Council Minutes

MINUTES/COMMITTEE OF THE WHOLE
Monday, January 12, 2004 - 7:00 p.m._______

The city council met as the Committee of the Whole on Monday, January 12, 2004 at 7:00 p.m. in the council chambers in City Hall with Mayor Brown presiding. Present at roll call were Council Members Brooks, Hamerlik (teleconference), Gershman, Christensen, Kerian, Kreun - 6; absent: none.

Mayor Brown announced that when addressing the committee to please come forward to use the microphone for the record, and advised that the meeting is being televised live and taped for later broadcast.

Mayor Brown commented on various events held during the past week and upcoming events: that this week brings with it the 2004 Marketplace for Entrepreneurs at the Alerus, that the event is free and encouraged everyone to attend; thanked Senator Conrad and Agricultural Commissioner Roger Johnson for their vision and leadership in founding the marketplace, goal was to build a bright economic future for North Dakotans by growing the economy from within, and thanked staff and volunteers from our community and from across the state who make this event happen.
He thanked everyone who attended the luncheon this afternoon on celebrating success and changing attitudes, Linda Butts brought inspiring message on having the right attitude about where we live and why it is so important to our future.
Congratulations to art winners and the Greater Grand forks symphony awards announced last week and thanks to everyone in our community for promoting the arts in our community.
He stated that he declared January 2004 as Folic Acid Awareness Month - this month is focused on the awareness of the benefits of folic acid.

2.1 Canad/Shelter Proposal.
Leo Ledohowski, President and CEO of Canad Corporation, and staff, and intro-duced members of his delegation; that they were originally attracted to Grand Forks as they are basically a destination type of business and basically entertainment accommodation with variety of interesting concepts to draw people. He stated what drew him to Grand Forks was the idea about the Alerus and Engelstad and Arnold Palmer golf course being developed and thought he had found a city that has a philosophy that is the same as their firm. He stated they have been working on this for quite a while and have decided to build the water park which will be the finest in the region, and tie that into the hotel and bring in multiplex movie theatre concept, 10 screens, where have bucket seats and take food and watch movie and make this a full entertainment concept to add to the Alerus, to strengthen the Alerus and to further develop this. He stated in doing this there are some problems and that it is hard to cash flow a water park and because of that asked for certain help from the City and rather than asking for financial aid, develop some system where ask that certain amount of taxes be given for a limited period of time but still positively cash flow from the City's point of view, nothing that exists today that would have to be taken out of anybody's pocket, these are some foregone revenues for the future, many revenues still remain so that this becomes positive cash flow from day one.

Lonnie Laffen, architect, made presentation of the Canad proposal, showing location of new amenities to the Alerus Center, Canad Inn would be added to the prefunction space of the Alerus Center, the aquatics center added along side of the hotel and the theatres added to the north side of that; that the tower would be 11 stories with 192 rooms and the architecture would borrow from the Alerus Center in colors of brick and precast metals; the front entries relate to the Alerus Center and each would have its own identifiable front entry from both front and rear. He also showed location of an additional tower for expansion; and viewing of water slides, theatre, etc.

Mr. Ledohowski thanked members of his delegation, council members and mayor, that lot of good effort and will to bring this to this stage, hoping they will get approval to go ahead.

COUNCIL MEMBERS GLASSHEIM AND HAMERLIK ON TELECONFERENCE

Council Member Brooks stated there is tremendous potential of this project and very impressed with what is here and with delegation, and this is something we need to move forward with.

Council Member Kerian stated we have proposal in front of us and if have opportunity to discuss that tonight. The city auditor stated that the process will be that they review proposal, whether they discuss this tonight or at another point, that on next Monday at the city council meeting because of requirements of notification and public hearing, they will be asked to set a public hearing for a special council meeting on February 9 to speed the process for Canad/Shelter so they can proceed if the council decides to move ahead; and that was earliest we could do this with requirements of publication and individual notification to competitors if decide to do the tax abatement.

Council Member Kerian stated she would like more information on two items: 9) marketing agreement, and if there should be additional dollars available for marketing that would be used in the same manner as specified in the original hotel agreement, and 10) any additional assistance that might be available in the State and maximum City involvement. It was noted that the original marketing agreement is for 5 years and have $1,050,000 allocated - $300,000/year for first two years, $200,000, $150,000 and $100,000 thereafter.

9) Council Member Christensen stated we have changed the components of the CVB and in 2004 budget have allocated $350,000, that hotel built in 2005 but with this corporate citizen and our entertainment complex of which we are partnering, we will have to continue to market our entertainment facility to the region and to Winnipeg and didn't see that it should end after 5 years so they discussed having additional revenues for an on-going marketing effort. He stated because we have the CVB and will have increased sales tax and have different component of marketing this community, would encourage membership on this board of an individual from Canad Inn but these are things in the future; that in five years will have to deal with marketing issues but want to make sure that contractually there is something in writing that this is what a former council promised to do.

10) Council Member Christensen stated that Canad Inn is going to make an application to the State of North Dakota for an interest rate buy-down loan - potential involvement by the City would perhaps be up to $125,000 participation in a PACE loan interest rate buydown.

Council Member Kreun stated that if this would pass, when would they start construction. A rep. of Canad/Shelter stated they are ready to go, $35 to $40 million project, would pursue the planning and design process when receive approval, hopefully next month, and be underway as fast as they can. Council Member Gershman asked if they will be able to be open for the World Juniors; Mr. Ledohowski stated he doubt it, would try but running out of time.

Council Member Gershman stated we should recognize some people in Grand Forks, former council members that had the vision to build the Alerus Center after the flood, some people were not in favor of the size of the Alerus Center, that he was one of them and he was wrong, that Glassheim and Hamerlik were involved and former council members and owe them a thank you for what they did, or Mr. Ledohowski and his group would not be here tonight and would like to publicly thank them.

Council Member Gershman stated he is in the motel business, and has always supported a hotel at any convention facility that this city was going to build but what we have here is beyond his expectations - the Canad group are incredible promoters and upstanding citizens and businessmen, that we have a group that is coming to Grand Forks, if approve, that will add tremendous business excitement to the city, and will take us one step closer to become one of America's great small cities; there will not be a city between Minneapolis and Seattle that will have the amenities that we have, and not forget Ralph Engelstad and his contribution - looks at this very favorably and very exciting time for Grand Forks.

Council Member Brooks stated he understands the time that it won't be open for the World Juniors, but it will probably be open for the second one that we bring here.

Council Member Christensen stated he was one of the individuals on the council that voted against a water facility with proposal that would be paid for with sales tax and other tax dollars - but when approached with proposal with tax abatement for a period time, readily embraced it - and wants the citizens to know what this will bring to the city assuming a successful operation of first year and continued operations - the projected sales tax for the room sales will be in the area of $400,000, est. on water facility revenues $100-200,000; good sales tax generator on the theatre, i.e., $100,000 - that property tax abatement is approx. $620,000/year for 5 years and this a foregone tax that we are not collecting, and we will have sales tax coming to the City to fund things, infrastructure. He stated that the School District gave up 10 mill after the flood so we could have that money for flood protection and when Canad Inn starts paying tax in 2009 or 2010 the taxes will be in the areas of $620,000 to $650,000 year in perpetuity and half of that goes to the School District, 20% to the County, and this is win/win for this community and will be voting for this; and thanked delegation for coming forward and giving us an opportunity to participate.

Council Member Hamerlik expressed his thank you to the Canad group and the people in Grand Forks that have talked with them along the way and his is fully supportive and a great step forward.

Mayor Brown stated welcome to the community and for sharing our vision.

2.2 Final certification of infrastructure connection fees (tapping) for Project No. 4807,
paving South Washington from 40th to 47th Avenues South.____________________
There were no comments.

2.3 Lease agreement with the Park District for Lincoln Drive Park.
There were no comments.

2.4 Grant application for proposed north end boat ramp.
Mark Walker, asst. city engineer, stated they met with the fisher groups and they requested that Game & Fish look at both sites and give us their opinion; that they suggested that the City submit the grant application for both sites and assuming they receive the grant, then tailor to fit the money to each location and determine what can be done at each location and select the site later.

Council Member Christensen asked where activities are during Catfish Tournament, aren't north of the rapids; that if have community green and have downtown being developed and want to recreate, and wondered if Lincoln Park isn't on the agenda or couldn't be reconsidered before you put a boat ramp north of the rapids.

Mr. Walker stated when considering the boat ramp that there is a need to do something with the north ramp at 27th Avenue North which is in an area where have an active land-slide, grounds slide away causing difficult time to drive across the slip plain, they have wanted to do something at that location but never had opportunity as very expensive to fix; and that is what doing with this proposal - they could look at putting ramp at Lincoln in the future but equal need to repair the boat ramp at the north end.

Council Member Gershman stated we have a boat ramp in the north end where people damaging their props in putting their boats in and seems to make sense to fix something that you have that doesn't work very well rather than build something new - that we do have boat ramp in East Grand Forks that people can access to go south and ideally we would like to come up with a location on the south end and couldn't do this without the Red River Hookers, they know the river.

Brad Derrick, citizen, local fisherman and one of the founders of the Red River Hookers, has been involved in this process since the beginning of negotiations and that we are sitting on a tourism goldmine with our river - an expansive piece of water to work with. He stated concentration went to the north end at this time and would like to see another boat ramp and access on the south side of the dam. Council Member Kreun stated it is not out of the realm of discussion or possibility that there would be another boat ramp as there is enough usage out there that could utilize two ramps but at this time concentrating on the north one and there is good fishing north of the rapids as well and use north end ramp for Catfish Tournament.

Council Member Brooks stated river has tremendous potential for tourism - need to develop; when looking at potential and tourism first move crucial to the success down the line - whether north end best place or if Lincoln Park would be a better place.

Mr. Derrick stated a ramp needs to be built north, north has different opportunity than south does, different look and structure - that with tourism and huge greenway and if trying to promote family activities, Lincoln Park neighborhood is a fabulous spot and in talking with Game & Fish officials that is what they like as well and with the park that is already existing seems location that was originally picked for that for recreation of our citizens and tourists is nice location - however, something needs to be done north because there are a lot of people who use the north end.

Council Member Kerian stated there was some question whether the State would put funds into another north ramp for us. Mr. Walker stated he doesn't recall any comments by Game & Fish, that they recognize that the existing boat ramp is in need of repairs and has probably outlived its life - and in comments with Game & Fish they have been favorable to the idea of building a ramp on the north end as well. Council Member Kerian stated we have a time frame on this and one of her concerns is turning down what the committee has recommended at this stage, and would pass the February date. She asked what Game & Fish's response to funding something south in Lincoln Park. Mr. Walker stated they have talked with them about locating a boat ramp in Lincoln Drive area and at Elks and their response to that was favorable as well - they recognize because of the dam need a ramp on the downstream end and a ramp on the upstream end - we don't have very good access to either one - on north end have ramp that is in failing condition and at times nearly impassible, spent $10,000 last year in repairs that lasted about two months - on the south side we only have access at EGF, not convenient for our residents and would like to build one on the north end and have another ramp on south side for access and for safety and rescue. He also stated they have not researched other funding - discussions only with Fish & Game as we know they have funds to fund boat ramps - apparently there are other funds out there but only tackling one at a time, enter into this next year's grant to build the first boat ramp and maybe request additional funds to build another one in future years.

Mr. Gershman stated for safety and rescue also need a site on the south end but not want to see this particular effort thwarted now, and would urge council members to go with this one next year and continue with committee so can address these things but get this one done now and do it right.

Council Member Kreun stated that this river is one of the cleanest rivers in the U.S. in top percentages - NDSU does monitoring with this for farm chemicals and other pollutants and one of the cleanest around but has a lot of mud in it and have to change attitudes that this is a good river for fishing and provides good part of economic engine in the community.

Council Member Christensen stated what troubles him about the north end boat ramp location - the two proposals presented (one is next to English Coulee Diversion - north of MinnDak and is inconvenient for tourists - the other location is 900 ft. north of the Riverside Dam and is not an attractive location to put in $150,000 improvement. He stated we should have a southend boat ramp, and asked if the ND Game & Fish Dept. honor annual requests so if make request for this grant and get this money, how long would it take before getting additional funding for a southend boat ramp.

Mr. Walker stated his understanding is that Game & Fish has an allotment of money every year that they allot to communities and different entities for installation of boat ramps and that we can make application next year; that there are some locations throughout ND where Game & Fish wants to build boat ramps this year, and might be possibility that they could not fully fund our boat ramp, whichever location we choose for this year, and have to submit another grant next year so we can phase construction, build concrete ramp this year and following year surface the parking the lot and access road - construct over two years; they would not be able to tell him when we would be in line for the next grant application, depends on how much money is available. He stated the est. cost to build boat ramps at the two locations they have looked at would be $100,.000 to $120,000. Mr. Christensen asked what is left in our $6 million greenway betterments because if done with our dike in 2007, nice to have boat ramps done at that time. Mr. Walker stated he would get that info.

Mr. Gershman stated that ramp on the north end would be beautified and would have parking, etc. Mr. Derrick stated their group is leaning more towards the Diversion area based on some equipment and safety concerns of the water where the landing near the dam would be located, there was some riprap put in when the dam was revamped and a little concerned about equipment damage with that set up the way it is, and when you get near the dam it has a real tendency to swirl on the ND side which makes boat control difficult and their concern is that someone with less experience may get hurt - could be some potential human hazards with that location but if Game & Fish says that is a good location they would agree.

Council Member Brooks stated we need to get boat ramp in as a lot of work put into this and next week see if can't come up with amendment to the motion to put some kind of commitment to get the second one in place, start things moving towards getting second grant moving.

2.5 Greenway sign request.
There were no comments.

2.6 Budget amendment (Fire Department).
Chief O'Neill stated the equipment is a remote type of monitor to monitor military types of gases that could be released and would be able to monitor from a remote site and be able to respond appropriately.

2.7 Vehicle bids (Police Department).
This item was pulled from the agenda as some confusion on the instructions and will be rebid.

2.8 Request for preliminary ordinance to amend text of the Land Development Code, Chapter XVIII of the Grand Forks City Code of 1987, as amended, amending Article 2, Zoning, Section 18-0204, Rules and Definitions, subsection (2); Section 18-0216 B-3 (General Business) District, subsections (3) Conditional Uses and (11) Special Conditions; Section 18-0218 I-1 (Light Industrial) District, subsection (3) Conditional Uses; and Section 18-0219 I-2 (Heavy Industrial) District, subsection (3) Conditional Uses, all relating to dog daycare and boarding facilities.______________
There were no comments.

2.9 Matter of preliminary plat of Replat of Lots 13-17, Block F, Sunbeam Addition (loc.
at t1, 55, 59, 63 and 67 Sloping Hills Cove).___________________________________
There were no comments.

2.10 Preliminary plat of Replat of Lots 4, 5, 6, 14, 15 and 16, Block 6, Sunbeam Addition (loc on Gentle Hills Circle and Rolling Hills Circle).____________________________
There were no comments.

2.11 Preliminary plat of Replat of Lots A-F, 8, and 10-13, Block H, Sunbeam Addition (located on Northridge Hills Court)._______________________________________
There were no comments.

2.12 Preliminary plat of Robertons First Addition (located on corner of 24th Avenue South and South 36th Street).___________________________________________
There were no comments.

3 INFORMATIONAL ITEMS

3.1 Portfolio Management/Summary Report for December, 2003.
Informational - no comments.

6 MAYOR AND COUNCIL MEMBER COMMENTS.

1) Council Member Brooks thanked Park District who lent expertise and assistance to
the City of Warren in getting an outdoor hockey rink put in, and appreciates assistance to
smaller towns.
He stated as we have a vacant HR director position and hope we are moving quicker than
last time, can't think of more crucial spot . Mr. Duquette stated they will be moving rather
quickly on this - may look at some additional options as far as filling that position and is
exploring those with the Mayor and will get back to everyone rather quickly on that.

2) Council Member Christensen noted that the Planning and Zoning report will be
presented in January and asked if they could get that on the agenda.
He stated he understood they will be getting CIP recommendations that staff is giving to
the mayor and the city auditor, and as they receive those, reconvene the development/
finance committee and review those if that is acceptable to the mayor and Mr. Schmisek,
and also when they reconvene, a report on what the potential development is of the Gross-
man Block which is in the inner-city and a report on the proposed joint powers agreement;
and would like those reports to be in development/finance before going to the city council.

4) Council Member Kreun stated that the greenway maintenance projections have been put
together and asked if the Flood Committee would review that prior to bringing it to COW.
It was suggested that it goes to service/safety committee rather than flood committee.

5) Council Member Gershman stated he was encouraged that last year we had the most
housing starts in 25 years, that Grand Forks is growing and what we saw tonight is going to
add to that. He stated he keeps hearing about people asking if they can afford a home in
Grand Forks or rehab an existing home and asked Mr. Hoover if he could get materials
together on a sheet or two that lays out the HOME funds and rehab funds, affordable
housing initiatives, etc. and what access people have to those funds and the requirements,
and would like all the council members to have that info in their offices.

He stated last week that his daughter was going to be on Boston Public on Fox last Friday
night, they pre-empted and moved the whole schedule forward but she will be appearing
this Friday night on Boston Public on Fox network, and plays a social worker.

ADJOURN

It was moved by Council Member Gershman and seconded by Council Member Kerian that
we adjourn. Carried 7 votes affirmative.

Respectfully submitted,



John M. Schmisek
City Auditor