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MINUTES/URBAN DEVELOPMENT COMMITTEE
Tuesday, October 26, 1993 - 12:00 noon\

Members present: Carpenter, Hanson.

1. Matter of housing rehab.
John O'Leary, exec. dir. of Community Development, asked that this matter be deferred until the next meeting. Held.

2. Matter of storefront applications.
Dave Beach, Northern Realty Mgmt., Inc. agent for owners (Cynthia Absey, Andrea Absey et al) presented drawing of proposed storefront for building at 1210-1224 South Washington Street at cost of $111,000, result of mini grant received earlier this year. Mr. O'Leary reported that this applicant outside area normally involved in storefront projects, but could do spot rehab. and make eligible for the activity; that there is $8,000 budgeted for property along RR tracks behind Kittson Avenue which could be deobligated and reallocated to this project and $2,000 out of Contingencies. Curt Siewert informed Mr. Beach that the whole project would come under Davis-Bacon Act (wage rates and reporting forms); need historical clearance, which would take another 30-day period; that he wanted to make Mr. Beach aware of because federal funds involved. It was also noted that renovation would take place with or without funding. Mr. O'Leary stated that signage is eligible, sidewalk and landscaping are; and suggested that Mr. Beach meet with Mr. Siewert. Mr. Siewert also stated that interior work is not eligible; project would come under slum and blight, concerned that sign doesn't do anything to building. It was also stated that they could delete match requirement on premise of knowing that $100,000 going into project. Held until Monday, November 1 at 7:15 p.m.

Curt Siewert stated they are trying to bring continuity to signage in the Mall; that CompuSave, new tenant, needs some type of signage and recommended Comm. Dev. pay for signage on Berg building and recommended installing in style and manner to tie all buildings together. He recommended waiving match and allowing Community Development to put up signage. He reported that Whiskey Point not putting up any signage; Craft Shoppe has poor signage but that's not in a City-owned building.

Moved by Hanson and Carpenter to approve the storefront application and waive match requirements. Motion carried.

3. Matter of request from Todd Nedberg to subordinate his rental rehab. loan.
Terry Hanson submitted copy of mortgage subordination agreement. Mr. O'Leary reported that City deferred payment on this loan for 10-years; that Mr. Nedberg paid off first mtg. and now want to put mortgage back on; major issue - monies would be used for another purpose. He also stated that City is having difficulty in getting payment for parking assessments on another project; if grant, may want to condition on that. The committee suggested

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October 26, 1993 - Page 2

possibility of granting subordination if he agrees to accelerate payments. After further discussion Carpenter moved to deny request to subordinate loan. Motion carried.

4. Request from Grand Forks County Historical Society for improve-
ments on grounds. Ted Jelliff, GF Historical Society, stated that the old Elks parking lot being torn up, that Schoen and Kobetsky have agreed to provide them 100 ft. for parking but to do that had to move decorative lights and sprinkler system; and that he had asked Mr. O'Leary if could use CD funds to pay for portion of that - $500.00.
Mr. O'Leary reported this is not an eligible CD activity but could possibly use Beautification funds; however, that money obligated. Curt Siewert suggested taking out of litter pickup funds, which won't be used. Moved by Hanson and Carpenter that we transfer $500 from Litter Pick-up Project to the Historical Society for cost for moving infrastructure. Motion carried.

5. Matter of property at 409 Walnut Street.
Gary Eureen, attorney representing Clyde and Sally Morris, stated that the Morris' are interested in attempting to rehab this property at cost of $8,500, but that they haven't had good inspection of property; City's intent is to demolish and return land to property church is on; that because of housing situation, benefit to get rehabbed. Mr. Carpenter stated that the committee didn't think cost estimates realistic; more benefit if that was vacant land and part of church property; recognize taking property out of circulation and losing taxes but benefit greater. Mr. O'Leary stated City doesn't own property; that he talked to Mrs. Hariman and she doesn't want anyone on premises because she canceled insurance. Mr. Morris stated his opinion quite different that Mr. O'Leary's; was in building, but didn't go into basement. Mr. O'Leary stated they were concerned about anyone going in without Mrs. Hariman's permission; if they get her permission, no problem. Mr. Eureen stated that after they get ownership resolved they would like to have opportunity to inspect; and committee stated they would have no objection. No action taken.

6. Public hearing for CHAS.
Dennis Borowicz, Community Development, stated that the City is required to put together a one-year plan for submission to HUD addressing the top priorities listed in the City's 5-year CHAS (Comprehensive Housing Affordability Strategy), and the priorities listed in the 5-year plan are: 1) housing opportunities for 100 first-time, low-income homebuyers, 2) standard living conditions for 50 existing owner-occupied homes, 3) an additional 925 affordable housing units for flow income families and individuals, 4) 14 transitional housing units for homeless families in shelters, 5) a facility that gives emergency shelter for victims of abuse that can house nine individuals, and 6) additional long term supportive housing for mentally ill individuals. He stated that

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once the plan is put together it has to go through 30-day comment period, and be submitted to HUD before December 31. He stated he will bring plan back to the committee before the end of the 30-day comment period. He stated there were several individuals here to provide their input and FAX from developer of St. Anne's building (Metro Plains out of St. Paul) requesting to be heard. He also stated that if there is a change in needs, need to document.

Acting Chair Carpenter called for public hearing.

Copies of the letter from MetroPlains, St. Paul, relative to congregate housing needs was distributed to members of the committee.

Dwaine Steinkuhler, Grand Forks Mission, stated his concern is need to provide housing for single people; sees great need for SRO and needs to be written into CHAS.

Roxanne Jensen, Prairie Harvest Foundation, appeared in support of housing for seriously mentally ill; in two years have integrated number into free market apartments, but some not going to make it, that's on-going need. It was noted that the population at the Jamestown State Hospital has decreased substantially (is down to 250).

Jerry Tuchscherer, Grand Forks Board of Realtors, stated vacancy rate at last survey in July was 4%, which is highest vacancy rate at any time of the year; 3-bedroom apts. non-existent; 1-bedroom 4-5%; during month of September, phones bombarded; people can't find place to live; seasonal workers starting to leave, and has eased problem some; Air Force telling military coming to area not to bring family; that longer housing shortage occurs, see some increases in rent; rents going to go up; supply and demand.

Mr. Carpenter closed public hearing.

Mr. Borowicz stated he will report back to committee on what needs are; don't need to list all six but what is priority for next year and strategy gong to address with this plan.

Committee will review CHAS regulations. Mr. Carpenter stated he has no problem with priorities listed but change numbers to make realistic.

Meeting adjourned.

Alice Fontaine
City Clerk

Dated: 1/26/93.