Committee Minutes

MINUTES/URBAN DEVELOPMENT COMMITTEE
Monday, August 1, 1994 - 6:45 p.m.

Members present: Beach, Glassheim, Hanson.

2. Hold public hearing on application by Pro Mark One Marketing Services, Inc. for Growth Fund Loan; and amending budget.
Terry Hanson reviewed application by Pro Mark One Marketing Services, Inc. for Growth Fund loan for PACE buy-down; that this is tele-marketing company. He reported they have to have public hearing and because of schedule of payments if council approves all need is PACE buydown; and could amend budget this year and fund out of excess sales tax to cover PACE buydown of $45,600,

Chairman Beach called for the public hearing and asked for comments on the application of ProMark One to the Growth Fund.

Dick Olson. Grand Forks Economic Development Foundation, spoke in favor of the application.

Chairman Beach closed the public hearing.

Moved by Glassheim and seconded by Hanson to approve request from Pro Mark up to a maximum of $485,600 to be paid out in the following manner: $45,600 to subsidize PACE loan out of this year's budget with $88,000 per year to be paid out in years 1 to 5 as jobs are created.

Glassheim moved an amendment to the motion that for every 10-cents per hour below an average of $7.50 per hour per employee, to deduct $10.00 per employee from the City's obligation. Hanson seconded.

It was noted that the amendment place burden on employee; and upon call for the question on the amendment, Beach and Hanson voted no, and the amendment failed.

Upon call for the question on the original motion, Hanson and Beach voted in favor, Glassheim voted no; and the motion carried.

Moved by Hanson and Glassheim to amend the budget to transfer $45,600 from excess sales tax to Growth Fund. Motion carried.

1. Proposal for financing rehab. of St. Anne's property.
Howard Swanson, city attorney, advised committee they have 3 options: 1) to allow exemption to continue; 2) extend to full 15 years which you can do, or 3) terminate and re-establish; that P & Z can't consider until first meeting in September, then public hearing with 30 days notice; council not in position to act until middle October.

Gary Stenson of MetroPlains Development, and Marty Torkelson, Greater Grand Forks MINUTES/URBAN DEVELOPMENT COMMITTEE
August 1, 1994 - Page 2

Senior Citizens' Assn., co-general partners that are proposing to develop St. Anne's into approx. 35-38 housing units for seniors, congregate services, and have worked out some things with community Development were present.

Mr. Stenson reported that the tax credits allocated by the State to the project are based on the developers receiving their financing and if the development does not go, those credits have to be given to somebody else; and if North Dakota does not use all of their allocation by the end of the year, they miss out on national pooling and getting additional credits. He also stated that if everything in place would start rehab in November or December, with 8-month construction period; and that the partnership will select management company to manage the development. He noted that the tenants would have to be 60% of median income or below, but no rental subsidy tied to the development.

Mrs. Torkelson stated that it be of great benefit and future for the senior citizens and older persons in the community. He also noted that they have housing of this type, congregate housing with services, for the very low and high income, but nothing of this type available for middle income groups. She stated they will provide one meal daily, transportation services will be available as well as outreach or social workers on site; they will have full scope of services.

After further discussion, it was moved by Glassheim and Hanson that we amend the motion to state that it is our intent to call for creation of the new 15-year tax increment financing district contingent upon the outcome of the public hearings, waiver of estoppel by the developer, and contingent upon approval of appropriate counsel. Motion carried.

Meeting adjourned.

Alice Fontaine
City Clerk