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MINUTES/URBAN DEVELOPMENT COMMITTEE
Wednesday, January 31, 1996 - 4:00 p.m.

Members present: Beach, Glassheim.

1. Matter of tax increment financing for Cirrus.
Mr. O'Leary reported he had visited with Mr. Carpenter and he stated that the finance committee probably wouldn't be able to consider between now and next Monday, and suggested holding on the TIF until finance and urban development could consider in tandem. Mr. O'Leary stated that this project probably will be approved by Growth Fund Auth. on Monday, that under this project City is going to construct building and lease it back to the economic development project and will require services of an architectural firm to design the building. He suggested starting process by appointing an architectural selection committee and to put out RFP's to local firms asking them to submit proposals to the city for architectural services. He reported that there would be three members on the committee, one each from Urban Development and Finance Committees and a member appointed by the GF Region Economic Development Corp. and if that's acceptable, they would send out RFP's in standard format and set up time for interviews. Beach suggested having interviews after February 7 as that is when various architectural firms will be interviewing for the events center, and committee hopes to make decision the same day.

Moved by Glassheim and Beach to establish the architectural review committee with composition of the committee as follows: one member each from the finance committee, urban development committee and the GF Regional Economic Development Foundation, with staff support from Mr. O'Leary and Mr. Olson. Motion carried. (comm. only)

The committee appointed Mr. Beach to serve on this committee.

5. Appointment of Urban Development Committee member to the
architect selection committee for affordable housing.
Mr. O'Leary informed committee that this would be selection of an architectural firm to provide support for a development of affordable housing units; and the committee would consist of himself, a member of the Housing Authority, a member from this committee and a representative from Grand Forks Homes.

Moved by Beach and Glassheim to appoint Mr. Glassheim to the architectural selection committee for affordable housing. Motion carried. (comm. only)

2. Matter of beautification projects budget.
Chairman Beach reported that he had received call from Mr. Staley who would not be able to attend today's meeting, that of Applications #1 through #4, he would like to have #4 (Columbia/DeMers Overpass enhancement) funded fully, #1 (Adopt-an-Area program) funded to whatever amount appropriate, then #2

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January 31, 1996 - Page 2

(Gateway Dr. west tree planting) and #3 (32nd Ave.S. west tree planting) with lowest priority.

The committee reviewed projects and funding; and recommended allocation of funding as follows:
#1 GF Park District (Adopt an Area Program) $ 4,000
#2 GF Park District (Gateway Dr. west tree planting) 5,350
#3 GF Park District (32nd Ave.S. west tree planting) -0-
#4 GF Park District (Columbia/DeMers overpass enhancement) 2,000
#5 Central Business Dist. Assn. (RR footbridge lighting) 3,500
#6 Central Business Dist. Assn. (Celebrate the Season) 3,000
#7 Central Business Dist. Assn. (CBD banners) 3,000
(The committee stated CBD does have money and can put
more money into the project.)
#8 Central Business Dist. Assn. (original marketplace
monument and landscape site at DeMers overpass) 12,000
#9 UND Plant Services (Univ. Ave. median bricking and
planters) 5,000
#10 City Planning Office (Hwy. 2 mural project) 5,000
#11 City Planning Office (box elder tree removal) 2,000
#12 Winter Garden Assn. (decorative lighting and land-
scaping) 3,000
#13 GF Economic Development Foundation (Industrial Park
sign) 7,500
#14 Office of Urban Development (Royce LaGrave Park
landscaping) 4,000
#15 GF Substance Abuse & Traffic Safety Council (First
Night Greater Grand Forks ice sculptures)** 5,000
contingent upon no private advertising/promotional
signs being displayed at site of sculptures.
Total $ 64,350
Motion carried.

4. Matter of demolition of house at 512 North 5th Street.
Robert Brooks submitted letter stating that their plans for this lot after demolition of the building is to expand the current playground area, lot would be surfaced so play equipment would not be appropriate, however, they also own lot on the other end of the block, have obtained playground equipment and would put equipment on that lot to serve the daycare, school and the neighborhood, and hope to obtain funding to install equipment, haul in sand and repair or replace the fencing. He also submitted pictures of the interior of the house at 512 N. 5th Street. It was noted that this building has structural problems and is on a 25 ft. lot. Curt Siewert reported that est. cost to tear down and shut off water, fill basement, $5,000. Mr. O'Leary reported that funds could be taken out of Acquisition and Demolition Fund.

It was noted that St. Michael's Church purchased property from the Estate, that there were back taxes on the property which were MINUTES/URBAN DEVELOPMENT COMMITTEE
January 31, 1996 - Page 3

paid by the Estate; St. Michael's would continue ownership of the property.

After discussion it was moved by Beach and Glassheim that we appropriate $4,000 from the Acquisition & Demolition Fund to assist St. Michael's Church in demolishing the house at 512 North 5th Street, contingent upon their, following demolition, pro- viding a playground accessible to all neighborhood children. Motion carried.

6. Matter of reassignment of Sengewald, USA lease to Southern
Bag.
Mr. O'Leary reported that in 1985 they received a low interest loan from the State Small Cities Program to build the FTZ building on 10th in the Industrial Park; that a number of businesses have occupied the building, and moved on to other spaces; that in the last 6-8 years tenancy has stabilized and Stone Container moved into the building and City constructed addition to the building; about three years ago Stone Container was sold to Sengewald, USA and City transferred lease from Stone Container to Sengewald; that Sengewald has now been sold to Southern Bag and they are requesting transfer or assignment of the lease from Sengewald to Southern Bag. He reported they did a background check on Southern Bag, and they are fiscally sound company.

It was reported that original lease was 15 year-lease, with 5-year option at the end of that time; and there are 10 years remaining as of April 1, 1996. Mr. O'Leary reported that lease set up on a break-even basis; that Growth Fund lent project enough money to build addition onto the building with a return on investment of 3/10ths of 1%; there was a long-term lease where lease matched length of debt.

John Smith, Southern Bag, Jackson, MS, stated they have been in business since 1959, currently operate five production facilities in the southeast, and are in a multi-wall bag business (dog food bag, livestock and fertilizer bags - more than one ply of paper is a multi-wall bag) and are the fourth largest multi-wall bag producer in the US and ninth in the world; that they have been looking to get into the business of flexible packaging industry, what this plant is. He stated that when Sengewald bought company, they were the number two bidder on the plant; that Sengewald approached Southern Bag to sell plant to them. He stated that they do need action to assign the lease to them to operate the facility.

Mr. O'Leary reported he consulted with Mr. Swanson, city attorney, and he advised an assignment of the lease would be appropriate rather than new lease or sub-lease by Sengewald.


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It was noted that this facility makes bags for agricultural products, birdseed, etc. Mr. Smith also reported that they have started a graphics and printing division to service their four converting plants; and currently does printing and converting into finished bags and shipping to customers. Mr. Smith stated they would assume lease as it is.

Moved by Glassheim and Beach to approve the assignment of the lease from Sengewald, USA to Southern Bag. Motion carried.

3. Matter of transfer of lots in Burdick's Addition to Habitat
for Humanity.
Mr. O'Leary reported that in visiting with Mr. Swanson, he advised that they cannot give lots to Habitat, would have to bid lots, and after some discussion have come up with recommendation to amend City Code to waive public bidding requirement for property designated by the council for affordable housing.

There was some discussion re. median income which is $34,000 (2.5 times median household income) would be house value of $85,000, Mr. O'Leary stated that there is a difference between low income housing and affordable housing. He suggested that they designate entire Burdick's Acres as affordable housing and deed two lots to Habitat. He stated that if they decided to designate Burdick's Acres as affordable housing, affordable to what populations - to within 10% of the median income; and this motion would allow them to look at on case by case basis.

Moved by Glassheim and Beach to introduce an amendment to the City Code waiving public bid requirements for real estate designated by the city council for affordable housing. Motion carried.

Meeting adjourned at 5:35 p.m.

Alice Fontaine
City Clerk

Dated: 02/01/96