City of Grand Forks, North Dakota

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	MINUTES/URBAN DEVELOPMENT COMMITTEE Tuesday, August 30, 1994 - 4:30 p.m. Members present: Beach, Glassheim, Hanson. 1. Matter of storefront applications. Curt Siewert distributed copies of storefront rehab summary and noted this is house cleaning item; he reviewed project listing and funding balances, etc., some projects completed, some canceled, and need to transfer balance of funds. He also noted that on canceled projects where transferring money out, applicants have been notified. It was moved by Glassheim and Hanson to de-obligate funds and transfer $19,105.92 as stated in the storefront rehab. summary. Motion carried. John O'Leary reviewed storefront applications, and noted that funds available are $31,105 (which includes previous action de-obligating and transferring funds); funds won't be available until middle of September. He noted that applications total approx. $50,000. a) 2 N. 3rd Street, St. John's Block, $3,400. Replacement of awnings on the building (funded before through interest buy-down for loan) b) 313-317 DeMers, Mandel's Bldg., $1,500.00 Repairs under awnings, structural issues that need to be address, this is maintenance issue. c) 313 DeMers, Mandel's Bldg., $1,750.00 Window well that is a hazard, doesn't meet program requirements. Tenant was present and stated she is concerned about hazard. d) 10 N. 3rd St., LTD Investment, Inc., $1,230.00 Replace awnings, etc. Peter Ryan, artist, spoke in favor of the application. e) 105-107 N. 3rd St., Delco Properties, $5,000 This is Griggs Landing building, this project could have significant impact on entire block. f) 509 S. 3rd St., John Buegel, $3,500 This building used for storage. g) 930 N. 3rd St., Prairie Harvest, $4,500 Application is for handicapped ramp, doesn't meet program requirements. h) 217-219 S. 4th St., Terry Anderson, $1,262.40 Mr. Anderson was present, applicant is to complete project, signage, etc. MINUTES/URBAN DEVELOPMENT COMMITTEE August 30, 1994 - Page 2 i) 109-115 N. 3rd St., G.E. and Virginia Satrom, $4,875.00 Mr. Satrom stated this is Windsor Bldg., this application for relocation of entry, restore brick front, etc. j) 137 S. 3rd St., G.E. and Virginia Satrom, $3,900.00 Mr. Satrom stated application is for cleanup of rear of the Steen Bldg. k) Dacotah Arms Bldg., 112-114 N. 3rd St., $4,850.00 This building owned by Midwest Development (Mr. Satrom and Mr. Anderson). Project is to restore brick at rear of the building. l) 18 S. 4th St., Douglas Norby, $1,200.00 This application for replacement of sidewalk with brick pavers. (There was some discussion by the committee re. pavers, etc.) m) 11-17 S. 3rd St., Phoenix Properties, $3,500.00 This application for repainting of rear of building (this will complete painting of all buildings on this side of the Mall). n) 409 DeMers, Dakota Property Mgmt., $3,500.00 This application is for painting sides of the building and replacement of awnings, they did storefront on their own. o) 324 N. 4th St., Hugo Magnuson, $12,500.00 Mr. O'Leary noted that this application is over and above previous obligation of $12,500 budgeted for this building; will have a tremendous visual impact from riverbank side. Mr. Beach asked whether taxes paid on buildings where staff recommending funding. Mr. Glassheim noted that the Kittson Alleyway Project which is funded in the amount of $8,000 won't bet done this year and suggested using part of that allocation to fund additional storefront aps. Mr. Beach asked to be excused from voting on this matter. Mr. Glassheim also questioned whether there was any benefit to Dr. Eliot's bookstore. Mr. O'Leary noted that projects do not affect sign, storefront or leases. Glassheim moved and Hanson seconded motion to de-obligate $3,5000 from the Kittson Alleyway project under Storefront Projects and to approve the following applications: b) 313-317 DeMers Avenue $ 1,000.00 d) 10 North 3rd Street 1,000.00 e) 105-107 North 3rd Street 5,000.00 h) 217-219 S. 4th Street 1,000.00 j) 137 S. 3rd Street 3,900.00 MINUTES/URBAN DEVELOPMENT COMMITTEE August 30, 1994 - Page 3 k) 112-114 N. 3rd Street 4,850.00 l) 18 S. 4th Street 1,200.00 m) 11-17 S. 3rd Street 3,500.00 n) 409 DeMers Avenue 1,000.00 o) 324 N. 4th Street 12,500.00 Hanson seconded the motion, and expressed concern re. project at 409 DeMers Avenue painting of alley walls. Motion carried; Beach excused from voting. 2. Matter of property tax exemption for St. Anne's property. Mr. O'Leary reviewed matter of the tax exemption, whether to cancel existing tax exemption and start process for a new 15-year tax exemption. He expressed some concern re. 15-year tax exemption, doesn't see need for a 15-year exemption, State would like City to participate. He noted that the agreement signed by Clarence Peterson in 1989 terminates in 2004, effective date of termination 2005. He stated that the existing tax exemption has full 10 years if project started this fall, City still giving up about $25,000/year in taxes on $1Million project or quarter million of tax exemption, which is considerable participation by the City. He also noted that the pro forma doesn't tell us whether cash flow needed for full 15-year tax exemption. He also reported that the 15-year tax exemption is not required by the State; and that according to the city attorney there is 10 years left on the existing tax exemption on the property. Sue Redman, CD, stated that final decision will be coming shortly from OIA and Housing Finance Agency, if no tax credits, project isn't going to go. Mr. O'Leary reported that C.Peterson signed agreement in December, 1989, went into effect in January, 1990; and reported that Mr. Swanson has resolved questions re. 15-year exemption on this project. There was some discussion re. sending matter to the Planning and Zoning Commission, to declare slum and blighted area, and then come back for the tax exemption; or take no action for the 10-year exemption. It was noted that State won't back out if go with 10-year exemption, but then will Mr. Stenson look favorably upon the project. It was reported that Clarence Peterson is writing letter asking City to terminate the existing exemption; Mr Peterson wants to see property sold; council could deny request if don't want to terminate. Moved by Glassheim and Hanson that we recommend that we not terminate the existing exemption, and that the new developer would have effect of a 10-year exemption. Motion carried. MINUTES/URBAN DEVELOPMENT COMMITTEE August 30, 1994 - Page 4 3. Authorization to issue bonds for Burdick Acres project. Mr. O'Leary reported they have discussed with the city attorney how to do tax increment bonds for Burdick's Resubdivision, and are asking for authorization to issue bonds in the amount of $253,000 for the existing project and to escrow part to match future Home grants. He also stated they can have TIF because of leasehold interest in the property; Housing Auth. would agree to pay taxes, without that agreement tenant responsible for paying taxes. Moved by Hanson and Glassheim that we authorize issuance of the bonds in the amount of $253,000. Motion carried. 4. Matter of Grand Forks Affordable Housing Program. a) Curt Siewert and Al Dossert, EAPC, architect, were present. Mr. Siewert reviewed changes in plans to change number of bedrooms from 4 to 5 by finishing basements - cost to finish 7 basements $21,061.00 (4 already have finished basements), and is more cost effective to do now when contractors there; and would increase fair market rent. He also reported there has been no problem with water table, no water in sump pits. Mr. Siewert reported they have Program Self-Sufficiency doing house training (to assist new home owners); and have applications from 5 families with 35 kids. He noted that under Federal Housing Assistance Program they have 5 years to get off assistance. It was also noted that they can't sell these houses. Moved by Glassheim and Hanson that we approve change order. Motion carried. b) Mr. Siewert reviewed change orders: 1) foundations: Sherlock Homes contract with a deduct of $1,000 and an addition of $1,080 to include access hole to crawl space in split level houses; and 11 garage doors at $771.00/ea. for total of $8,481.00. It was noted that garage door bid includes operator and 2 remote controls and safety features. Moved by Hanson and Glassheim to approve change orders as listed. Motion carried. c) Mr. Siewert and Mr. Dossert reviewed change order for trim for siding package (trim around windows, doors, architectural feature to pull houses together) in the amount of $5,494.00. Moved by Hanson and Beach to approve change order in the amount of $5,494.00. Motion carried. Meeting adjourned. Alice Fontaine City Clerk Dated: 8/31/94.