City of Grand Forks, North Dakota

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	MINUTES/URBAN DEVELOPMENT COMMITTEE Saturday, February 25, 1995 - 1:30 p.m. Members present: Beach, Glassheim. 1. Matter of citizens participation plan. Sue Redman, Community Development, reviewed draft which had been submitted to the committee at the last meeting, and stated that plan basically left the same for CDBG funding, and reviewed the several changes. She stated that HUD regulations had changed and they are trying to develop a consolidated plan as part of their block grant application; that Congress passed this in order to encourage cities to do more comprehensive planning as part of their grant application. She stated that one of the requirements is a needs assessment for the consolidated plan and change was to add that step in the citizens participation plan. She stated they are doing a survey of social services and housing providers in Grand Forks to help identify existing needs, and when this is complete the citizens advisory committee will use the data to rank needs on a scale of high, medium, low or no need and this will also help them review the proposals for CDBG funding; they will then make an recommendation on both the needs assessment, needs rating and funding for CDBG projects to the urban development committee, that after urban development holds the public hearing, their recommendations go to the full city council. She also reported that they had added one step to the Human Needs funding that City provides through sales tax, that also is in the application process - will combine application process for both to do at same time and citizens advisory committee will also be involved in that. She stated they have added two policies for ranking criteria to comply with the new plan: 1) one under community problems and needs, that application has to be ranked as high or medium priority in the consolidated plan in order to receive CDBG funding; and 2) added criteria: to avoid or minimize displacement. Ms. Redman stated they are now on a 30-day public hearing period for the amended citizens participation plan, when that is ended, will review any comments received, then bring final plan to the committee and then to full city council. She reported that HUD will also have opportunity to comment on this. She distributed copies of survey mailed to social service providers, housing providers, and reported they will also be conducting interviews with the Housing Authority and the health department and other government agencies to gather more data and will be presenting that to the citizens advisory committee for their recommendations on ranking. It was noted that the citizens advisory committee will do an initial ranking of the applications/proposals; that citizens advisory committee ranks projects according to needs and then MINUTES/URBAN DEVELOPMENT COMMITTEE February 25, 1995 - Page 2 council approves. Terry Hanson stated that the new consolidated plan and ranking of priorities based on survey and the citizens participation committee input will give more direction to that committee. Moved by Glassheim and Beach to receive and file. Motion carried. (committee only) Information only. 2. Matter of EDA grant application. Dick Olson, Grand Forks Economic Development Foundation, requested that the committee authorize submission of the EDA grant to assist in construction of proposed New Flyer building. He reported they had submitted proposal to New Flyer, received notification of their intent to negotiate proposal with the City, that they have continued to show interest and that they would like City to proceed, so have sent them application for Growth Funds. He also reported that estimated cost of the building would be $2.2 to $2.3 Million, looking for EDA grant for $1.2 Million that would allow us to lease building to New Flyer at current rates. He stated that if the building comes in at $2.2 Million, rent would be $2.30/sq.ft. with escalator over time. He also reported that if they don't get the EDA grant, the price would increase to about $3.50/ft. and may be prohibitive from their point of view, but that would be our cost. He also noted that there is the potential to get Tribal Industries involved to some extent - in building components for the bus; that New Flyer has asked them to find vendor for fiberglass; and the Tribal Industries in Devils Lake have an interest in tooling up to do the fiberglass work, and if so, may also solve some of the bonding problems because they have done some investigation and believe can get some set asides if appropriate Native American content, that will waive the bonding requirements for at least a portion of the order. Moved by Glassheim and Beach to authorize appropriate City officials to sign the application for EDA grant for the New Flyer building. Motion carried. 3. Matter of Acme Electric Growth Fund agreement. Terry Hanson, Comm. Dev., reported that on June 20, 1994 the council approved a $150,000 loan to Acme Electric to assist in construction of a distribution facility, that this was forgivable loan for $3,000 per head for every job they created, up to 50 jobs; they haven't disbursed any funds to Acme Electric; that when he sent them loan documentation, they took to their attorney who pointed out to them that if called a loan and subsequently granted to them at $3,000 an employee, that portion would then become income and be taxable, and at current rate would mean taxes on the $150,000 of up to $60,000 and so they have requested that the City change the forgivable loan to a grant that MINUTES/URBAN DEVELOPMENT COMMITTEE February 25, 1995 - Page 3 penalizes them $3,000 per job for number of jobs created less than 50; that it is not income if a grant. Mr. Hanson stated this request was suggestion of their attorney. Mr. Hanson stated that he called Doug Carpenter, Growth Fund Comm., and Mr. O'Leary who had no problem with this, that they both thought this would only need committee approval to make changes requested, net result same for City, within 2 years from date of occupancy but the threshold of the jobs is the date of the application, so they might have 2.5 to 2.75 years to create the jobs. The committee stated they felt this was significant change in structuring of the loan and should go to council for their information. Moved by Glassheim and Beach that we recommend that we restructure arrangement with Acme Electric so that it is $150,000 grant for two years from occupancy and that they pay us $3,000 for every job under 50 not created. Motion carried. Meeting adjourned. Alice Fontaine City Clerk Dated: 2/27/95.