Committee Minutes

MINUTES/URBAN DEVELOPMENT COMMITTEE
Wednesday, September 13, 1995 - 4:00 p.m.

Members present: Beach, Glassheim, Hanson.

1. Matter of amendment request from the Third Street Clinic.
Terry Hanson reported that in 1994 the City awarded the Third Street Clinic $10,000 in CDBG funds for computer equipment, that the software package (pharmacology) they were considering was not suitable for their needs and they decided not to purchase and are requesting other use of those funds, $6,500. He stated they have to go through process because substantial change from original request.

Karen Schelinder, chairperson, Third Street Clinic, stated reason was that they found that they did not need what was in the $6500 program.

Moved by Glassheim and Hanson to approve line item changes in budget as follows: $1,695.00 for contractual services to input data into system, $244.76 for purchase of supplies, and $600.00 for training of employees in lieu of the $6500 for pharmacology software package. Motion carried.

2. Matter of demolition of the house at 613 8th Avenue South.
John O'Leary reported that the City awarded grant to Housing Authority to purchase the dwelling at 613 8th Avenue South for $29,000; house located across from Charlie's Bakery on 8th Avenue, that there are duplexes and single family houses in this area. He reported that Housing Authority purchased house because needed substantial amount of work, support structures have been removed from middle of house and upstairs rooms sagged towards middle of house, basement needs to be replaced (steel siding on the house, house partially rewired), with idea of getting house out, the house is on 80x140' lot. He noted that Mr. Beach and Mr. Klave walked through house; and that it was staff's recommenda-tion to proceed with demolition of house because of cost to repair and bring to Code, and need to give some thought with what to do with the lot. (est. cost of demolition $3500.00)

A number of suggestions/options were presented and discussed: 1) In-fill housing program: finding design/plan for construction of house to fit neighborhood and sell house to low income family; 2) construction of duplex, with City to retain ownership, and rent through Housing Authority (however, there is a good garage on alley that they would want to save and might discourage construction of duplex on that lot; 3) Habitat for Humanity; 4) demolish house and offer lot for sale. It was noted that any costs recovered go back to CDBG and/or City (pro-rated).

Mr. Glassheim stated that Habitat going to try to build two houses in Burdick's next year, acquired lots through CDBG.

Mr. Beach reported that he received call re. this matter from
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September 13, 1995 - Page 2

realtor/builder/developer re. City in competition with private sector. (Mr. Beach stated when item comes back he will invite individual to the meeting.)

Mr. O'Leary stated that one of the reasons he is leaning towards Housing Authority or Habitat is that would then be able to claim low or mod. benefit if had lower income family in the house; and that 70% of CDBG money has to be for low and mod. benefit. He stated he visited with city attorney re. procedures they would have to follow.

Moved by Hanson and Glassheim to proceed to accept bids for demolition of the house.

Mr. O'Leary stated they will come back with couple plans for building to fit into that neighborhood, whether through Housing Authority or Habitat, low and mod. income will benefit.

Motion carried.

3. Information.
Mr. O'Leary reported that the proposal for the Title 9 Sudden and Severe Economic Distress Grant submitted, and has copies of pre-application for their review. He stated that EDA and Office of Economic Adjustment are in process of reviewing, and there needs to be clarification on this project; that the mayor and some council members have indicated $250,000 is being given to the Development Foundation to buy land in the Industrial Park; that the plan was that the City would own that land, not the Development Foundation, and that the City would own the infrastructure; that the City would be the applicant for this but that the Development Foundation would be the administrative agent to market land; the City would be holding company until in the hands of private parties. He stated that it is not the intent to develop 100 acres now, but leave as much as can for as long as can in private hands and on tax rolls until such time as need to acquire for economic development project. He stated that they have tentatively obligated a quarter of a million dollars to acquire land in the Industrial Park, the $1Million this application is for would be for infrastructure, and the acquisition of land would be used to match this grant; that we need $330,000 (not $250,000) and the plan is to put in the special assessments as balance of match, with preliminary estimates from engineering of $800,000 to $1 Million to do infrastructure and to expand utilities through the area. Information only.

4. Matter of land in Oscarville Subdivision.
Chairman Beach presented matter of doing something with land in Oscarville, to somehow bring that into industrial park concept. He stated those properties can't afford lot of special

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September 13, 1995 - Page 3

assessments and are already burdened by special assessments for street (that is distinctively industrial area around those few homes), and could City or some quasi-public entity acquire those homes and have in reserve as mini-industrial park until the space needed, Housing Authority could rent houses back to people that have been living in them.

Mr. O'Leary stated that normally they try to avoid relocation expenses; that some of those property owners would gladly sell their property at fair market value. He stated that they have program through CDBG - Acquisition and Demolition Program, that could fit in, and systematically acquire one or two every year. He stated that an option is to acquire, raze and put back on the market; that road benefits industrial rather than residential properties. He stated they can look at how much they might want to budget for this, look at assessed valuation of lots, and bring back as report at next meeting.

5. Mr. O'Leary reported that they have project on the boards to redo some things at LaGrave Park - putting in sandstone planter, do a flower garden, etc.; that they have become aware of large heavy antique cast-iron fountain (8 ft. tall, with two figurines) which might have some potential to be used in one of the parks; and will bring pictures to committee. He suggested committee consider, maybe as beautification project in one of small downtown parks. Held in committee.

Meeting adjourned at 5:10 p.m..

Alice Fontaine
City Clerk

Dated: 9/13/95.