Anoka City Council

September 22, 2025 (Special) Page 1 of 7 SPECIAL MEETING OF THE ANOKA CITY COUNCIL ANOKA CITY HALL CITY COUNCIL CHAMBERS SEPTEMBER 22, 2025 1. CALL TO ORDER Mayor Skogquist called the special meeting of the City Council to order at 6:00 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; Assistant City Manager Amy Oehlers; Public Works Director Mark Anderson; Electric Utility Director Del Vancura; City Attorney Scott Baumgartner. Absent at roll call: None. 3. NEW BUSINESS 3.1 RES/Rescinding the Approval of an LG214 Premise Permit for Our Lady of Epiphany Foundation at 201 Tavern & Grill. Assistant City Manager Amy Oehlers shared a background report stating that at the meeting on August 4, 2025, the Council adopted a resolution recommending the State Gambling Control Board approve and issue an LG214 Premise Permit for Our Lady of Epiphany Foundation to conduct gambling activities at 201 Tavern & Grill (i.e. Pull Tabs, Bar Bingo, Tipboards, Electronic Pull-Tabs and Electronic Linked Bingo). When Our Lady of Epiphany Foundation submitted their application to the City, their registered address on the application listed 1900 11th Ave NW, Coon Rapids, which did not meet the City Code requirements that their main physical address be located in the City of Anoka. The applicant was immediately notified (July 25, 2025) of this and informed of the City’s process to contact our known local non-profits that this gambling opportunity was available. Staff received a phone call from Darin Crasper, the owner of 201 Tavern & Grill, who discussed our Code requirements and requested that we place the application on hold. On July 28, 2025, Our Lady of Epiphany Foundation changed their registered address with the Secretary of State’s office to list their address as 822 Washington Street, Anoka, and the September 22, 2025 (Special) Page 2 of 7 organization submitted a new application with this Anoka address on July 28, 2025. Unfortunately, when the new application was submitted, staff moved the application forward based on Sec 10-90 (d) which states that Organizations eligible to conduct gambling activities in the city shall be limited to organizations that have their main physical office located in the city. Since the new application did list the address of 822 Washington Street, Anoka, staff moved the application forward to the City Council on August 4, 2025. On September 17, 2025, while preparing a memo on the Charitable Gambling City Code Article, which was scheduled for discussion at the Council Worksession on September 22, 2025, staff reviewed the entire Article on Charitable Gambling and discovered that in the definitions section of the Code it states that the main physical office location must have been in Anoka for 2 years preceding the application submittal. On the same day of this discovery, staff notified the Our Lady of Epiphany Foundation and 201 Tavern & Grill regarding this oversight and explained that since they just changed their address to an Anoka address on July 28, 2025, they would not qualify for a Premise Permit until the City has followed the process of notifying the other local non-profits that the City is aware of. Staff also contacted the State Gambling Control Board who informed staff that they had not yet processed the application and if the City wants to rescind their previous approval, they would need to do that by Resolution. Staff informed Our Lady of Epiphany Foundation and 201 Tavern & Grill, that at this Special Meeting the City Council would be considering a Resolution rescinding their previous approval. Councilmember Weaver said he supported rescinding the application, adding that staff had presented great ideas at the worksession on how this could proceed moving forward, and said the impacts of revenues generated from charitable gambling need to be impactful for the City. Councilmember Rostad agreed, stating she would like to see this activity be better reflective of what all interested parties are looking for and that this application can be reconsidered then. Councilmember Scott clarified this action wouldn’t be the City choosing for businesses or non-profits, but instead provides a way to ensure everyone is playing by the same rules and that there is no favoritism. Mayor Skogquist asked if the rescinding goes through, there is still an outstanding application that needs to be acted on, then spoke about the possible waivers allowed, and if other organizations still need to be offered first. Councilmember Campbell confirmed Epiphany still wouldn’t qualify because of the two-year physical address requirement. Mayor Skogquist agreed they wouldn’t qualify as a first-level organization but could qualify through a waiver. September 22, 2025 (Special) Page 3 of 7 Ms. Oehlers confirmed Council’s direction to notify the State that the City will rescind the approval, then staff will notify other organizations per the 30-day process, and if none express interest, will bring Epiphany’s application back again for consideration. Mayor Skogquist asked if another organization applies, there has to be an agreement in place with 201 Tavern. Ms. Oehlers said a lease agreement is required as part of a Premise Permit application. Councilmember Weaver said the City needs to review the code again to establish tiers. Motion by Councilmember Weaver, seconded by Councilmember Campbell, to approve rescinding the approval of an LG214 Premise Permit for Our Lady of Epiphany Foundation at 201 Tavern & Grill. Upon a roll call vote: Mayor Skogquist, Councilmembers Campbell, Rostad, Scott, and Weaver voted in favor. Motion carried. Ms. Oehlers clarified that staff will contact other eligible organizations for their interest. Councilmember Weaver asked if we could slow the process until the code discussion can occur. Mr. Baumgartner said the City has an obligation to respond to any application and that the outcome will depend on the response from other organizations. He said it will be difficult if 201 Tavern doesn’t want to agree with another organization, but that he hopes to avoid that situation by revising the ordinance quickly. Gloria Nelson, 201 Tavern, inquired about the application on file and asked for clarification on next steps. Ms. Oehlers said the timeline would start over for an additional 30 days once letters are sent to the other organizations. Ms. Nelson said there are not many organizations that can provide all the gambling activities they offer, and that Epiphany’s mission was personal important to her, and she agreed that charitable gambling needs to be impactful. She said she is currently uncomfortable with their current organization’s partnership. Councilmember Weaver said while we can’t dictate which organization 201 Tavern uses, we can outline who can operate in the City. September 22, 2025 (Special) Page 4 of 7 Alyssa Neidenfueher, Epiphany, said the process has been difficult and that they have been trying to work collaboratively, but noted they did not do something wrong. She said there was now a concern that this oversight might not allow their organization to operate anywhere for two years, so they were in a difficult position, which could result in a significant impact on their organization. She said the notification process is not outlined in the ordinance and asked that the Council consider their waiver now, as this process is quite public already. Mayor Skogquist apologized for the delay but said that if no other organization comes forward, the waiver could be issued. Ms. Neidenfueher asked if this is a fair way to address this when 201 Tavern wants to terminate and there are no additional organizations interested. Mayor Skogquist appreciated her position. Mr. Baumgartner recommended that staff conduct the 30-day notification and not deviate from the process, and see if there are other organizations interested, then move forward with the proposed code amendment. Councilmember Rostad confirmed Epiphany’s physical address was in Anoka. Ms. Oehlers said that was correct, but City code also requires it being in existence in Anoka for two years prior to submittal of a Premise Permit application. Ms. Neidenfueher noted that Champlin and Ramsey allow for flexibility in their codes. 3.2 ORD/Amending Chapter 10; Article VI, Section 10-142 and 10-144 Social Districts. (1st Reading) Community Development Director Doug Borglund shared a background report stating that Chapter 10, Article VI, Sections 10-142 and 10-144 regarding Social Districts should be amended to reflect the current boundaries of the Social District. Additionally, the City Council has directed staff to propose an amendment to extend the operational period of the Social District to a year-round schedule, with certain dates exempted. He noted that if the item moves forward, the Social District maintenance and management plan amendments will be brought forward under a separate resolution at the same time as the second reading of the proposed ordinance amendment on October 6, 2025. Mr. Baumgartner suggested additional language be included to address his concern about “or” resulting in a different depiction in the ordinance, and suggested adding a comma after “Harrison Street” and “further depicted”. September 22, 2025 (Special) Page 5 of 7 Mayor Skogquist agreed and asked if the statute dictates including the social district boundaries and if that would be preferred. Mr. Borglund said the statute states the boundaries and times have to be defined, but he will confirm if that can be done in the management plan. Mr. Baumgartner agreed that the change made sense and that before the second reading will confirm if that has to remain, and or if the boundaries and times can be referred to in the management plan instead. Motion by Councilmember Scott, seconded by Councilmember Rostad, to hold the first reading of an ordinance amending Chapter 10, Article VI. Section 10-142 and Section 10-144 Social Districts of the Code of the City of Anoka, Minnesota the including a comma between Harrison Street and as depicted, and removing “or” and inserting “further depicted”. Mr. Baumgartner clarified whether the motion was to include dates or events in the management plan. Councilmember Scott amended his motion to strike dates and insert events instead. Councilmember Rostad accepted his friendly amendment. Upon a roll call vote: Mayor Skogquist, Councilmembers Campbell, Rostad, Scott, and Weaver voted in favor. Motion carried. 3.3 ORD/Repealing a Portion of Ordinance ORD-2025-1813; Recommencement of Existing Gas Franchise Fee with CenterPoint Energy. (1st Reading) Mr. Lee shared a background report stating that at the May 19, 2025, meeting, the Council held a public hearing and first reading of an ordinance for the recommencement of the existing gas franchise fee with CenterPoint Energy. The second reading of the ordinance was held on June 16, 2025. At that meeting, the Council amended the ordinance to include language in Section 5, under the Metered Service-based Fee Schedule: “A 3% increase for the previous year’s fee on all customer classifications shall occur annually beginning January 1, 2027.” The amended ordinance was passed, published, and became effective on June 27, 2025. The signed and approved ordinance was submitted to CenterPoint with the verbiage that was added at the second reading. A representative from CenterPoint got back to the staff and said after discussions with their attorney, they cannot accept an ordinance with an automatic escalator clause in it. The ordinance must be resubmitted every year there is an increase. He said to address this concern, the staff is presenting an ordinance removing that language regarding the escalator clause verbiage for Council consideration. If the first reading is held, the second reading will occur at the October 6 meeting, and staff will present another ordinance in 2206 that will include a 3% franchise fee increase starting January 1, 2027. September 22, 2025 (Special) Page 6 of 7 Motion by Councilmember Weaver, seconded by Councilmember Campbell, to hold first reading of an ordinance Repealing a Portion of Ordinance Ord-2025- 1813 Relating to the Recommencement of Existing Gas Franchise Fee with CenterPoint Energy and Recommencing and Increasing the Existing Gas Franchise Fee within the City of Anoka, Minnesota (with CenterPoint Energy). Upon a roll call vote: Mayor Skogquist, Councilmembers Campbell, Rostad, Scott, and Weaver voted in favor. Motion carried. 3.4 ORD/Approving Real Estate Lease for 1904 2nd Avenue to Allow Walker Senior Housing Corporation III Use of Parking Ramp Roof Terraces. (2nd Reading) ORDINANCE Mr. Baumgartner shared a background report stating that on September 15, 2025, the City Council approved first reading of an Ordinance approving a Real Estate Lease between the City of Anoka and Walker Senior Housing Corporation III for the terraces located on the roof of the City’s parking ramp located at 1905 2nd Avenue. The space would be used exclusively by residents of Walker for various celebrations and activities. He shared highlights of the lease that included the parking ramp roof, term to run through the end of 2035, with an automatic renewal for five-year terms after that, unless a 90-day notice is given by either party not to renew, and rent of $1.00 per year. Mayor Skogquist asked how long the roof will last at this location. Director of Public Services Mark Anderson said the roof includes a 20-year limited warranty and would cover most deficiencies. Mr. Baumgartner explained that the notification requirement to Walker is that if roof repair is needed that Walker must remove their products and pavers rather than City staff. Motion by Councilmember Scott, seconded by Councilmember Campbell, to hold second reading and adopt 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, Scott, and Weaver voted in favor. Motion carried. September 22, 2025 (Special) Page 7 of 7 4. ADJOURNMENT Councilmember Scott made a motion to adjourn the Special Council meeting. Councilmember Rostad seconded the motion. Vote taken. All ayes. Motion carried. Time of adjournment: 6:47 p.m. Submitted by: Cathy Sorensen, TimeSaver Off Site Secretarial, Inc. Approval Attestation: Amy T. Oehlers, City Clerk