Committee Minutes

URBAN DEVELOPMENT COMMITTEE
Tuesday, May 31, 1994 - 12:00 Noon

Members present: Lien, Carpenter, Hanson.

1. Request to support Microloan Program.
Chairman Lien stated there was some concern way funds given out - to larger cities (Fargo, Bismarck, Minot). Sue Hartmann, Microloan Program Director, was present and stated they are receiving requests from smaller cities - Wishek, Hatton, Hillsboro, Larimore, etc., that program only 6 months old, haven't heard lot of advertising, plan to put into REA Cooperative magazine, and this region planning to have meeting on June 6 to promote the program. She stated they are asking cities of Fargo, Bismarck, Minot, Jamestown, Grand Forks to participate in the amount of $20,000; have raised $56,000 from ND Rural Electric Cooperatives; that Fargo has given okay based on what other cities do; that Bismarck doesn't have funds for programs such as this, but they will be asking from other sources, Bank of North Dakota is interested. She stated this is a one-time shot, they wouldn't come back and request additional funds.

Hanson present.

The committee stated that aps. from Bismarck, Fargo, heavily weighted - doesn't seem equitable. Mrs. Hartmann stated they have had lot of telephone requests from Grand Forks and their plan is to include lot of small businesses in this area through advertising and speaking with individual banks in this community. She submitted listing of funded projects to the committee. She stated they are trying to get local funding sources, that Small Business Adm. requires that in order to access funds have to show funds in loan loss reserve account. She stated this is 5-year program, that at end of that time would they would hope minimal losses and monies returned on pro-rata basis; funds cannot be borrowed funds, cannot write up promissory note. She stated there is a need here, that they are not in competition with banks, they are willing to participate with us.

The committee questioned where funds could come from, and Mr. O'Leary suggested excess sales taxes, because funding for this type of program not eligible activity under present growth fund policy.

Moved by Carpenter and Hanson to allocate funds from the excess sales taxes in the amount of $20,000 to support the microloan program loan loss reserve, contingent upon approval from other communities. Motion carried.

2. Request from Job Service for JTPA educational funds.
Mr. O'Leary reported that every year they get young people through Job Service for riverbank maintenance project, etc.; that Job Services is asking Community Development for financing support of the JTPA Summer Youth Employment Training Program in

MINUTES/URBAN DEVELOPMENT COMMITTEE
May 31, 1994 - Page 2

the amount of $1,000. He reported they have participated for last several years. Moved by Carpenter and Hanson that we participate in the amount of $1,000. Motion carried.

3. Request from Stone Container to sublease FTZ building to
Sengewald.
Mr. O'Leary reported he had talked to Sengewald last week and transaction going to proceed early this June and as condition of that sale, Sengewald would sublease building from Stone Container and City needs to approve Stone Container request to sublease. that there was indication from council to enter into direct lease with Sengewald, they are a rapidly growing business. Moved by Hanson and Carpenter that we authorize Stone Container to sublease to Sengwald, contingent upon review and approval of the city attorney's office. Motion carried.

Mr. O'Leary stated he will visit with Sengewald re. this matter.

4. Request for authorization to bid street improvements in
the Industrial Park.
Mr. O'Leary reported that the Growth Fund Committee had about year and half ago allocated $50,000 to extend 50th Street north from 10th Avenue past the FTZ building giving TAG access to the back part of the addition and also provide access to a piece of property across street from pump house. He also reported that
he had received request from TAG to put 8,000 sq.ft. addition on the back of the FTZ building, that City owns entire lot and there is enough parking area to do this, there would be no negative impact on master plan for the Industrial park and FTZ. Curt Siewert reported that the street is needed to service traffic for Stone Container. Mr. O'Leary reported that if addition goes on, need street for access. It was noted that the other utilities are in. Moved by Hanson and Carpenter to authorize engineering department to prepare plans and specification and to call for bids for this project. Motion carried.

5. Request for authorization to bid expansion for FTZ building.
The general manager at Technology Applications Group reported they have received enough business where they won't have space to put inventory, expansion critical to their business (metal finishing business) have contract for helicopter components for McDonnell Douglas, etc. He stated they presently have 6,000 sq. ft. in plant area, but have used some of that area for lab. space. Mr. O'Leary reported they don't know cost or interest rates, but are requesting authorization to bid both projects, will bring numbers back to this committee, and that committee can then negotiate adjustments to the lease. It was noted that City would build addition and pay through bonds, with repayment by TAG through lease payments. (City would finance and sublease to TAG)

Don Smith reviewed plans for the future, they have option on two
MINUTES/URBAN DEVELOPMENT COMMITTEE
May 31, 1994 - Page 3

acres west and want to make sure retain that, that they are going to have to build plant in Chicago area this year or next year but need sole production facility, and space for executive offices; that where they are now will become principally research and development center. Carpenter asked that when they complete building across street, will they still maintain space in FTZ building; and Mr. Smith stated they would. Moved by Hanson and Carpenter to authorize plans and specifications and to call for bids. Motion carried.

6. Establish date for social detox public hearing.
Mr. O'Leary reported that because of restrictive time frame the public hearing has been set for tomorrow (Wednesday) evening, need to formally set Wednesday, June 1, at 6;30 p.m., no publication requirements to have public hearing. Hanson asked they present as much information as possible. Mr. O'Leary reported they have video showing facility in Fargo, etc.
Moved by Carpenter and Hanson that we establish Wednesday, June 1, at 6:30 p.m. to be public hearing on social detox facility that's planned for Grand Forks. Motion carried.

7. Matter of social detox facility ownership, and RFP for
social detox services.
Sue Redman reviewed RFP from organizations interested in providing detox services on a contract basis and reviewed with the committee. She stated they need to look at who's going to provide service, what costs going to be; that 2 groups have expressed interest in providing service: Salvation Army and Center, Inc. of Fargo.

Committee questioned proposed funding and Ms. Redman reported participation from Sheriff's Department, County, City,, East Grand Forks, Human Resources, United Recovery Center, etc, and that they are doing research to see if monies available for renovation of facility.

It was reported that they are looking at some foundation aids; staff looking at how this might be handled; City involvement should be on contractual basis with non-profit organization; to sublease building to non-profit group who would provide service.
Mr. O'Leary reported that the whole issue is numbers; cost to contract with United Recovery Center $300/day per individual - with 3 to 4 per night, cost $400,000+ annually; Fargo doing for less than $100,000 (through Center, Inc.) There was further discussion but no action taken. Information only.

8. Appointment of director to Red River Trading Company.
Mr. O'Leary reported that the City provided loan to Red River Trading Company, crystal products in City Center Mall; that as part of the agreement had a position reserved on their Board, and MINUTES/URBAN DEVELOPMENT COMMITTEE
May 31, 1994 - Page 4

his recommendation is to appoint Terry Hanson as City's representative to that Board. Moved by Carpenter and Hanson that we appoint Terry Hanson as our member of Board of Directors of the Red River Trading Company. Motion carried.

9. Assignment of lease with antique store in City Center Mall.
Curt Siewert reported that the City has lease with Roger Sannes dba Ragdoll Antiques and Jerry Braaten dba Dakota Books for first floor of the former Tischart building in City Center, that they have proposal to sell to third party on July 1, and they are asking assignment of lease from themselves to new owners, Sunnie Andreu and Raul Andreu, 416 South 5th Street; and that sale of business is contingent upon reassignment of the lease. He noted that present lease ends Dec. 31, and would need to assign current lease to new owners for remainder of lease, and then enter into new lease at that time.

Carpenter/Hanson moved to approve assignment of lease to Raul Andreu and Sunnie Andreu effective July 1, 1994. Motion carried.
10. Matter of construction in Burdick's Resubdivision.
Mr. Siewert reported houses under construction in Burdick's Resub., pouring foundations, have proposal from EAPC to provide service on construction phase, providing professional service for inspection of shop drawings for trusses, windows, electrical fixtures and mechanical systems/fixtures, and review prior to pouring of footings, review prior to pouring of foundation walls, review prior to close up of walls for electrical, review prior to close up of walls for mechanical, and review prior to close up of walls for structural/architectural for the lump sum fee of $7,500. Committee questioned if construction wouldn't be inspected by city inspection department. Curt stated that inspection per Code but not plans and specs. Hold for 2 weeks and see if our inspection department can do.

11. Communication from Bob Owens re. dandelion and weed control.
Mr. Siewert submitted communication from Bob Owens, Civic Auditorium manager, relative to dandelion and weed control at various locations in the city (North and South Columbia Road, Gateway Drive, DeMers Avenue from Columbia to Washington, 32nd Ave.S. from Menard's to cemetery and median, etc.) at an estimated cost of $5,000. Mr. Siewert reported there are funds budgeted from last year, this matter is covered, and no action necessary.

Meeting adjourned.

Alice Fontaine
City Clerk

Dated: June 1, 1994.