Committee Minutes

MINUTES/GROWTH FUND AUTHORITY (JDA)
Tuesday, November 13, 2001 - 6:45 p.m.__________

The city council of the City of Grand Forks sitting as the Growth Fund Authority met in the council chambers in City Hall on Tuesday, November 13, 2001 at the hour of 6:45 p.m. with President Gershman presiding. Present at roll call were Council Members Brooks, Bjerke, Stevens, Hamerlik, Burke, Glassheim Kerian, Kreun, Gershman, Mayor Brown - 10 .

AUTHORIZE SALE AND REDEVELOPMENT OF HOFFMAN
BUILDING, 311 KITTSON AVENUE

The staff report from the Office of Urban Development relating to the sale and redevelopment of the Hoffman Building, 311 Kittson Avenue, with recommendation to authorize staff to re-issue the RFP for the sale and redevelopment of the Hoffman Building.

President Gershman reported that we have one issue before us, the rebidding of the Hoffman Building, 311 Kittson Avenue, and reported that a communiction addressed to the Urban Develop-ment Office had been presented to the council members just prior to this meeting from Michael Conneran stating he didn’t give them the timeframes he had in mind but was waiting to see if he would split the downstairs of the building into one or two spaces for rent, that he is ready to start immediately on the building, and asked for an extension on the original agreement.

Terry Hanson, Urban Development, stated that because the timeframe has expired on the RFP and Mr. Conneran did not initiate construction of the project as was approved by the council on April 9, that they went through the process of notifying Mr. Conneran that the deadline was coming and then had passed, were bringing this back to this committee to ask that they issue another RFP on this property and move ahead with the sale of this property in that manner. He stated they received the letter from Mr. Conneran after the deadline and that Mr. Conneran has not signed a purchase agreement, which should have been done initially.

COUNCIL MEMBER CHRISTENSEN REPORTED PRESENT

Michael Conneran, 48 Sloping Hills, stated that he hadn’t started any construction because he was trying to decide whether the downstaris would be one large space or split into two spaces because of cost difference, that the City had published this two times and he was the only one interested in the building both times, that the building needs more work than what it’s worth and that he is willing to do that, that September/October are busiest months of the year for him (beet harvest), that he (and contractor) was ready to start when lock was changed on the building. He stated he would have been working on the building and was going to split the dowstairs into two spaces so easier to find rentors and will also build two apartments in the upstairs.

Mr. Hanson reported that the purchase agreement has not been signed, sale of the building was $1.00, and his recommendation would be as the City has issued two RFP’s on the building and Mr. Conneran has been the only one who responded to either one, and if it is this committee’s desire to allow Mr. Conneran to go ahead with his plans, there should be a timeframe for entering into the purchase agreement and that he begins construction within a very short timeframe.

Council Member Brooks moved an extension of six months to completion; Council Member Burke seconded the motion if the mover would include a friendly amendment that the sale be executed in 14 days. Council Member Brooks agreed.

MINUTES/GROWTH FUND AUTHORITY
November 13, 2001 - Page 2_______________

Council Member Christensen suggested a shorter timeframe rather than in 14 days, and asked if Mr. Conneran buys the building, what is he to complete. Mr. Hanson stated that the proposal that was awarded to Mr. Conneran in April was that if he was going to finish off two upstairs apart-ments and the retail space on the main floor, was to initiate construction within 6 months and complete construction within 18 months. Council Member Christensen asked what if Mr. Conneran signs the agreement, should complete the upstairs but shouldn’t impose completion of the main floor until he finds a tenant. Mr. Conneran stated that he is working with several different people, some considering taking the whole floor or splitting it because would have to have two different heating systems, two service panels, etc. two restrooms. Council Member Christensen stated if Council Member Brooks amenable to friendly amendments, would amend the motion that Mr. Conneran sign the purchase agreement in 7 days, but shouldn’t force a person to put money in the main floor when he doesn’t have tenants, start the construction on the two apartments and have them completed within whatever is reasonable and the main floor will have to be open until find tenant and use.

Council Member Hamerlik asked Mr. Conneran if he had any other projects downtown where he had some other construction; Mr. Conneran stated he didn’t have any other projects - that he did 2 and 4 South 3rd Street which are finished and rented.

Council Member Christensen stated his friendly amendment was that he would like to see Mr. Conneran start in the upstairs and complete the apartments, and to be prepared to move when he finds a tenant. Mr. Conneran stated there is work that needs to be done right away - put in furnaces as there is no heat in the building; he noted storefronts are done. Council Member Brooks agreed to the amendment. Mr. Hanson stated there will not be a completion deadline, just has to start construction and complete within 6 months.

Council Member Hamerlik stated that since so many comments and several friendly amendments, he would prefer if someone would state a substitute motion so they know what’s on the table before voting.

It was moved by Council Member Christensen that we allow Mr. Conneran 14 days from today to sign a purchase agreement with the City, that he has 6 months from the date of the execution of the purchase agreement to complete the upstairs (two apartments) and to provide Mr. Hanson with summaries every 90 days as to the activity regarding the rental of the main floor. Council Member Hamerlik seconded the motion.

Council Members Christensen and Gershman called for the question. Carried 11 votes affirmative.
Upon call for the question on the motion and upon voice vote, the motion carried 11 votes affirmative.

ADJOURN

It was moved by Council Member Brooks and seconded by Council Member Hamerlik to adjourn. Carried 10 votes affirmative.

Respectfully submitted,

Saroj Jerath, Deputy City Auditor