Committee Minutes

MINUTES/URBAN DEVELOPMENT COMMITTEE
Wednesday, March 27, 1996 - 4:00 p.m.

Members present: Beach, Glassheim, Hanson.

1. Storefront applications:
Mr. O'Leary distributed copies of storefront applications totaling $79,200, and reported that there is $45,000 available for distribution in this fiscal year (from January 1). Curt Siewert reported that they had invited applicants to appear and speak to their applications.

Chairman Beach presented applications, and invited reps. to speak to their application. He stated he was not sure they would take action today.

#1 Unique Impressions, 424 DeMers Avenue - $3,000
Tamara Hennessy, owner of Unique Impressions, stated they are looking to do some renovation; lamp posts on berm, lighting in back, repair stucco and replace old wood, as well as some repair to the roof (which causes water/ice problem on sidewalk).

Mr. O'Leary reported that the purpose of the storefront program is to get buildings occupied; that Lander (previous owner) had tif on building which is being paid off; and that they also did a storefront project on the building. Ms. Hennessy stated she purchased building, and this is first application.

#2 American Building, 211 S. 4th Street - $12,500
Project consists of new windows, sidewalk and signage.
Mr. O'Leary reported this is two-story brick building, and Mr. Lerud trying to find tenants for the building.

Mr. O'Leary stated that there was some money obligated previously but owner didn't proceed. He also noted that staff is recommending that applicants be given 60 days to proceed with project or they will re-obligate monies.

#3 Windmill Building, 213 South 3rd Street - $3,500
A rep. of R & L Oil Ventures reported they purchased building last September and are pursuing new occupants, negotiating with individual now. He reviewed proposed project and noted that they plan to do entire project whether cost over $7,000 or more, they will do $50-60,000 in renovations to interior of building and will clean up back area as well. It was noted that there are delinquent taxes on the property, and he stated they are in the process of paying off the taxes. Committee noted that if this project awarded funding, it might be contingent upon payment of those taxes.

#4 Empire Theatre, 415 DeMers Avenue - $20,000
#5 Empire Theatre, 419 Demers Avenue - $5,000
Kay Kjelland, North Valley Arts Council, presented projects for refurbishing marquee, new windows on upper story, remove

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granite from lower level, restore existing brick work, new wood frame/glass entry doors on the Theatre building, and continuation of the project onto the building next to the Theatre, which is currently occupied by the Dakota Shopper (lease up end of May).

It was noted that the North Valley Arts Council has requested and received funds through other programs (CDBG, Human Needs, etc.) Ms. Kjelland stated that this is one-time request (that they have a $1.4 million project) Mr. O'Leary reported that they were awarded CDBG funds to help with architectural fees for design, that should be considered separately; this isn't eligible for TIF financing. Ms. Kjelland stated they will proceed with project this spring, and that adj. building part of this project.

#6 GF Mercantile Building, 124 N. 3rd Street - $10,500
Lonnie Laffen reported that project is to install complete storefronts; that renovation project is a half million dollar project, and they did get TIF for $100,000. He stated they are replacing windows and entry doors, replacing elevator entrance in the back to make front on the river side; and will do chemical washing of brick to remove paint.

#7 Dacotah Arms, 114 North 3rd Street - $6,300
John Satrom, rep. Midwest Investments Company, stated that there are 15 apts. on two top floors, main floor Modern Information Systems; that project consists of cleaning, tuckpointing and replacing of brick to return to original surface. paint windows and metal flashing; with same look and character as GF Mercantile building. Mr. O'Leary stated that both of these projects (GF Mercantile) and also Windmill have lot of visibility from the riverbank. Mr. Satrom stated they will start project across street in 2 to 3 weeks.

#8 Steen Building, 137 South 3rd Street - $4,400
Mr. Satrom stated this building owned by Satrom Real Estate, that there are 7 apts. and reviewed project (repair fire escape, repaint rear of building, replace wood porch framing with steel, remove excess wiring and redo downspouts).

#9 Hoffman Building, 311 Kittson Avenue - $7,000
#10 Hoffman Building, 311 Kittson Avenue - $3,500
Mr. O'Leary reported that David Badman is negotiating sale of the building; Mr. Badman will have apartment on second floor and jewelry business on main level. Project consists of replacing windows, sign, door and awning on building front; and replacing windows removing siding and reclaim brick on rear of building.

#11 Creative Camera, 18 North 4th Street - $3,500
Mr. O'Leary reported they did storefront on this building 8 years ago (awning and signage), owner would like to do more extensive repair to the building.
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Presentation of the application was completed, committee held for 2 weeks (to April 10).

B.Hanson excused.

2. Matter of Home Program amendment request.
Sue Redman submitted proposed projects for 1995 Home Program grant. Mr. O'Leary reported that each year City receiving funds, $3.3 million available to entire State; distributed to non-profit and small cities; out of amount set aside for entitlement, 41% to Grand Forks, which is down about $24,000 from last year. He reported that staff prepared proposed projects which go to assist non-profit organizations to provide affordable housing.

Ms. Redman reviewed the four projects for the 1995 Home Program, which totals $436,068 in project funds and $30,525 for administration:
1) Amendment to Continental Homes Project - $236,000
additional funds to be used for showers, flooring and kitchen cabinets; 63 of 64 units will be Home assisted; project owner providing $150,000 in funding; and project based rental subsidy scheduled to end in 1997.
2) Amendment to 110 Cherry (Phase A-60 units) - $100,000
update mechanical system, common area improvements, water heater replacement, 304 wheelchair accessible apartments and flooring;' 60 of the 76 units will be HOME assisted, project owner will provide $140,000 in funding, project based rental subsidy scheduled to end in 1997 and 1998.
3) Faith & Hope renovations - $75,068
2 group homes (1407 10th Ave.S. and 1211 10th Ave.S.): roofing and siding replacement, and accessibility renovations required at one house. 12-plex for persons with disabilities (2500 14th Ave.S) roofing/ventilation, entry repair, etc.; project owner will provide $20,000 in funding.
4) Accessibility for transitional housing, 1902 24th Avenue South - $25,000
Continental Homes is owner, but leases to NE Human Services
HOME Program funds will be used to make entrance and interior rooms accessible.

She also noted that under 1996 HOME Program application, they will develop a proposal of up to $300,000 in home buyer assistance for low and mod/income families for in-fill housing and Burdick housing to be ready when grant funding is approved at Federal/State levels.

Mr. O'Leary noted that Continental Homes very similar to Grand Forks Homes, same board members, etc. but two separate non-profit organizations.

Moved by Glassheim and Beach to approve the request and proposed MINUTES/URBAN DEVELOPMENT COMMITTEE
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projects for the 1995 HOME Program Grant in the amount of
$436,068 in project funds and $30,525 for administration. Motion carried.

3. Close public comment period for CDBG Grantee Performance
Report.
It was reported that no comments have been received during the public comment period. Moved by Glassheim and Beach to close the public comment period. Motion carried. (comm. only)

4. Annual report for Growth Fund.
Mr. O'Leary reported that 250 copies of the reports were made and distributed to various organizations; that they want to have available to the public.
There was some discussion relative to information in the report on various applicants, funds, etc.

5. Matter of budget amendments:
a) Urban Development - $914,598
Amendment to carry over unexpended 1995 funds and increase contingency balance by same.
b) Urban Development - $10,004
P.O. #2199307 was closed out as of 12/31/94 with a balance of $10,003.39.
c) Urban Development - $44,479
Cash carryover for Beautification for unexpended projects.
Terry Hanson reviewed amendments with the committee. Moved by Glassheim and Beach to approve. Motion carried.

6. Matter of Richard's West youth center.
Curt Siewert reviewed change order in the amount of $1,356.97; change header height for all exterior doors, added entrance walls on interior side of warming house side of project consisting of framing of studwalls, sheathing, and applying glassboard to one side of wall; installation, framing for additional interior door for entrance into furnace room, etc. and additional materials supplied and labor to install anchor bolts. He reported the project is completed and occupied; and change order within budget. Glassheim and Beach moved approval of the change order. Motion carried.

7. Matter of Affordable Housing proposal.
Copies of proposal from Grand Forks Homes, Inc. to develop affordable single family housing in Burdick's Resubdivision had been distributed to the committee.

Mr. O'Leary reported that the architect for the project, Kent Anderson, has been working on revising the first draft of the plan; and that the proposal is that Grand Forks Homes, Inc. would sponsor the construction of 7 houses, cash flow would be handled by Grand Forks Homes through a construction loan, and a number of MINUTES/URBAN DEVELOPMENT COMMITTEE
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the banks have indicated interest in this. He stated that the HOME money would be used to assist low income families in buying houses and would also hope to put on the market and sell to medium income families, so have blended neighborhood.

Mr. Glassheim stated that he is a member of the Board of Habitat for Humanity, but has no financial interest in the matter.

Moved by Beach and Glassheim that the City make a gift of seven (7) lots to Grand Forks Homes, Inc. and two lots to Habitat for Humanity in the Burdick's Resubdivision for the development of affordable housing. Motion carried.

Meeting adjourned at 6:00 p.m.

Alice Fontaine
City Clerk

Dated: 03/28/96.