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MINUTES/URBAN DEVELOPMENT COMMITTEE
Wednesday, August 16, 1995 - 4:00 p.m.

Members present: Beach, Glassheim, Hanson.

1. Matter of sale of property at 409 Walnut Street.
John O'Leary, Community Development Office, reported that his office had placed the appropriate ads in the newspaper and notified adjacent property owners of the availability of the lot. Terry Hanson reported that two bids had been received and submitted the two sealed bids to the committee; Chairman Beach announced that the bids would be opened and bidders would have an opportunity to orally raise their bids. He asked if there were any objections to the process to this point; there were none.

The committee proceeded to open and publicly read the bids: bid submitted by Clyde M. Morris and Sally Morris in the amount of $3.00; and a bid submitted by Richard and Mary Norgart in the amount of $300.00. Chairman Beach asked the low bidder if they wished to increase their bid; Dr. Morris declined.

(Both bidders are adjacent property owners.)

Moved by Hanson and Glassheim to accept the bid of Richard and Mary Norgart in the amount of $300.00. Motion carried.

2. Discussion of church/state issues re. to the Mission.
John O'Leary reported that they are in receipt of letter from the Department of Housing and Urban Development; that this letter is a follow-up of a monitoring visit that was conducted on the Grand Forks Mission earlier this spring and late last fall; that the Office of Urban Development passes through money either through CDBG or the Emergency Shelter Program to the Grand Forks Mission; that as the conduit for those funds, we become responsible for certain administrative requirements that the Department of Urban Development and federal government impose on us. He reported that about 8 years ago in an effort to bring the Mission into compliance and make them eligible to receive money, we asked the Mission to establish two organizations, the Mission itself would be the religious organization and the Shelter for the Homeless would be the secular organization, and as a secular organization we would be able to provide funds to that organization legally. He stated that the problem is that the secular organization is a shell, there are no staff, doesn't own any property (lease parts of the Mission facility from the Board for a $1.00 and other due consideration), and then we provide grants to the Shelter to assist them in remodeling the facility and providing support services (sometimes heat assistance and sometimes capital improvements). He stated that when the monitoring visit happened this spring, the Office of Governmental Assistance, who did the monitoring, determined that the relationship between the Shelter and the Mission was grey enough that they were possibly in violation of the statute. He reported that the statute is pretty explicit about what they can and

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cannot do on the Mission grounds if they accept federal money, and there's no doubt in anyone's mind that the Mission conducts religious services. The Mission belongs to a national association of missions and they have asked the national association to provide some legal assistance in resolving this. He stated that he thinks that there are a number of alternatives that can be applicable here: 1) the Shelter could become bona fide agency and hire some staff, have payroll and provide some services and make firewall between religious and secular activities more clear; that maybe that's physically separating them or separation of the staff that deliver services. He stated that they have always determined that if none of the clients were required to participate in a religious event as a condition upon their receiving services, food and shelter, that was in compliance with the law; the State determined that wasn't good enough, that no religious events could occur upon the grounds even if none of the clients were required to participate, the availability of those services was a violation of the statute. He stated he wasn't sure how this was going to be resolved, but it potentially impacts Emergency Shelter money already made available to the Mission, there's about $19,000 from OIA that was given to the City and passed through to the Shelter that's at stake, and another $20,000 recently ear-marked for the Mission; and in addition the Mission from time to time applies for CDBG monies, and these same regulations apply to that. He stated this would be a serious blow to the Mission if it can't be worked out.

Mr. O'Leary reported that staff's recommendation is to work with the Shelter and HUD and legal counsel that the Shelter has retained in hopes that this can be resolved; if it can't be resolved by the time City sets up program for next year, have to make decisions about whether Mission can resolve, whether to obligate with hope that they can resolve. He stated it does impact other things in the CDBG budget, that they are required by law to spend at least 70% of the monies on low and moderate benefit, and everything put into the Mission has been low and mod. benefit, and if obligate some amount to help continued efforts to refurbish the Mission and they are not able to spend in the next 12 months, would put the entire CDBG program in non-compliance with the law.

He stated they wanted to make committee aware; that opinion stringent enough so that it might have national implications because there are other missions all over the country, and most of the organizations that deliver services to indigents are religiously oriented; and the national organization is very interested in this issue and prepared to try to negotiate it out but if can't they are willing and capable and have authority to take it to court.

Mr. O'Leary reported that the Mission hired a new executive

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director just before they were monitored, and the Mission Board asked director to sign a declaration of faith (was required of all applicants before consideration), and that sent up lot of red flags for OIA. He stated that if the Mission fails to resolve this, it may be appropriate to get some Congressional involvement in this in future HUD regs. because it is his understanding from OIA and HUD that the Salvation Army hires all of its staff based on religious credentials, and the Salvation Army got an exemp- tion. He stated that when you compare what Congress passed under the CDBG law and compare that with the CFR it's much more explicit in the CFR what you can and cannot do than in what Congress passed. He stated that this opinion creates a religion free-zone, and probably have national issue here, and if lose discussions with HUD, certainly merits Congressional review. He stated that it is not staff's intent to be come involved in this discussion.

There was considerable discussion by the committee. It was noted by Mr. Glassheim that staff doesn't want to be directly involved and wants to watch what gets worked out, but that he is disturbed that the Mission is being put in this position almost of choosing between God and helping people, that they play role in our community that serves clear secular purpose that we're aware of, although they may do it with a primary emphasis on religious values and agrees that it seems totally opposed to what the President is trying to stake out as a reasonable middle ground position; and City being put in terms of time crunch in a period of uncertainty with a significant amount of CDBG dollars, either not allocating, etc. He questioned whether City, through staff, or through resolution should not begin to contact the Congressional delegation now to see whether in this session someone would be interested in sponsoring legislation.

After further discussion the committee asked Mr. O'Leary to draft tentative response to this situation and bring back at his earliest convenience. Held in committee.

3. Request from Prairie Harvest Human Services for funding for drainage problem.
Roxanne Jensen, Executive Director, Prairie Harvest Human Services, stated they have water problem, and presented written statement of request and listing of expenditures. She stated they are requesting assistance from the City to solve water problem at their building at 930 North 3rd Street; that they have invested considerable funding in removing eye-sore in the neighborhood; that new drain tiles not sufficient to handle run-off experienced in heavy rains. She stated they have flat roof on their building which collects water that is run off the east side of the building, which is compounded by bikepath on the east side of the building which is constructed at higher level than the house. She reported that she had discussed this with Al
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Grasser of engineering department who suggested that a catch
basin be installed, that this would then be drained by a buried pipe across their property into the manhole on N. 3rd Street, that window wells should be extended up another level and landscaping done to create a slope that would send run off into the catch basis, with project estimated to cost approx. $3,500.
She reviewed building project implementation plan and funding.

Mrs. Jensen reported that Prairie Harvest provides daily living support services for 51 individuals who are seriously mentally ill; that they serve 34 individuals as representative payee and 36 in their medications monitoring program. She stated that included in the remodeling project is a Consumer Resource Center that will enable clients to learn better illness management techniques, and should lead to more productive lives, fewer psychiatric readmissions and better physical health.

John O'Leary reported that this property backs onto Gateway Drive and there are funds available in the Beautification Fund, balance of $3,738.00. He stated that part of the project is to finish landscaping, and when remodeling project completed back of the building will be landscaped.

Moved by Hanson and Glassheim that we approve up to $3750.00 out of the Beautification Fund for this project. Motion carried. (committee only)

Moved by Glassheim and Hanson to adjourn; and meeting adjourned at 5:10 p.m.

Alice Fontaine
City Clerk

Dated: 8/17/95.