Committee Minutes

Minutes of the Grand Forks City Council/Finance/
Development Standby Comm. - September 20, 2006 - 4:30 p.m.

The city council of the city of Grand Forks sitting as the Finance/Development Standby Committee met in the council chambers in City Hall on Wednesday, September 20, 2006 at 4:30 p.m. Present t roll call were Council Members Christensen, chair; Glassheim, Brooks and Gershman. Others present were Greg Hoover, Jim Kobetsky, Kevin Ritterman, Mark Aubol, Brad Hillebrand, Peggy Kurtz, Meredith Richards, Connie Mangan, and Mike McNamara.

1. 2007 CDBG Bricks and Mortar project funding.
Greg Hoover, Urban Development, reported they went out for B & M applications and asked them to affirm the recommendations of the Citizens Advisory Committee (CAC) on the Bricks and Mortar and also forward the budget for the CDBG HOME and ADDI (American Dream Downpayment Initiative), they are trying to get all their funds into one lump and get concurrence on those because they have overlapped. He stated they are anticipating $1,981 million from CDBG Entitlement Program Income ($1,543 million for CDBG), $408,000 for HOME money and any program income that comes in from that, and $30,000 for the ADDI program.

The item with the most interest to the committee would be the Bricks and Mortar applications,
they received 9 and the ap. from Prairie Harvest was pulled from the agenda because they had worked with them, provided them funding this year and was reduced funding plus some programmatic issues that came up within the project and raised some costs and were negotiating with them over the past week and came to agreement that we would fund the balance of the project for money that we have had obligated in 2006, final was $66,000 and balance was $38,000 and $22,000 was garages but garages not essential at this point, they can cut back next year for the garages, but they did agree that they would go ahead and fund the balance. The other one that was not ranked by the CAC was ARC and has to do with building on DeMers that is a warehouse that they say is in disrepair and want to have it taken down, that they didn't get an opportunity to go out and determine but based on visual review by himself doesn't think it meets the national objectives for slum and blight. The CAC goes through all the applications and presentations (8) and ranking of the projects which need to have 60% of the votes, that one did not so they rated and ranked it. Ranking of the 7 applications are on the last page of the breakdown.

Bricks & Mortar:
Shelter for the Homeless $198,000
CVIC 4,700
St, Vincent de Paul 90,000 for storage
Northern Valley Dental Alliance 37,079
Grand Forks Housing Auth. 46,600

and under HOME
Red River Valley Habitat for
Humanity $ 25,000
St. Vincent de Paul 50,000 for rehabbing of 2 homes
and this proposal is for consideration today for full funding for everybody except the Shelter for the Homeless (Mission) as they asked for $198,000, that they worked with their architect and got concurrence of $108,000 doing priority items for the coming year, those will be the piping, subbing it on all the floors for future development on the floors and that way they can phase the rest of the project and finish off the 4th floor. The Mission got $90,000 less than requested but are okay with the $108,000.

He stated the suggested expenditures under CDBG are the ones city council gave preliminary approval to: $306,000 for administration, $200,000 for Public Service, $250,000 for Direct Homeownership assistance; and $500,000 for the HOME Sense Program (Red River Program) and $287,000 for Bricks and Mortar.

He asked for discussion besides specific questions is given the recent dialogue on council on consolidating and brining non-profits together, and that he has an on-going concern not only about administration activities but have3 food pantries and 7 thrift shops and each one wants their own deal and on St. Vincent de Paul he asked if they can't all come together and build one distribution facility which would allow donations that come in to be deposited there and then claim them and on frequent basis have big supplies (cheese) and have no where to put it and his thought was if they went together on a larger distribution building and also do a freezer for them also and that might make better sense as opposed to having them all around, if that was the thinking here, could get a planning phase for 2008 and probably use B & M money next year for something like that, or go with this with little or no controversy. St. Vincent de Paul's storage is garages at 8th Avenue South directly behind their building. It was noted that a new roof was put on that building several years ago. Mr. Hoover stated they are strapped for space but part of it has to do with storage. It was noted the 7 thrift shops are Salvation Army, Easter Seals Good Will, St. Vincent de Paul, Prairie Harvest, Dakota Boys Ranch , NDAD on S. Washington.

Mr. Hoover stated St. Vincent's want to put 2 garages in back, one used for food storage and the other for their van or car and overflow of thrift donations. Christensen stated he was leaning towards finishing Shelter for the Homeless, but if serious about consolidation and about centralization, shouldn't continue to further 7 thrift shops when perhaps 3 will do.

Mr. Hoover asked for approval of the entire budget based on conversation, move that, second it and go into discussion to see if want to proceed. The motion was moved by Glassheim and Brooks.

Christensen stated that if the need is met by the other 7, why continue to expand it. Glassheim stated that if you let one expand, that when they have their own stuff, each one increases and the total is greater, not taking someone else's business away from them, but its not a scarcity model, the people who are involved with this activity gather more stuff, etc. and those that need the stuff come and get it and pay for it, unless hearing that one or another of them was in trouble and not making their rental payments, that would be a sign that we reached saturation. Christensen stated to ask ourselves if we need to expand if we have 7 thrift stores or expand it to 7+ which was $90,000 or are the needs being met, that this purveyor of thrift seems to think they need more space for more truck and donations, garage sales and at some time have to stop for proliferation, if want consolidation, this is a good opportunity to begin the consolidation and finish that which we really help people and finish out the Mission.

Brooks stated there is a lot of stuff that comes in, food and clothes, furniture, and that building used by St. Vincent's , that building is too small, can drop off anything - that a Salvation Army have a semi there and things going into . Mr. Hoover stated that places eventually turn excess goods and they go overseas, he stated have Wal-Mart and various Wal-Mart stores within a region and have one centralized distribution house where good come in and go out, and these people will tell you that material they sell is a fundraiser for them, and some would say if put into one warehouse, some thrift store will come in and rip them off, etc. but would work with those thrift stores and food pantries and figure out what their needs are for excess food and goods to see if get a centralized distribution point where all the excess comes in and when they need to restock their shelves, bring it back to their store. Christensen stated that is for another meeting, as this is just to approve this budget or work session.

COUNCIL MEMBER McNAMARA REPORTED PRESENT

Brooks stated they have 7 thrift stores, that they want more space, some have moved into bigger and newer buildings, the sq. footing that we have for thrift stores is sufficient for a town of our size and not put any more funding into additional sq. footage, that if they need more space need to work on shipping it overseas, place for it to go. Gershman stated thrift stores get the clothes for free and have high profit margin and goes to help people but gross profit margin best it could be and they are generating a lot of funds; that the Northland Rescue Mission servicing directly to people and met with David the other day and very impressed with what he is doing, he is getting out into the region, visiting all the counties and getting some money from the counties and expanding the Mission, their thrift store is not open to the public and can't generate same kind of income.

Mr. Hoover stated that the Northland Rescue Mission that when the council first gave them CDBG money and asked them to do a 5-year capital improvement program, they have done that and we have helped fund that and they put some money in and not to the extent that it has been anticipated by the council but they have been putting money into it, their money first goes to programs and the need in the Mission is rather critical in that that on one floor they have a room with 3 showerheads and basically big enough for one person; and have had people abused in those sorts of things, and shower wouldn't be used by more than one person; and which has the more critical need and he would say the Mission, they were okay but they would have to finish the project by bits and pieces, and they would prefer to finish it all now, they have gotten people to adopt rooms but that is 5 to 10 year project-

Christensen stated that when got argument about CVIC that there was a need that they were picking up that if didn't have it, other services would have to pick it up (police department, etc.) , and now have $50,000 in the Mayor's budget and $75000 in the County budget, but the Mission does the work for all of us and provide services and shelter for those that completely fall through the cracks and can make their lives a little bit better - lets try to finish the one project and move on with the others.

Mr. Hoover stated he is suggesting that there maybe a way to look at this differently to solve their problem and address everybody else's problems because at some point have an overflow and if can do this is a more efficient and effective manner. Glassheim suggested that if come back with research for next year and come up with existing building, but for us to assume - that his preference is for one garage where they can store the food and putting $45,000 back into the Mission. Brooks seconded the motion.

Brooks stated they need to put a limit on the sq. footage and need to do some research and perhaps by next year consider.

Upon call for the question the motion carried, Christensen voting against the motion.

2. Policy for the Rental Rehabilitation Program.
Mr. Hoover asked to pass on this item.

3. ­Downtown lighting and seasonal decorations.
Mark Aubol, works with Christmas decorations downtown and Brad Hillebrand is responsible for seasonal decorations downtown and lights on buildings.

Christensen stated that some people would like better decorations on S. Washington and N. Washington, how do we get and how much do we need. It was noted that the Southend decorations were purchased by the Southend merchants and City puts them up at no cost. Mark stated that Leon Comeau does storage of the decorations and do repair. Mark stated that if they discontinue will have more complaints than if putting them up (S. Washington from DeMers to 36th Ave.S.), on 32nd Ave. from Washington to Columbia Road and those are lit, and from Columbia Road to DeMers no lights.

Christensen stated have DeMers, Columbia Road, S. Washington and 32nd Avenue and Gateway Drive, possibly 10 mile range and what would they need to adequately do this. Mark stated possibly looking at $100,000.(wiring, decorations, etc.); suggested getting people involved and putting up decorations in their areas.

Gershman stated years ago they started out at their store to do thousands and thousands of lights in the trees, and now Lumber Mart does it, business across the street doing it and that they try to add more lights each year; and would suggest something like that. He also suggested that the Christmas tree at DeMers before the overpass and put 50,000 colored lights on that, concentrate. Mark stated that is difficult to do, and suggested smaller trees. Gershman stated to let big tree stay and plant smaller trees there. Mark also stated doing little more in the downtown.

Christensen stated that they take Gateway and come down S. Washington to 32nd, think about that strip for today and focus on S. Washington and Gateway and if $50,000 or $75,000 will have it for years to come. Mark stated that it takes manpower to put them up and remove them, need storage area.

Gershman suggested talking to businesses along S. Washington St. and get architect and concentrate, when spread out doesn't look very nice; better off going into one area .

Mr. Hoover stated that can't get something in for this season that during the winter work together and come up with a plan. Gershman stated it is hassle with the big tree along DeMers but can't cut it down as tree dedicated, and because putting up lights anyway, put up tons of lights, concentrate it there, and in the downtown make sure that all the lights work on top of the buildings, and that will make it look really nice, and to try to finish off downtown, and have good Gateway Drive Assn. and encourage them about what they could do for decoration. He stated money suggesting for next year should be Beautification funds - Christensen stated should have better presentation in concentrated area.

Committee suggested they come back to committee with quote on the DeMers Avenue; and if need more lights for the downtown and have some type of presentation. Hillebrand stated lights on building rooftops, and this year First Night is going to put some acrylic window dressing . colored lights on vendor stations and Town Square - some decorations on the poles and put back on, start on lights next week.

Greg Hoover stated overall scheme for downtown, trees decorated with small lights. It was suggested that if took one of the pocket parks downtown and wrapped some of those trees with lights - work on one in park area in former Bill Larson Co. lot (next to Sledsters).

Christensen asked they get report back in 2 weeks and think about what need for better decorations.

4. Projects update.
Jim Kobetsky, Schoen & Associates, reported on their project, Brownstones, 27 homeowners to move in, project is on schedule, completion is scheduled for April, construction would be enclosed within the next 3 to 4 weeks see roof going on and windows going in, they hid base price and money they are spending is substantial, people downsizing, that most units have fireplaces, granite counters, wood floors, gas fire, and all very different and very custom and thinks real success for downtown.

Christensen stated they are on track for Brownstone II and when move towards that project. Mr. Kobetsky stated they want to make sure they are all sold, that market is correct and possibly see next spring or next fall for the next go around for a second phase - be in ground in 2007. Christensen stated the City has to go through the process, developer get bids and same routine and completion in 2008. Christensen asked what they need City to do to help you move towards that goal to get you in the ground by 2007. Mr. Kobetsky stated they are not in a position to commit to a number until get farther along. Christensen stated if they could continue to get reports to know where we are at on it.

Christensen asked about property on University. Kevin Ritterman stated they got preliminary drawings last week, about 6 units, have contacted owner of the green house and he is willing to sell for $150,000, and he is excited about it and calls him every other day for update - have to buy that house and fill the gap. Mr. Ritterman stated he is the developer. City is in for $260,000 to do financing. Hoover stated they will get together and do workup for financing package; that they work through this and then come to committee with final package. Christensen stated they should move forward and pick up that house and get a better budget, and bring back development budget. Hoover stated that at this point what they are looking for is that be part of project, buy it and reimburse.

5. Adjourn.
The meeting adjourned at 5:50 p.m.

Alice Fontaine
City Clerk

Dated: 9/21/06