Committee Minutes

MINUTES/FINANCE COMMITTEE
Tuesday, December 23, 1996 - 12:40 p.m.

Members present: Carpenter, Babinchak, Bakken, Hamerlik.

1. Matter of amendment of Greater Grand Forks Convention &
Visitors Bureau by-laws.
Terry Atkins, pres. of CVB task force, reported that major change is in make-up of the Board, reduced from 14 to 12 and who makes appointments; that proposed changes made because of concern to make Board more representative (to allow 2 at large members); provision for removal of Board members. Mr. Hamerlik questioned why this matter was before finance committee; Mr. Schmisek stated that because City approved hotel/motel tax, requires them to submit annual audit. There was some discussion re. ex officio members, whether excluded from voting, etc. Mr. Schmisek stated he would ask CVB for memo outlining changes or highlighted copies of current and proposed by-laws showing changes. Held until 6:45 p.m. on January 6.

2. Matter of application to ND State Revolving Fund Program for
South End Drainway, Project No. 4440.
Held in committee for January 14 meeting.

3. Matter of Air Cargo Study contribution.
Bob Selig, exec. director of Airport, reported that City had offered a contribution of $15,000 subject to match from County of Grand Forks, that he met with County and they offered contribution based upon percentage of assessed valuation (70% lies within City and 30% lies outside of the city) and they would match up to 30% of whatever the City contributed or $4,500 (based upon a City contribution of $15,000 which is 70%). He asked that the City accept that as a legitimate contribution and move on. He reported funding for the study is as follows: EDA, $25,000, Regional Economic Development Council $2,500, City $15,000, County $4,500 = $47,000 and Airport Authority pay balance of the $75,000 total cost or $28,000. It was noted that MPO has committed $16,000 on the intermodel study.

Moved by Bakken and Babinchak to reconsider its original motion. Motion carried.

Member Babinchak stated she felt it was important to have this study and moved to authorize the $15,000 contribution. The motion was seconded by Bakken. Motion carried.

4. Matter of TIF/Exemption for former post office property at
311 South 4th Street by Innes Construction.
Mel Carsen, city assessor, reported that about year ago Innes Construction contacted his office re. possible TIF on the post office property and at that time it was considered a small issue and City not too interested; however, since then the City has put in place procedure where it could combine several TIF's and sell one bond; that he contacted Innes Const. re. 3-year remodeling

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December 23, 1996 - Page 2

ap. but they didn't qualify because it has been more than 30 days since they started the project. He stated they then discussed TIF, that they have put together some figures and are leaning more towards tax increment exemption. He noted that they do not have anything in writing, but only verbal request.

Jeff Johnson, stated that he works for Innes Construction but is also one of the owners of the building. He stated initially the building was going to be warehouse storage but have had people interested in commercial office space and willing to make commitments (they currently have 2 tenants in the building). He stated they now have to make decision whether commercial office building or warehouse. He stated they did est. cost, approx. 35-40,000 leasable space, est. of exterior remodeling, total est. cost $849,000 in improvements. He stated they need to find out if there is help out for them to go with commercial office space, and that 10-15 year tax exemption is better for them.

There was some discussion re. timelines and Mr. Carsen stated that the assessment date is critical thing, that now dealing with building as evaluated last February 1, and if put either tax increment or exemption in place, property valuation froze at 1996 figure. If go past February 1 would have to take another look at the building and reappraise as they have done some work to the building. Mr. Carsen stated there are several steps that would have to be done: 1) determination that property is slum/blighted property (Planning and Zoning would have to make that determina-
tion) and prior to that determination by this committee or council to proceed with an exemption; 3) that after that determination is made comes back for public hearing; that negotiations can take place as to number of years of exemption, etc. He stated there should be some way to measure level of need or how much public funds put into project to make viable project.
Carpenter stated that if this property outside downtown area, would not be interested, not interested in TIF but perhaps tax exemption because it is downtown; and would like to see figures on projected financials for next 10-15 years (projected costs, income and expenses) Committee stated they are willing to look at and interested in doing something; would like to see some numbers.

After further discussion committee asked for further information, and also asked that they address parking, whether adequate, etc. Committee also stated they can't meet February 1 date and assessed valuation could be changed.

Held in committee.

5. Aps. for exemption of improvements to properties:
a) 311 Kittson Avenue, Ramesh Sharma

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December 23, 1996 - Page 3

Mel Carsen, city assessor, reported that this is former Hoffman Clothing building, apartments on second floor rehabbed as well as main floor, that application qualifies under City's guidelines. Moved by Babinchak and Bakken to approve 3-year exemption on the improvements. Motion carried.

b) 1416 8th Avenue North, Wayne Feltman
Mr. Carsen reported that this applicant serves as his own contractor, application meets guidelines and his recommendation is to approve. He also noted that remodeling started November 16 and application filed November 18, they have 30 days to file after starting work. Moved by Babinchak and Carpenter to approve the application and grant 3-year exemption on the improvements. Motion carried.

Hamerlik and Bakken moved to adjourn, and meeting adjourned at 1:30 p.m.

Alice Fontaine
City Clerk

Dated: 12/26/96.