Anoka City Council

September 15, 2025 (Regular) Page 1 of 13 REGULAR MEETING OF THE ANOKA CITY COUNCIL ANOKA CITY HALL CITY COUNCIL CHAMBERS SEPTEMBER 15, 2025 1. CALL TO ORDER Mayor Skogquist called the regular meeting of the City Council to order at 7:03 p.m., followed by the Pledge of Allegiance. 2. ROLL CALL Present at roll call: Mayor Skogquist, Councilmembers Campbell, Rostad, and Scott. Also present: City Manager Greg Lee; Public Works Director Mark Anderson; Police Captain Schneider; Assistant City Engineer Ben Nelson; Finance Director Brenda Springer; HRA Executive Director Darin Berger; Community Development Director Doug Borglund; City Attorney Scott Baumgartner; and Electric Utility Director Del Vancura. Absent at roll call: Councilmember Weaver. 3. COUNCIL MINUTES 3.1 September 2, 2025, Regular Meeting. Mayor Skogquist noted corrections needed on Page 11, removing “County,” and on Page 12, removing “show.” Motion by Mayor Skogquist, seconded by Councilmember Scott, to approve minutes of the September 2, 2025, Regular Meeting as corrected. Vote taken. All ayes. Motion carried. 4. OPEN FORUM 4.1 Police Activity Update. Police Captain Schneider shared that the department assisted Coon Rapids Police through FLOCK license plate technology that resulted in a homicide suspect from Minneapolis being placed in custody, then shared that two new officers were in field training and after oaths of office will be on solo patrol soon. He then shared about the upcoming Hope Fest event on September 27 that honored domestic violence victims. OTHER INFORMATION UNDER OPEN FORUM September 15, 2025 (Regular) Page 2 of 13 Heather Moeller, Anoka, spoke against the closure of West Garfield Street beginning in October. She said this road is used for work and students traveling to get home from school safely, then shared concerns about the impacts during high traffic times and on businesses. She asked for a plan as to when this closes and noted the public hearing for this topic is scheduled to occur after the road is closed on October 6. Mayor Skogquist asked that the discussion regarding the road closure be moved to a date before the scheduled closing. Nazar Garen, Anoka, requested restoring the full bow season in the Anoka Nature Preserve (ANP) as he felt it was unnecessary and still safe. He said shortening the season condenses more hunters into a shorter window and makes it less safe, adding that the deer population is plentiful and that the ANP is in a chronic wasting disease zone and needs to be addressed. He spoke about increased deer/vehicle incidents that will impact public safety, referred to the youth and cultural impacts as Native American families rely on hunting as part of their heritage, and encouraged the City to reconsider the season to when it naturally slows. Matt Satzinger, Anoka Area Hockey Association, referred to the recent approval of charitable gambling at 201 Tavern for Our Lady of Epiphany Association. He said they pride themselves on being an affordable organization for families who may not be able to afford hockey and support the ice arena and area businesses. He shared concerns about allowing an outside organization to sign a lease agreement who are not a long-standing, community-based organization, and thanked 201 Tavern for helping serve families year after year. He asked whether the City code needs to be strengthened to ensure organizations are local and not allow them to just have a mailing address in the City. Mayor Skogquist suggested reviewing this ordinance at a future worksession. Council consensus was to schedule this topic for the September 22 worksession. Gloria Nelson, 201 Tavern, shared that while they had concerns with Anoka Hockey, 201 Tavern just wanted to partner with an organization that focused on children’s education. She said there are a lot of other needs in the community, and as bar owners wanted a different path and control. Ms. Nelson noted that it was strange that she had never met Mr. Satzinger before this evening, and that other bars in Anoka partner with gambling associations outside Anoka, including Coon Rapids and St. Paul, and that they were not the first. She said this change was not personal and appreciated the partnership with Anoka Hockey, but that they wanted to support different elements of the community. Alyssa Neidenfueher, Epiphany Foundation, clarified that the proceeds are required to stay within the trade area and benefit the local community, and that Epiphany meets that requirement. September 15, 2025 (Regular) Page 3 of 13 Keegan Melton, Anoka, supported Mr. Garnen’s request to restore the City’s full bow hunting season. 5. PUBLIC HEARING(S) None. 6. CONSENT AGENDA Motion by Councilmember Scott, seconded by Councilmember Campbell, to approve Items 6.1 through 6.6 of the Consent Agenda. 6.1 Verified Bills. 6.2 Revising and Setting Council Calendars. 6.3 Issuance of Special Event Permit; Anoka Vintage Fest. 6.4 Recommended Approval of 2026 Agreement for Residential Recycling Program. 6.5 Issuance of a Massage Therapist License for Hongxu Hao of Better Life Wellness, 3841 St. Francis Boulevard, Suite 102. 6.6 Recommended Approval of an LG220 Gambling Permit (Bingo/Raffle), Ducks Unlimited at the American Legion, September 27, 2025. Vote taken. All ayes. Motion carried. 7. REPORTS OF OFFICERS, BOARDS, AND COMMISSIONS 7.1 Waste Reduction and Recycling Board Item: 7.1a. Waste Reduction and Recycling Board Annual Report. Chairperson Veronica Jones presented the annual report that highlighted information on SCORE funding, the WRRB’s accomplishments in 2024, and then reviewed projects, events, and programs the members were currently working on in 2025. She thanked recently retired Commissioner Kroll for her 27 years of service on the Board, then shared about their initiation to research a recycling center, community outreach at events, and education outreach on recycling best practices. She spoke about their partnership with Ace Solid Waste and shared the recycling schedule, then spoke about their annual tonnage goals, which were down a little from 2023 then shared the 2025 recycling and reuse events. She thanked their partners Ace, Lions, AMU, Peterson Shoes, and Anoka Public Services, as well as the residents then shared a public service video from QCTV that encouraged recycling in the social district. September 15, 2025 (Regular) Page 4 of 13 Councilmember Rostad thanked the WRRB for their work and website that provided recycling directions. Councilmember Scott thanked the WRRB for engaging the community to reduce and reuse as a solution for waste. Councilmember Campbell thanked the WRRB for their service and congratulated Commissioner Kroll. Mayor Skogquist thanked the WRRB for all their work and activities, then asked if the reuse events and swaps count towards tonnage goals, as that would be important to track as well. Chair Jones thanked the Council for their encouraging words and support of the Board. 8. PETITIONS, REQUESTS, AND COMMUNICATION None. 9. ORDINANCES AND RESOLUTIONS 9.1 RES/Site Plan Review for Anoka County 5-Level Parking Ramp, Property ID 06- 31-24-33-0220. RESOLUTION Community Development Director Doug Borglund shared a background report stating Anoka County is requesting approval of a Site Plan Review for the property identified as PID: 06-31-24-33-0220. The proposed development includes the construction of a five-level parking ramp with a total of 931 stalls. The applicant proposes to construct an approximately 68,800-square-foot per floor five-level parking ramp and associated sidewalks directly east of the existing Anoka County Government Center. The ramp will be situated between 4th Avenue and 5th Avenue, and between Golf Street and Jackson Street, on a 1.83- acre or 79,000 square foot site covering approximately 73,800 square feet. The structure is anticipated to include five (5) levels and may be designed to accommodate a future pedestrian skyway bridge connection, which is not included in the current proposal. The parking ramp is intended to serve as the primary parking facility for Anoka County Government Center staff and visitors. The Planning Commission reviewed the request at its regular meeting on September 3, 2025, and recommended denial of application A2025-019 Site Plan Review for Anoka County 5-level Parking Ramp on a 7-0 vote based on several findings of fact. He noted the original application was submitted last fall but was not deemed officially accepted until July 30, and that the 60-day review period ends September 28. He outlined the proposed project in greater detail, then added September 15, 2025 (Regular) Page 5 of 13 that if denied, Condition #6 should be considered more as a guideline and not a reason for denial. City Attorney Scott Baumgartner said the findings set forth by the Planning Commission included discussion of Condition #6 and the proposed ramp’s impacts on the Historical Preservation District, and felt that this condition was more for design guidelines and not a criterion of denial in and of itself. He said that while the Commission did very thorough work, this condition should be included just as a recommendation instead. Mayor Skogquist referred to a letter the City received from Anoka County earlier today. Anoka County Administrator Jim Dickinson referred to their letter and the recommended removal to reference the Historical Preservation District, but said they believed the remaining recommendations of denial were unreasonable and unsupported by law and fact, and requested the Council approve the site plan with conditions that are reasonable for the project. He said most of the items are reasonable requests and said Condition #7 should not be included as the County was willing to meet with the City Engineer and work through those concerns. He referred to meeting with AMU Electric onsite and was proposing to bury the lines, which changed their perspective and how the easements will be. He said if the easement can be less than 20 feet, they can work with items along 4th Avenue and may only need 10-12 feet, which would allow for more stalls in the ramp. He said they believed everything else to be reasonable and acknowledged they had been working on this for some time and wanted to work with the City collaboratively to complete this process. Mr. Dickinson said they have a difference of opinion on commercially-zoned definitions and believed this was a permitted use in the commercial district, and felt the proposed ordinance doctrine doesn’t meet the criteria for the new definitions. He spoke about ramp and garage semantics and felt it was a combination of the two, and felt this was due to the ambiguity in definitions, and that the project falls into the use. He said they believe the zoning text amendment doesn’t meet the doctrine and that the County will continue to work with Engineering to address the sight triangle. He referred to the condition regarding thermal pollution and snow removal and felt their proposal would result in less disruption to streets and businesses and be more efficient, and that this is speculative at best and not a reason for denial, but if this were determined to be a detriment to the scenic river, they would withdraw that proposal. He said the traffic impact analysis was not a good reason for denial, adding that while they received the report shortly before the meeting, they were already working to address it. Mr. Dickinson said the design guidelines can’t be pushed by ordinance, but that they remained committed to incorporating a project that will complement the historic guidelines of the City. Councilmember Scott referred to the comments regarding reasons for denial not being supported by law and confirmed the City and Planning Commission were September 15, 2025 (Regular) Page 6 of 13 well prepared and provided information for a valid recommendation. Mr. Baumgartner said he believed that was the case and noted the goal was to ensure the application was complete before review and presentation to Council, and said it’s a matter of semantics regarding the term ramp versus garage. He spoke about the definitions to describe this project and needed them to look at the use and what seems more applicable for the project, and believed this was a disagreement in opinion with the County. Councilmember Rostad asked if the proposed ramp was a precursor to a proposed jail expansion. Mr. Borglund said the application before the Council was a site plan, but that if they reviewed the parking data and traffic analysis provided, it appeared to reflect impacts to a future jail. Councilmember Rostad asked if any other non-residential structures in the downtown area are as large as this ramp would be, and if two more floors were added, it would not fit. Adding the largest structure now was the government center, which already had a functional ramp onsite. Mr. Borglund said additional levels were currently not allowed and would require an ordinance amendment. Mr. Baumgartner said the Council should consider the site application on its own and not consider any future applications at this time. Mr. Dickinson said this parking structure would be smaller than the existing structure, which is failing and would be demolished, and that this ramp is needed regardless of any possible jail expansion. Mayor Skogquist referred to the letter and the resolution to the sight triangle. Assistant City Engineer Ben Nelson said staff haven’t received anything back yet on this element, but that staff did discuss the traffic analysis. Mr. Dickinson said the County would work on the sight triangle through either design or setbacks and work with the electric company and how that is measured in other areas, such as Golf Street. Mayor Skogquist referred to the submitted letter and acknowledged that the County was not meeting City code as required. Mr. Dickinson said this was more about the traffic analysis and that they agreed to bring in the alleyways, adding that this won’t result in a substantial impact based on this study. Mayor Skogquist noted there was no data yet about the impacts of the traffic analysis and that it is difficult to decide on this resolution without that data, and shared concerns about that process. Mr. Borglund said that because we are close to the 60-day deadline, if the Council wanted more information, the County would have to be willing to allow for an extension. September 15, 2025 (Regular) Page 7 of 13 Mayor Skogquist said while he understood the historical reference was not a valid criterion, he was frustrated with the County’s comments that the surrounding parcels lacked historical significance and felt this was an area that bordered a residential area and would be a big change of use for this block with an institutional ramp and a lot of activity. He said the area was very narrow and that the City needed more information before any decision could be made. Councilmember Campbell said he believed the Planning Commission review was very thorough and detailed and that their recommendation was on solid ground. Motion by Councilmember Campbell, seconded by Councilmember Rostad, to adopt a denial of Application A2025-019 Site Plan Review for Anoka County to construct a 5-level Parking Ramp based on findings of fact #1-5. Upon a roll call vote: Mayor Skogquist, Councilmembers Campbell, Rostad, and Scott voted in favor. Motion carried. 9.2 ORD/Amending Chapter 6, Article I and Article IV, Section 6-127; Allowing a Brew Pub to Sell off-Sale Growlers. (2nd Reading) ORDINANCE Mr. Lee shared a background report stating Jesse Hauf of 10K Brewing has obtained a Brew Pub License from the State. For 10K to be able to continue selling growlers as was allowed under the taproom license, the City needs to amend the City code to reflect that brew pubs can sell growlers. The code change also reflects a definition change to include containers of 750 milliliters as recommended by the State Alcohol and Gambling Enforcement Division. The Council held the introductory first reading of this ordinance at the September 2 meeting, and no changes have been made since the first reading. Motion by Councilmember Rostad, seconded by Councilmember Scott, to hold second reading and adopt an ordinance amending Chapter 6, Alcoholic Beverages, Article I Definitions and Article IV, Section 6-127 Relating to the Sale of Growlers at Brew Pubs, of the Code of the City of Anoka, Minnesota. Upon a roll call vote: Mayor Skogquist, Councilmembers Campbell, Rostad, and Scott voted in favor. Motion carried. 9.3 RES/Adopting 2026 Proposed Budget and Preliminary Tax Levy. RESOLUTION Finance Director Brenda Springer shared a background report stating the 2026 budget process began in August and was based on Council directives and the September 15, 2025 (Regular) Page 8 of 13 2025 goal session. The Council has reviewed the 2026 budget, as proposed by the City Manager, at several meetings in August. The proposed 2026 budget for all funds, excluding the HRA component unit, is $94,880,733. The preliminary General Fund expense budget is $18,257,612, which is a 7.13% or $1,215,116 increase from the 2025 expense budget. The 2026 proposed levy is set at $12,137,912. This is down ($1,713,500) from the original staff proposed levy on August 4, 2025. We arrived at the lower levy with the following council changes to the proposed budget: 1) Removed the recommended Transfer’s Out 2) Additional Transfer in from Electric ($1,300,000 total) 3) Reduced Admin & Garage Allocation 4) Health insurance increase down from 17% to 4.5% 5) Removed 1 FTE Patrol Officer 6) Reduced Expert & Professional Engineering ($825,000) ($300,000) ($202,800) ($150,000) ($131,700) ($75,000) 7) Reduced General Fund Contingency ($29,000) for a total ($1,713,500) or 12.24% The proposed General Fund and Debt levy is an increase of $959,129 or 9.95% above the 2025 levy. Residential property taxpayers will see an increase in city property taxes of approximately $64/year or 5.3% for the average home in Anoka. The levy increase, along with changes in fiscal disparity contributions and distributions, changes in tax increment, and market value, all affect the tax rate and the amount of property tax levy distributed to individual properties. With the increase in the levy, the Council can cover all general fund operating, debt service payments, and some capital expenditures. This is a preliminary levy and cannot be increased. Staff will continue working on the budget to propose additional cuts. The final levy will not be set until the December 15 Council meeting. The State of Minnesota has not imposed levy limits upon local governments in 2025. The City Council will hold a public hearing on December 1, 2025, where the public may comment on the proposed budget and levy. The proposed budget is available on the City’s website or at City Hall. Total Levy $12,137,912, (approximately a $64 increase in the average city property taxes). Councilmember Scott thanked staff for the report and for reducing the levy from the proposed 30% to single digits. He said that while there are still inflation impacts everywhere, 9.95% is much better and that he looked forward to other revenue options, such as cannabis next year, and dedicated funding to parks and trails that will address one-time expenses and result in a reasonable levy that is viable for assets and staffing. Ms. Springer said the one-time costs resulted from working with the Mayor and staff, and trying to cover these costs with an additional transfer from the Electric fund, and that this will return to the typical $1 million transfer going forward. Mayor Skogquist said the City had Ehlers and Associates conduct a review and comment, and that the goal was to replenish some of the funds depleted from purchasing properties, and that the transfers out will be from land sales and not result in additional budget line items. He said he was proud to know there were gimmicks in this budget and that we were working to use any one-time funds to pay things back, most of which were the electric utility. He said while everyone September 15, 2025 (Regular) Page 9 of 13 wished it was lower, it was difficult to cover all costs and that the City will do its best to identify other revenues going forward. Councilmember Campbell said the average property tax increase will be $64 per year and felt that this was reasonable this year. Motion by Councilmember Scott, seconded by Councilmember Rostad, to adopt a resolution relating to the adoption of a Preliminary 2026 Budget and Certifying a Proposed Property Tax Levy Collectible in 2026 and Setting Public Hearing Dates. Upon a roll call vote: Mayor Skogquist, Councilmembers Campbell, Rostad, and Scott voted in favor. Motion carried. 9.4 RES/Consenting to the Housing and Redevelopment Authority (HRA) Adopting a Tax Levy Collectible in 2026. RESOLUTION Ms. Springer shared a background report stating the City Council must consent to any HRA levy before it becomes effective, as required by Minnesota Statutes Section 469.033. The HRA has adopted the proposed levy to be $440,854. This is approximately the maximum levy allowable. It is $5,682 less than the 2025 levy or a (1.27%) decrease. The HRA levy will be used to accomplish the goals of the authority and in furtherance of its housing and redevelopment plans. The maximum levy allowed for the Housing and Redevelopment Authority is 0.0185 percent of taxable market value, or approximately $440,854. The HRA budget is included in the final 2026 City budget document. HRA Executive Director Darin Berger shared additional information regarding proposed HRA spending and where the funding will be allocated if approved, including single-family home loan programs. He shared about the CARE grant program that resulted in over $1.6 million in home improvement projects over time and noted that very few neighborhoods haven’t been impacted as part of this work. He spoke about the commercial rehab loan program that provides incentives to improve facades in the downtown area. Mayor Skogquist said these are all great programs worth doing and encouraged property owners to utilize them if they were considering any projects, adding he has utilized the programs as well. Motion by Councilmember Scott, seconded by Councilmember Rostad, to adopt a resolution consenting to the Housing and Redevelopment Authority in and for the City of Anoka, adopting a 2025 Tax Levy Collectible in 2026. September 15, 2025 (Regular) Page 10 of 13 Upon a roll call vote: Mayor Skogquist, Councilmembers Campbell, Rostad, and Scott voted in favor. Motion carried. 9.5 RES/Cancellation of Debt Levy. RESOLUTION Ms. Springer shared a background report stating according to Minnesota State Statute 475.61, the City is required to adopt a resolution canceling the bond levy, which is originally certified with Anoka County if not intend to levy for the certified bond levy amount. Staff shared the resolution canceling the bond levy because the amount needed to pay the City’s debt is included in the general fund operating levy as a transfer out. Motion by Councilmember Campbell, seconded by Councilmember Rostad, to adopt a resolution authorizing cancellation of debt levy. Upon a roll call vote: Mayor Skogquist, Councilmembers Campbell, Rostad, and Scott voted in favor. Motion carried. 9.6 RES/Decertifying the Historical Business Core Tax Increment Financing District U6. RESOLUTION Ms. Springer shared a background report stating that tax increment financing (TIF) is a method of stimulating economic development in a targeted geographic area. TIF uses the additional property taxes that are paid due to the new development to pay for the development costs. The Historical Business Core Tax Increment Financing District U6 was designed to rehabilitate vacant spaces and bring buildings up to current code. The initiative aimed to establish a commercial rehabilitation loan program focused on fire protection and suppression, funded through tax increment revenues on December 26, 2007, and was required to be decertified by December 31, 2033. The TIF debt obligations have been paid in full as of August 1, 2025. With all obligations of the District satisfied, the District should be decertified to allow the affected parcels to be added back to the tax base, benefitting all local taxing jurisdictions. She noted the tax base is $361,000, and their contribution if the levy is set is around $10,700 and split with the City, County, and school district, so the impact to lower is not very large. Mayor Skogquist noted this program was mostly done for fire suppression projects, which was a great program and very successful. Motion by Councilmember Scott, seconded by Councilmember Rostad, to adopt a resolution decertifying the Historical Business Core Tax Increment Financing District U6. September 15, 2025 (Regular) Page 11 of 13 Upon a roll call vote: Mayor Skogquist, Councilmembers Campbell, Rostad, and Scott voted in favor. Motion carried. 9.7 ORD/Approving Real Estate Lease for 1905 2nd Avenue to Allow Walker Senior Housing Corporation III Use of Parking Ramp Roof Terraces. (1st Reading) Mr. Baumgartner shared a background report stating the City of Anoka and Walker Senior Housing Corporation III have negotiated a lease of the terraces located on the roof of the City’s parking ramp located at 1905 2nd Avenue for Council’s consideration. The space would be used exclusively by residents of Walker for various celebrations and activities. He outlined highlights of the lease that included a term through the end of 2035 with an automatic renewal for five- year terms after that, rent of $1.00 per year, and allowing the residents to use the space while protecting the City from any indemnification. Councilmember Rostad thanked staff for this work, adding that this space is important to Walker and resulted in a great partnership. Motion by Councilmember Rostad, seconded by Councilmember Campbell, to hold first reading of an ordinance authorizing the conveyance of real property by lease to Walker Senior Housing Corporation III. Upon a roll call vote: Mayor Skogquist, Councilmembers Campbell, Rostad, and Scott voted in favor. Motion carried. 10. UNFINISHED BUSINESS None. 11. NEW BUSINESS 11.1 Appointment to Heritage Preservation Commission; Brian Wolfe. Mr. Lee shared a background report stating that currently, the City has a partial- term vacancy on the Heritage Preservation Commission. This term will have an expiration date of December 31, 2026. The City has been advertising to fill this vacancy for a few months now, and on September 5, received an application from Brian Wolfe, a resident of the City of Anoka. Residency is a requirement to serve on the HPC, and staff is recommending this appointment. Councilmember Scott appreciated receiving the application and said Mr. Wolfe does a lot for Anoka already and looked forward to his serving on the HPC. September 15, 2025 (Regular) Page 12 of 13 Motion by Councilmember Scott, seconded by Councilmember Rostad, to appoint Brian Wolfe to the Heritage Preservation Commission for a term to expire December 31, 2026. Vote taken. All ayes. Motion carried. 12. UPDATES AND REPORTS 12.1 2nd Quarter Financial Report. Ms. Springer shared the second quarter financial report that included a review of governmental funds of assets of $16 million and liabilities of $11.7 million, governmental fund reserves, general fund reserves and expenditures, general fund and operating expenditures. She reviewed the City’s enterprise funds, then noted that all utilities have implemented new rates starting June 2025. She shared operating income for all enterprises for the past four years, then reviewed the internal service funds and types of investments. Mayor Skogquist spoke about the street projects completed in 2021 through low- cost bonding and how these were good investments that addressed many street concerns at that time. 12.2 Tentative Agenda(s). The Council reviewed tentative agendas. Mayor Skogquist suggested adding consideration of charitable gambling applications at a special meeting on September 22. Mr. Baumgartner suggested including a second reading of the Walker lease as well, so the residents could use the space as soon as possible. Ms. Springer suggested adding the franchise fee ordinance as well to remove the language of the automatic 3% increase escalator cost. 12.3 Staff and Council Input. None. September 15, 2025 (Regular) Page 13 of 13 13. ADJOURNMENT Councilmember Scott made a motion to adjourn the Regular Council meeting. Councilmember Rostad seconded the motion. Vote taken. All ayes. Motion carried. Time of adjournment: 9:22 p.m. Submitted by: Cathy Sorensen, TimeSaver Off Site Secretarial, Inc. Approval Attestation: Amy T. Oehlers, City Clerk