Committee Minutes

MINUTES/GROWTH FUND AUTHORITY (JDA)
Monday, April 9, 2001 - 6:45 p.m.______________

The city council of the city of Grand Forks sitting as the Growth Fund Authority (JDA) met in the council chambers at City Hall on Monday, April 9, 2001 at the hour of 6:45 p.m. with Chairman Gershman presiding. Present at roll call were Council Members Brooks, Bjerke, Stevens, Hamerlik, Glassheim (teleconference system), Gershman, Kreun, Martinson, Brown - 9; absent: Council Members Lunak Christensen - 2; 1 seat vacant.

APPROVE SALE OF HOFFMAN BUILDING AT 311
KITTSON AVENUE

Terry Hanson, Urban Development, reported his office had sent out RFP for the second time for the Hoffman Building at 311 Kittson Avenue, first time received one legitimate offer from Michael Conneran to purchase the building for $1.00 with $10,000 in rehab money or tax abatement. He stated they recently had a second RFP on this building and Michael Conneran again was the only bidder, and he is requesting to purchase the building for $1.00 and proposes to do in excess of $100,000 in rehabilitation to the building.

COUNCIL MEMBERS BURKE AND KLAVE REPORTED
PRESENT

He stated that staff’s recommendation as this is the second RFP for this building and Mr. Conneran is the only bidder, that we accept his bid. He noted that this will qualify for the Renaissance Zone but he has to submit a plan before he purchases the building and if it’s his desire to take part in the renaissance zone benefits that we would hold off with actually transferring the title until such time as he has made his application.

Council Member Martinson asked if we sell the building what assurances do we have that the purchaser will put $100,000 into the rehab of the building, if that will be written into the contract; and suggested that to consummate the sale there should be provision that the buyer would intend to rehab the building. Mr. Hanson stated it was not their intention to put any covenants on the sale, that they have in the past put covenants on buildings in the downtown area that if no rehab work or not brought up to the proposal submitted within a specific time the property would revert back to the City; it was noted that Mr. Conneran would finance the project himself. There was some discussion relative to putting a covenant or restriction on the sale of the building by a specific date if work not be commenced, to get the building back; Mr. Hanson agreed and that they could subject to discussion with the city attorney.

It was moved by Council Member Martinson that we proceed with the sale of the building to Michael Conneran and transfer title for the sum of $1.00, that the city attorney draft a purchase agreement with a clause that commencement of rehabilitation to the building be within a six (6) month period. Council Member Stevens seconded the motion

After further discussion it was moved by Council Member Hamerlik to amend the motion that the purchaser commence rehabilitation within six months and a completion date of eighteen months. Council Member Kreun seconded the amendment.

Upon call for the question on the amendment and upon voice vote the motion carried 11 votes affirmative.

Upon cal for the question on the motion, as amended, and upon voce vote the motion carried 10 votes affirmative. Council Member Brooks voted against the motion.

MINUTES/GROWTH FUND AUTHORITY (JDA)
April 9, 2001 - Page 2________________________

ADJOURN

It was moved by Council Member Hamerlik and seconded by Mayor Brown that we adjourn.
Carried 11 votes affirmative.

Respectfully submitted,



John M. Schmisek
City Auditor