Anoka City Council

May 5, 2025 (Regular) Page 1 of 15 REGULAR MEETING OF THE ANOKA CITY COUNCIL ANOKA CITY HALL CITY COUNCIL CHAMBERS MAY 5, 2025 1. CALL TO ORDER Mayor Skogquist 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 Skogquist, Councilmembers Campbell, Rostad, Scott, and Weaver. Also present: City Manager Greg Lee; Public Works Director Mark Anderson; Assistant City Engineer Ben Nelson; Assistant Finance Director Liz Douglas; Police Chief Andy Youngquist; Community Development Director Doug Borglund; City Attorney Scott Baumgartner; Electric Utility Director Del Vancura. Absent at roll call: None. 3. COUNCIL MINUTES 3.1 April 21, 2025, Local Board of Appeals and Equalization. April 21, 2025, Regular Meeting. Motion by Councilmember Rostad, seconded by Councilmember Campbell, to approve the minutes of the April 21, 2025, Local Board of Appeals and Equalization as presented. Vote taken. All ayes. Councilmember Scott abstained. Motion carried. Motion by Councilmember Scott, seconded by Councilmember Rostad, to approve the minutes of the April 21, 2025, Regular Meeting as presented. Vote taken. All ayes. Motion carried. 4. OPEN FORUM 4.1 Proclamation; National Public Works Week May 18-24, 2025. Public Works Director Mark Anderson shared a background report stating National Public Works Week (NPWW) celebrates the tens of thousands of men and women in North America who provide and maintain the infrastructure and services collectively known as Public Works (Services). Instituted as a public May 5, 2025 (Regular) Page 2 of 15 education campaign by the American Public Works Association (APWA) in 1960, NPWW calls attention to the importance of public works in community life. The Week seeks to enhance and recognize the prestige of the often–unsung heroes of our society – the professionals who serve the public good every day with quiet dedication. The American Public Works Association (APWA) encourages public works agencies and professionals to take the opportunity to make their stories known in their communities. He spoke about how this occasion is celebrated each year with a proclamation, and that National Public Works Week is observed each year during the third full week of May. Through NPWW and other efforts, APWA seeks to raise the public’s awareness of public works issues and to increase confidence in public works employees who are dedicated to improving the quality of life for present and future generations. He shared photos of Public Works staff performing the many duties they do every day and thanked the Council for their support. Councilmember Weaver spoke about how fortunate the City is to have such hardworking Public Services staff who work on many different tasks, usually under difficult conditions such as storms, and thanked them for their work. Mr. Anderson thanked the Council and agreed that staff work extremely hard and that he is pleased to know the public appreciates their work. Councilmember Rostad said she appreciated the tour the Council was given of the City that highlighted the many activities Public Works does and complimented Mr. Anderson for his knowledge and insight into this important profession. Mayor Skogquist said the Council hears a lot from the public about how quickly items are fixed when needed and shared a recent example of staff helping to remove asphalt pieces from a resident’s yard, which shows their dedication. He then said he would like to tour the water tower in the future. Mayor Skogquist read the Proclamation in full into the record. 4.2 Police Activity Update. Police Chief Andy Youngquist shared that, unfortunately, Officer Ryan Jaremko had a family emergency and that staff will reschedule his oath of office then shared about the recent opening of Anoka’s social district for 2025. He reminded the public about the rules and regulations and encouraged everyone to be responsible when enjoying alcoholic beverages within the district. He shared that Officer Nate Birkner won the 2025 MADD award for a third year in a row and stressed the importance of identifying impaired drivers. He shared an update regarding e-bikes, scooters, and mono-wheel transportation, and where they can be used, adding how they can travel quickly and cannot be more than 75 watts in power. He spoke about age limits for the use of these modes of transportation and the requirement of helmets. May 5, 2025 (Regular) Page 3 of 15 Councilmember Weaver said that because City Hall is in the middle of the social district can members of the public can attend Council or other meetings with an alcoholic beverage in a social district cup. Chief Youngquist said likely not, but will follow up on that question and post no alcohol allowed if needed. OTHER INFORMATION UNDER OPEN FORUM Dennis Taylor, Anoka, suggested that the back door of the Chamber be left open to be welcoming to attenders, then spoke about the purchase of the Miller building and whether there is any equipment that could be salvaged, sold, or recycled. He commented about other demolitions that have occurred, where equipment is destroyed, and that he wanted to avoid that occurring here. Mayor Skogquist said an inventory has likely been completed, but that staff will confirm before any use or demolition occurs. Joelle Alvord, Anoka, spoke about meeting protocol regarding items not on the agenda and open forum, and how the public can comment as they sometimes are not recognized, then asked if there is a way to ask questions if attending the meeting remotely. Mayor Skogquist asked that if he doesn’t readily see a member of the public wanting to speak to ask to be recognized. City Manager Greg Lee responded that there is the capability to watch meetings live, but the current policy only allows for public comment by those physically in the Council Chambers. Tom Wyman, Anoka, asked what the City was doing to slow water evaporation from the rivers. Mayor Skogquist said staff will contact him to help answer his questions. 5 PUBLIC HEARING(S) 5.1 Electric Utility Rate Increase. Assistant Finance Director Liz Douglas shared a background report stating that at the November 18, 2024, Council meeting, consultant Dave Berg presented an electric utility cost of service and rate study. The recommendation was annual 1% increases to consumption and fixed rates beginning in 2025 and ending in 2028. During the October 28, 2024, and March 24, 2025, work sessions, the Council discussed and approved an additional 1% increase to consumption rates. The additional increase would be a dedicated transfer to park capital needs. This rate would take effect in 2025 and sunset by 2028 or when liquor operations can resume transfers to park capital funds. The last electric utility rate increase was effective January 2024 with a 3% increase. The increase proposed tonight is lower than the inflationary factors applied to costs in the electric fund. Efficiencies within the department allow for the utility to continue to operate at a high level of service, with minimal rate increases. The proposed increases, effective June May 5, 2025 (Regular) Page 4 of 15 1, 2025, are estimated to generate approximately $215,000 in additional utility revenue and $133,000 in park capital funding for fiscal year 2025. Staff will return for the annual 1% increases in 2026-2028. The estimated effect of a 1% increase for an entire fiscal year is $430,000 in additional utility revenue. There is no increase in the 1% park capital increase. The proposed increase in the electric consumption and fixed rates is $1.78 per month for the average residential electric customer, or approximately 1.86%. She noted the utility rate increase resolution will be presented at the May 19 meeting. Mayor Skogquist opened the public hearing at 7:34 p.m. Dr. John Gfrerer, Anoka, asked who the City purchases power from, then asked if money is made per kilowatt hour and what the profit is used for. Mayor Skogquist explained the structure of the MMPA, which also builds infrastructure for power generation and accounts for half of the power we need, while the rest is purchased on the open market. He staff can contact him with more information, and note that the City does make some profit that is reinvested into new projects. Ms. Douglas said the last rate adjustment was in 2024 at a 3% increase, and the current proposal is 1% per year for the next four years, which is under the current inflation rate. Mr. Taylor said he didn’t appreciate the cost increases but said since we spent money for a study, we should consider their recommendations then commented that this borders on being unethical by placing an increase on the rate for park capital projects and how those customers who don’t live in Anoka aren’t benefitting from this increase. He spoke about the power adjustment clause not being in the current rate structure and suggested that it be included, as it has been 2.1% per kilowatt hour and should be identified as part of the electric rate. He spoke about park capital projects and how a specific amount of dollars should be called out to be sent to them, then spoke about the possibility of rates being tax-deductible. Dr. John Gfrerer asked about the net-zero law and excess power from a home solar installation that will change on August 1, and how the City is encouraging solar. Ms. Douglas explained that the purchase power adjustment varies month to month as it allows us the flexibility to be lower when the cost is lower. She explained this was initially passed through and hasn’t come down to pre-2021 amounts, and said staff were comfortable in including this in the total rate structure. Electric Utility Director Del Vancura said solar has to pay back the rate to the installer and noted this is being discussed, as this could force lower-income residents to have to subsidize solar, which is not the intent. (Choppy video) Discussion was held on clean energy programs. Mayor Skogquist explained the program's green energy dedication for those who opt in and how they respond through available programs. May 5, 2025 (Regular) Page 5 of 15 Being no further comments, Mayor Skogquist closed the public hearing at 7:47 p.m. 5.2 Water Utility Rate Increase. Ms. Douglas shared a background report stating that annually, the Council reviews City utility rates during the budget process. This review process involves looking at long-term capital expenditures by annually updating the Capital Improvement Plans for five years out. In 2024, the City contracted with Ehlers, Inc. to conduct a cost-of-service and rate study. The results of this study were provided to the Council at a work session on March 24, 2025. The study reviewed the current rate structure and made recommendations that included changing the fixed monthly charge dependent on the water meter size, reducing the rate for tier 1 and tier 2 water use, increasing the tier 3 rate, and implementing a new tier 4 rate. These tiered rates are designed to promote water conservation. The amount of water for each tier was adjusted so that water conservation is promoted, where the current rate structure had 97% of water billed in the lowest tier. The proposed changes, effective June 1, 2025, are not projected to have an impact on 2025 revenues. Some lower consumption water users will see a decrease in their bill, and some high-water users will see increases. The effects of these adjustments to rates and tiers are meant to spread the costs of providing clean and safe water equitably among water users. Mayor Skogquist opened the public hearing at 7:52 p.m. Ms. Alverud shared past discussions on the tier and conversation with lawn sprinkling, then shared concerns about potential water quantity in the event of a fire, and concerns about the lack of green lawns. Ms. Douglas said there are currently no separate watering meters and that sprinkling will count toward the tiered use, but she understood the tier increase will only be a 2.67% increase and will not be as impactful as it could be. Mayor Skogquist suggested providing the average bills for comparison and information before approval to approval of this rate increase. Councilmember Weaver asked if this estimate is still based on water usage during summer months. Ms. Douglas said sewer estimates are based on winter months and not higher sewer rates in the summer. Mr. Taylor commented on how many states are eliminating fluoridation from their water, and while this is not a City option at this time, if the State does move this way, Anoka should be preparing to either support or deny this action, as it could affect rates. Mayor Skogquist said the City hasn’t had any discussions on this topic, as fluoride is currently required by State law. Being no further comments, Mayor Skogquist closed the public hearing at 7:58 p.m. 5.3 Sewer Utility Rate Increase. May 5, 2025 (Regular) Page 6 of 15 Ms. Douglas shared a background report stating that annually, the Council reviews the City utility rates during the budget process. This review process involves looking at long- term capital expenditures by annually updating the Capital Improvement Plans for 5 years out. In 2024, the City contracted with Ehlers, Inc. to conduct a cost-of-service and rate study. The results of this study were provided to the Council at a work session on March 24, 2025. The study reviewed the current rate structure and made recommendations that included changing the fixed monthly charge from a rate dependent on customer class to a single fixed monthly charge that is the same for all users and an increase to the consumption charge of 4%. The average Anoka resident could expect an increase of approximately $4.85 per month in sewer charges. Increases to sewer disposal charges are the largest expense for the utility, at 68% of total expenses in 2024. She said the Metropolitan Council increases have an average increase of 8% annually, and to keep pace with the increased cost of disposal, they also raise funds for necessary infrastructure improvements. The proposed changes, effective June 1, 2025, are projected to increase revenues of $150,000 for the second half of 2025. These funds will be collected in anticipation of the upcoming lift station and sewer capacity projects that are currently projected for 2027 and 2028. Mayor Skogquist opened the public hearing at 7:59 p.m. Ms. Alverud asked about the percentage of sewer versus septic, and if all are the same, would we pay more equally then asked if there is any requirement for properties to be on public infrastructure instead of septic. Assistant City Engineer Ben Nelson said Anoka has less than 24 properties on septic and that there is no requirement to switch to City sewer, but said the current sewer connection policy states that when the cost is more than double to connect a property owner can install a septic system. Mayor Skogquist noted that any new construction is required to be connected to the City sewer. Mr. Nelson shared the areas in the City where septic is allowed. Being no further comments, Mayor Skogquist closed the public hearing at 8:03 p.m. 5.4 Storm Water Utility Rate Increase. Ms. Douglas shared a background report stating that annually, the Council reviews the City utility rates during the budget process. This review process involves looking at long- term capital expenditures by annually updating the Capital Improvement Plans for 5 years out. In 2024, the City contracted with Ehlers, Inc., to conduct a cost-of-service and rate study. The results of this study were provided to the Council at a work session on March 24, 2025. The study reviewed the current rate structure and made a rate increase recommendation of 7.5% for all rate types. The single-family residential fee will increase by $0.39 per month. The proposed changes, effective June 1, 2025, are projected to raise revenues of $32,500 for the second half of 2025. These funds will be collected in anticipation of upcoming projects, including repairing outfalls along the Mississippi River to improve water quality and sediment removal. May 5, 2025 (Regular) Page 7 of 15 Mayor Skogquist opened the public hearing at 8:04 p.m. Being no comments, Mayor Skogquist closed the public hearing at 8:04 p.m. Mayor Skogquist said the City has a lot of infrastructure in place to avoid stormwater entering the river, but that the City continues to work to improve in this area. Ms. Douglas shared that the combined impact of these rates for a low water user would be $3.80, and the highest water user would be up to $18.00. 6 CONSENT AGENDA Councilmember Rostad referred to Item 6.5 and asked if the Police Department has any concerns about alcohol consumption. Chief Youngquist said compliance checks occur for all licenses and that the department will ensure compliance. Motion by Councilmember Scott, seconded by Councilmember Campbell, to approve the Consent Agenda as presented. 6.1 Approve Verified Bills. 6.2 Revising and Setting Council Calendars. 6.3 U.S. Highway 10.169 Improvement Project; Approve Change Order Number 87. 6.4 Issuance of Social Districts Licenses; Billy’s Bar & Grill and The Wheelhouse. 6.5 Issuance of Temporary On-Sale Liquor Licenses for Castle Field Association for Summer Baseball Games and Tournaments at Castle Field. 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 RES/Anoka Dispensary: Approve Bids and Award Bid Package #1 Contracts. RESOLUTION May 5, 2025 (Regular) Page 8 of 15 Mr. Nelson shared a background report stating that pursuant to a resolution adopted by the City Council on March 3, 2025, the advertisement for bid was authorized for the Anoka Dispensary Project. On April 7, 2025, the City Council adopted a resolution approving the plans and specifications and establishing a bid date for the project. At the April 28, 2025, worksession, the Council discussed the exterior building finishes for the Anoka Dispensary and unanimously selected the real veneer brick finish for the exterior building material. The project involves the construction of a new municipality-owned, temporary, single-story cannabis dispensary at 839 East River Road, adjacent to the City of Anoka’s Liquor Store. The plans comply with current building codes and incorporate essential elements to maximize efficiency in cannabis sales while ensuring necessary safety and security measures. The floor plan features a stand-alone building of approximately 3,000 square feet, including a sally port to provide a secure area for deliveries and the transportation of funds to a financial institution. He shared site renderings displaying the new cannabis store name, Anoka Cannabis Company, along with its logos, and reminded the Council of competitive bidding requirements based on Statute. He said the City may either use the competitive bidding process or proceed with direct negotiation and outlined the differences as well as publication requirements. Mr. Nelson said RJM Construction serves as the project’s Construction Management Agency, which is responsible for overseeing the contractors and advising the City when acting as the general contractor. RJM Construction assembled the Base Bid Package and received the bids and quotes on behalf of the City of Anoka. Based on the requirements of the bid specification by the Construction Manager, the bidding structure for the project was set up to have a Base Bid Package with separate Bid Categories and an Alternate Bid Category. He shared the scope of the Base Bid Package in detail, which will result in 24 individual contract awards, and recommended awarding the contracts as presented. He said to ensure successful project completion, staff recommends that the City Council designate Kevin Morelli and Ben Nelson, or their successors, as the authorized representatives. The final step in the public improvement process is to adopt a resolution approving the bids, awarding the Bid and Quote Category contracts, and authorizing the execution of contracts for the Anoka Dispensary Project. He said the estimated total construction cost of the Anoka Dispensary is $2,794,006, which includes a contingence with the Construction Manager and that the cost increase is primarily due to the security features and devices, which were double the original estimate by Point Seven Consultant Group, along with the additional expenses from the Alternate Bid. Funding for this project will initially be financed through an internal loan, with a resolution for the sale of bonds to reimburse project costs. The bond sale is expected to close in the fall of 2025, and bond payments will be made through revenue generated from cannabis sales. It's noteworthy to mention that the annual pro forma projections developed by Point Seven Consultant Group for the year 2027 estimate a net income of approximately $1.7 million, with an upward trend in future years. This financial model applies to the temporary dispensary location, with no additional city dispensaries planned for the next three years. May 5, 2025 (Regular) Page 9 of 15 Councilmember Weaver inquired about providing fire suppression in the building. Mr. Nelson responded that, based on the square footage and usage, fire suppression is not required at the proposed 2,900 square feet. Mayor Skogquist said he believed suppression was required for structures 3-4 times the size. Councilmember Weaver clarified that the City is going to borrow to build the dispensary. Mr. Nelson said bonding will occur if there is not enough funding and will be paid back after revenue is realized in 2026. Councilmember Weaver shared concerns about the City being a supplier of cannabis as it goes against all health reports, then asked if this use will require dram shop insurance similar to liquor licenses, and how we ensure someone is not overserved. City Attorney Scott Baumgartner said overserving will be avoided, similar to what occurs at bars, and that staff will be trained to see this and not sell. He said insurance will likely be the same as a liquor store, but that currently, the Legislature has not fully addressed the dram shop. Councilmember Weaver asked if a police officer can make the same arrests for impaired drivers of cannabis. Chief Youngquist said that while more challenging to detect, officers will rely on observation for impairment and have already referred cases to the City Attorney with field sobriety tests similar to alcohol. He said the State is working on a preliminary breath test, but that it is not available yet, and that staff could offer responsible cannabis training similar to alcohol training. He said they also rely on drug recognition experts through the State Patrol when needed and said the department is always concerned about impaired drivers, either through alcohol, drugs, or bad tempers. Councilmember Weaver commented that someone’s bad decision is their concern, but didn’t feel the government should be involved, especially when we’re not fully prepared. Chief Youngquist said officers are already focusing on impaired driving now and that he doesn’t see that ever changing. Mr. Baumgartner said their office is seeing an increase in marijuana use now, and that while development of a roadside test will help officers are already good at seeing signs of impairment that will result in probable cause, adding the bench is accommodating this increase when based on good reporting. Councilmember Weaver asked if Anoka’s officers are trained for this activity. Chief Youngquist said officers already know what to look for regarding impairment and know how to gather the necessary evidence to obtain a conviction. Councilmember Scott agreed there could be many potential negative externalities, but added there will be one dispensary in the City regardless of whether we move May 5, 2025 (Regular) Page 10 of 15 forward with a municipal dispensary, and if we don’t do this, we’ll realize only a small portion of that revenue, and this way we revenue for the taxpayers. He felt this was not much different from alcohol sales and that people still have to be responsible. He noted the consultant’s revenue estimate for 2027 is $1.7 million net, and going forward, the revenue will be used to offset the negative impacts while adequately funding police and other public services. He said this revenue would be similar to adding 1,700 homes in our City without the necessary infrastructure, and that this revenue source will be into perpetuity, and increases will be based on inflation. Mayor Skogquist commented on how the construction process is different, but it was a creative way to reduce the need for a general contractor but not having staff be responsible for all the details, and saves us money. Motion by Councilmember Scott, seconded by Councilmember Rostad, to adopt a resolution for the Anoka Dispensary; approve bids and award bid package #1 contracts. Upon a roll call vote: Mayor Skogquist, Councilmembers Campbell, Rostad, and Scott. Councilmember Weaver voted nay. Motion carried. 9.2. ORD/Approving Lease Agreement with The Tavern at Green Haven, LLC. 2nd Reading ORDINANCE Mr. Lee shared a background report stating this ordinance was first introduced to the Council at the April 21 meeting and that no changes have occurred since first reading. The Lease Agreement with “The Tavern” at Green Haven expires at the end of 2025, and Jason Tollette is requesting an extension of the agreement. Mr. Tollette has recently secured an agreement for services at the Edinburgh Clubhouse in Brooklyn Park. In this agreement, the City of Brooklyn Park retains control of the Banquet Center at Edinburgh. Mr. Tollette is offering the same option to the City of Anoka in the Green Haven Lease Agreement for Services. Mr. Tollette has also indicated that he would be agreeable to simply extending the current lease agreement, should the City of Anoka NOT be interested in taking on the operations and management of the Banquet Center. 7. In addition to extending the agreement termination to December 31, 2027, Section 3 added a 3% rent escalator clause per year, Section 4 added a city profit share of 5% of sales revenue between $950,000 and $1,150,000 (max $10,000) and Section No. 7 was added that makes the Tavern responsible to ensure that their employees obtain “Responsible Beverage Server Training.” All employees of the Tenant responsible for serving adult beverages to customers, including alcohol and THC beverages, shall annually attend and complete Responsible Beverage Server Training, providing a certificate of completion to the Landlord. Staff is recommending that the City Council consider extending the current lease May 5, 2025 (Regular) Page 11 of 15 agreement at this time. Further, staff recommends that the lease agreement be extended to the end of 2027. This would give the City the necessary time to fully analyze and study the financial impacts of an option where the City takes on the operation of the Banquet Center. Councilmember Scott thanked Councilmember Weaver and staff for proposing these changes that will provide a great structure for this lease going forward. Councilmember Rostad agreed and thanked Councilmember Weaver for being innovative. Motion by Councilmember Scott, seconded by Councilmember Rostad, to hold second reading and adopt an ordinance approving a lease extension agreement between The Tavern at Green Haven, LLC, and the City of Anoka Relating To The Food & Beverage Services At Green Haven Golf Course & Event Center. Mayor Skogquist thanked Councilmember Weaver and was pleased that we utilized our subject matter experts to help create a great lease. Upon a roll call vote: Mayor Skogquist, Councilmembers Campbell, Rostad, Scott, and Weaver. Motion carried. 9.3. ORD/Accepting Offer for Vacant Lot at River Avenue and Madison Street. 2nd Reading ORDINANCE Community Development Director Doug Borglund shared a background report stating the City Council began marketing a long-vacant City-owned lot at River Avenue and Madison Street in the Fall of 2024. After reviewing offers and undergoing multiple Council readings, an initial sale attempt in December 2024 failed due to not reaching the required 4/5 majority vote by the Council. At the January 27, 2025, work session, the Council discussed improving the sale process by setting a $200,000 minimum bid, requiring design renderings before bids, considering sealed bids, increasing public notice, and adding design guidelines to the real estate brochure. Following these updates, the lot was re-marketed and resulted in two offers. At the March 24, 2025, work session, the Council chose to proceed with a $250,000 offer. The details of the home to be built and additional items listed in the real estate addendum used will be included in the Development Agreement to be signed on or before closing. He shared a concept of the proposed home to be built and said the Council approved first reading at their meeting on April 21, 2025, then noted there will be a public hearing at the Planning Commission to rezone this lot to R-1 Single Family. Councilmember Weaver said the development agreement will be important, especially if this lot is downzoned to R-1, then spoke about the 25-foot setback May 5, 2025 (Regular) Page 12 of 15 and string test that will result in the garage being placed against the property line, which likely won’t work. He referred to a discrepancy between what was shown and what is permitted, then asked why the City accepted a bid with only 1% earnest money. Mr. Baumgartner said the earnest money was part of the submitted bid and not directed by staff. Councilmember Weaver shared comments about accepting a bid at such a low earnest money rate, rejecting a cash offer that would have closed quickly and resulted in $53,000 more than this bid being currently considered. Mayor Skogquist said this was not a zoning discussion and said the entire block will result in an average setback in the teens and not 39 feet, and that Councilmember Weaver’s characterization was not accurate. Motion by Councilmember Scott, seconded by Councilmember Rostad, to hold second reading and adopt an ordinance accepting the offer for the vacant lot at River Avenue and Madison Street. Councilmember Weaver shared further comments about leaving a higher offer on the table from a valid bid that met more of the criteria than this bid, and felt this was the most bizarre sale of any private or public land that will result in the City not getting what we want. Councilmember Scott said he liked the proposed style as it would fit with the current neighborhood, then said the bid met the $200,000 minimum. He compared this to spending $70,000 for the right look for the dispensary and added that there will always be differences of opinion. Councilmember Weaver said he didn’t mind differences but felt this house did not meet the criteria, noting that no brick will occur and that the garage will be overwhelming. Councilmember Rostad said the facts looked different to her, and she felt this bid met the style and criteria, and shared it was a blind bid and that Council didn’t know until opened what the amounts were, and that Councilmember Weaver was sharing an inaccurate narrative. Councilmember Campbell said he was not thrilled with this process or the last process, but had no concerns with either home and said both offers were good, adding there never has been a lot sale in Anoka for more than $250,000, so this is great. Upon a roll call vote: Mayor Skogquist, Councilmembers Campbell, Rostad, and Scott. Councilmember Weaver voted nay. Motion carried. May 5, 2025 (Regular) Page 13 of 15 9.4. ORD/Amending Chapter 46; Controlled Substances, Article XIV, Division 2. Drug Paraphernalia. 1st Reading Mr. Borglund shared a background report stating that in the State of Minnesota, cannabis and associated paraphernalia have been legalized. Existing City regulations regarding drug paraphernalia need to be amended to recognize cannabis paraphernalia. This matter was discussed with the City Council during a work session on September 23, 2024, where the Council reached a consensus to bring forward a draft ordinance for consideration. The proposed amendments include the following changes: differentiating between drug paraphernalia and cannabis paraphernalia; adding a definition of cannabis paraphernalia by State Statute; amending the definition of drug paraphernalia with references to the State Statute; revising the language to prohibit the sale of drug paraphernalia; and allowing the sale of cannabis paraphernalia, restricted to licensed cannabis retail businesses that are licensed by the State and registered with the City. Mr. Baumgartner further explained the definition change for paraphernalia when marijuana became legal and how this recognizes those distinctions based on Statute and will be consistent with State law. Councilmember Rostad thanked staff for threading a difficult needle to ensure clarity, as this was a difficult task to understand, to ensure it is in agreement with the Statute. Mayor Skogquist said he liked to rely on Statute where we can, and that this ordinance makes things simpler and will help police rely on Statute instead of just City code. Chief Youngquist agreed the Code was out of compliance and will now be back in compliance and provide officers direction, adding he will be comfortable enforcing as this will help when it comes to the sale of paraphernalia and provides a good enforcement tool. Mr. Baumgartner said we can tailor State law to make it our own, and paraphernalia is only legal from a licensed cannabis retailer, which will help curtail activity in Anoka. Motion by Councilmember Scott, seconded by Councilmember Campbell, to hold first reading of an ordinance amending Chapter 46 Controlled Substances; Article XIV, Division 2 Drug Paraphernalia of the Code of the City of Blaine. Upon a roll call vote: Mayor Skogquist, Councilmembers Campbell, Rostad, Scott, and Weaver. Motion carried. May 5, 2025 (Regular) Page 14 of 15 9.6 ORD/Zoning Map Amendment; Rezoning to B-1; 1125 W. Main Street. 2nd Reading ORDINANCE Mr. Berglund shared a background report stating this is the second reading of an ordinance that will rezone the property at 1125 W. Main St. to B-1 Highway Business District. There have been no changes since the first reading. The subject property located at 1125 West Main Street/Property ID: 35-32-25-44-0006 & 35- 32-25-44-0005 is owned by the City of Anoka. The site was purchased using RALF Funds and remains following the reconstruction of Highway 10. The site must now be sold, and the funds returned to the Met Council. Further, the City Council has provided direction to City staff to sell this property in 2025. According to the 2040 Comprehensive Land Use Plan, the site is designated as General Commercial. However, the current zoning classification is General Industrial (M-2), which is not appropriate for this property. The proposal is to rezone the site to (B-1) Highway Commercial. Before listing the property for sale, it is necessary to position the site for its highest and best use going forward. Affected Property: • 1125 West Main Street/Property ID: 35-32-25-44-0006 & 35-32-25-44-0005. The goal of this zoning amendment is to allow for more suitable commercial use. The site is not appropriate for industrial types of land use. Councilmember Weaver asked what type of use will be allowed here and if MnDOT has shared what type of access will occur. Mr. Borglund said the uses could include retail, the service industry, or a restaurant, for example. Mr. Nelson said the service road, frontage road, and Thurston Avenue will be City roads and that we can determine ingress/egress, adding that there will not be full access on Thurston Avenue because of the full median. Mayor Skogquist said this is the right type of use and will meet the goal of getting property off the tax rolls, and he hoped someone would come forward to build in Anoka. Councilmember Scott shared that there is a lot of nostalgia for the former Vineyard Restaurant that was located on this site. Motion by Councilmember Scott, seconded by Councilmember Rostad, to hold second reading and adopt an ordinance approving a zoning map amendment rezoning to B-1 Highway Business. Upon a roll call vote: Mayor Skogquist, Councilmembers Campbell, Rostad, Scott, and Weaver. Motion carried. May 5, 2025 (Regular) Page 15 of 15 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. Councilmember Campbell suggested that staff provide a monthly update on the major properties the City owns. Mr. Borglund said that could be done within the guidelines of not sharing negotiation information. Councilmember Scott said the cannabis license lottery will be held on June 5 for social equity applicants and general applicants for cultivator, manufacturer, and mezzobusinesses as well as retail businesses then noted the State estimates the need for 1.5 to 2 million square feet of canopy to meet the upcoming demand and that currently there is only 65,000 square feet of canopy in place. ADJOURNMENT Councilmember Scott made a motion to adjourn the Regular Council meeting. Councilmember Campbell seconded the motion. Vote taken. All ayes. Motion carried. Time of adjournment: 9:02 p.m. Submitted by: Cathy Sorensen, TimeSaver Off Site Secretarial, Inc. Approval Attestation: Amy T. Oehlers, City Clerk