Committee Minutes

MINUTES/URBAN DEVELOPMENT COMMITTEE
Tuesday, May 10, 1994 - 12:30 p.m.

Members present: Lien, Hanson.

1. Matter of Rental Rehab. applications:
a) 808 Lincoln Drive.
Mr. Bosma had submitted application for repairs to rental property (repair roof, siding, escape windows in basement) to make adaptable for 2 and 3-bedroom apartments. Mr. Bosma stated that property received an increase in value of $8,000 this year. Mr. O'Leary reported that the committee had approved application 5 or 6 years ago, but project not done. Mr. Bosma stated they would now be able to do work and complete project. Mr. O'Leary reported request is for $7,500 rental rehab assistance on a 50% match basis ($4,500 in the form of a loan and $3,000 grant). He reported this would leave balance of $137,000 in the fund, plus they will be receiving funds back from projects not being done and some re-payment funds.

b) 911 Cottonwood Street (Roosevelt School)
Jim Kobetsky, Schoen & Associates, reported they want to renovate this building and convert into 8 3-bedroom and 8 2-bedroom apartments, that this building has an addition which will be removed, to bring back to historic nature of neighborhood, and use some of that area for green space. He reported they had met with neighbors, who had some concerns re. parking. He stated this will be well done project.

Mr. O'Leary reported that cash flow on the 16-plex very close, and it is staff's recommendation that the committee may want to consider approving Bosma project and also recommends that committee consider approving the 16-plex for up to a total of $150,000, depending on availability of funds.

Moved by Hanson and Lien that we approve application in the amount of $7500.00 to Mr. Bosma for his project; and further that any funds available up to $150,000 be allocated for the Schoen and Kobetsky project, and further that we authorize expending $9,375 per unit for the Schoen and Kobetsky project at 911 Cottonwood Street. Motion carried.

3. Matter of request from Lake Agassiz Regional Council for
Microloan Program.
Mr. O'Leary reported his office had received request for grant up to $20,000 for the Microloan Program which is administered by the Lake Agassiz Regional Council. Irvin D. Rustad, Lake Agassiz Regional Council, reviewed program with the committee: that there is only one program per state and they were awarded right to administer; that the Council has been awarded $2.5 Million over a five-year period, which the Council borrows from the S.B.A, relends to businesses upon approval of application for projects not exceeding $25,000, then repays to S.B.A. He stated that in order to draw funds from the S.B.A.,

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May 10, 1994 - Page 2

the Council must establish a reserve fund equal to 15% of the funds available to loan, and they are requesting the four largest cities in the state to contribute $20,000 each; that these funds would be put into loan loss reserve and held for five years, at which time monies would be returned on pro-rata basis. He reported they received $56,000 from ND Rural Electric Cooperatives, and have applications in to US West (which has received preliminary approval) and Ottertail Power. He also reported they received $25,000 from the State of North Dakota for up-front costs. He reported that this is state-wide program, that they receive aps. from across entire State, and have to abide by SBA regulations. He also noted that most applications are for retail or service businesses.

There was some discussion relative to funding; Mr. O'Leary advised that they can't use Growth Funds, but could allocate funds out of surplus sales tax.

Moved by Hanson and Lien to grant $20,000 for this program, subject to availability of funds, preferably out of sales tax funds. Motion carried.

4. Proposal by Tim Lamb for development of affordable housing.
Tim Lamb presented proposal for the development of affordable housing in the community. He stated he had talked to Mr. O'Leary, Mr. Bushfield and Mr. Vein to make sure viable project; that affordable housing in great demand in the city, and would bring back some residents from surrounding communities. He stated he would like to persuade this committee to support bond for capital investment to start program: 1) purchase land and infrastructures (streets, sewer, etc.) construction of modular houses; would like to have partnership of private and public financing between City, banks, etc.; and that he has looked at several pieces of property for the project on 13th Ave.N. (area behind Valley Dairy and Highway Host) and Gateway, and area behind Crown Colony. He stated he would provide management skills and coordinate to make project work.

There was some discussion re. modular houses, cost, etc.

Mr. O'Leary stated that Mr. Lamb looking for indication of City's interest in the project. Mr. Lamb stated he would like assurance from City that this is a viable project, wouldn't want to negotiate for land until then. The committee stated there was long way to go before City would commit to this project, and Mr. O'Leary asked how repayment/retirement of bonds would be made, that they would need lot of money up-front for infrastructures, bond rating, zoning, etc.; city attorney would need to look at logistics.

Moved by Hanson and Lien that the committee state its interest in MINUTES/URBAN DEVELOPMENT COMMITTEE
May 10, 1994 - Page 3

concept and refer to the city attorney. Motion carried. (committee only)

3. Matter of Third Street Clinic, 1993 CDBG funding.
Mr. O'Leary reported that last year they obligated grant to Third Street Clinic of $8,675.00, of that amount $3,279.57 has been dispersed, leaving a balance of $5,395.00; that original grant was for secretarial and receptionist services, and are now asking for revised proposal to utilize $4,595 for medical supplies and the balance to include salary for co-ordinator at $300 and office supplies for $500. Moved by Hanson and Lien that we allow Third Street Clinic to change purpose of grant as requested. Motion carried. (committee only)

4. Matter of reconsideration of award of bids for housing in
Burdick's Resubdivision.
Curt Siewert asked committee to adjust award of bids to Diversified Contractors for siding for housing project in Burdick's Resubdivision to $76,590.00 rather than $95,263.20, and that $18,673.20 be awarded to A and L Siding.

Moved by Hanson and Lien to reconsider council action taken on April 18, 1994 relative to award of bids for construction of houses in Burdick's Resubdivision, and to amend motion to award bid for siding as follows: to Diversified Contractors in the amount of $76,590.00 and to A and L Siding in the amount of $18,673.20. Motion carried.

6. Bids for riverbank mowing.
Curt Siewert reported they have received monies from FEMA for reseeding of riverbank; and presented tabulation of bids for mowing, base bid and alternate (as areas seeded and developed), and recommended award to M and M Enterprises. Moved by Hanson and Lien to award bid to M and M Enterprises in the amount of $200 for base bid and $225.00 for alternate bid per mowing. Motion carried.

Meeting adjourned.

Alice Fontaine
City Clerk

Dated: 5/11/94.