Committee Minutes

MINUTES/GROWTH FUND AUTHORITY (JDA)
Tuesday, September 7, 1999 - 7:00 p.m.

The city council of the city of Grand Forks sitting as the Growth Fund Authority met at the council chambers at City Hall on Tuesday, September 7, 1999 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, Mayor Owens - 14; absent: Council Member Martinson - 1.

CONSIDER MATTER OF TENANT IMPROVEMENTS AT
917 SOUTH 46TH STREET

The city auditor reported that a summary of the bids received were on the council members desks. Chairman Carpenter reported that the low bidder is Tony Anderson for $17,160.90.

It was moved by Council Member Hafner and seconded by Council Member Bouley to award the low bid to Tony Anderson in the amount of $17,160.90.

Terry Hanson, Urban Development, reported that Mr. Anderson will order the windows upon receipt of award of this bid and he has assured them that he can complete the project and have the windows installed. He stated that all projects are being bonded.

Council Member Babinchak moved an amendment to the motion that a performance bond be provided if not a requirement of the bid. Council Member Beyer seconded the motion. Carried 14 votes affirmative.

Upon call for the question on the original motion, as amended, and upon roll call the following voted “aye”: Council Members Brooks, Polovitz, Lucke, Hamerlik, Bouley, Glassheim, Carpenter, Lunak, Klave, Beyer, Babinchak, Bakken, Hafner, Mayor Owens - 14; voting “nay”: none. Chairman Carpenter declared the motion carried.

CONSIDER MATTER OF GRANT AND SALE OF
16 SOUTH 3RD STREET

The city auditor reported that the action recommended by the JDA is to approve the sale of the property to D’s Development, LLC for $10,000 contingent upon the execution of the development contract and award up to $195,000 in commercial rehab grant funds to D’s Development LLC contingent upon the following requirements being included in the contract and upon final approval of the sale of the building by the JDA: 1) eligible main floor renovation
expenditures must be $225,000 or greater; 2) purchaser must provide 15% match to any grant funds; 3) renovations must comply with the submitted floor plan and scope of renovations with any future changes to be approved by the Urban Development staff; 4) at lease two bids must be submitted for the proposed scope of renovation; 5) must have selected contract provide a contractor’s performance bond for the amount of the agreed upon renovations; 6) that the project be completed by December 30, 1999 as indicated in his proposal unless otherwise extended by DDC recommendation; 7) must comply with all CDBG requirements; 8) must carry flood
MINUTES/GROWTH FUND AUTHORITY (JDA)
September 7, 1999 - Page 2_____________________

insurance on the property greater than or equal to the construction cost, or the maximum available, whichever is lower; 9) tenants must be approved by the DDC or its successor; 10) a lien will be placed on the property equal to the amount of any grant funds and the immediate repayment of the grant funds will be required if any conditions of the grant agreement are not met; 11) any taxes and specials should be prorated to the date of the signing of the development agreement; 12) Derrick Johnson and David Badman provide personal financial statements and proof of financial capacity to complete the project.

It was moved by Council Member Glassheim and seconded by Council Member Beyer that this recommendation be and is hereby approved.

Dan Sampson, 100 North 3rd Street, stated he was one of the bidders and that the difference in the bids, that D’s bid $10,000 and he bid $125,000, and both were going to spend the same amount of money on the main floor, that the only difference was that D’s was going to spend $225,000 on the apartments upstairs and he was going to have their maintenance people do the work and only cost him approx. $50,000, and not sure end result would be a lot different or different on tax rolls. He stated that according to the City Code there are only enough windows to do four apartments, and to spend $225,000 on four apartments, end up with over $55,000 per apartment. He stated that they did submit a bid and included what their price was and what they were going to do with the building.

Gary Christianson, Urban Development, stated that they can only have 4 apartments and plan envisioned around four.

Mike Maidenberg, chair of the DDC, stated that the thinking of the DDC in making this recommended award for this proposal: 1) that the Badman-Johnson offer provided a detailed and attractive plan for both housing and street-level redevelopment and addressing two important uses for the betterment of downtown Grand Forks; the anchor business to be located in the building, Badman Design, has a track record of success, is a proven draw of visitors locally, regionally and nationally, and the retail space and design studio proposed in the offer would be unique to downtown; that Badman Design was severely impacted by the flood, losing its location and inventory; and of all the offers the Badman-Johnson offer had the highest amount of total renovation, $425,845 compared with the next highest amount of $301,087 so the amount of net owner investment was the highest.

Upon call for the question and upon roll call the following voted “aye”: Council Members
Polovitz, Hamerlik, Bouley, Glassheim, Carpenter, Lunak, Klave, Beyer, Babinchak, Bakken, Hafner, Mayor Owens - 12; voting “nay”: Council Members Brooks, Lucke - 2. Chairman Carpenter declared the motion carried.

CONSIDER MATTER OF TENANT IMPROVEMENTS
AT NOAH’S ARK

MINUTES/GROWTH FUND AUTHORITY (JDA)
September 7, 1999 - Page 3_____________________

The city auditor reported that the recommendation of JDA is to approve change order No. 7 in the amount of $56,230.00 for the installation of additional warehouse restroom facilities, and to approve $9,875.00 for the installation of three doors to the building in order to secure the office/warehouse area and to provide access to the remaining warehouse space, Innes Construction, contractor.

It was moved by Council Member Beyer and seconded by Council Member Hafner that this recommendation be and is hereby approved. Upon roll call the following voted “aye”: Council Members Brooks, Polovitz, Lucke, Hamerlik, Bouley, Glassheim, Carpenter, Lunak, Klave, Beyer, Babinchak, Bakken, Hafner, Mayor Owens - 14; voting “nay”: none. Chairman Carpenter declared the motion carried.

CONSIDER MATTER OF AWARD OF BID FOR
TENANT IMPROVEMENTS AT 917 SOUTH 46TH
STREET

Mr. Hanson asked committee if they could revisit this item, and requested that if it is unable for Tony Anderson to obtain a bond, that they move to the second lowest bidder to move the project forward rather than waiting for two weeks to come back.

It was moved by Council Member Beyer that in the event that Tony Anderson cannot secure a bond that we award to Circle K Builders, Inc. in the amount of $18,605.00 and further that Circle K also have the performance bond. Council Member Babinchak seconded the motion.
Carried 14 votes affirmative.

ADJOURN

It was moved by Council Member Brooks and seconded by Council Member Lunak that we do now adjourn. Carried 14 votes affirmative.

Respectfully submitted,



John M. Schmisek
City Auditor