Committee Minutes

MINUTES/URBAN DEVELOPMENT COMMITTEE
Tuesday, June 14, 1994 - 12:00 Noon

Members present: Lien, Carpenter, Hanson.

1. Matter of lease for antique mall.
Curt Siewert reported that at last meeting they approved reassignment of lease to Raul Andreu and Sunnie Andreu, and presented copies of three-year lease which would take effect January 1, 1995. He reported further that they are asking for year's rent at $800/mo. plus they would pay utilities; that rent would increase to $900/mo. for 1996 and $1,000/mo. for 1997. Moved by Hanson and Carpenter to approve three-year lease with Raul Andreu and Sunnie Andrew for space in the former Tischart Building in City Center Mall under terms and conditions outlined in said lease agreement. Motion carried.

2. Matter of EAPC proposal for Burdick's inspection.
Mr. Siewert presented copies of proposal from EAPC, and reported that he had checked with City Inspection Department; that they would do inspection at different phase of construction for Code, no liability. Alan Dostert, EAPC, reviewed their proposal to provide limited construction phase services, minimum levels of inspection to protect owner's interest and design intent, for each of the eleven housing units being constructed in Burdick's Resubdivision, i.e.,
one review prior to pouring of footings,
one review prior to pouring of foundation walls,
one review prior to close up of walls for electrical,
one review prior to close up of walls for mechanical,
one review prior to close up of walls for structural/architectural, and
to review shop drawings for trusses, windows, electrical fixtures, and mechanical systems/fixtures.
He stated City Inspection looks at Code compliance, could look at plan compliance if had time. Mr. O'Leary stated this is $1Million construction on eleven houses, that Curt has full schedule this summer and are talking about allocation of staff time. He also stated that their proposal wouldn't cover final inspection or punch list; looking at $500-600 per house. Mr. Dostert stated they want to make sure intent of drawings followed. Moved by Hanson and Carpenter to approve proposal from EAPC in the amount of $7,500 for limited construction phase services on eleven houses being constructed in Burdick's Resubdivision. Motion carried.

3. Request for proposals for service provider for detox center.
Mr. O'Leary reported there are two issues: location of facility and who's going to administrate; that staff has put together Request for Proposals to send to potential providers: United Recovery, Glenmore, Northwest Addiction, Center, Inc., etc.; and that they need authorization to advertise. He stated they anticipate cost of $75-100,000 per year. He also reported they have thought about doing with Crookston (Glenmore), however

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June 14, 1994 - Page 2

Mr. Swanson stated we have no authority to transport across State lines.

Lien reported present.

Moved by Hanson and Carpenter to authorize staff to issue RFP to appropriate service providers. Motion carried.

4. Request for release of funds allocated to Lake Agassiz
Regional Council.
Irv Rustad, Lake Agassiz Regional Council, stated that city council had allocated $20,000 for the microloan program, that Fargo and Grand Forks had approved funding for this program, subject to funding from other communities; that they have not received anything from Minot or Bismarck as yet. He stated that he has requested Bank of North Dakota to assist, which they will do; that it could be 30 days or longer before get approval from Minot; and Bismarck doesn't have funding mechanism, but has requested for budget next year. He stated they have 13 applications ready for funding, but cannot access SBA money unless have loan loss reserve in place, and that they have asked Fargo to release funds, and they will do so if Grand Forks will, and they will continue to work on Minot and Bismarck. He reported they have to have amount equal to 15% of monies drawn down; that these monies remain in that pool until end of program at which time they are returned to cities on a pro-rata basis. He reported that REA had donated $56,000 this year, will request from Ottertail Power, and have received preliminary approval from US West Foundation. He stated total project $2.5 Million, and serves entire state. Mr. Carpenter stated that action council took at last meeting probably going to be vetoed because funding economic development in the rest of the state through sales tax monies, small number of projects in this area. Mr. O'Leary stated this program doesn't have impact on local economy, if supporting retail businesses, maybe should be funded by State. It was also suggested they go to Bank of North Dakota, and Mr. Rustad stated they cannot have borrowed funds in reserve account.
After further discussion it was moved by Carpenter and Hanson to receive and file the request. Motion carried.

5. Request from Ken Welter for release of $10,000 interest sub-
sidy monies for walkway at former Deaconess bldg.
Terry Hansen reported their office had received request from Ken Welter for release of money; that last year received request for $10,000 as interest subsidy on PACE loan to improve facilities for Ecolab; that they were negotiating 3-year lease with Ecolab, which has now been signed; that project loan about $60-80,000; however, because of delay no PACE monies available, and Mr. Welter would like to have monies as a grant rather than interest subsidy loan. Moved by Carpenter to approve and to

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June 14, 1994 - Page 3

change to a $10,000 grant. After further discussion Carpenter withdrew his motion, and the matter was tabled until Monday night.

6. Request to establish public hearing on application by Acme Electric, Inc. for Growth Fund monies. Mr. O'Leary asked committee to set public hearing on application for Growth Funds. Moved by Carpenter and Lien to establish 7:15 p.m., Monday, June 20, 1994, as time of public hearing on this application. Motion carried. (comm. only)

7. Establish public hearing on allocation of FEMA funds.
Mr. O'Leary reported they have an offer from Hud for grant for $86,000 for additional flood monies, that they changed regulations slightly, need public hearing, and staff is suggesting that we set a public hearing for Monday, June 20, before council and that we submit a final statement to HUD to allocate monies to one or both of the projects that we previously submitted for HUD consideration: infrastructure in Richard's West and for Lift Station near CBD in Kannowski Park - project in Richard's West is $1.45 Million.

Mr. Lien expressed concern re. repair of bridge north of Bergley Toyota, and drainage in that area. Mr. O'Leary reported that will be part of Richard's West project. Mr. O'Leary reported that engineers wrote grant request, which was denied, because no low or mod. income benefit.

Moved by Carpenter and Lien to establish public hearing for Monday, June 20, at 7:30 p.m. to obtain public input on allocation of flood funds, and further recommend, subject to the public hearing, that we allocate the $86,000 first to Richard's West project, and secondly to the downtown lift station. Motion carried.

8. Request to purchase computer equipment for Comm. Development.
Mr. O'Leary reported there is a new software package available through HUD this coming Fall giving ability to access HUD data base in Denver (census district info. etc.), however, they recommend computer larger that what Community Development has in their office; that Terry Hanson had MIS price out computers and they have come up with computer for around $4,000 from Herb's Computers in SD. He noted they can use extra computer int their office. Moved by Lien and Carpenter to authorize purchase of computer and necessary hardware to implement HUD data base in an amount not to exceed $4,500.00. Motion carried.

Meeting adjourned.
Alice Fontaine, City Clerk
Dated: 6/14/94.