Committee Minutes

MINUTES/URBAN DEVELOPMENT COMMITTEE
Tuesday, September 27, 1994 - 4:00 p.m.

Members present: Beach, Glassheim.

1. Matter of CHAS amendment.
Mr. Beach stated that a public hearing had been held Monday, September 26, and now need to either approve or disapprove the amendment. He reported the amendment is desired by MetroPlains to add congregate housing as identified housing need in the city of Grand Forks. Mr. O'Leary reported that according to Building Inspector's Office in 1990 0 units developed, in 1991 8 units developed (1-bedroom with den), in 1992 36 1-bedroom units developed, and in 1993 and to date in 1994, 27 1-bedroom units developed.

Mr. Eric Giltner stated that he had called MetroPlains and asked them to address issue of what happens to 1-bedroom vacancies and specifically where they have had some other developments, i.e., in Devils Lake and Jamestown, and they responded back that yes, some of the senior housing units they had managed did experience vacancies initially but within 6 months they had filled up and not been severe problem for causing vacancies in one-bedroom units. They also stated that because of the size of Grand Forks they felt that it would probably be even more insignificant in reference as to how things happen in Jamestown and Devils Lake. He also asked about comment Mr. O'Leary made that no longer waiting list for one-bedroom apartments and they addressed that - that waiting lists not an indicator of demand for one-bedroom apartments. He stated that the most important item he wanted to bring to this meeting was the fact that based upon their experience in other cities, yes, there are some initial vacancies but they do not severely impact the vacancies for one-bedroom apartments.

Moved by Glassheim and Beach that we add congregate housing on the CHAS list as an identified housing need in the city of Grand Forks. Motion carried.

2. Request from Prairie Harvest for storefront application.
Mr. O'Leary reported Prairie Harvest had contacted his office re. possibility of a storefront for the thrift store and office at 930 North 3rd Street, that at time they were gathering applications they discussed briefly and determined that handicapped ramp beyond the scope of what storefront program intended to do. He stated he talked to their staff and asked if possible if do storefront and free up Prairie Harvest monies to do ramp; that main issue is whether handicapped ramp fits in with storefront program or should this be considered as separate activity to receive CDBG funding, and if decide to use storefront monies to put ramp in, would need to amend program regulations to allow handicapped accessibility as eligible activity.


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Roxanne Jensen, executive director of Prairie Harvest, stated that the project to do entrance and accessibility ramp would improve front of their building considerably, that they left application amount blank, materials for ramp est. at $3500, double to cover labor; however, Habitat for Humanity has said they would provide labor, also assistance from Mayor's Comm. for Handicapped. She noted that they did not have funds to do when they purchased the building. She also reported that the Home Place Thrift Store is a sheltered workshop. She reported they have put $65,000 into remodeling of main floor, $2500 from the City and have had to piecemeal rest; they have debt of $18,000 they are repaying for remodeling of first floor.

The committee stated they were not debating worthiness of cause, but whether this is right program for this project; would be setting precedent. There was some discussion whether they would need historical clearance on the building, etc.; and also discussion re applying for other funding, ie., Human Needs funds.

Mrs. Jensen stated that they have received $3500 bid for materials, $5 to $7,000 for total project, and would request the max of $3500, using volunteer labor as match. She also announced that they have been awarded grant from HUD to build a 12-plex.
Moved by Glassheim to amend program rules to make handicapped ramp eligible for storefront monies; the motion died for lack of a second. Mr. Beach noted that program intent is to improve aesthetics of property, missing real intent of the program.

Moved by Glassheim and Beach to deny request. Motion carried.

3. Matter of thorough review of housing costs in city.
Mr. Beach questioned what parameters of review would be, asked if they were dealing with new housing costs, existing, multiple or single family housing.

Jerry Tuchscherer, exec. officer, Grand Forks Board of Realtors, Inc., was present.

Mr. Glassheim reported intent was to consider both rental and single-family housing (heard complaints about both); lot availability and cost, loans and interest rates, City building code, infrastructure and his thought to do over a period of 1 or 2 months, to invite people to come in and give input and comments.

Mr. Beach stated that mayor had suggested special committee with input from developers, bankers, realtors, etc. and questioned whether looking at special committee or within framework of this committee; or whether too much for standing committee of the council.

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Mr. O'Leary stated this fits in with affordable strategy, City responsibility; that information gathering flows into CHAS; that the task of developing CHAS belongs to this committee and council. However, committee stated they didn't see need for lot of data gathering, looking for simple things that can be enacted. Mr. O'Leary stated there is huge amount of data in CHAS, policies that are obstacles or enhancements. Mr. O'Leary suggested setting aside one night for rental issues and one for owner occupied. Mr. Tuchscherer stated he did quick survey with builders, and hard to come up with answer - limited landowners, hard to lower cost of utilities, building materials, wiring, etc. costs climbing, and don't know where you would lower cost. He also reported that they have 225 members (including builders, bankers, architects, etc.) and suggested notifying through their membership.

Roxanne Jensen stated there are some things City requires that makes it more difficult for developers, costs higher in Grand Forks than other cities. Mr. Glassheim questioned whether our Code costs higher (whether lower standards), doesn't know what Planning and Zoning can do to open up lots, develop other areas than south and west, up-front monies. Mr. Beach stated they have tight planning process in the city, city growing in very orderly manner.

After further discussion Mr. Beach suggested planning session on October 3 at 7:15 p.m.

4. Matter of TAG lease agreement.
Mr. O'Leary reported that TAG has requested that the City pursue the construction of an 8,000 ft. addition on the back of FTZ building (bids have been received), and prior to awarding bids, it would behoove City to engage TAG in some kind of agreement, and submitted draft agreement - letter of intent between TAG and City, subject to city attorney's review. He suggested referring to city attorney for review and comments, can't enter into lease yet because don't have costs, etc.; that letter of intent sets up methodology on how we would establish lease agreement. He reported that it was staff recommendation that we adopt concept of issuing letter of intent and ask city attorney to draft final version to clear way to award bid contingent upon execution of the letter of intent.

The committee reviewed letter of intent.

Moved by Glassheim and Beach to adopt concept of issuing letter of intent, contingent upon review and approval of city attorney. Motion carried.

5. Matter of award of bids for FTZ building expansion.
Curt Siewert presented tabulation of bids and map showing

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location of addition, first phase includes everything except mechanical and electrical; that bids came in lower than architect's estimate and all bids were very close. Moved by Glassheim and Beach to accept the low bid of Innes Construction Company, Inc. in the amount of $189,000.00, contingent upon execution of letter of intent to enter into lease agreement by TAG. Motion carried.

6. RFP for architectural/engineering services for Infill
Housing.
Mr. O'Leary reported this project approved in CDBG financing to encourage development of housing in older sections of town to prevent conversion from owner-occupied to rental housing; the idea is to find substandard houses, acquire property, demolish and construct new houses on those lots; that staff has been looking at potential source for design for neighborhoods. He reported they are looking at modest housing without garage on 50 ft. lot, two-story house which doesn't look out of place in the neighborhood. He reported that they have $70,000 set aside for the demonstration project to cover A/E services, acquisition cost of first house, and are proposing to demolish and reclaim lot. He stated they are requesting to put out RFP to local architects who may be interested in providing services, ask them to submit proposal for developing plan for 13-14000 sq.ft. on two floors, that they can give them broad specs. on what house should consist of, adequate sideyards to comply with zoning ordinance, should be 3 bedroom house without finished basement. He also stated they want two variations on the front. He stated intent is to acquire land, construct house, and sell immediately after construction.

The committee questioned need for architectural services, and it was noted it is required under State law; project inspection would be done in-house.

Mr. O'Leary reported funding would come from HOME money for portions of it, and CDBG to finance it upfront, use TIF to pay difference between what house is worth now and future value, that would reimburse CDBG for acquisition costs so have a revolving loan account. Mr. Glassheim expressed some concern re. use of TIF, and Mr. O'Leary reviewed with committee. He reported that if they use TIF can drop value of house by $10,000, because compensate program for original acquisition costs, and set up revolving loan account. Mr. Glassheim questioned whether they should buy, demolish and leave to private sector to build; Mr. Siewert stated private persons can't get construction loan, very difficult to get. The committee stated this is experiment, not only with mechanics but also public opinion.

Moved by Glassheim and Beach to direct staff to prepare RFP for Infill Housing. Motion carried.


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7. Offer to lease property on S. 5th Street.
Mr. O'Leary reported City has small park on South 5th Street where major improvements made (brick walkway, clock, monument and benches) on city property; adjacent property owned by Keith Danks; that he has had some controversy with law firm next door re. use of lot and is offering to lease us 100 ft. for payment of back taxes of $7300 and $2,000 year. Held in committee to await further communication from Mr. Danks or his representative.

8. Award of bids on driveways in Burdick's Acres.
Mr. Siewert reviewed bids received from on-site contractors
for concrete driveways at 11 houses (12,500 sq.ft. concrete - 5" driveway and 6" sidewalk and approach drive), with sidewalks and approach to meet City specs.; and Sherlock Homes low bidder, with work to be done this fall. Moved by Glassheim and Beach that we recommend approval of the bid of Sherlock Homes for $29,875.00 for the 11 houses. Motion carried.

9. Matter of ordinance creating River Forks Commission.
Mr. O'Leary reported they don't have re-draft back from Howard Swanson, city attorney. Held until next meeting.

10. Discussion re. review process for CDBG funding.
Mr. O'Leary reported that it was consensus of committee to target CDBG monies for 2 or 3 projects (Adult Abuse, Mission and Listen Center), and this was approved by council.

Mr. O'Leary reported that application forms same for both program funding (CDBG and Human Needs), and asked whether they want to look at all applications at one time. There was some discussion re. citizens' advisory committee, whether public hearings suffice for citizen participation/input. Mr. Glassheim raised question of composition of committee - don't know who they represent, they are not accountable, etc.

Mr. O'Leary reported that Grand Forks is only city in the state that gives money out of entitlement program to non-profit organizations; CDBG is an urban renewal program.

The committee stated they would continue discussion. Information only.

Meeting adjourned.

Alice Fontaine
City Clerk

Dated September 28, 1994.