Committee Minutes

MINUTES/FINANCE COMMITTEE
Tuesday, July 26, 1994 - 4:15 p.m.

Members present: Geller, Babinchak.

1. Matter of tax increment financing for Roadrunner
Investments, LLC.
Steve Kuhlman, Acme Electric, and Dick Olson of Economic Development Foundation, were present. Mr. Olson stated that this was approved by council some time ago but some housekeeping questions re. amounts that need to be answered. He also stated when they do TIF in Growth Fund they specify number and leave dollar amount floating; that they don't know number of years required to produce dollar amount until city assessor gives final number after looking at plans, etc. and the city auditor talks to bond counsel.

Mr. Schmisek reported they have developed an agreement on TIF, that at last meeting public hearing held and now matter of coming together with agreement with Roadrunner Investments to lay out dollar amount and proceed from there. He also reported that the city attorney has form we will fill out giving projected amounts and detail responsibility of Acme and what our responsibility is. He stated that we found out in few of last issues that we do detail in writing, that few things may change because of interest and in best interest to have in writing so when final numbers come out everybody aware they may change from where stated.

Mr. Carsen stated he hasn't talked with architect, Gary Johnson.

Mr. Kuhlman reviewed summary of costs, plan of catalog warehouse, and eligible costs for tax increment financing, i.e,. parking, demolition, site preparation, landscaping, foundation and slabs and land acquisition. It was noted that City will continue using some of that property, with total TIF at $265,000.

Mr. Swanson stated key is whether value of improvements support what they are seeking.

It was noted total project $1,205,000 plus land acquisition.

Mr. Swanson also advised they can't include split lots within district. He stated they take current value of property, freeze base, that taxes on base go to taxing entities, school, city county, park district, but anything above that base only goes to pay off bonds issued by the City.

The committee directed Mr. Carsen to contact the architect to review plans and set valuation. It was also noted that Mr. Carsen needs description of district.

Mr. Swanson reviewed process for TIF, one under urban renewal slum and blight with Planning and Zoning setting district, and another part for economic development where Planning and Zoning

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July 26, 1994 - Page 2

doesn't get involved.

The committee instructed city assessor to contact architect for valuation and area and bring back to committee. It was noted that at public hearing there were no protests.

Mr. Swanson advised that preliminary approval has been given, now detailed information, can proposed development support amount of tax increment requested; next step authorizing the sale of bonds for x amount of dollars, then bond people start packaging, etc.

Held in committee.

2. Matter of lease agreement with ND Highway Patrol.
The committee reviewed request from the North Dakota Highway Patrol for an extension on lease for office space at 122 South 5th Street, term of extension for 12 months, commencing the 1st day of July, 1994 and terminating on the 30th day of June, 1995, at a total cost of $7,635 per annum, with rent to be paid in a monthly amount of $636.25. Moved by Babinchak and Geller to approve lease and authorize proper City officials to sign said lease. Motion carried.

3. Applications for abatement of taxes:
a) Mary Ganyo, 1018 Park Drive.
Mel Carsen, city assessor, reported that Mrs. Ganyo is a senior citizen who qualifies for senior citizen's tax credit for 1993 but failed to apply, and recommended that application be approved as submitted. Moved by Babinchak and Geller to approve application for abatement of taxes as submitted. Motion carried.

b) Gerald N. and Cheryl D. Loiland, 2132 S. 38th Street.
Mr. Carsen reported that application involves single family home where construction began in 1992 and is eligible for new home exemption for 1993 and 1994 on first $75,000 of improvement value; that owner thought the exemption extended to the full value of the house and the application was filed on that premise, and recommended that the application for abatement be denied. Moved by Babinchak and Geller to deny the application. Motion carried.

4. Matter of setting value on City properties, declaring as
surplus and advertising for sale:
a) 3 properties in Medvue Estates 6th Resub. (located between Knight Drive and 17th Avenue South and between Columbia Road and English Coulee) Lots 1, 2 and 3, Block 1, Medvue Estates 6th Resubdivision.
Mr. Carsen recommended the following prices: Lot 1, $32,000; Lot 2 at $28,000 and Lot 3 at $24,000. Moved by Babinchak and Geller to declare property as surplus and approve minimum bid price of $32,000 for Lot 1, $28,000 for Lot 2 and

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$24,000 for Lot 3, and advertise lots for sale. Motion carried.

b) 1310 8th Avenue North (east 1/2 of Lot 19, all of Lots 20 and 21, less Hwy. R/W, Block 67, Alexander & Ives' Addition).
Mr. Carsen recommended an asking price of $17,100. Moved by Babinchak and Geller to declare the property as surplus, approve a minimum bid price of $17,100, and advertise lot for sale. Motion carried.

5. Matter of budget amendments.
a) Substance Abuse - $1,575.00 for on-going projects and promotional programs from unused monies from 1993 fiscal year. Moved by Babinchak and Geller that the request for budget amendment be approved, and an ordinance to amend the budget be introduced for first reading. Motion carried.

b) Community Relations Officer - $1,645.00 grant from the Turtle Mountain Band of Chippewa Indians for Mission Project Phase II. Moved by Babinchak and Geller that the request for budget amendment be approved, and an ordinance to amend the budget be introduced for first reading. Motion carried.

6. Matter of bank resolutions.
a) The city auditor presented resolution authorizing City officials to do business with the First National Bank and with First National Bank Securities Corporation. Moved by Geller and Babinchak that we approve resolution and authorize agreement to do business with First National Bank, subject to the city attorney's review. Motion carried.

b) Moved by Babinchak and Geller that we approve resolution and authorize agreement to do business with First National Bank Securities Corporation, subject to the city attorney's review. Motion carried.

7. Matter of auditing department name change.
The city auditor presented matter of changing name of auditing department because of restructuring of office. It was moved by Babinchak and Geller that we approve changing name to finance department. Motion carried.

Meeting adjourned.

John M. Schmisek
City Auditor

Dated: 7/27/94.