Committee Minutes

MINUTES/URBAN DEVELOPMENT COMMITTEE
Wednesday, July 1, 1998 - 12:00 Noon

Members present: Glassheim, Beyer, Polovitz.

4. Matter of beautification funds.
Curt Siewert reported that each year the City levies 1 mill for city beautification, and in conjunction with Chamber of Commerce have beautification committee for the city, put notices in the paper that funds are available and ask that applicants to submit project applications. He stated they haven't done much beautifi-cation projects because everyone so busy but couple weeks ago did address one beautification project with the University, did approve and fund that project, and had told prior committee they would bring in applications as they come in if worthwhile projects. He submitted application from the Chamber of Commerce for landscaping enhancement in front of their building. He stated they have worked with the Chamber since the 70's on beautification and it came to a point where their capital improvements after flood were looking at improving the outside of their building, and thought this would be good program for the summer youth program in conjunction with the Chamber. He stated that beautification funds would only be used for landscaping, Chamber would fund the sidewalk replacement and the parking lot improvements.

Bob Gustafson, Chamber of Commerce, reviewed project application, that first phase is to take out some asphalt and concrete and do a landscaping plan in front of the building, and Bob Peabody, who chairs their capital improvements task force, is here today also. He stated that they propose to remove all of the parking they have in front of building, that in terms of driveup parking and curb and gutter, do a whole landscaping plan in front of the building, beautify exterior of their property. Proposal in front of committee describes project application in the amount of $25,000; the Chamber received $10,000 from the Downtown Rehab. Grant Program that would be designated specifically for exterior improvements, and with committee's support would have $35,000 plus whatever Chamber needs to commit. He stated to make up for removal of parking, will work with Planning officials to see if they can't expand their north parking lot, remove island on the west side and put parking on both west and east which would double that parking and more than meet their needs to provide space for tenants and meetings. He stated they would do some beautifi-cation at north end of their building, and need to attempt to be aware of DDC plans, and if trying to tap into resources of youth program, need to get moving on the project.

Dennis Potter, City Planner, reported he met with Mr. Gustafson and plan looks good but need to resolve issues relating to parking and that in turn rolls into streetscape issues, that they need to sit down with Chamber, go through parking issues, streetscape and design program that deals with their need to move quickly and have them aware of what longer term goal is and define how get there. Mr. Gustafson stated they understand their responsibility is with

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curb and gutter, sidewalk and whatever do in terms of streetscape, and possibly sidewalk entrances to their building to be included in this project. He stated they need to find out how much the project is going to cost.

Mr. Siewert reported they have $25,000 available in the fund; Glassheim stated he would like to see one time for beautification plan, rather than bringing in one project at a time. Mr. Siewert reported that's what they normally do - to call for aps. and do entire project at one time.

Polovitz moved to appropriate $25,000 for the project contingent upon approval of Planning Office and DDC; Beyer seconded the motion. Motion carried.

1. Matter of policy for Relocation Voucher Program.
Terry Hanson, Urban Development, reported that about two months ago council gave committee responsibility of deciding on requests for extension of vouchers. He stated that the history of the voucher program is that a resident of the city of Grand Forks can receive $10,000 or $15,000 in relocation money upon the sale of their home in one of the voluntary buyout programs currently in existence. He reported that Phases I and II are ending the end of August; and in order to get a relocation voucher have to complete the buyout, and once complete that have to purchase a new home to redeem the voucher. He stated they have had some requests to extend the deadline of the voucher, which is end of August, until a time as the southend development is open. He stated they would like from this committee and council is direction on how to respond to these specific inquiries about a southend development; their concern is that the southend development is not a sure deal, don't know when sure deal and if it is, when those lots would become available, and could be obligating holding these funds for 2 to 3 years yet. He stated that engineering wants to do infrastructure one year and not have lots available until the following year. He stated that item 1. they are requesting the committee to consider policy that they do not consider extending any vouchers for the reason of waiting until the southend development is available.

It was reported that the money for the voucher program is coming from CDBG and that money has to be obligated by June, 1999 and spent by June, 2000. Committee stated that they didn't see any new housing starts next year and didn't see how they could hold for southend development.

Terry Hanson stated that with voucher program, property owner has to have closed on new property; but do allow if have purchased lot and are under contract then can get voucher. Glassheim asked if there was a similar way to make funds available to them. Polovitz stated they got into southend development primarily because of the dike alignment and a lot of those people will fall under the

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relocation program and receive incentives for building or buying because of that, but doesn't see voucher program taking that place esp. with time they are under; that if someone wants to take advantage of that to look at lots on the open market now, and City getting into southend development and if providing vouchers for someone to get into a city project, might fall on private enter-prise turf more than want to; that there are some very nice lots out there now.

A letter had been submitted by Richard Kieffer stating that they wanted to appeal deadline of use of relocation voucher, that they have been unable to fine replacement housing to meet their needs, and their plans are to purchase a lot and start construction of a home in the new southend development. Mr. Kieffer stated that he has closed on their property.

Beyer stated they have to obligate money by June of next year and what they don't spend has to go back to the federal government, and asked if they want to obligate money that may not be expended in the following year. Glassheim stated unless there was some other way to make comparable amount available; Mr. Hanson stated he didn't see any other way unless City do under normal funding subsidy, and that will come with the relocation and be required to provide a comparable lot. Mr. Hanson stated that under Phase I and II there's definite deadline on when stop, and Phase III are damaged to a point where not being lived in, and those three buyout programs and the voucher program is developed to assist those people in finding a new place to live and encouraging them to build and stay in the city of Grand Forks to keep the tax base. He stated that doing something about the southend development inter-feres with the intent of the voucher program in relation to three buyout programs.

Tim Lamb stated he has interest in the southend development, and thinks issue is whether to extend the voucher program beyond this August, and suggested that the committee consider extending the voucher program to March of 1999 which would give enough time for the southend development to solidify and become more of a reality in people's minds.

Mr. Hanson reported they have received about 10 requests, and that August 31 is deadline for the voucher program for all phases. Beyer stated that if dealing with 10, consider on case by case. Mr. Hanson reported this started as soon as they started process of appealing the deadline, and feel could make the southend develop-ment decision in an overall policy rather than on a case by case. Mr. Hanson asked what would happen to those who utilized the voucher because they knew deadline was August 31, but would be policy decision. It was reported that two cases extended - one has been out of town until July and other was waiting for townhome to be built and had already gone through their buyout, that committee

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would look at individual cases. He stated that now have people who haven't gone through buyout and want an extension. Mr. Hanson reported they have closed on over 500 homes and disbursed on little over 100 vouchers - about 400 vouchers outstanding and need to redeem by August 31.

After further discussion the committee held the matter for 2 weeks.

2. Matter of requests for extension of Relocation Voucher
deadline.
a) Rick Kieffer - held in committee.

b) Robert Thompson - is in Phase III buyout and not completed the buyout, has financing in place with SBA and is actually pursuing purchase of property. Moved by Beyer and Polovitz to extend extension for sixty days. Motion carried.

3. Matter of selection committee for the Viets Hotel RFP.
Mr. Siewert reported that as the RFP is written, all three members of the Urban Development Committee will be on the selection committee, and two from local Historic Commission. It was noted that meeting will be Monday, July 20, at 12:00 noon at Urban Development Office.

5. Matter of authorization to bid abatement for Viets Hotel.
Mr. Siewert reported that the Viets Hotel has not been touched, in same condition as when flood went through, and two types of abatement, will have an alternate to bid the lead-based paint abatement and to stabilize, the base bid will be to abate the asbestos which has to be abated whether demo or move the building and rehab. He asked for authorization to put out bidding specs. to get prices for abatement of both, whether demo or rehab and by time bids come in will have decision as to whether city will recommend demo or relocating. Polovitz and Beyer moved to call for bids for abatement of asbestos with alternate for lead-base paint. Motion carried.

6. Matter of authorization to bid abatement for City Center Mall
buildings.
Mr. Siewert reported that they had awarded a contract to EAPC for eng/arch. services and construction management for demolition of City Center Mall roof, east side building and surrounding adjacent buildings as they come available in the vicinity of the Mall; and developed a sequence how to do this.

Mike Murie, EAPC, reported there are 8 or 9 bid packages involved in this: 1) remove roof of the Mall itself, down to the floor slab; 2) electrical and fire alarm systems, take fire alarm panel which is in the Mall and move to the buildings which will remain on the west side; fire alarm panel does read active lighting for the entire mall and buildings on both sides of it, and fire department

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wants to make sure that stays active for buildings that remain.
3) utility restoration and some demolition for Mall area itself; and involves waterline for the mall and buildings is in a tunnel 3-4' deep and not weather proofed, remove that and run new waterline so have water service, taking out the floor of the mall and getting graded back to street level. Storm sewer and sanitary sewer were not changed when Mall built and will remain as they are, adding some storm sewer inlets to get back to where can be paved and drainage there;
4) asbestos abatement of the buildings;
5) & 6) demolition of buildings, may split buildings on the west side from those on the east side or maybe go together;
7) street restoration, putting streets in, sidewalks, that is affected by the streetscape downtown;
8) storefront restoration;
9) there are a number of buildings where the basements extend out under the sidewalks and need to fill area in so not causing problems later on, or could be combined with building demolition.
He stated there may be some buildings that maybe included - old Bill Larson building, etc.

Beyer asked about street restoration, whether they should hold; Mr. Siewert reported that wouldn't go out for another six weeks or into August. Mr. Murie stated they are asking for approval to advertise for some of the bid packages and asking for award of the bids on some of them.

1) Bid Package 1: Approval of contract for mall roof demolition; MTC, Inc. (Magnus Trucking, Niagara) was low bidder in the amount of $127,800. It was noted that engineer's estimate was $170,000. Moved by Beyer and Polovitz to accept the bid of MTC, Inc. in the amount of $127,800. Motion carried.

2) Fire Alarm System - est. from electrical engineer was under $10,000, so went out and got quotes from electrical contractors because needed to go with first bid package, however, bids came in over $10,000 because $10,000 have to do public bidding for city procurement. (it was noted that $10,000 is what committee can do). It was noted bid came in at $10,862 from Steinke Electric for moving fire alarm and putting in temporary panel for power in the facility while doing demotion. Committee removed the temporary power from the bid. Moved by Beyer to award Steinke Electric the bid for relocation of fire alarm in the amount of $9,900; Polovitz seconded the motion. Motion carried.

3) Authorization to proceed with bidding the abatement of the buildings. Polovitz and Beyer moved authorization to proceed with asbestos abatement of the buildings. Motion carried.

4) Bid Package #3 - utility restoration.
Moved by Polovitz and Beyer to authorize call for bids. Carried.

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5)& 6) Authorization to take bids for E and W buildings as one package or more, and make decision whether alternates; and include basements. Moved Beyer and Polovitz to authorize call for bids
for building demolition. Motion carried.

Mr. Siewert stated he wanted to clarify bidding on the abatement and cleanup - the contract and adjacent buildings: 205 DeMers Avenue, 307 Kittson Avenue, 319-323 DeMers Avenue, 15 South 4th Street (Bill Larson Company bldg.) so when do abatement put all together and do at one time. He reported they will be sanitizing and stabilize those as part of the abatement.

7) Held
8) Held
9) included with 5)

Mr. Siewert reported that the only two buildings privately owned are 8 and 12 South 3rd Street (Sam Silverman and Norval Meagher), Mr. Silverman had an abatement company in there and Mr. Meagher has gutted and sanitized basement. Buildings on east side not all cleaned, abatement contractor went through and wasn't real concerned about the mold. Committee asked if safety concern about someone working in there. Mr. Siewert stated that's why decided to go with roof first and open to environments so not responsible for privately owned buildings. Mr. Siewert stated that the plan presented to City Council was to remove east side buildings, two buildings on the west side and the Bill Larson Co. building. Demolition probably mid-August.

There was some discussion re. funding, and noted all CDBG plus half million in flood insurance, and some money in mall for demolition; $2.2 million in matrix.

7. Matter of authorization to bid demolition of City Center Mall
street and replacement of utilities.
This item covered as part of item 6.

8. Matter of request from Grand Pasta Party to cover electrical
costs for event.
Mr. Siewert reported they have a cost whenever do events down there because have to hire electrician to put in panels, now have panels but take down every year, and to put back up have to hire electrician and NSP comes in and hooks up, so have some costs; electricity not metered, NSP gives it to them. He stated what they are asking for is the City to cover the cost to hook up the temporary power for the event. He stated he tells them City will provide but charge costs eachtime to do it, have City will provide but charge costs each time to do it, have all equipment but just matter of hooking up - about few hundred dollars. He stated and if City pays to charge back to them. It was noted that the Pasta
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Mr. Siewert stated they should set up policy that help set up and any charges specific to an event will be charged back to them. Moved by Beyer and Polovitz that the Pasta Party be billed for the cost of the electrical setup, if any. Motion carried.

9. Budget amendments:
a) Office of Urban Development - $64,804.61
b) Office of Urban Development - $1,031,678
Mr. Hanson reviewed budget amendments:
a) this budget amendment has to do with Fund 4115, fund to build the Cirrus building, building done and occupied, and want to close that account but have to set up budget for 1998, which hasn't been done; that money is going to be used to spend $30,000 on improve-ments done in 1998 as part of the contract and transfer balance of money out of that fund into debt service fund for the building. Moved by Beyer and Polovitz to approve the budget amendment. Motion carried.

b) this budget amendment increases budget for Economic Development Fund, 2163, funds not expended towards the Growth Fund projects and may not have expended all of the budgeted admin. expenses in 2163, in 1997 there's $1,031,678 left in that account that have to budget for in 1998. Most of the funds have been obligated. Moved by Polovitz and Beyer to approve the budget amendment. Carried.

10. New business:
Mr. Siewert presented matter of authorization to take heavy equipment bids to move clay left from the pond and from street R/W to create a berm along the RR tracks on the south side of Congres-sional II, and thought was to hourly bids on heavy equipment and monitor and move as needed to create berm. He stated that by zoning need to have 6 ft. berm along the south side of that pro-ject. Beyer asked if they had talked to engineering, check to see if need clay at lagoon, Mr. Siewert will do that. He asked for authorization to take bid for moving clay as houses being com-pleted on that side of the project, wasn't put into infrastructure contracts, contract on an hourly amount and monitor expenditures.

Moved by Beyer and Polovitz to authorize taking bids on hourly amount for contractor to clean up clay from site, contingent upon checking with engineering department. Motion carried.

11. Matter of meeting time.
Meeting time was scheduled for Wednesday at 12:15 p.m.

12. New items:
a) Glassheim brought up matter of Rental Rehab Program of whether to increase limit to $15,000 when single-family unit rather than a multi-unit, that discussion was tabled and need to dispose of it. It was request by Mr. Lamb and some discussion re. single-
family rental unit raised to $15,000. Mr. Hanson stated decision
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had been made; but will check on that.

Because of another committee meeting on the 15th, the committee scheduled their meeting for TUESDAY, JULY 14, AT 12:00 NOON.

Glassheim stated he's going to be meeting Urban Dev. staff re. long range plans to discuss what they want accomplish in next 3 to 6 months, and one item is demolition, historical and rehab plan, have to move on those. Polovitz questioned whether those would be at Flood Response or this committee - will discuss.

Moved by Polovitz/Beyer to adjourn; meeting adjourned at 1:35 p.m.
Alice Fontaine, City Clerk

Dated: 7/01/98