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MINUTES/GROWTH FUND AUTHORITY
Monday, March 2, 1998 - 7:00 p.m.

The city council of the City of Grand Forks sitting as the Growth Fund Authority met in the council chambers in City Hall on Monday, March 2, 1998 at the hour of 7:00 p.m. with Chairman Carpenter presiding. Present at roll call were Council Members Beach, Lucke, Hamerlik, Bouley, Glassheim, Carpenter, Klave, Beyer, Babinchak, Bakken, Hafner, and Mayor Owens - 12; absent: Council Members Polovitz, Sande, Hagness - 3.

HOLD PUBLIC HEARING ON PROPOSAL THAT
JDA LEASE REAL AND PERSONAL PROPERTY
LOCATED AT 401 AND 402 DEMERS AVENUE

Chairman Carpenter opened the public hearing on the proposal that the Jobs Development Authority lease real and personal property located at 401 and 402 DeMers Avenue, project to be leased to JDA for subleasing to various tenants.

Randy Newman, 333 Woodland Circle, president of First National Bank, read statement to the council announcing their decision to enter into a lease agreement with the new Grand Forks Corporate Center, and to make the following announcement on behalf of First National Bank, on the advise of John O'Leary would like to sell rather than give the land located at 402 DeMers Avenue, formerly known as the First Financial Center site, to the City at appraisal for $73,100, and furthermore would also like to announce the donation of their former bank building located at 322 DeMers Avenue as well as the two contiguous lots surrounding the building to the City of Grand Forks, while no specific decision has been made at this time, the Bank is considering the appropriate civic use of these monies and intends to reinvest these funds for economic development uses after discussion with Dick Olson as to their best uses. He reported that the First National Bank Building has been determined to be structurally sound and they understand that the City will conduct an RFP process to help coordinate its redevelop-ment and its ultimate ownership by the private sector; that they and the City are under the knowledge that for the private sector to restore this historically significant building the right combina-tion of private sector usage and public sector financial assistance will be necessary for this project to be successful. He stated that for the City to be the temporary owner in control of the RFP process they are in agreement that the best decision for First National Bank is to give this building to the City in order to tie its development to the theme of the Grand Forks Corporate Center and the redevelopment of the downtown.

Bob Boyd, 1912 Cottonwood Street, stated he serves as chair of Board of Directors of the Grand Forks Chamber of Commerce, that the Board (with over 850 members) at its January meeting took action on its program of work and included was a strong statement in support of the Corporate Center, centered on three important issues: 1) that the downtown is important to the community, a downtown that is MINUTES/GROWTH FUND AUTHORITY
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alive and attracts businesses as well as people is critical; 2) that this is jump-start that will attract other businesses, other investments, particularly to the downtown area; and 3) the money being invested is an asset they will have that will pay for itself under kind of conditions they are placing on it and is a good investment. He stated that on behalf of Chamber want to congratulate council on way it was done and certainly speak in support.

Dick Olson, Regional Development Foundation, thanked council for effort put into this for economic development of the city.

Mayor Owens thanked Dick Olson, John O'Leary and John Schmisek for their efforts and dedication into the project, and thanked Mr. Newman for generous offer which shows commitment to the city of Grand Forks.

Chairman Carpenter closed the public hearing.

It was moved by Council Member Hafner and seconded by Council Member Bakken to authorize appropriate City officials to enter into lease between the City of Grand Forks and the Grand Forks Growth Fund Authority. Upon call for the question and upon roll call vote, the following voted "aye": Members Beach, Lucke, Hamerlik, Bouley, Glassheim, Carpenter, Klave, Beyer, Babinchak, Bakken, Hafner, Owens - 12; voting "nay": none. Chairman Carpenter declared the motion carried.

APPROVE CHANGE ORDERS FOR NOAH'S ARK BUILDING

John O'Leary, executive director of Urban Development, reported that they have two change orders on the Noah's Ark building, first change order dated December 8, 1997, which was initially reviewed and approved by the Urban Development Committee and should have been run before Jobs Development Authority for their review because this building owned by the JDA rather than the City of Grand Forks. He reported that the final amount of the change order is in the amount of $565,893.81 and involves number of issues, that when project initially received and approved they fast-tracked the project by doing design-build building and knew there would be substantial number of change orders, built those change orders into the process and into the budget anticipating need for corrections in budget and work program. He reported that the second change order is dated March 2, 1998 in the amount of $283,665.00. He reported that Change Order 1 dealt with construction of building, Change Order 2 dealt with tenant's specific improvements which he summarized. He reported that the project is on schedule and on budget with change orders and contingency of over $250,000.

It was moved by Council Member Klave and seconded by Council Member Bakken to approve and authorize the change orders to the Noah's Ark MINUTES/GROWTH FUND AUTHORITY
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building in the amounts of $565,893.81 and $283,665.00. Upon roll call the following voted "aye": Members Beach, Lucke, Hamerlik, Bouley, Glassheim, Carpenter, Klave, Beyer, Babinchak, Bakken, Hafner, Owens - 12; voting "nay": none. Chairman Carpenter declared the motion carried.

ADJOURN

It was moved by Council Member Hamerlik and seconded by Council Member Beach that we do now adjourn. Carried 12 votes affirmative.

Respectfully submitted,



John M. Schmisek
City Auditor