Committee Minutes

MINUTES/URBAN DEVELOPMENT COMMITTEE
Wednesday, May 31, 1995 - 4:00 p.m.

Members present: Beach, Hanson.

Hanson moved to suspend agenda and move to item 5 (added item); Beach seconded the motion. Motion carried.

1. Matter of offer to lease the Bill Larson Co. building.
Vera Uyehara, Exec. Director of The Children's Science & Technology Eduction Foundation, which sponsors The Brainy Bunch Science Club, public science festivals and family events in Grand Forks; that they have been working with the Park Board and the School District for a number of years; and presently applying for a grant to the U.S. Dept. of Education called the Technology Challenge Grant, a five-year grant in amount ranging from $500,000 to $3Million/year for five years. She stated they have put together a consortium of 10-12 organizations across the state (including State Parks & Recreation, Game & Fish, Public Libraries, Historical Society, several Indian schools, the Grand Forks Public Library, Turtle River State Park and their organiza- tion). She stated their objective is to develop curriculum that is appropriate for the classroom as well as informal learning environment such as public library or the Brainy Bunch Science Club, and to do all of this through the internet. She reported that the name of their proposal is DakotaUniverse, a Virtual Museum for Rural America; that the purpose of the grant is to serve rural, isolated minority and low income populations, and thought ND fit into at least one area, and that there are pockets of minority and low income across the state. She stated they are looking for a space for people hired to undertake this project (approx. 10 people by the end of the second year grant, and would expect payroll to be close to $200,000/yr.; and looked at Bill Larson Co. building, 19 S. 4th Street, which seems like it would serve purpose of hands-on science museum for the region, as well as offices for staff, and workshop areas and classrooms; however, they are a non-profit and would need match for the grant and have almost $600,000 in match and would like to add a match from the City of Grand Forks as a measure of support to indicate to the Dept. of Education that they are in support of the project, and perhaps to the Children's Science Foundation for that building for a period of 5 years might fit into the mission of the City of Grand Forks in the revitalization of the downtown.
The committee questioned status of the building; Mr. O'Leary reported that they would like to tear it down but don't have money to do that, building not in particularly good condition, needs roof with insulation, mechanical (think wiring okay), and is used to store discarded equipment from City Hall; that they expect that it would cost quite a lot to tear down because number of issues involved with it (back part of building shared with adjacent building), the mechanical and electrical need to be replaced, only one small restroom in the building. He reported they did budget money couple years ago to demolish, however, when MINUTES/URBAN DEVELOPMENT COMMITTEE
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looked at issues involved (reclamation of the lot, removal of asbestos, lead based paint, etc.), so building been sitting empty. He stated that use of building being proposed little different, and if applicant can come up with money to renovate, doesn't see how City could go wrong. Mr. Hanson asked about liability; Mr. O'Leary stated this would be a triple-net lease for a $1.00, with applicant responsible for all utilities, taxes and maintenance (including renovation). He also noted that if you don't disturb asbestos don't have to remove.

Chairman Beach stated he was glad to see this come up, and that this would add good dimension to quality of life in the city. He stated he has been asked by people downtown when building going to be demolished, but thinks benefit from this would far off-set any perceived benefit from demolition.

Ms. Uyehara stated this is state-wide program headquartered in Grand Forks, with nine sites across the state (four in Grand Forks - Turtle River State Park, Lake Agassiz Elem. School, The Brainy Bunch Science Club and GF Public Library).

Chairman Beach asked whether this would be kind of facility considered as a tourist attraction; Ms. Uyehara stated that most science and children's museums are destination points for tourists and would like to have this become one; that this would be for everyone, not just kids. Mr. Beach also stated that during discussion of civic center committee, it was brought up that this is one thing that could be housed at a civic center.

Mr. O'Leary stated he that a potential problem would be parking, which is quite limited (could see lot of buses coming in). Ms. Uyehara stated she could see lot of traffic as being school age children during school day. Mr. O'Leary also stated that the front of the building is pretty awful, with store front across both buildings, that if grant approved, etc. they could discuss storefront grant. Mr. Hanson questioned whether this could better be handled through Growth Fund because of potential jobs; Mr. O'Leary stated this is not economic development.

There was some discussion re. hiring of individuals, whether local or brought in from outside. Ms. Uyehara stated that some of the jobs are education curriculum writing oriented, and some technically oriented - setting up networks across state, trouble shooting problems, which probably local, and computer animation not sure.

Mr. O'Leary stated they are also asking for donation of equipment in the building (9-11 desks, 8-10 computer screens/key board equipment which doesn't work with present system), and it was noted that all departments have been notified. Comm. stated they could possibly act on lease today and defer action on equipment.

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The question was raised as to how long the building would be adequate and how much money for renovation. Ms. Uyehara stated the building would be adequate for the 5 years, doesn't know how long adequate for children's museum; and would have to wait until have architect in to get costs, etc., renovation more reasonable than building new building. The committee suggested that she investigate the possibility of some kind of help from Convention & Visitors' Bureau. She stated that they have had marketing study done which indicates strong support for a children's science center in this region, and this there will be graduate student doing an economic impact analysis to find out what might be destination and wealth generated by a children's science museum in Grand Forks.

Moved by Hanson and Beach to approve offer to lease the Bill Larson Company building, contingent upon review by the appropriate City officials. Motion carried.

Hanson suggested to Ms. Uyehara that either staff or council member be included on Board. Mrs. U. stated they would consider the suggestion.

2. Matter of sidewalk bids at Burdick's Subdivision.
Curt Siewert distributed copies of bid tabulation, that they requested 3 quotes for sidewalks around 48th Street in front of new houses for approx. 900 l.f. of sidewalk. He reported two bids received with same price - $1.90 sq.ft. from Opp Const. and SM Kalenze Const.; however, Opp Const. can do work immediately and complete within 3 days, whereas Kalenze stated it could be couple weeks. Committee expressed concern and there was some discussion about time constraints, and that Mr. Opp appears to be in better position to complete contract. Moved by Hanson and Beach to accept the bid of Opp Construction in the amount of $1.90 sq.ft. as being in best interest of the City. Motion carried.

Mr. Seiwert reported that Mr. Hanson had called auditor, that this can be handled by committee (committee can authorize up to $10,000). (comm. only)

3. Matter of HOME grant to Continental Homes.
Mr. O'Leary reported that a memo had been sent to the committee members re. this project, that Continental Homes is a non-profit corporation which shares the same Board of Directors as Grand Forks Homes, which is a collection of churches. He reported that there has never been much money in this project since they took it over and it's time to do some remodeling.

Sue Redman introduced Jeff Schaumann, student intern, who is working in their office part-time, that he will be a senior in Public Administration, and he will be working on affordable

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housing study, writing grants, and learning functions of local government.

Ms. Redman reported that Continental Homes built in 1969, Section 8 housing project, and has a HUD mortgage insurance (HUD has set rental rates over the years) and is a non-profit owner since that time. She stated that these projects have had a history of delayed/deferred maintenance; that's what has happened to these units; some basic things need to be done (boiler replacement, thermostat replacement, lot of modernization or energy efficiency work needs to be done to make more manageable and affordable. She stated they need updates in the apartment units: to install showers with proper ventilation, kitchen cabinets need to be replaced, siding starting to warp, windows need to be replaced; and that project reserves can be built up so that other items which need to be replaced can be taken care of by the non-profit owner. She reported that the Housing Authority took over management in 1972, and Joel Manske has been working with HUD to try to do some things - change in rent structure; and will help keep as a low housing project in Grand Forks. She reported that there are also two other mortgages on the property, so HUD wouldn't allow taking out another loan to do the work, so are proposing that the City apply or use its HOME funds set aside of approx. $250,000 and also $150,000 in project reserves would be used to complete items.

The committee questioned why three mortgages on the property; Mr. O'Leary stated because the original mortgage is forty years and
rents have never allowed project to put any serious money aside of replacement, that it was built by labor unions and after that donated to Grand Forks Homes, so the $150,000 being put into the project by Grand Forks Homes out of reserve for replacement about taps their replacement account, that this will take care of lot of replacement items. He stated that rents have been adjusted but well below fair market and will allow management to start putting some money in reserve for replacements. He noted that some maintenance has been done, this project to take care of those deferred maintenance items at one time. He also stated this is 3 24-plexes (for total of 64 units), and located north of 24th Avenue N. off 17th Street (behind Library). Ms. Redman also stated they are proposing putting playground equipment here.
She stated they have talked to Denver and they are very suppor- tive as well as the State where grant applications submitted.

It was noted that tenants pay 30% of income for rent, balance paid by HUD, who sets rental rates; Housing Auth. has been pursuing increased rents, this doesn't impact tenant. He reported that Joel Manske and Terry Hanson working on developing long term capital improvements programs for all of their projects, which means they put everything on a schedule (refrigerators, stoves, flooring, roofing and sidewalks); that

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each year they depreciate out that schedule so when something needs to replaced will have resources to do it. Mr. O'Leary noted that 3 mortgages - HUD has mortgage insurance; main mortgage holder is Bank of North Dakota, Workers' Compensation Bureau and Great West Life and all stemmed from the beginning of the project; HUD won't refinance.

Moved by Hanson and Beach to approve application to the State of North Dakota for HOME grant in the amount of $250,000. Motion carried.

4. Request from UND re. beautification funds.
Curt Siewert reported that UND submitted proposal to complete bricking of center median on University Avenue for entire block however project not funded totally and they are requesting to change their application to do a small section of the island at a cost of $4,578, and to use the $1,722 remaining from original budget of $6300 as match for tree planting project in conjunc- tion with the Park District along Columbia Road. There was some discussion re. cost of installation of brick pavers.

Moved by Hanson and Beach to approve request. Motion carried.

5. Budget amendment.
a) Urban Development - $27,432.00
Terry Hanson reviewed budget amendment to transfer 1994 net revenue on Linnell Bldg. (Ecolab) to General Fund. Moved by Hanson and Beach to approve the budget amendment. Motion carried.

6. Request to use Pillsbury Park on June 29 for concert.
Mr. O'Leary reported they received request from Dick King to present concert on evening of June 29 from 7:00-9:30 p.m., that Urban Development Office responsible for maintenance and develop- ment of that park. Moved by Hanson and Beach to approve request. Motion carried.

Mr. O'Leary suggested that requests for use of riverbank come to this committee rather than public safety, also items to do with riverboat; that they clean and maintain and need to have input re. use of it - to participate in process. Hanson suggested that perhaps Bikeway Committee needs to be involved also.

7. Matter of FTZ building change order.
Mr. O'Leary presented change order for the FTZ building expansion, that cost of expansion being passed through to tenant; that this is first change order on the project and was submitted by TAG through architect to upgrade exhaust fan at cost of $1,780. He noted there is about $25,000 in contingencies and if spent will adjust rent accordingly. Moved by Hanson and Beach to approve the change order. Motion carried.

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8. Matter of detox center (Info. only).
Chairman Beach stated that he toured detox facility in Fargo, and will visit privately with anyone wishing to and answer any questions he can.

Hanson and Beach moved to adjourn at 5:20 p.m.

Alice Fontaine, City Clerk
Dated: 6/01/95.