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MINUTES/URBAN DEVELOPMENT COMMITTEE
Wednesday, May 15, 1996 - 4:00 p.m.

Members present: Beach, Glassheim, Glassheim.

1. Protective covenants for Burdick's Acres.
John O'Leary, exec. director of Urban Development, reported they are in the process of awarding bids for first 7 houses, which are very favorable, and GF Homes will proceed with con- struction of those houses. He stated that prior to turning over lots to Grand Forks Homes and Habitat for Humanity, staff thought it worth discussing the implementation of protective covenants on those lots. He reviewed covenants with the committee. He stated this doesn't need action today and could hold for 2 weeks to give committee time to review. Held until May 28 meeting.

2. Clean-up of riverbank boat landing area.
Mr. O'Leary reported that last fall Mr. Lester made some alterations in the riverbank, that his plan was to put RR track along side for hauling riverboat up the bank for winter storage; that there is construction debris left in place over the winter; City currently in litigation over accident on the bikepath. He stated debris has been moved off the bikepath, that not only unsightly but hazardous as well. He presented pictures of site before and after alteration by Mr. Lester. He reported that when the boat pulled upon the tracks the system failed, and Mr. Lester ultimately ended up storing on EGF side of river.

Curt Siewert submitted copies of several communications to Mr. Lester and copy of council action approving amendment to the lease for the committee's information. He reviewed estimate for reclamation of the riverboat docking area in the amount of $11,120.00 plus $4,640.00 for replacement of trees damaged and removed when he was putting in tracks for moving and storage of the riverboat for a total of $15,760.00. He suggested that Mr. Lester be given reasonable length of time to restore the area, and if not done, then Community Development would proceed with restoration. Mr. O'Leary stated that restoration of area was included in original lease if riverboat relocated. Mr. Glassheim stated they should proceed in a manner to recover this kind of money; and perhaps should be referred to the city attorney.

Gary Christianson, Riverforks Commission, was present.

There was a review of proceedings re. lease amendment, which was approved by finance and urban development committees prior to council action on September 25, 1995.

Moved by Glassheim and Beach that a letter be sent to Mr. Lester requesting him to restore the riverboat docking area to its original condition, said work to be coordinated with Urban Development staff and to begin immediately; that if not shown substantial good faith by May 29, 1996, that the City will
proceed to cause work to be completed and Mr. Lester to be held
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May 15, 1996 - Page 2

accountable. Motion carried. (comm. only)

3. Authorization to bid vendor path on the riverbank.
Mr. Siewert presented map showing final version of the path, that Riverforks Comm. has decreased size of vendor path loop, that Bikeway Comm. recommended removal of path which is in disrepair; and copy of proposed funding for the project: Installation of pavers in the amount of $36,000 with funding as follows: River- forks Commission, $25,000, Central Business Dist. Authority, $7,500 and Bikeway Fund, $3,600; Mr. Christianson, Riverforks Comm. stated they want to have pavers in that area, that pavers stable for bike riding, and they would install "end of trail" sign. Other costs are as follows: removal of remainder of old bikepath approx. from Univ. ext. to Gateway, $3,600, Urban Development; haul and fill black dirt where bikepath removed, $2,500, Urban Development; and hydro-seeding of area where old bikepath was removed, $3,333, Bikeway Fund; funding has been approved by these groups. He also reported that the Parking Authority will redo lot and entryway through change order to City's concrete street repair project. Mr. Siewert requested authorization to bid the project, will take approx. 3 weeks to bid.

Moved by Glassheim and Beach to authorize call for bids. Motion carried. (comm. only)

4. Up-date from Grand Forks Homes re. housing projects.
Mr. Siewert distributed copy of tabulation of bids for the 7 houses in Burdick's Acres for 4 3-bedroom split-level houses, and 3 2-bedroom split foyer houses; base bids plus Alt. #1 (oak trim woodwork), Alt #4 (conc. craw space), and Alt #5 (roof line) range from $63,870 to $72,292; alternate contract items were also bid: (ext. sheathing, gas water heater, entry door ext. wrap, wrap garage door opening); and non-contract items were also listed: lot, landscaping - fill and grass, construction loan interest, and contingencies and adm. It was noted that total cost of 7 houses, $611,477.27, with average cost of $87,353.90. It was noted there are no basements as water table very high; bid includes a 2-car garage.

The committee asked why 2-bedroom houses rather than all 3-bedroom which is in demand. Mr. O'Leary stated they are trying to give some variety, give those families option, purchaser could build up some sweat equity by adding bedroom and family room in lower level.

It was noted that Circle K (Bill and Steve Knipe) low bidder on all houses; they received 5 bids.

Mr. O'Leary reported that they have been contacted by private
developers who want to acquire some lots to build on; committee
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may want to consider whether put some lots on market for private development; there are 31 or 32 lots left; monies will go into escrow account for development of additional lots. He stated that whole intent of subdivision was to do affordable housing. No action taken, information only.

5. Request from City of Awano, Japan for sister-city
relationship.
Beach reported that Mayor Polovitz spoke to him re. this matter and Mayor very interested in committee's doing something with this right away. Mr. Glassheim stated first sister-city was cultural thing; now intention seems to have economic development activity - looking for cultural exchange first to pave way for exchange of business people and exchange of trade and commerce; and purpose seems different than Ishim which was more cultural.
Dick Olson, Development Foundation, would support if economic development ties.

Moved by Beach that the City of Grand Forks consent to a sister-city relationship that would emphasize both cultural and economic development ties; Glassheim seconded the motion. Motion carried.
6. Allocation of CDBG budget cuts.
Mr. O'Leary reported they had received memo from HUD informing them that their CDBG funds this year would be $588,000, that when they went through allocation and distribution process, they allocated $605,000. He stated that the problem is that some of the funds were set aside for bricks and mortar projects and some for public service projects, don't have lot of flexibility on the public service projects in terms of getting money from other sources (contingencies); that they have enough money in contingencies to make up entire difference but can't put all of the cut out of contingencies into public service projects and be below 15%. He stated that there are three projects which received CDBG public service money, ie., Community Violence Intervention Center, $60,000; Listen, Inc., $25,000; and Affordable Housing Assistance Program/Urban Development Office received $5,000 for a total of $90,000. He stated they have enough money in Contingencies to fund all of the Bricks and Mortar projects and cut would only impact public service projects. He stated that if cut pro-rated to the three agencies based on initial allocation, the Community Violence Intervention Center would be cut from $60,000 to $58,800, or a cut of $1200; Listen Center would be cut $500 and Affordable Housing Program would be cut $100, total of $1800. He stated that the staff's recommendation is to pro-rate $l800 cut consequential to the reduction in the total budget to the public service projects as previously stated.

Moved by Glassheim and Beach to pro-rate the $1,800 cut
consequential to the reduction in the total budget as follows:

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$1200 to Community Violence Intervention Center, $500 to Listen, Inc. and $100 to Affordable Housing Program for a total cut of $1800, which would allocate $88,200 to public service projects out of CDBG; and to transfer out of Contingencies funds to cover the balance of the bricks and mortar projects in the amount of
$11,050. Motion carried.

7. Authorization to bid Cirrus manufacturing plant.
Dick Olson, Economic Development Foundation, was present. Mr. O'Leary reported that the architect is in the process of developing final plans and specifications for the Cirrus building, that they have been meeting with the architect to make sure it's within parameter of what's reasonable for the City and affordable for Cirrus; the design teams thinks they will have final plans and specs. available next week after the council meets, but they are asking for authorization to proceed with advertising for bids for the building. He stated they will bring bids back to committee. Moved by Beach and Glassheim to approve plans and specifications and to proceed with advertising for bids for the building. Motion carried.

8. Matter of protective covenants for Burdick's Acres.
Glassheim asked what status of lots for Habitat for Humanity. Mr. Siewert reported that the deed is registered; he stated they perhaps should have meeting to finalize covenants for these lots as you don't want to write deeds until do covenants. Mr. Siewert also stated that they may want second driveway for the corner lots off 46th, 47th and 48th Streets and covenants wouldn't allow. The committee scheduled a meeting for Monday, May 20, at 7:00 p.m. to consider the protective covenants.

Moved by Beach and Hanson to adjourn; meeting adjourned at 5:30 p.m.

Alice Fontaine
City Clerk

Dated: 5/16/96.