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MINUTES/FINANCE COMMITTEE
Monday, December 9, 1997 - 3:45 p.m.

Members present: Carpenter, Babinchak, Bakken, Hamerlik.

1. Matter of Varmints Baseball Team loan.
Saroj Jerath, deputy city auditor, reported that the Channel Cats letter stated that they have nothing to do with Varmints, that they don't want to assume any loan from the Varmints, and nothing has been received from the Varmints. Carpenter stated that based on letter from Channel Cats are at basically original standpoint; that council either needs to cancel loan or to direct Mr. Swanson to proceed on personal guarantees.

David Thompson stated that it is his understanding that he had heard that the Varmints was going to take position by the guarantors by the first of the year. Mr. Carpenter reported that the committee had delayed action because of potential assumption of loan by the Channel Cats but now have letter stating that's not taking place.

Hamerlik present.

Mr. Thompson reported this was news to him; and would ask committee to defer action pending their discussions with the Channel Cats; it may be explained in their communication with them; that the agree-ment on the part of the Channel Cats was a material condition that induced them to clear the way to their proposal to lease the sta-dium from the Park Board and deal otherwise with the City. He reported they stepped aside when the League, that there are fran-chises that are still going to be functioning within the Prairie League, and this is unwelcome news to him. He stated he under-stands the City's situation and do stand as guarantors. He stated there were meetings between Northwoods and gentleman, John Ditrich, and were told these initiations took place between Jack Geller and reps. of the League and other discussions re. Channel Cats and League itself, that these representations made by the League to them with inducement for them not to cease operations, etc. and was important and that Grand Forks would have baseball next year, were in situation where looking at various options, including SBA loan. He stated their Board would continue this way and would take care of most remaining obligation; he understands where City's coming from and want to be responsive and sorry no one else was here.

Bakken reported that the Park Board situation was weak position and City was going to be paid; he stated that this has gone on for some time and if goes on for another two weeks will be looking to various guarantors of the loan. Mr. Thompson stated that they are confused and justifiably so, that he spoke very capably with Mr. Geller. Hamerlik reported that the motion that has been passed is that they have until the first of the year. Held until the next committee meeting.

2. Matter of 1998 Parking Authority budget.

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Mrs. Jerath presented budget and reported that the recommenda-tion of the Central Business Dist. Authority prepared 6 months budget after which it will be reviewed, total budget $72,943. It was noted that this is Parking Authority budget only.

Moved by Bakken and Babinchak to approve the budget for six months in the amount of $72,943 for the year ending June 30, 1998. Motion carried.

3. Matter of re-appropriation of River Forks funds:
Mrs. Jerath reported that the department's recommendation is in front of the committee. Chairman Carpenter asked that each of the two committees present their requests prior to the committee making any recommendation.
a) Grand New Greater Grand Forks Marketing campaign.
Bob Gustafson, Chamber of Commerce, introduced several individuals who were with him today: Lynn Hodgson, KNOX; Peter Johnson, UND Relations; James Tsismanakis, new director of the Convention & Visitors Bureau. He stated he wanted to take few minutes and talk about their request, that the Mayor's Business Redevelopment Task Force Communications Subcommittee as part of their recovery strategy was to develop a marketing campaign to show recovery and building of community, that they secured $100,000 through various agencies, incl. US Department of Commerce Economic Development Adm., ND Depts. of Tourism and Economic Development and Finance and the Greater Grand Forks Convention and Visitors Bureau, and those funds were used locally for the immediate Grand Forks regions and getting out about our recovery and the rebuilding of Grand Forks and to feel good about themselves. He started now they are in the middle of a Christmas campaign and with that will have invested $100,000 in advertisement and promotion, and are building a "grand new Greater Grand Forks". He stated they are looking at the 1998 year and have several objectives they would like to accomplish - to promote Grand Forks as a regional, retail, com-mercial and economic center to not only the people of Grand Forks but also outlying areas (Winnipeg, Bismarck, Fargo and other cities in Grand Forks), where draw a lot of students from UND, and draw trade area customers of our recovery process as a community, economic development programs, grand new dimension of our com-munity, and think downtown project a good example. He stated their local objectives including raising another $100,000 in 1998 and marketing Grand Forks to a broader base, and are asking that the City contribute one-third of that fund or $33,333 with the balance of the campaign to be raised from other sources. He noted that they would be seeking continued funding from the CVB and ND Tourism and Economic Development Departments, as well as pursuing MN Tourism Dept. funding.

Mr. Johnson, UND, stated that Grand Forks is facing its biggest challenge ever in terms of perception, regionally and nationally, because of the flood and long term coverage of the flood and has an MINUTES/FINANCE COMMITTEE
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effect on recruitment. He stated they are starting airing some recruitments some new things for them, are hearing from students, alums, is that "you really must be having some troubles in Grand Forks", and for challenge of University, is something that needs to be met, need to get out there and counter that perception and marketing in the Twin Cities. They would be committed with working with the Chamber, the City and Convention & Visitors & Bureau to combat what they think is a serious situation.

Mr. Gustafson stated that all of the monies would be used for actual marketing and promotion, no administrative costs whatsoever or operating expenses for the Chamber.

Bakken asked where balance of the money coming from; and suggested that they also ask local business firms, that lot of firms not being asked for funding. He also asked that the City be final end rather than getting first hand.

James Tsismanakis, Convention & Visitors Bureau, and Lynn Hodgson also spoke in favor of this campaign.

Mr. Gustafson stated they need to reach out in broad area about our status and convey messages.

b) Funding of Historical Commission grant writer.
Cindy Mahal, Grand Forks Historical Commission, stated that she assumed the committee had received copies of memo she had submitted to Mr. Schmisek explaining what they are asking for; Grand Forks Historic Preservation Committee is a city-sanctioned organization established by ordinance, has 11 members commission and are all community members with various expertise, all have regulAr jobs and could not be here: those here were Dave Beach, Dave Thompson, Dale Siccles and Ted Jeliff (curator). She reported that the Commis-sion has received small grant from the State Historical Society, this grant was $15,000 for flood recovery projects, and commission advertised and announced for a flood recovery coordinator (other-wise than survey work), that her recovery is for urban develop-ment, grant writing, etc., not historian, and has brought her in to do community development and get organized and be liaison person at all meetings, with FEMA, HUD, etc. for the rebuilding of the city. She stated that there was some funding left over from last year's funding, there is not enough funding nor to keep her on board. She stated that there were some verbal commitments made to the Commis-sion for potential funding from some of the Grand Forks Relief Fund Pool and the Greater North Dakota Fund Pool, they did submit applications which were denied; they reapplied and were again denied and are now being brought forward again. She stated they are asking for subsistence and assistance to keep her position so can find other resources for the commission throughout this rebuilding of the city and to support the work and effort of the commission. She stated that in over the past six months, the

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commission members have donated over 1000 hours of volunteer time, etc., they are all a dedicated group. She stated they are asking the city to fund in the amount of $25,000, and that amount comes from both Mayor Owens and Mr. Schmisek. She stated they will be considering outside funding as well.

The committee asked what happens next year. Ms. Mahal stating they are seeking out other private sources of funding, or wherever can find for the next two to three years.

Committee also asked how hire someone without any money.

Dave Beach, 904 North 39th Street, reported that it was represented that money would be available to them from sources in City Hall, from ND Foundation and then hired Ms. Mahal and were then told that funding denied (money had been allocated).

Mr. Beach stated he has been on commission for about ten years. He stated that Historical Preservation Society seen as an opponent but with lot of decisions made downtown, and why should ask to put something in hand that might bite them later. He stated that City has certified local government and received auspices of the State Historical Society, that by being a CLG and by having the appro-priate city ordinances, they can do certain functions which State would otherwise do (reviews on demolition efforts, on National Trust combinations), and a lot more in the interest of Grand Forks doing a local group doing this than the State Historical Society, can deal with, that they can be negotiable. He stated they are not opposing of certain imposing building downtown and east half of city center mall, not to oppose the Electric Const. building and Clifford annex building, but are trying to pick best and preserve those. He stated that since the flood this organization has become lot more active, and his point is that it's better to have them as local group than with State group. He also stated that Ms. Mahal is master public administrator and will take organization to new heights and become more self sufficient; this does take time and do need $25,000.

Committee questioned use of City funds for redevelopment of the Opera House (doesn't pertain to this); Mr. Beach stated this organ-ization did target that as a property worth saving and in conversation with certain City officials, it was suggested that if the City would take second look at Opera house they would not contest the taking of these two building around 4th and DeMers. It was noted that Opera House in the secondary district, but County has input in that process. Mr. Beach stated that projects have to make sense and not keep in perpetuity because of another form of statute.

Dave Thompson also spoke in favor of the request for support of funding.

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After some discussion by the committee, it was moved by Hamerlik and Bakken to approve the allocation of $25,000 to the Grand Forks Historical Preservation Commission, without match, and appropri-ating up to a maximum of $33,333 for the advertising campaign to be matched at $2 for every $1 of our dollars and that the match dollars are to raised by July 1, 1998. Motion carried.

4. Matter of budget amendments:
a) finance department - $1,200
Mrs. Jerath reported that funding transferred for Dr. Tyler for expenditures for workshop re. stress.

b) mayor's office - $25,000
Mrs. Jerath reported the increase will reflect increased contributions for the mayor's budget.
Moved by Babinchak and Hamerlik to approve the budget transfers. Motion carried.

5. Matter of salvage from mall and buildings to help defray cost
of operations for First National Bank.
Mrs. Jerath presented request from Authority Administration (Dick Jackson) for request to sell salvage from the City Center Mall and buildings to help defray cost of operations and to help satisfy obligation at First National Bank for the six heating units. Dick Jackson presented matter of selling of equipment, including light fixtures, etc. Mr. Swanson reported they would need to declare surplus (up to $2500 for sale without advertising).
Moved by Babinchak and Bakken to declare items of property as surplus and to work with the city attorney's office re. staying in compliance. Motion carried.

6. Matter of purchase of additional Code books.
Mr. Swanson reported they have situation, that they do not have sufficient Code books, that many Code books lost and others have also lost their firms, etc. He reported that in 1987 they ordered Code books and at that time did not have option of electronic medium; and would like to further investigate the possibility of having Code published in paperback but also converted into disc and/or CD form. He reported that the City's current publishing company has given him some different proposals, that with paper copies between $3,500 to $4,000 for 100 hundred copies. He stated that if they go with 100 hard copies and with an electronic media including internet publication of our city code and complete licenses for all of our users would run somewhere in neighborhood of $10-12,000 (to have converted electronically and have available electronically and to have in print). He stated that is very attractive to their office, and actually speeds some things up in supplement, etc. and in short run cost run than paper, but in long run save money. He stated he is seeking authorization to acquire additional Code copies both in print and

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in electronic to a max. of $15,000. He stated he has not talked to Mr. Schmisek re. location of funding.

Mr. Swanson stated he would like to give strong consideration to looking at putting minutes on electronic form, to store either on CD or disc. He stated that this company has made proposal on that
and should be looking at that.

Moved by Bakken and Hamerlik to move up to $15,000 for additional City Code books, both in print and in electronic form, with funds to be taken from the River Forks Commission reallocation monies. Motion carried.

7. Matter of Varmints Baseball Team loan.
John Ditrich, owner of the Grand Forks Channel Cats, which is a franchise in the Northwoods Baseball Team League, and have secured lease with the Park Board for the use of Kraft Field for the next two years, and stated that there is some issue re. loan with the City re. Grand Forks Varmints Baseball Team, and is here to answer any questions with regard to any questions he might have with that. He state that the committee has a copy of his letter with regard to that loan. Babinchak stated that the committee was led to believe that they were to assume and pay off that $40,000 loan; Mr. Ditrich stated they were not. Dave Thompson reported that they were told that the League president made a representation that this and Mr. Ditrich would be given favorable terms on the cost of this franchise in recognition of the expenditure of money that he would be making on this guarantee; and it's evident that the Ditrich's believe they're going to incur that they had not anticipated and now disavowing any responsibility to Mr. Ditrich. Mr. Thompson stated he will be talking with Jack Geller and come to this committee with a full report. Mr. Ditrich reported they have nothing to do with what they did to the Varmints; and will do best and do and respect what these gentlemen have done.

Moved by Hamerlik and Babinchak that we do now adjourn; meeting adjourned by 5:20 p.m.

Alice Fontaine
City Clerk

Dated: 12/10/97.