Committee Minutes

MINUTES/URBAN DEVELOPMENT COMMITTEE
Wednesday, July 10, 1996 - 4:00 p.m.

Members present: Beach, Hanson, Polovitz.

1. Matter of cleanup of riverbank boat landing area.
Curt Siewert, Community Development, submitted pictures of the area taken on Monday, and reported that Mr. Lester has proceeded to clean up the area, area has been seeded, including area north of the Chamber where boat was stored. He reported that there are two items left: trees have not been replaced and there were 6 trees moved off site to another part of the river- bank (north of the Chamber but would not have been moved except to make room for RR track for boat storage), and that $540 bill has not been paid. Paul Lester reported he has contract with All Seasons for 10 trees to replace trees that were destroyed and/or removed, complete replacement by his count; and that property staked to show location of plantings. He also stated that he wants to terminate lease, as he has been maintaining (mowing) that area of the riverbank. Mr. Siewert disagreed with Mr. Lester, that by his count there were 7 trees destroyed, and in addition 6 trees moved off site; value of trees not equivalent; however, Mr. Lester stated these were biggest trees they could get at All Seasons.

After further discussion, it was moved by Hanson and Polovitz that we release Mr. Lester from any more responsibility for the property. Motion carried.

Mr. Siewert stated he will coordinate planting of trees with All Seasons.

2. Matter of financing for water damage at Continental
Homes.
John O'Leary, director, Urban Development, reported that a few weeks ago committee approved some assistance to help with
financing for water damage that occurred as result of leaky roofs. Mr. O'Leary reported they had rehab project in process at Continental Homes, which is owned by non-profit corporation Grand Forks Homes; that contractor, DuBois & Sons out of West Fargo, started the work, opened up roofs on three buildings and then rained. He reported they had to relocate 23 families off top floors of the buildings, sheetrock damaged, light fixtures, etc. personal damage; first and second floors also damaged (mildew starting on outside of the buildings), etc.; contractor did respond. He stated that many tenants developmentally disabled, some mentally ill, etc. He stated that most damages are going to be recoverable from the insurance company, now doing assessment of damages. He stated that Grand Forks Homes doesn't have any money to provide immediate assistance to the tenants and to respond to the damage. He reported that families relocated out of the top floors have been permanently relocated to other apartments because damage to top floor apartments quite extensive; and that's not going to cost anybody any money because MINUTES/URBAN DEVELOPMENT COMMITTEE
July 10, 1996 - Page 2

issued those families vouchers/certificates. He reported total estimates well over $100,000; and also reviewed cost estimates incurred by the Office of Urban Development (relocation costs, Wynne Consulting, $10,000; moving costs, $10,000; meals and hotels, $1,300, personal property, $3,000, staff time, etc.); and they expect to recoup those expenses. He stated they don't expect more than $30,000 out of pocket expenses but have cash flow problem; and is requesting an additional $20,000 to cover those expenses, with understanding that they will do everything possible to recoup as much as they can from the insurance company. He reported they have one of their staff persons assigned to the project to assist the tenants in negotiating out a settlement.

He reported they have $110,000 in CDBG contingencies and have been in contact with HUD and they understand Community Development will go back to insurance company to recover expenses. Continental Homes insurance has been alerted (not personal property but structural damage), but unlikely their insurance company pay anything.

He also reported that Schoen architectural firm had been hired to design outside improvements (not a construction manager); and Comm. Dev. retained Schoen to work with insurance company on settlement because on site; and they came up with itemized listing apartment by apartment.

Moved by Hanson and Polovitz that $20,000 be transferred from CDBG Contingencies to Continental Homes to assist with costs incurred as a result of water damage. Motion carried.

4. Matter of Central Business District Authority river-
bank access project.
Dick Jackson, CBD Auth., reported that Park Authority started to do renovation on some of their lots; that in 1995 requested funds from CDBG and received $4,000 for a sidewalk (walkway) and stairway to access the Bridge Lot (behind Pink Hanger bldg. and Dacotah building) and will be improving that lot by blacktopping and lighting, and will try to change grade at 2nd Ave. entrance/ exit. He stated they are requesting an additional $10,000 for that project along with the $4,000; and Parking Authority pay difference in cost (Opp Construction bid came in at $22,850). He also reported that the total cost of improvements est. $80,000). Mr. O'Leary reported they could put $10,000 in and not run into any problems with HUD regulations.

Curt Siewert reported that River Forks Commission has pulled their funding for the bike trail loop (item 3 on the agenda) and that loop will not be going in.

Moved by Polovitz and Hanson that $10,000 be transferred from

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Contingencies to the Riverbank Access project. Motion carried.

3. Matter of Riverbank Bike Trail.
Curt reported that River Forks Commission has pulled their funding and the proposed loop deleted from project.

5. Matter of Adopt-an-Area for City Hall.
John Staley, Park District, reported that they have new group and new site for 1996 and are requesting approval; that policy had been established that new groups and sites are to be approved with Mr. Bushfield, Mr. Vein and Mr. O'Leary to review sites and assess impact, etc. and to comply with that policy are presenting request. He reported that site is at City Hall, islands in the parking lot west of the building with Planning Department volunteering to do the work; and they hope to get project underway by August or September, come up with design, etc. It was noted that funds come from Beautification budget.

Moved by Polovitz and Hanson that the city council approve request from Planning Department to adopt City Hall parking lot islands as an Adopt-an-Area project. Motion carried.

10. Bids for utilities for Industrial Park expansion.
Dean Weiland, CPS, Ltd., reported they had bid letting for utilities in Industrial park expansion; that City had applied for EDA grant for property located in the Industrial Park (west of Armory and south of existing Industrial Park) and received $1 million which was matched with $600,000; and these are results of bidding for underground (sanitary sewer, storm sewer, watermain, paving and street lighting) to serve about 35-40 acres. He reviewed tabulation of bids received, and received excellent bids. He reported that Molstad Excavating low on utilities, and Opp Const. low on the street lighting and paving., and would recommend to award and proceed based on EDA concurrence. It was noted that this infrastructure will serve Cirrus building, and other areas as well.

Moved by Hanson and Polovitz to accept the low bid of Molstad Excavating for underground utilities in the amounts of $101,158.00 for Sanitary Sewer Project No. 4492, $133,844.00 for Watermain Project No. 4493 and $302,374.00 for Storm Sewer and Holding Pond Project No. 4494 for a total of $537,376.00, contingent upon EDA concurrence. Motion carried.

Moved by Hanson and Polovitz to accept the low bid of Opp Construction in the amount of $435,336.60 for Paving and Lighting Proj. No. 4495, contingent upon EDA concurrence. Motion carried.

6. Matter of acquisition of slum/blighted building at 923
University Avenue.
Mr. O'Leary reported this building located on RR tracks at

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923 University, building owned by S.M. Kalenze and land owned by the Railroad; that they have informal agreement with Schoen and Kobetsky, owners of the Kedney Warehouse building, that if the City acquired building and demolished it, they would maintain the property. He stated that building is eyesore and ideally suited for the slum/blight removal program; estimated total cost $10,500 (including acquisition, environmental testing, demolition, and landscaping and grass) and there are funds available in the Acquisition & Demolition account if committee chooses to proceed. Committee questioned whether RR would have ability to veto removal of leasehold improvements; Mr. O'Leary stated they have checked and RR does not. Mr. O'Leary reported they will have agreement between City and Schoen for maintenance prior to demolition; Kalenze willing to sell building. He also stated they will do environmental testing prior to acquisition.

Moved by Polovitz and Hanson that an amount up to $10,500 be authorized for the acquisition and demolition of property at 923 University Avenue and to authorize proper City officials to accept bids for demolition. Motion carried.

7. Matter of Children's Science and Technology Education
Foundation to rescind offer of use of Bill Larson bldg.
Mr. O'Leary reported that six months ago council authorized leasing of the Bill Larson building on 4th Street to this group who was going to use the value of the building as match for a grant, grant didn't come through, and they have letter from Ms. Uyehara asking them to terminate that offer, so is a matter of rescinding offer to lease building to the Foundation.

Mr. O'Leary stated this probably good candidate for the Acquisition/Demolition Project, but looked at and it's very expensive to tear down that building because of hole it would leave in ground, refinishing of adj. buildings, asbestos in the building, etc. Mr. Siewert reported that he will be bringing in request in the next month or so from Parking Authority to obtain the building.

Moved by Hanson and Polovitz to rescind offer to lease the building. Motion carried.

8. Matter of A/E fees for Cirrus Building.
Mr. O'Leary reported that previously council approved paying up to $80,000 from Growth Fund (Economic Development Fund 2631), and this request is for authorization to pay up to the balance of the A/E contract which is $175,000 and funds would be reimbursed from the revenue bond proceeds; funds are available. Schoen & Associates is architect on the project.

He also reported they opened bids on Cirrus building, low bidder

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made error and asked to be released from his bid and will have something prior to Monday evening (will have meeting Monday evening to make recommendation re. bids).

Moved by Hanson and Polovitz to approve $95,000 from economic development funds to pay balance of A/E fees for the Cirrus Building. Motion carried.

9. Matter of easement for rental rehab funded project.
Mr. O'Leary reported that at one time they had rental rehab account where they gave low interest loans to landlords to remodel their apartments; that when they gave out loan, put lien on the property; and in this instance property owner wants to run easement for utilities through his property to access an adjacent pc. of property he owns. Property is located at 2603 7th Avenue South and is owned by Terry Farder and Virgil Stenberg.

Moved by Polovitz and Hanson that an easement be granted contingent upon review and approval by the city attorney. Motion carried.

The committee scheduled their next meeting for Wednesday, July 31, 1996 at 4:00 p.m.

Meeting adjourned at 5:10 p.m.

Alice Fontaine
City Clerk

Dated: 7/11/96.