Anoka City Council

July 21, 2025 (Regular) Page 1 of 12 REGULAR MEETING OF THE ANOKA CITY COUNCIL ANOKA CITY HALL CITY COUNCIL CHAMBERS JULY 21, 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, and Scott. Also present: City Manager Greg Lee; Public Works Director Mark Anderson; Police Chief Andy Youngquist; Public Services Administrator Lisa LaCasse; Cannabis and Liquor Operations Manager Kevin Morelli; Senior City Planner Clark Palmer; City Attorney Scott Baumgartner; Community Development Director Doug Borglund; and Electric Utility Director Del Vancura. Absent at roll call: Councilmembers Rostad and Weaver. 3. COUNCIL MINUTES 3.1 June 16, 2025, Regular Meeting. June 23, 2025, Worksession. June 23, 2025, Special Meeting. Mayor Skogquist noted corrections needed on the June 16 Regular Meeting, Page 3, to be more businesses per capita; June 23 Regular Meeting, Page 9, to Park and Recreation Advisory Board; June 23 Worksession, Page 12, yellow highlighted sentence to be north of the municipal parking ramp; and June 23 Special Meeting, Page 1, to be vacancy in the Housing and Redevelopment Authority. Motion by Councilmember Scott, seconded by Councilmember Campbell, to approve the minutes of the June 16, 2025, Regular Meeting, the June 23, 2025, Worksession, and the June 23, 2025, Special Meeting as corrected. Vote taken. All ayes. Motion carried. 4. OPEN FORUM 4.1 Proclamation; Joe Anderla Day, July 23, 2025. Public Services Administrator Lisa LaCasse shared a background report stating Joe Anderla served on the Parks and Recreation Advisory Board officially for 47 July 21, 2025 (Regular) Page 2 of 12 years and 18 days, from December 20, 1977, to the day of his passing, January 6, 2025. She said that had Commissioner Anderla been able to complete his current appointment to the board, he would have been a volunteer for 48 years and was the longest-serving board member in City history. The members of the Parks and Recreation Advisory Board are formally requesting that Mayor Skogquist proclaim July 23, 2025 (Joe’s birthday) as Joe Anderla Day in the City of Anoka to recognize his loyalty. She said there will be a short presentation before the Rockin’ on the Rum Concert in the Park later this week and said Commissioner Anderla’s service to the citizens of Anoka has been recognized with the dedication of several park benches within the park system including Sunny Acres Park, Riverfront Memorial Park, and a future bench to be installed along the West Rum River Trail later this year. Councilmember Scott said he served with Commissioner Anderla and was a staple to the Board for 47 years and supported the creation of public restrooms for the community, and will be missed. Councilmember Campbell thanked Commissioner Anderla’s dedicated service to all residents of Anoka. Mayor Skogquist said he served with Commissioner Anderla as well and said he was always involved, active, and engaged, and had great institutional knowledge, which was helpful to the Board’s discussions and decisions. He read the Proclamation into the record, then presented the plaque to his spouse. 4.2 Anoka Dispensary Update and Introduction of Cannabis Team. Cannabis and Liquor Operations Manager Kevin Morelli shared a background report stating the Anoka Dispensary 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 project 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. Construction of the new dispensary site is underway, and a soft opening is planned for the week of December 21, 2025. The contractor has completed the foundation and footings and is currently working on the masonry for the building. Upcoming items include the placement of the steel joists, utility structures, CMU, and rebar, hardware frames, doors, windows, mechanical, electrical equipment, metal paneling roofing, and site improvements. He shared the schedule and outlined steps and timelines for the construction and preparation of the Anoka Dispensary Project in detail, which included a ribbon-cutting event by January 5, 2026, then shared a recreational retail cannabis license update. Mr. Morelli shared that in June, the City hired Stephanie Rietz as the full-time Cannabis Manager who holds an Associate Degree in Graphic Design and brings over six years of experience in the medical marijuana industry, including four years of management experience. He outlined her primary duties as Cannabis July 21, 2025 (Regular) Page 3 of 12 Manager, then shared that Jamie Croyle joined City staff on July 14, 2025, as the Assistant Dispensary Manager. He said she brings extensive knowledge of the cannabis industry to her role and will play a key part in launching the Anoka Cannabis Company. Councilmember Scott asked about hiring and logistics to prepare for the dispensary’s opening. Mr. Morelli said both managers were working part-time and will transition to full-time soon, and are working out of City Hall and prioritizing the work, which includes participating in trade shows and creating an inventory control system, standard operating procedures, mission and vision statements, and other tasks. Councilmember Scott asked for any update from the Office of Cannabis Management (OCM) regarding when licenses will be issued. Mr. Morelli shared OCM’s licensing path, which includes background checks and a labor peace agreement, and said the City was on track for OCM’s inspection 60-90 days ahead of opening. Councilmember Scott said they recently toured the City of St. Anthony and thanked Chief Youngquist for suggesting that they include a sally port in their dispensary. Cannabis Dispensary Manager Stephanie Rietz thanked the Council for this opportunity and said she was extremely proud to be part of the City’s team. She said she spent many years in the industry and was excited to be part of Minnesota and Anoka, especially, adding that the goal was to provide the community with an extremely amazing experience when purchasing products. Assistant Cannabis Dispensary Manager Jamie Croyle said she was honored to serve in this role, then shared her background and said she was proud to continue her commitment to wellness through the municipal model. She said she supports the standards made possible, then thanked the City for the opportunity to continue to serve the community. Mr. Morelli said he was blessed to work with these strong leaders. Councilmember Scott said the City received 260 applicants for these roles and was pleased with the outcome. Mayor Skogquist said he was excited for this new team, who knew the industry as well as having female leaders in place, then suggested installing a commissioning plaque on the new building to recognize this moment of history. Councilmember Scott commented that Anoka may be the first new build dispensary in the nation. July 21, 2025 (Regular) Page 4 of 12 4.3 Police Activity Update. Police Chief Andy Youngquist shared about upcoming events, including Battle of the Badges and others, then shared an incident that included an individual who broke a window to gain access to a building and how a CSO helped locate the suspect. Mayor Skogquist stated CSOs help augment the City’s entire police force and do great work. OTHER INFORMATION UNDER OPEN FORUM Ron Prokott, Anoka, shared concerns about the bright lights at the Jimmy John’s and Baskin-Robbins restaurants that were impacting residents at the American Cooperative, then invited the Council to attend their Night to Unite event on August 5. Senior City Planner Clark Palmer shared an update on the lighting concerns and how staff were working with the property owner to connect dimming capabilities to the tube lighting along the roof line. He noted this additional lighting was not part of the original lighting plan and that staff had been trying to address this for some time and was working with the City Attorney on next steps to gain compliance. Donna Johannsen, Anoka, asked if the dispensary rendering was the final design, as she had concerns about the amount of glass, then shared concerns for housing these controlled substances and the need for a sally port, a pre-entry shopping area, a point-of-sale system, and the need for security. Ms. Rietz explained that the glass was secure and bullet-proof and outlined other security measures such as bollards, an entry vestibule separate from the sales floor, and the sally port for secure product deliveries. Mr. Morelli said staff took building security very seriously and hired a security specialist as part of the building design plan to ensure that it occurred properly. Ms. Johannsen inquired about the need for a snow-making machine in the 2026 proposed budget. Mayor Skogquist explained the capital improvement plan process and how this item had been included for possible cross-country skiing opportunities at the golf course, but was not being included at this time. Ms. Johannsen commented about the high cost of tree removal as part of the Emerald Ash borer disease and suggested the City create a program to help property owners who have to remove trees. Mayor Skogquist responded that there was not a lot of extra funding for ash tree removal for property owners and that for City property removal was being done through staff or grants, but noted removal comes with a 1:1 tree replacement that includes deed restrictions, which, July 21, 2025 (Regular) Page 5 of 12 if opened up to the public would include property use restrictions which would be difficult. He encouraged property owners to contact the City for recommendations on who to hire for tree removal. Ms. LaCasse said the City has received over $300,000 in DNR grants for boulevard tree removal and replacements, but said this funding isn’t going as far as they hoped and encouraged the public to contact Public Services regarding possible treatment methods that could delay eventual tree removal. William Mueller, Anoka, echoed the three concerns shared, then spoke about the intersection at Fair Oak and West Main Street and safety concerns due to the blind intersection. He shared about his recent accident and felt the stop sign was too far back in the tunnel, then shared concerns about pedestrians in this area as well. Mayor Skogquist said this topic was tentatively scheduled for the August 4 worksession to review possible concepts and ways to address this intersection. Joelle Alvord, Anoka, referred to the misspelling of her name in the minutes of the June 16 and 23 meetings and the need to correct her statement that it was Mayor Skogquist’s brother’s neighbor she referred to. She also asked how someone could learn more about becoming a CSO. Chief Youngquist encouraged anyone to contact him to learn more about the program. Noah Stockard, Anoka, shared concerns about the recent passing of the Big Beautiful Bill and the $170 billion being directed towards immigration, and encouraged the City and Anoka County not to sign the proposed memorandum of agreement regarding detaining people as part of this bill. Motion by Councilmember Campbell, seconded by Councilmember Scott, to correct the minutes of the June 16, 2025, Regular Meeting, the June 23, 2025, Worksession, and the June 23, 2025, Special Meeting as presented by Ms. Alvord. Vote taken. All ayes. Motion carried. 4 PUBLIC HEARING(S) None. 5 CONSENT AGENDA Mayor Skogquist suggested adding the July 30 Local Government Officials meeting to the Council calendar. Motion by Councilmember Scott, seconded by Councilmember Campbell, to approve Items 6.1 through 6.8 of the Consent Agenda as amended. 6.1 Verified Bills. July 21, 2025 (Regular) Page 6 of 12 6.2 Revising and Setting Council Calendars. 6.3 Issuance of Special Event Permit; Anoka Food Truck Festival. 6.4 Issuance of Special Event Permit; Hope Fest. 6.5 Rum River Woodbury House Riverbank Stabilization Project; Approve Change Order #1. 6.6 a. Issuance of Commercial Pedal Car Business License. b. Issuance of Commercial Pedal Car Vehicle License. c. Issuance of Commercial Pedal Car Driver’s License. 6.7 Recommendation of Issuance of an LG220 Raffle Permit for Anoka Tornadoes Football Booster Club at Goodrich Field, September 19 and October 10, 2025. 6.8 Addendum to Residential Recycling Services Contract. 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/Amendment to Joint Powers Agreement with North Metro Mayors Association. RESOLUTION City Manager Greg Lee shared a background report stating the North Metro Mayors Association (NMMA) has requested an amendment to the Joint Powers Agreement (JPA) to include the City of Crystal in its membership. Troy Olsen, NMMA, thanked the Council for their support and representation at the legislature and said with this approval, the member cities would increase from 15 to 16 members and add more legislators who will continue to be a voice for this region. He thanked the City for their time and consideration and encouraged the Council to contact NMMA at any time. July 21, 2025 (Regular) Page 7 of 12 Mayor Skogquist said the City has been involved in NMMA for many years and felt they all work better together on issues such as transportation and housing- related bills. He said NMMA also provides great networking opportunities and involves more legislators in Anoka, and then confirmed this amendment will result in no cost increases. Motion by Councilmember Campbell, seconded by Councilmember Scott, to adopt a resolution amending the Joint Powers Agreement with the North Metro Mayors Association. Upon a roll call vote: Mayor Skogquist, Councilmembers Campbell and Scott voted in favor. Motion carried. 9.2. RES/Amendment to Rent Back Agreement for 649 Garfield Street, LH Bolduc Co. Inc. RESOLUTION Community Development Director Doug Borglund shared a background report stating the City has completed the acquisition of the property located at 649 Garfield Street, also known as the LH Bolduc Co., Inc. site. As part of the purchase, a rent-back agreement was approved, allowing LH Bolduc to remain on the premises through July 31, 2025. LH Bolduc has submitted a formal written request to extend the agreement by two months, through September 30, 2025. Highlights of the proposed rentback agreement amendment include occupying the property through September 30, 2025, and if done, Bolduc will agree that all traffic to and from its property at 649 Garfield Street shall use that portion of Garfield Street that lies to the West of its property. He said in the event the City vacates Garfield Street that lies west of the subject property prior to the expiration of the agreement, Bolduc will be allowed to continue using that portion of Garfield Street through the end of the agreement or September 30, 2025. Councilmember Scott confirmed the extension only applies to moving pilings and not their operations. Mr. Borglund said they were currently operating but are moving from this location and just need more time for the other tenant to move out before they can relocate. Mayor Skogquist said he didn’t support this concept in the first place because the City paid a lot of money to have them vacate the building and were now requesting an extension for no additional fee, which was frustrating. He said he appreciated the truck adjustments and would support this request, but said it would be the last time an extension would be given. Motion by Councilmember Scott, seconded by Councilmember Campbell, to adopt a resolution approving the first amendment to the rent-back agreement for 649 Garfield Street, LH Bolduc Co., Inc. July 21, 2025 (Regular) Page 8 of 12 Upon a roll call vote: Mayor Skogquist, Councilmembers Campbell and Scott voted in favor. Motion carried. 9.3. RES/Electing to Participate in Metropolitan Livable Communities. RESOLUTION Mr. Borglund shared a background report stating the City of Anoka participated in the Livable Communities Program from 2011 through 2020. During the prolonged and COVID-impacted 2040 Comprehensive Plan process, Anoka did not complete the statutorily required re-enrollment for the program for the 2021- 2030 planning decade. To re-enroll, the City Council must pass a resolution opting into the LCA program (also known as the Local Housing Incentives Account Program), which includes adopting affordable and lifecycle housing goals for the planning decade ending in 2030. For 2021–2030, Anoka’s goals are: • Affordable Housing Goal: 62–113 units • Lifecycle Housing Goal: 496 units. These goals are aspirational. The Metropolitan Council evaluates progress at the end of the decade and does not impose penalties for unmet targets. Once the resolution is adopted, the Metropolitan Council will hold a public comment period and take a vote to approve the re-enrollment, which will allow Anoka to be eligible to apply for LCA grant programs starting in 2026. He reviewed key highlights and grant opportunities of over $28 million in annual funding to participating communities for pre-development, clean-up, construction, and policy-related initiatives, then reviewed the timing and enrollment requirements in detail. Mayor Skogquist asked about Mr. Borglund’s background at another city in this area. Mr. Borglund shared he was a grant reviewer at the City of Forest Lake and understood the process on how to obtain funds, and said funding can change over time, but that these programs work to create life cycle housing throughout the State. Councilmember Scott said he felt this was a great goal to have, and that there was no penalty to have these goals, and that this action could result in grant funding. Councilmember Campbell said he only saw positive outcomes for this action and supported the resolution. Mayor Skogquist said affordable and life cycle housing goals were set for the entire decade and included projects such as the VOA Phase III, which would be enough to meet the goals, as well as many other projects. Motion by Councilmember Scott, seconded by Councilmember Campbell, to adopt a resolution electing to participate in the Local Housing Incentives Account Program under the Metropolitan Livable Communities Act, calendar years 2026 through 2030. July 21, 2025 (Regular) Page 9 of 12 Upon a roll call vote: Mayor Skogquist, Councilmembers Campbell and Scott voted in favor. Motion carried. 10. UNFINISHED BUSINESS None. 11. NEW BUSINESS 11.1 Approval of Updated City Policies. Mr. Lee shared a background report stating a review of all City Council adopted policies was held at the June worksession and that formal approval of the amended policies was being presented this evening. He said, based on Council comments at the worksession, staff has incorporated the changes to the policies. The City currently has 47 existing policies, and of those, 12 policies were proposed to be revised. Mayor Skogquist said this was a very good review process and supported the changes as proposed. Motion by Councilmember Scott, seconded by Councilmember Campbell, to approve the updated City policies as presented. Vote taken. All ayes. Motion carried. 11.2 Consideration of Appointment to the Housing and Redevelopment Authority (HRA). Mr. Lee shared a background report stating that at the June 2, 2025, meeting, the Council accepted the resignation of Lori Manzoline from the Housing and Redevelopment Authority. He said there were currently two partial-term vacancies on the HRA, one to expire on December 31, 2027, and another to expire on December 31, 2028. He said at the special meeting on June 23, the Council reviewed the one application submitted at that time from Hani Ali of Anoka. The application submitted did not provide a phone number, and staff attempted to contact the applicant, but were not successful, so the Council requested the application period be reopened. The City received two new applications to fill the vacancies on the HRA: Eric Bobick and Marissa Carroll. Residency is a requirement to serve on the HRA. He said all applicants list a residence in the City, then outlined the remaining Board and Commission openings. Mayor Skogquist suggested that with the addition of online applications that staff always contact applicants to confirm their interest in serving. July 21, 2025 (Regular) Page 10 of 12 Marissa Carroll, Anoka, shared her background and desire to serve the community. Councilmember Scott supported both applicants being appointed and would be open to suggestions on suggestions on terms. Motion by Councilmember Scott, seconded by Councilmember Campbell, to appoint Eric Bobick to the Housing and Redevelopment Authority for a term to expire December 31, 2027. Vote taken. All ayes. Motion carried. Motion by Councilmember Scott, seconded by Councilmember Campbell, to appoint Marissa Carroll for a term to expire December 31, 2028. Vote taken. All ayes. Motion carried. 11.3 Promotion of Kevin Morelli to Enterprise Operations Director. Mr. Lee shared a background report stating that with the development of the cannabis dispensary and the recent staffing changes at Green Haven with the retirement of Larry Norland, he is recommending promoting Kevin Morelli to the position of Enterprise Operations Director. He said Mr. Morelli will be overseeing the liquor operations, cannabis dispensary operations, and the operations of the Green Haven Event Center, and with these additional position responsibilities and an increase in staff he will be overseeing, would warrant consideration of a Department Head. Mr. Lee said, under City Charter Section 7.02 Powers and Duties of the City Manager: Subdivision 3, this action requires Council approval. He said upon approval of the Council, Mr. Morelli’s promotion to Enterprise Operations Director would become effective July 22, 2025. He shared that Mr. Morelli was an outstanding leader and ambitious, and having all enterprise funds under one umbrella would be beneficial and save the City over $77,000 a year by decreasing the number of staff. Mr. Morelli said he was humbled by Mr. Lee’s praise and said he was looking forward to this new challenge. Councilmember Scott said there would be great synergies and collaboration across departments with this change, and it will help the Council better understand how the enterprise funds can help operate to their full potential, adding he liked Mr. Morelli’s can-do attitude. Councilmember Campbell agreed, adding it was not often that we could make a major change and save money at the same time. July 21, 2025 (Regular) Page 11 of 12 Mayor Skogquist said Mr. Morelli has always had a positive attitude and felt it was always good to blend government and enterprises as they help offset impacts to the taxpayers, and said he appreciated Mr. Lee’s creative way to decrease costs overall. Motion by Councilmember Scott, seconded by Councilmember Campbell, to approve the appointment of Kevin Morellis as Enterprise Operations Director effective July 22, 2025. Mr. Lee said Mr. Morelli will begin work to present ideas for the upcoming visioning session for Green Haven. Vote taken. All ayes. Motion carried. 12. UPDATES AND REPORTS 12.1 Rezoning Property to Anoka County Rum River Human Services District and Related Zoning Text Amendments. Motion by Councilmember Scott, seconded by Councilmember Campbell, to remove the item from the table. Vote taken. All ayes. Motion carried. Mr. Palmer shared a background report stating that in 2022, an ordinance to rezone property from R-1 Low Density Residential District to Anoka County Rum River Human Services District, and related zoning text amendments, appeared before the City Council. The first reading was approved on July 18, 2022, and the second reading was presented to the City Council on August 1, 2022. The City Council tabled the item at the second reading to further review the proposed changes, and if directed, staff would bring this item back for a new first reading at the August 4, 2025, meeting. Mayor Skogquist supported this action as he felt it was important to have the zoning and the Comprehensive Plan match. Mayor Skogquist/Councilmember Scott for first reading on August 4, 2025. Motion by Mayor Skogquist, seconded by Councilmember Scott, to consider first reading of rezoning property to Anoka County Rum River Human Services District and related zoning text amendments on August 4, 2025. Vote taken. All ayes. Motion carried. 12.2 Tentative Agenda(s). The Council reviewed the tentative agendas of the upcoming Council meetings. July 21, 2025 (Regular) Page 12 of 12 Mayor Skogquist said he may be absent for the August 4 Council meeting and suggested any Charter Commission agenda items be postponed to the August 18 meeting instead. Mayor Skogquist said a developer has contacted the City to schedule a tour of their mixed-use properties to create a proposal for City-owned sites and asked if the Council would prefer to tour first or review their proposal. Councilmember Scott said he preferred to review a proposal first, before any tour. Mr. Borglund said the City typically receives a proposal first, such as a rendering or site plan, and possibly a letter of interest to present to Council at a worksession, and if there is consensus, then direction is given to move forward to continue working with the group, which could include a tour of other properties. 12.4 Staff and Council Input. Mr. Palmer said the Planning Commission meeting will be held on August 7 due to Night to Unite activities. 13. 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: 8:46 p.m. Submitted by: Cathy Sorensen, TimeSaver Off Site Secretarial, Inc. Approval Attestation: Amy T. Oehlers, City Clerk