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MINUTES/URBAN DEVELOPMENT COMMITTEE
Tuesday, June 25, 1996 - 6:50 p.m.

Members present: Beach, Glassheim, Hanson.

1. Matter of allocation of CDBG funds to Continental Homes.
John O'Leary reported that contractor, DuBois & Sons of West Fargo, doing renovation project at Continental Homes removed siding off all three buildings two weeks ago, that siding won't be in for couple weeks, removed flashing and when it rains, comes down into windows; removed shingles, etc. and instead of running off roof, water runs into walls. He stated they and architect cannot tell contractor how to do job (liability), all three buildings open and this morning when it rained, water was pouring in. He reported that top floors of all three buildings affected, second floor water damage more nuisance. He also reported that DuBois put on notice, and Continental Homes attorney involved; that Continental Homes expects to get compensated for damages or take to court. Continental Homes is owned by Grand Forks Homes, separate corp. and managed by Housing Authority; Continental Homes insurance covers building but not tenants.

He stated that the three buildings have total of 64 units, 3/4ths of tenants emotionally dysfunctional, tenants don't have money, but contractor has set up account at Royal Fork, etc. and tenants staying at motels (activated Relocation Act). He stated they have designated Dennis Borowicz to represent tenants. He re- ported there is lot of damage, insurance adjustor there this morning, meet again tomorrow to determine damages: found there is asbestos in tile, water under subfloor, etc. He reported that the insurance adjustor says should get settlement in 3-4 weeks.
Mr. O'Leary reported there are some things needed on emergency basis: 1) deal with the needs of the tenants, 2) get personal belongings out and into storage, emergency cleaning bills. He stated they have asked tenants to keep receipts, etc. and that any funds advanced tonight will be receipted. He reported they are asking tenants if they have any insurance coverage, but these are low income people. He stated he talked to HUD, and there is provision for urgent need. Mr. O'Leary suggested they keep under $10,000; are going to need more than that in long run, there's over $100,000 in Contingencies as of now. He noted other expenses: Dennis Borowicz working on the project, need money to pay him; they also pulled in caseworkers who are counseling these people (NE Human Services) and hired relocation person and expect to be compensated for that, also hired someone from Schoen & Assoc. to work with inspector in making inspection of buildings.
Moved by Hanson and Glassheim to approve request for $9,900 out of Contingencies to respond to emergency situation and declare urgent need, and to transfer $9,900 out of Contingencies to Continental Homes. Motion carried. (committee only)

He stated they will be reimbursed for tenant's damages, reloca-

MINUTES/URBAN DEVELOPMENT COMMITTEE
June 25, 1996 - Page 2

tion costs, etc. It was suggested that in future budgets should
include line item for emergency needs.

Meeting adjourned.

Alice Fontaine
City Clerk

Dated: 6/26/96.