Committee Minutes

MINUTES/GROWTH FUND MEETING
Tuesday, September 8, 1998 - 7:00 p.m.

The city council of the City of Grand Forks sitting as the Growth Fund Authority met in the council chambers in City Hall on Tuesday, September 8, 1998 at the hour of 7:00 p.m. with Chairman Carpenter presiding. Present at roll call were Council Members Brooks, Polovitz, Lucke, Hamerlik, Bouley, Glassheim, Carpenter, Lunak, Klave, Beyer, Babinchak, Bakken, Hafner, Martinson, Owens - 15.

ELECTION OF OFFICERS

Chairman Carpenter reported that in the past, vice chair was Dave Beach and Ann Sande was Secretary and now have two vacancies, however Council Member Glassheim has been serving as temporary vice chair through his appointment as they needed two people to be able to sign documents, and need to elect a chair, vice chair and secretary. He stated that the chair and vice chair have come from the subcommittees so there was a connection between the subcommittee that heard the individual applications and the full authority for explanation and carry out of items but it’s up to the wishes of this authority to elect the officers.

Chairman Carpenter asked for a motion to nominate the chair of the Growth Fund Authority. It was moved by Council Member Babinchak and seconded by Council Member Glassheim that Council Member Carpenter be nominated as chair of the Growth Fund. There were no other nomina-tions and the motion carried 14 votes affirmative.

Chairman Carpenter asked for a nomination for vice chair. Council Member Hamerlik nominated Council Member Glassheim as vice chair; seconded by Council Member Hafner. There were no other nominations and the motion carried 14 votes affirmative.

Chairman Carpenter asked for a nomination for secretary. Council Member Hafner nominated Council Member Babinchak as secretary; Council Member Beyer seconded the motion. Council Member Babinchak nominated Council Member Beyer, and the motion was seconded by Council Member Hamerlik. There were no other nominations and by a show of hands, Council Member Babinchak was elected by a vote of 13; Council Member Beyer 2.

APPROVE REQUEST FOR AUTHORIZATION TO HOLD
AND DISPOSE OF SURPLUS PROPERTIES ACQUIRED
BY CITY THROUGH VOLUNTARY ACQUISITION PROGRAM
AND REQUEST FOR FIRST RIGHT TO ACQUIRE THOSE
PROPERTIES

Mike Maidenberg, representing the DDC, reported these are requests from the DDC, and as the downtown redevelops there are some vacant properties owned by the City and they are requesting disposition of those be made by the DDC as part of their overall guidance and

MINUTES/GROWTH FUND AUTHORITY
Septmeber 8, 1998 - Page 2

planning development of the downtown area. Mr. Maidenberg reported these are properties that have been acquired or will be acquired and there are between 5 and 10 properties, they would like to be able to have some guidance over how they are ultimately used in the downtown area, and would make a recommendation to JDA for ultimate decision. Council Member Beyer stated that a lot of this revolved around the downtown plan that they hoped to have adopted in the near future, some of the buildings the City owns downtown would like to put out RFP’s for a certain type of business that falls in that plan and DDC would like to know if they can pursue the best use for certain buildings. Council Member Babinchak asked if the City could define a scope of what type of business from the City’s perspective. Mr. Maidenberg stated they have worked with Mr. Swanson on this and can have ac-cording to him a number of different criteria for use of the buildings so that if there was a very desirable use and wanted something to fit in nicely with the plan, would be something they would want to encourage even though that might not be the highest bidder, so would want to have various possibilities/options open to them. A question was raised if two people wanted a building, would DDC tell which should have it. Mr. Maidenberg stated they would make a recommenda-tion to JDA as to why they think one business has a better use in the downtown area than other one, would have criteria that they would have for the business owner saying these are the things they are looking at and JDA would ratify what DDC recommended or take some other course of action, but would give the DDC a chance to have its hand in overall guidance of these downtown properties, many of which are situated in key areas. Mr. Maidenberg stated somebody has to make that decision, somebody will have to decide about the buildings that are owned by the City or if the City does it on its own, but think better to do within the context of the DDC and the overall plan.

Chairman Carpenter stated that if these properties are going to be owned by the JDA would they fall under the same requirements for surplus and advertising, etc. or not; and that basically they are setting up a process to dispose of these properties, the council would be giving them to the JDA and JDA can determine to do with them as they wish or what requirements would they follow. Mr. Swanson stated he wasn’t confident that there’s a true distinction between what the JDA could do and what the City could do in the disposition of these properties, once you’ve outlined your criteria of what looking at, the City would not be obligated nor would the JDA be obligated to take the highest bid if there were other rational basis to distinguish between two competing bids. He stated that the JDA does have some additional flexibility in terms of economic development but it would take some type of finding by the city council that whatever the program or the particular use of property was sought to be put to was in fact an economic development issue. He stated he is concerned, but has not seen a list of properties, but if the City were to transfer properties
MINUTES/GROWTH FUND AUTHORITY
September 8, 1998 - Page 3

to the JDA tonight, you would have to do in some form of identifica-tion of properties, that the agenda item before you in its title is too vague and could be construed or argued that it even contains residential properties; could either identify by specific building or by specific area and perhaps that area may be one of the districts or zones that you’ve already established; the DDC would have no authority to dispose of this property, either council or JDA action required.

Mr. Maidenberg stated these are City properties, and that it would be the JDA giving them authorization to make recommendations on the properties that the City owns so that they can set up criteria and try to make to make it fit into the downtown plan as best as possible.
Mr. Maidenberg stated that what they are asking for from the DDC is a nod from the JDA to the DDC that to enumerate these properties, and what they are, and to make a recommendation as to how they should be disposed of, and basically commercial properties in the downtown area.

Moved by Council Member Glassheim that we ask the DDC to serve as a sub-committee of the JDA in recommending the disposition of downtown commercial property. The motion was seconded by Council Member Beyer. Carried 15 votes affirmative.

APPROVE AGREEMENT BETWEEN CITY AND JDA FOR
BALANCE OF CDBG FUNDS ORIGINALLY OBLIGATED TO
JDA FOR CENTRAL BUSINESS DISTRICT PROJECTS

Mr. Maidenberg stated this request is to treat the DDC in the same way as the Growth Fund Committee is treated so that as they proceed to make progress, come up with ideas, recommendations and proposals that as they report those directly to the JDA as the rest of the CDBG funds are obligated.

John O’Leary, Urban Development, reported that this motion is to treat the JDA in a fashion similar to the way treated other sub-recipients of CDBG funds, you have a contract with the JDA from the city council outlining what the scope of work JDA is to perform and council has chosen to delegate some or all of those to the DDC as a sub-committee; that it clarifies what expectations are from the DDC and from JDA in terms of the downtown redevelopment projects, and also provides the JDA with some flexibility in terms of obligating CDBG funds. He stated that the DDC makes a recommendation to the JDA, and JDA meets now and later the city council will act on the same issue; however, he stated that if you have a contract between the city council and the JDA to provide downtown planning and redevelopment services, which is what the JDA has chosen to do with the DDC it would cut one step out of the process and you would be treating the JDA in the same way that you treat other sub-recipients of CDBG money.

Moved by Council Member Beyer that the JDA become a sub-recipient of

MINUTES/GROWTH FUND AUTHORITY
September 8, 1998 - Page 4

CDBG funds from the City. Council Member Babinchak seconded the motion. Carried 15 votes affirmative.

Council Member Beyer stated that in order for the first motion that they made this evening, need to have a subsequent motion and moved to authorize the proper City officials to execute conveyance documents conveying property acquired by the City in the B-4 District to the JDA. The motion was seconded by Council Member Babinchak. Carried 15 votes affirmative.

APPROVE REQUEST BY DDC FOR AUTHORIZATION
TO OBLIGATE UP TO $10,000 OF CDBG FUNDS

Mr. Maidenberg stated that the DDC is requesting that they be treated at the same level as City departments so that they would be able to spend up to $10,000 of the money allocated to the DDC so that they can do small projects without having to go through cumbersome hearings, etc., would be a way of streamlining their ability to act decisively.

It was moved by Council Member Beyer to authorize DDC to obligate up to $10,000 of CDBG funds; the motion was seconded by Mayor Owens.

Council Member Hafner stated there should be some kind of reporting, and amended the motion to require a reporting mechanism. Council Member Lucke seconded the motion.

Council Member Beyer stated that the standing committees of the council have the authority to spend up to $10,000, that DDC does have a budget, which was approved by council, but can’t spend anything out of budget unless bring it to Flood Response and on to council, and are asking to be treated like any other standing committee and will report back to the JDA.

Upon call for the question, the amendment carried 15 votes affirma-tive.

Upon call for the question on the motion, as amended, and upon voice vote, the motion carried 15 votes affirmative.

ADJOURN

It was moved by Council Member Beyer and seconded by Council Member Brooks that we do now adjourn. Carried 15 votes affirmative.

Respectfully submitted,


John M. Schmisek, City Auditor