Committee Minutes

MINUTES/URBAN DEVELOPMENT COMMITTEE
Wednesday, August 14, 1996 - 4:00 p.m.

Members present: Hanson, Polovitz.

1. Matter of purchase of property at 621 S. 4th Street.
John O'Leary reviewed background on this property which is located in the block that City is in the process of acquiring for the expansion of the water plant; that this house is in the process of being foreclosed upon by HUD and they want 7-day window and unless timing right City may lose opportunity to purchase (Housing Authority has opportunity to purchase at 10% reduction in price than if sold on open market.) He also reported that an individual has been in contact with Housing Auth., wants to purchase house and then sell back to the City. He stated that this house in poor condition and should be acquired now, and that he didn't think purchase price will exceed $20,000. Mr. O'Leary asked for authorization for staff to negotiate purchase price with HUD to purchase the property with the intent to sell to the water treatment plant; that he is somewhat concerned because don't want to purchase with HUD money; and that as soon as negotiate purchase price with HUD, cut check and be reimbursed by City.

Chuck Grotte, asst. dir. of public works, stated that there are 3 lots remaining after this one, and asked that they recommend funding for this purchase in their motion so that they wouldn't have to go back to public service which would delay for another two weeks.

It was moved by Polovitz and Hanson that we authorize staff to negotiate purchase price with HUD, that the Housing Authority purchase property and that the purchase price be reimbursed by the water treatment fund. Motion carried.

2. Matter of application for funds for FY 1996 HOME Program.
Mr. O'Leary reported that they are asking for authorization to apply for HUD money, had opportunity to submit application to the State for the $413,227 plus $28,925 in Admin. funds through State's Home Program and have suggestions what would constitute program: 1) Amendment to Phase A (Cherry Heights) Project - $57,000; 2) Homebuyer Assistance, $150,000, and 3) Affordable rental housing for elderly and disabled households, $206,227.
He reported that the program doesn't require any match, match has been waived and staff encouraged committee to go after funding and pursue projects.

Sue Redman, Housing Coordinator, and Joel Manske, Director of Housing, reviewed the proposed projects under the program.

1. Amendment to Phase A (Cherry Heights) project: replace appliances that are 25 years old, paint individual apartments, and install 40 exterior electrical outlets which will be on time clocks (this item was deleted from parking lot project). It was

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noted that this housing project owned by Grand Forks Homes, and their property is on the tax rolls. Mr. Manske reported that this will complete renovation of that project, and property will have increased property value. It was also noted that Grand Forks Homes will contribute one-quarter of the project cost.

2. Homebuyer assistance: Ms. Redman reported that funds can be used in variety of ways, down payment and closing costs, (equity) buydown or interest subsidy, or rehab.; and propose to have in the form of delayed loan to be repaid if property is sold. She stated that under the program loan repayment is derived from the net proceeds of the sale and original home owner would have to be paid equity and value of capital improvements and after 5 years, first $5,000 would be forgiven if property sold and remainder repaid. She stated that the resale proceeds considered program income. She also stated the program administered by State of North Dakota, deal with Bismarck and 50% of any program income has to be returned to the State, and they would like to propose that 100% be retained by the City to continue the program. Mr. O'Leary reported there are very few HUD houses foreclosed upon, but there are 3 or 4 houses likely to be foreclosed upon and this is opportunity to put residents into those, and that committee has some flexibility on loan forgiveness, first $5,000 forgiven if sold house, however, anything over and above that would be lien on house and expect repayment when house sold.

3. Affordable rental housing for elderly and disabled households: Ms. Redman stated they could use funds to purchase housing for elderly and disabled.

Moved by Polovitz and Hanson to authorize staff to submit application with the three components: 1) Amendment to Phase A (Cherry Heights) Project; 2) Homebuyer assistance; and 3) Affordable rental housing for elderly and disabled households. Motion carried.

3. Matter of public hearing and opening for 49-day comment period for the Grantee Performance Report of the 1994 CDBG Emergency Supplemental Program. Terry Hanson distributed copies of the Grantee Performance Report and reviewed with the committee; that back in 1993 and 1994 they received grant of additional funds, funds expended within 2 years; in December 1995 the 1993 grant period ran out and they filed final report; this grant expired on June 30, 1996. He reported that funds used for Richard's West flood mitigation project, along with additional State fund and EDA funds in high-tech park. Mr. O'Leary reported that office of urban development assisted in getting funding, almost $1 million for Richard's West area; and that residents of Richard's West will not be assessed for any costs for the storm sewer project.

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Mr. Hanson reported that this report required to have 30-day comment period but because of timing for next meeting, would be 49-day period, and also have to initiate public hearing; after comment period which ends October 2, report will be forwarded to HUD.

Acting Chair Hanson declared the public hearing and the 49-day public comment period open.

4. Creation of accounting technician position.
Mr. O'Leary reported they have couple permanent part-time employees in their office, neither wants to work full time and would like to turn into job-share position, and would like to look for authorization to make into job share permanent part-time position, would have access to health benefits, but wouldn't have access to retirement and wouldn't have same protection as other city employees. He reported that one employee has worked over three years and the other one year. He stated they would need to create the position, advertise and go through formal process.

Terry Hanson distributed copies of new job description from current study for accounting technician, jr. accountant description and Account Clerk and staff's job description, and they are proposing to let Human Resources determine which category this position falls into.

Mr. O'Leary stated only increase in cost to the agency is for benefits, wages would stay in current range, one position 100% Housing Authority, and one position 50% Housing Auth. and 50% Community Development.

Moved by Polovitz and Hanson that we authorize creation of the position and forward to Civil Service Commissionfor classification. Motion carried.

5. Matter of water drainage problem at Senior Citizens Center.
Mr. O'Leary reported that he had visited with Jim Bollman who is on the Board, that water running into Senior Citizens' Center in low areas where the ground has settled and water ponds, that they have received bid to backfill areas around building and establish grass for $1200. He stated they could take $1200 out of Riverbank project and obligate to Sr. Citizens Center to take care of the drainage problem.

Mr. Polovitz noted that area around Sr. Citizens Center needs landscaping, and Curt Siewert suggested that he would visit with them re. submitting application under Beautification project for next year.

Moved by Polovitz and Hanson to transfer $1,200 from the City
portion of Riverbank Park to Senior Citizens Center. Motion
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carried.

6. Matter of fencing around property at 509 S. 3rd Street.
Acting Chair Hanson reported that John Buegel, 509 South 3rd Street, had called him re. fencing of his property (because of July 4th fireworks display), and would like done before 4th of July next year, est. cost $7500. Mr. Hanson reported it had been suggested that payment of cost be one-third each by City, Sertoma and Mr. Buegel; and that Sertoma has agreed. Mr. O'Leary stated that Mr. Buegel applied for project under CDBG, however, some question whether this project would make list; and suggested possibility of budgeting $2500 in Beautification Fund for riverbank, and would agree that if this were done, Sertoma and Mr. Buegel should share in the cost. Committee questioned how City involved, and Mr. O'Leary stated that City owns riverbank park area and allows Sertoma to use for their July 4th celebration and not sure whether that makes it our problem. Information only.

Moved by Polovitz and Hanson to adjourn; meeting adjourned at 5:00 p.m.

Alice Fontaine
City Clerk

Dated: 8/15/96.