESTS AND COMMUNICATION None. 9. ORDINANCES AND RESOLUTIONS 9.1.a. ORD/Amending Chapter 6; Alcoholic Beverages. 2nd Reading ORDINANCE Mr. Lee shared a background report stating at your meeting on March 17, 2025, Council passed the first reading of an ordinance amending Chapter 6, Alcoholic Beverages, of the Anoka City Code. These changes came about through worksessions held last year with bars and restaurants that hold an on-sale liquor or wine license. At the meeting the Council was asked to define what just cause would mean as it relates to reasons for suspending or revoking a license. It was decided that the City would develop a separate policy that would define just cause and provide parameters and guidelines on what would constitute a suspension or revocation of a license. Council suggested some ideas for parameters that included failed police compliance checks, alcohol leaving establishments after hours, non-compliance with State Law and City Code regulations relating to alcohol, establishment being willfully negligent multiple times, serving minors, over-serving patrons, or allowing disorderly conduct in the establishment. Council does not want the policy to be tied to a specific number of incidents or tied to police calls, but rather, if an establishment is having issues listed in the establish just cause parameters, the Council would be given the opportunity to review and consider suspension or revocation. The Special 1 a.m. license is a separate issue from the full liquor license. The Special 1 a.m. license can be suspended or revoked solely by a single action by the Council, based on the parameters established for just cause. However, State Statutes addresses license suspension or revocation for the actual On-Sale Liquor licenses. Per State Law, suspensions may only be up to 60 days. Suspensions and revocations do require the City to hold a hearing prior to a suspension or revocation going into effect, to give the April 7, 2025 (Regular) Page 5 of 10 license holder the opportunity to be heard, Staff will work with the City Attorney to draft such a policy then staff will share the proposed policy with the bars/restaurants that hold such licenses to get their feedback and input. The policy will then be brought to the City Council for approval at one of your meetings in June 2025. Motion by Councilmember Rostad seconded by Councilmember Campbell, to hold second reading and adopt an ordinance amending Chapter 6, Alcoholic Beverages of the Code of the City of Anoka Minnesota. Mayor Pro Tem Scott thanked staff and the businesses for their work and input on this ordinance that will help keep the establishments vibrant in the downtown area. Upon a roll call vote: Mayor Pro Tem Scott, Councilmembers Campbell and Rostad. Motion carried. 9.1.b. RES/Summary of Ordinance Amending Chapter 6; Alcoholic Beverages. RESOLUTION Mr. Lee explained this action will allow the City to publish a summary of the preceding ordinance to save costs. Motion by Councilmember Campbell seconded by Councilmember Rostad, to adopt a resolution approving a summary of an ordinance amending Chapter 6, Alcoholic Beverages of the Code of the City of Anoka Minnesota. Upon a roll call vote: Mayor Pro Tem Scott, Councilmembers Campbell and Rostad. Motion carried. 9.2 RES/Anoka Dispensary; Approve Site Plan and Variance for Building Setback; 839 E. River Road. RESOLUTION Senior City Planner Clark Palmer shared a background report stating the City is proposing to establish a municipal cannabis retail business use at the property located at 839 E. River Road. The subject property is owned by the City and zoned B-6 Neighborhood Commercial. A cannabis retail business is a permitted use in the zoning district. The scope of the project includes construction of a new approx. 3,000 square-foot building, parking lot, landscaping, and other ancillary improvements. In addition to approval of the site plan, the proposed placement of the building requires a setback variance of 34.18 feet from the maximum setback allowed in the B-6. The project proposes an increased building setback beyond the maximum setback of 20 feet from the front lot line along East River Road, for April 7, 2025 (Regular) Page 6 of 10 a proposed front yard setback of 54.18 feet. The City did investigate options for locating the building closer to the front lot line consistent with the setback requirement, but the irregular shape of the lot, existing curb cuts off of East River Road, and shared parking area with the City’s liquor store all created challenges to setting the building forward. The City also investigated setting the building farther back than it’s currently proposed, but staff thought it was important to try to minimize the extent of the variance and work within the spirit and intent of the ordinance. Staff considered the existing setbacks of adjacent buildings and wanted to average the setback of adjacent structures. Staff asked the architect to place the building forward while still allowing for an appropriate site design. The parking was designed to be located to the side and rear of the building, not between the building and East River Road. The Planning Commission reviewed the application and held a public hearing at their April 1 regular meeting. No comments were received from the public and the Planning Commission recommended approval. He noted the Planning Commission report references a second setback variance being needed to expand the parking lot along the east property line between the liquor store and development site. However, a survey of the property identified the existing edge of the parking lot and it has been determined a variance is not needed for the replacement of the parking lot. Councilmember Campbell said the current plan calls for decorative masonry and how brick would be more attractive and provide a higher resale in the future and if brick could be included as an alternate bid. Assistant City Engineer Ben Nelson said staff could include a bid alternate for brick and other materials for review at an upcoming worksession. Councilmember Rostad said the veneer options include the Anoka red and confirmed they would be the same size but could do a bid alternate for consideration. She spoke about the red brick but said there is a variety of architectural ideas that could be considered. Mayor Pro Tem Scott said he would like to see a bid alternate for brick as well as modular, adding while the building may be temporary for City use the building itself will last much longer. Councilmember Campbell added if the location is as good as we hope this could remain a City building for a long time as well. Mr. Palmer asked for direction on color scheme. Mr. Nelson added all options are from the same vendor so costs would be consistent. Mayor Pro Tem Scott said he liked the more traditional look and thanked staff for the providing alternates options for transportation to the building through the inclusion of bike racks. April 7, 2025 (Regular) Page 7 of 10 Councilmember Rostad said she liked the additional landscaping that would be included to offset the industrial feel of the area. Motion by Councilmember Campbell seconded by Councilmember Rostad, to adopt a resolution for approval of a site plan review and variance, 839 E. River Road, municipal cannabis retail business. Upon a roll call vote: Mayor Pro Tem Scott, Councilmembers Campbell and Rostad. Motion carried. 9.3 RES/Anoka Dispensary; Approve Plans and Specifications and Set a Bid Date; 839 E. River Road. RESOLUTION Mr. Nelson shared a background report stating the State of Minnesota is in the process of making the sale of cannabis legal for municipal and private dispensaries. City staff have been closely monitoring these cannabis proceedings with the intent to move forward with construction and opening of a City-owned cannabis dispensary and begin to sell product by January 1, 2026. It’s worth mentioning that per State law, the City of Anoka is required to allow at least one private cannabis dispensary to operate within the city limits based on population. In Minnesota, the average cannabis consumption is 24.8 grams. Anoka County residents reported the highest median spending on cannabis in the past month. On average, customers will spend $196 monthly at cannabis dispensaries. Based on discussion at the February 10, 2025, goals session, Council’s consensus was to build a municipality-owned temporary single-story cannabis dispensary at 839 East River Road adjacent to Anoka’s Liquor Store. Council’s direction was to accelerate the construction process with an inexpensive building. The goal of the Council was to have the dispensary constructed by December 2025 and ready to open when the state allows and product becomes available. Pursuant to a resolution adopted by City Council on March 3, 2025, the Anoka Dispensary Project was ordered, the public improvement hearing was waived, and the plans and specifications and procurement process for a Construction Management Agency (CMA) delivery method were authorized. On March 17, 2025, Council adopted a resolution approving a Construction Management Agency Agreement and authorized the advertisement for bid. The City selected Oertel Architect to design the building and RJM Construction LLC as the Construction Manager Agency. Oertel Architect was chosen through direct negotiation based on their qualifications and experience with the City of Anoka. RJM Construction LLC has nearly 30 years of municipal project experience in the metro area. At the April 1, 2025, Anoka Planning Commission meeting the Commission discussed the Anoka Dispensary site plan and variances. A motion was made recommending the approval of the site plan and variances subject to all comments of the Public Service Department being met. The project will involve the construction of a new municipality-owned temporary single-story cannabis dispensary at 839 East River April 7, 2025 (Regular) Page 8 of 10 Road adjacent to City of Anoka’s Liquor Store. The plans meet current building codes and have incorporated the necessary elements to provide maximum efficiency in the sales of cannabis as well as inclusion of the necessary safety and security elements. The floor plan will be an approximately 3,000 square foot stand-alone building and include a sally port to provide a safe area for the deliveries and transporting money to a financial institution. Pursuant to Minnesota State Statute §471.345, with an estimated contract amount in excess of $350,000; sealed bids shall be solicited by public notice using the competitive bidding process. The publication must be made at least three weeks before the last day to submit bids. The advertisement must be published at least once in the official City newspaper and at least once in a recognized trade journal. This notice was published in the city’s official newspaper, the Anoka County Union Herald, and in the Finance & Commerce on March 21, 2025. He discussed the process for approving plans and specifications and setting a bid date for April 22, then shared the total project cost would be $2,461,300 with funding financed by an internal loan with a resolution for the sale of bonds to reimburse project costs. He shared the annual pro forma projections developed by Point Seven Consultant Group, would yield a net income of approximately $1.7 million with an increasing trend for future years. He shared the project schedule in detail, highlighted the bike racks and reuse of stone planters for decoration and well as security, and recommended approving the construction plans and specification sand set a bid date. He highlighted some revisions in the proposed resolution as recommended by the City Attorney. City Attorney Scott Baumgartner outlined the proposed language being recommended for inclusion that would allow for a bid alternate for the brick option. Motion by Councilmember Campbell seconded by Councilmember Rostad, to adopt a resolution for the Anoka Dispensary; approve plans and specifications and set a bid date; 839 E. River Road as revised to include a bid alternate for brick and other recommended changes highlighted by the City Attorney. Berdette Gillespie, Anoka, referred to a typo in the fifth Whereas. Upon a roll call vote: Mayor Pro Tem Scott, Councilmembers Campbell and Rostad. Motion carried. 9.4 RES/Supporting Retention of City Land Use and Zoning Authority. RESOLUTION Community Development Director Doug Borglund shared a background report stating the 2025 State Legislative Session presents significant challenges for cities. Housing industry groups have attacked city land-use tools, such as zoning and planned use developments for example, incorrectly claiming that these basic April 7, 2025 (Regular) Page 9 of 10 regulatory functions prohibit the construction of more affordable housing stock. The City of Anoka respectfully asks Council to oppose HF 1987/SF 2229 (“Minnesota Starter Home Act”), HF 2140/SF 2231 (“More Homes Right Places Act”), and HF 2018/SF 2286 (“Transforming Main Street Act”). While cities recognize the housing shortage across the state and the housing spectrum, the shortage manifests differently in each community. Alongside the state, cities play a key role in addressing housing challenges and continue to lead with local solutions. In the City of Anoka, we have consistently innovated at the local level to support both affordable and market-rate development. Examples include maintaining mixed-use zoning districts that allow for high-density housing opportunities, operating a rental license and property maintenance program to preserve existing affordable and market-rate housing stock, affordable housing preservation and partnership, utilizing new housing sales tax funds and partnering with an Anoka County nonprofit to enhance and improve existing affordable housing units, housing variety through new opportunities, collaborating with developers to create diverse housing options, including one-level townhomes, high-density market-rate housing, and senior cooperative ownership, supporting affordable senior housing by partnering with Volunteers of America to develop an 80-unit affordable senior housing project, with some units dedicated to veterans, and leasing former state hospital buildings to Havens for Heroes, a nonprofit providing housing for homeless veterans. This year, proposed legislation seeks to broadly limit local decision-making authority on residential development by imposing a rigid state framework on all cities, regardless of their unique needs and circumstances. These bills would eliminate low-density zoning options (e.g., single-family neighborhoods), remove resident input from City Council or Planning Commission decisions on residential development, and strip reasonable local planning and zoning standards that ensure development compatibility and scale. Additionally, these bills create significant implementation challenges for cities, increasing costs for taxpayers and complicating zoning and land-use planning, all without guaranteeing more affordable housing or increased development. For Anoka, these bills would force higher-density housing in all residential areas without regard for strategic planning, removing the flexibility needed to address local housing needs. This shift would transfer planning responsibilities to private developers, prioritizing profit over community needs. Local governments must also consider other critical issues impacted by these bills, such as emergency services access, environmental review, infrastructure capacity, stormwater management, historic preservation, and community character. It’s important to note that factors like land costs, material costs, labor costs, and interest rates—beyond city control—also contribute to housing affordability challenges. For example, federal tariffs on Canadian lumber have increased housing costs, as noted by a major Twin Cities homebuilder. How will the proposed legislative changes benefit Anoka? These bills would only result in a loss of local control, community identity, and resident/taxpayer participation. He highlighted some recommended changes to the resolution by the City Attorney as well. April 7, 2025 (Regular) Page 10 of 10 Councilmember Rostad thanked staff for bringing this forward to help keep the autonomy of building in our City. Councilmember Campbell said this resolution supports keeping local control with cities. Mayor Pro Tem Scott said while this is important legislation Anoka already leads with regard to housing and we need to keep the City’s historic background as well. Motion by Councilmember Rostad seconded by Councilmember Campbell, to adopt a resolution supporting retention of City land use and zoning authority as revised based on recommendations by the City Attorney. Upon a roll call vote: Mayor Pro Tem Scott, Councilmembers Campbell and Rostad. Motion carried. 10. UNFINISHED BUSINESS None. 11. NEW BUSINESS None. 12. UPDATES AND REPORTS 12.1 Tentative Agenda(s). The Council reviewed the tentative agendas of the upcoming Council meetings. 12.2 Staff and Council Input. None. ADJOURNMENT Councilmember Rostad made a motion to adjourn the Regular Council meeting Councilmember Campbell seconded the motion. Vote taken. All ayes. Motion carried. Time of adjournment: 8:09 p.m. Submitted by: Cathy Sorensen, TimeSaver Off Site Secretarial, Inc. Approval Attestation: Amy T. Oehlers, City Clerk