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Council Minutes

PROCEEDINGS OF THE CITY COUNCIL
OF THE CITY OF GRAND FORKS, NORTH DAKOTA
February 1, 2010

The city council of the city of Grand Forks, North Dakota met in the council chambers in City Hall on Monday, February 1, 2010 at the hour of 5:30 o’clock p.m. (following committee of the whole meeting) with Mayor Brown presiding. Present at roll call were Council Members Bjerke, McNamara, Glassheim, Gershman, Christensen, Bakken, Kreun - 7; absent: none.

Mayor Brown announced that anyone wishing to speak to any item may do so by being recognized prior to a vote being taken on the matter, and that the meeting is being televised.

APPROVE MEMORANDUM OF UNDERSTANDING
MUNICIPAL ACTION FOR IMMIGRANT INTEGRATION

The staff report from the Community/Government Relations Officer re. Municipal Action for Immigrant Integration, with recommendation to approve the Memorandum of Understanding between the City of Grand Forks and the National League of Cities' Municipal Action for Immigrant Integration Program.

It was moved by Council Member Gershman and seconded by Council Member Bakken that this recommendation be approved. Carried 7 votes affirmative.

TABLE FINAL APPROVAL OF TAX INCREMENT
FINANCING POLICY

The staff report from the city assessor relating to Grand Forks Taxing Increment Financing Policy, with recommendation to consider amended Grand Forks Tax Increment Financing Policy.

Jim Porter, 3598 Prairie Drive, stated that he understands that the TIF Policy is important for the city, that to increase the tax base and increase growth of our city, and understands that one of the provisions of the TIF Policy includes for economic development jobs as far as criteria and has been used in previous TIF policies approved by the council. He stated he appreciates the council looking over each proposal that comes before them and making sure that the developer is accountable for what he or she has proposed, but doesn't understand that they don't put that in writing, make the developer accountable in the policy and those conditions would be stated. He stated that it would benefit all of us if there were some kind of disclosure reporting written into this policy. He asked why can't those things be in some type of reporting so that the taxpayer can understand that this is a positive thing for the city, that right now there is no way to find out unless he can call Mr. Carsen.

Council Member Glassheim stated they discussed the issue of clawbacks in committee, which means if you don't achieve your goals does the City takes money back; there are two instances in the policy; one has to do with selling bonds, which are based upon the valuation of the property, and were quite concerned that once bonds are sold, you can't take back part of the money that undergirds the selling of the bonds. The other one has to do with a tax exemption which undergirds the mortgage and that might be possible as the city attorney has said, that for the next year one might deny it if the goals were not being met. He stated that the council will make a finding regarding each project using the criteria listed in this section so that there would be a written record of what our findings are, prepared by staff, and have a number of items that are listed as criteria that would be some or all of those which would be looked at, and his motion would simply be that the findings relative to those criteria will be in writing and will be on the records. The second motion is that he would want to move that the department of urban development would make an annual report to the council evaluating the projects achievement of their goals. Council Member McNamara seconded the motion.

Howard Swanson, city attorney, stated that the motion would not apply on any TIF for slum and blight, nor for any bond issues, but only for the tax exemptions granted under TIF policy for economic development purposes. Mr. Glassheim stated that is correct.

Council Member Glassheim explained his motions, there are two parts: that all the items that apply of the review criteria be given to us in writing, same as when people who apply for arts grants or any grant there are criteria and you are asked to fill it out, this would give us in writing the need for the project. As it is written now it says we will consider them, have them in our heads, but is asking that we get them in writing, what is the quality and quantity of jobs created or saved, anticipated, not dealing with bonds but on the commercial side; but we are doing now beyond slum and blight, get it in writing so we can justify why we are giving exemption, wants it on paper - fmore accountable - what is the growth potential, effect on competition. He stated we are giving them tax exemption in exchange for a good project - not giving it to everybody, giving to those projects which convince us that it contributes quality and quantity of jobs that will help the tax base, etc. we are giving them thousands of dollars in tax exemption, and wants it written in writing what are we getting in exchange.

Council Member Kreun stated he knows the availability and uses of other forms of public assistance, the need for the project, importance of the project to the local economy, and if go through these items that were mentioned and utilize those criteria, that is the criteria we are putting in there and will do exactly what you are saying and justify the choice for the project, and such other criteria the city council needs appropriate for the valuation of the proposed project, don't need another layer of reporting, it is right there and all we have to do ask for that in the criteria.

Mr. Swanson pointed out that the last question, the same review process and criteria utilized for TIF bond shall be utilized when considering the granting of a tax exemption. That Mr. Glassheim was saying, was that he wanted the policy amended to require the council to make specific findings on each of the review criteria - what happens now is that the applicant will give you information on the review criteria and you make general findings, that he understood that the amendment makes a requirement that the council make specific findings on the criteria or at least to those that apply.

Council Member McNamara commended Mr. Porter for his input and thanked him for his participation.

The preliminary motion by Mr. Glassheim and Mr. McNamara is that the council make a finding re. each project as per the TIF policy and that the findings should be in writing.

Council Member Christensen moved to amend the motion to say that the council would make a finding as to the review criteria found in Section 2 Economic Development, Item B, and approving or not approving a project. Council Members Glassheim and McNamara accepted that as a friendly amendment.

Upon call for the question and upon voice vote, the motion carried 7 votes affirmative.

Council Member Christensen moved that for each year that the council grants a tax exemption under the Grand Forks Tax Increment Financing Policy that the director of the Urban Development Office provide a review of the project that received the tax exemption an annual review as to the project that received the exemption and that they meet their criteria, the exemption for the next year is granted. Council Member Gershman seconded the motion.

Mr. Swanson stated that procedurally the council has not made a main motion, you have adopted what the Mayor termed as a preliminary motion to make specific modifications to sections of the policy, one has passed and are now considering the second one, regardless of whether this one passes or not, you will need to have a motion and second voted upon to adopt the policy as amended. But with respect to the substance of the second motion before you, he does not believe that the exemption can be terminated by administrative action, would require council action, the report could be made but the council would have to act. Council Member Christensen and Gershman accepted that. Mr. Christensen stated the council will have the ability to revoke the exemption for the year, that he would like something in there so they could review and take appropriate action as to the continuation of the exemption.

Upon call for the question and upon voice vote, the motion carried 7 votes affirmative.

Council Member Glassheim moved that we adopt the motion as amended twice. Council Member McNamara seconded the motion.

Mr. Swanson asked that they table that until they have had an opportunity to review specific language that he drafted for it, and would like to have the opportunity to review it as opposed to adopting it now without that language.

It was moved by Council Member Christensen and seconded by Council Member Gershman to table this for two weeks. Carried 7 votes affirmative.

APPROVE APPLICATION FOR ABATEMENT OF 2008
TAXES AT 2036 WESTMINSTER COURT

The staff report from the city assessor relating to application for abatement for 2008 taxes by Marvella Egstsad, 2036 Westminster Court, with recommendation to the Board of County Commissioners that the application be approved as submitted.

It was moved by Council Member Gershman and seconded by Council Member Bakken that this recommendation be approved, and further that we adopt the findings, conclusions and recommendations as prepared by the city attorney. Upon roll call the following voted "aye": Council Members, Bjerke, McNamara, Glassheim, Gershman, Christensen, Bakken, Kreun - 7; voting "nay": none. Mayor Brown declared the motion carried.

APPROVE APPLICATION FOR ABATEMENT OF 2008
AND 2009 TAXES AT 5398 WEST MAPLE AVENUE

The staff report from the city assessor relating to application for abatement for 2008 and 2009 taxes by Alan and Crystal Crask, 5398 West Maple Avenue, with recommendation to the Board of County Commissioners that the applications be approved as submitted.

It was moved by Council Member Gershman and seconded by Council Member Bakken that this recommendation be approved, and further that we adopt the findings, conclusions and recommendations as prepared by the city attorney. Upon roll call the following voted "aye": Council Members, Bjerke, McNamara, Glassheim, Gershman, Christensen, Bakken, Kreun - 7; voting "nay": none. Mayor Brown declared the motion carried.

APPROVE APPLICATIONS FOR EXEMPTION OF IMPROVE-
MENTS TO RESIDENTIAL BUILDINGS AT VARIOUS
LOCATIONS

The staff report from the city assessor relating to applications for exemption of remodeling improvements to residential buildings at the following locations: 1623 11th Avenue North, 915 19th Avenue South, 1113 Reeves Drive, 3410 Belmont Road, 538 Terrace Drive, 1201 Darwin Drive, 1419 9th avenue South and 1713 12th Avenue North; with recommendation to grant exemptions of increased value for 3 years.

It was moved by Council Member Gershman and seconded by Council Member Bakken that this recommendation be approved. Upon call for the question and upon voice vote, the motion carried 7 votes affirmative.

APPROVE PLEDGED COLLATORAL REPORT AND
DESIGNATED DEPOSITORIES OF PUBLIC FUNDS

The staff report from the budget officer relating to approval of pledged collateral report and designate depositories of public funds, with recommendation to approve pledged security report and designate the following as depositories: Wells Fargo, Alerus Financial, US Bank, Choice Financial and Frandsen Bank.

It was moved by Council Member Gershman and seconded by Council Member Bakken that this recommendation be approved. Carried 7 votes affirmative.

APPROVE APPLICATION FOR CLASS 4 ALCOHOLIC
BEVERAGE LICENSE FOR MI FAMILIA, INC.

The staff report from the finance department relating to application by Mi Familia, Inc. dba Mi Mexico, 623 South Washington Street for Class 4 (Food and Beverage Establishment) alcoholic beverage license.

Council Member Gershman asked to be recused from voting on this matter, and it was so moved by Council Members Kreun and Bjerke. Carried 6 votes affirmative.

Mr. Swanson advised that the application would be subject to final approval by police, fire, health, inspections and city attorney. Chief Packett reported the police department has followed up on the application and pursuant to Mr. Swanson's suggestion, that upon final approval of the attorney's office and other city departments, it would be their recommendation to approve.

It was moved by Council Member Kreun and seconded by Council Member McNamara to approve the application, subject to final approval by police, health, fire, inspections, and the city attorney. Carried 5 votes affirmative, Council Member Gershman recused and Council Member Bjerke voted against the motion.

ACCEPT BID FOR CITY HALL CARPET REPLACEMENT,
PROJECT NO. 6555

The staff report from the engineering department and human resources relating to bids for Project No. 6555, City Hall Carpet Replacement, with recommendation to award contract including base bid work and all alternative bid work to low bidder, Burris Carpet/PlusValley Interiors in the amount of $111,458.80.

It was moved by Council Member Gershman and seconded by Council Member Bakken that this recommendation be approved. Upon call for the question and upon voice vote, the motion carried 7 votes affirmative.

APPROVE REDEVELOPMENT OF 732 AND 816 NORTH
4TH STREET

The staff report from the director of urban development relating to redevelopment of 732 and 816 North 4th Street, with recommendation to approve proposals per review committee's recommendation. (to approve the proposals submitted by SCS Homes for 732 North 4th Street and of TR Construction for 816 North 4th Street)

It was moved by Council Member Kreun and seconded by Council Member Gershman that this recommendation be approved.

Mr. Swanson stated that he has not seen anything that renders an opinion that would allow us not to comply with State requirements, that Mr. Hoover seems to suggest that he has approval from a State agency or somebody from a State agency; that what he understands the program to be is that the City is acquiring two parcels of property, that the City has requested proposals to redevelop those properties and that the City will retain title to those property, after the time has completed and redevelopment, the City will then sell those properties, but he believes that constitutes a publicly funded project that is in excess of $100,000 which requires either an engineer, an architect for preparing plans and that full bidding requirements be met.

Council Member Christensen stated they should move approval subject to final approval by the city attorney, friendly amendment which was accepted by the mover and second.

Upon call for the question and upon voice vote, the motion carried 6 votes affirmative; Council Member Bjerke voted against the motion.

AUTHORIZE PROCEEDING WITH NEIGHBORHOOD
STABILITATION PROJECTS - CIVIC PLACE AND PRAIRIE
HARVEST PROJECTS

The staff report from the director of urban development relating to Neighborhood Stabilization Program (NSP), with recommendation to authorize proceeding with the NSP-funded Civic Place and Prairie Harvest projects as described in the staff report, including execution of project agreements, subject to city attorney review.

It was moved by Council Member Gershman that regarding the Prairie Harvest project that this project be moved to the corner lots, attending to all of the review by the city attorney to make sure we are able to do that according to bid and the transfer of property and all things attended to those lots with the County, title clear, etc. Council Member Christensen seconded the motion and amend the motion to further add that the title issues or parking issues as to the Church be addressed and approved that they are satisfied with the resolution. The amendment was accepted by the mover.

Mr. Swanson stated that if they are looking at conveying Lot 1 you would need to include in your motion a specific finding that the council, and requires a minimal of 5 votes, that you are waiving your requirements for advertising and public sale of the real estate and authorizing a direct transfer under City Code 2-0402. Council Members Gershman and Christensen agreed to include in their motion.

Mr. Swanson stated that the second comment with respect to the last amendment that the Church must sign off or approve it, that he is concerned as to whether or not the terms of the purchase agreement are or are not merged into the deed, and asked if it was the intent that the Church actually sign off on approval or just that we be consulting with them and it was noted that just consult with them.

Ray Dohman, Greater Grand Forks, stated his comments relating to this program, that when he got married in 1960, worked part-time for the minimal wage and that his wife didn't work, that he paid the rent and bought the groceries, and asked if he can still work part-time for minimum wage and support yourself - nobody can - and that none of the programs are for the working people - that they work against them and always have and appears that always will and that is too bad.

Mr. Swanson stated with respect to each of the proposals, the MetroPlains and Prairie Harvest and Civic proposal, his office has made a number of suggestions, recommendations with respect to the form of the agreement, the agreement in the packet will be procedurally changed in format but the substance will be primarily the same; i.e., that the section on TIF agreement suggests that it has already been approved and will be modified to indicate that is subject to future action by the council, and that the motion should also agree that the documents are subject to final approval of the city attorney's office. He stated there are a series of items, that one of the documents stated that the City shall convey the civic auditorium property, that the City doesn't have title it, the Growth Fund has title to it and a number of details in the documents that don't change the substance per se but are not proper in format or content. The mover and second accepted that.

Mr. Swanson also stated that they can't act on the TIF, none of the notices have been given, none of the requirements have been met and that is the concern he has is that the agreement that is drafted suggests that the TIF has already been acted upon or already decided and the timeline isn't there.

Mr. Glassheim stated that this involves a little less income for the developers and wanted them to know if it was the will of the council that is what is going to happen and as they are making their plans they have something to rely upon as going forward and if there is anyway to do that without formally approving the TIF. Mr. Swanson stated no.

Upon call for the question and upon voice vote, the motion carried 6 votes affirmative; Council Member Bjerke voted against the motion.

APPROVE KNIGHT FOUNDATION GRANT

The staff report from the director of urban development relating to Knight Foundation Grant, with recommendation to approve the program description and authorize staff to proceed with implementation with purchase of 604 North 6th Street using Knight Foundation funds.

It was moved by Council Member Gershman and seconded by Council Member Bakken that this recommendation be approved. Carried 7 votes affirmative.

APPROVE 2010 ARTS REGRANTING PROGRAM

The matter of the Greater Grand Forks Community Theatre under the 2010 Arts Regranting Program had been held by the council on January 19, 2010 for further consideration.

It was moved by Council Member Gershman and seconded by Council Member Kreun to approve the item relating to Community Theatre under the Regranting Program. Carried 6 votes affirmative, Council Member Bjerke voting against the motion.

APPROVE BILL LISTING AND ESTIMATE SUMMARY

Vendor Payment Listing No. 10-03, dated January 27, 2010, totaling $1,688,817.72 and Estimate Summary dated January 31, 2010 in the amount of $857,797.18, were presented and read.

It was moved by Council Member Bjerke and seconded by Council Member Gershman that these bills and estimates be allowed and that the city auditor be authorized to issue warrants in payment of the same. Upon roll call the following voted "aye": Council Members Bjerke, McNamara, Glassheim, Gershman, Christensen, Bakken, Kreun - 7; voting "nay": none. Mayor Brown declared the motion carried and the bills ordered paid.

APPROVE MINUTES DECEMBER 21, 2009 AND
JANUARY 4 AND 19, 2010

Typewritten copies of the minutes of the city council held on December 21, 2009, January 4, 2010 and on January 19, 2010 were presented and read. Council Member noted correction in the minutes of January 19, 2010 in the vote for extension of alcoholic beverage license from 5 to 4, and recommended approval of the minutes as read; Council Member Glassheim seconded the motion. Carried 7 votes affirmative.

ADJOURN

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

Respectfully submitted,

Saroj Jerath
City Auditor

Approved:
________________________________
Michael R. Brown, Mayor