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MINUTES/GROWTH FUND AUTHORITY (JDA)
Monday, July 19, 1999 - 7:00 p.m.__

The city council of the city of Grand Forks sitting as the Growth Fund Authority met at the council chambers at City Hall on Monday, July 19, 1999 at the hour of 7:00 p.m. with Chairman Carpenter presiding. Present at roll call were Council Members Brooks, Polovitz, Lucke, Hamerlik, Bouley, Glassheim, Carpenter, Lunak, Beyer, Babinchak, Bakken, Hafner, Martinson, and Mayor Owens - 14; absent: none.

CONSIDER MATTER OF SALE OF 307 DIVISION
AVENUE

The city auditor read the recommendation from DDC (Downtown Development Commission) is to sell the property to Arnold Phillips for his offer of $5,010.00 and that the remaining debris from the previous demolition would be cleaned up by the City and that conveyance of title would be contingent upon his obtaining a building permit for the planned expansion.

It was moved by Council Member Hafner and seconded by Council Member Beyer that this recommendation be and is hereby approved. Upon roll call the following voted “aye”: Council Members Brooks, Polovitz, Lucke, Hamerlik, Bouley, Glassheim, Carpenter, Lunak, Beyer, Babinchak, Bakken, Hafner, Martinson, and Mayor Owens - 14; absent: none. Chairman Carpenter declared the motion carried.

CONSIDER MATTER OF GRANT AND SALE OF 28
SOUTH 3RD STREET (PENNEY’S BUILDING)

The city auditor read the recommendation from the DDC is to approve the sale of the property to LTD Properties contingent upon the execution of a development contract that includes conditions listed (8 conditions)and that title of the property be transferred upon completion of the agreed upon renovations, and agreed upon sale price is $1.00 and subject to further council action.

It was moved by Council Member Beyer and seconded by Council Member Glassheim that this recommendation be and is hereby approved.

Dan Samson, LTD Properties, stated they would be dividing the property into small shops (art and specialty shops)with second
floor being used for studio space for artists; and if space left
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July 19, 1999 - Page 2-------_______

over, apartments on third floor.

COUNCIL MEMBER KLAVE REPORTED PRESENT

Alice Aaker reviewed her proposal for the building, to purchase for $1,000 and asking for renovation funds; that they would place antique mall and third floor for community arts.

Chairman Carpenter stated he had reviewed the proposals, that as he looked at information provided to them and looks like two very close proposals and appears from the minutes that the primary emphasis for going to LTD was because of the concept they had with small space for small businesses, that he likes both proposals, and his inclination is to go against the DDC’s recommendation and support the purchase by Alice Aaker.

Mr. Samson reported they bid $100,000 and asking $250,000 in grant money, that they bid $1,000 and asking for $160,000 in grant money, and they are also asking for the elevator and a sprinkler system to be repaired, and noted that flooded elevator and sprinkler systems can be very expensive. He also compared the proposed improvements and LTD spending approx. twice amount of money.

Randy Aaker spoke in favor or their proposal; and Todd Nedberg, LTD, spoke in favor of their proposal.

After considerable discussion and upon call for the question and upon roll call the following voted “aye”: Council Members Brooks, Polovitz, Lucke, Hamerlik, Glassheim, Klave, Beyer, Babinchak, Bakken, Hafner, Owens - 11; voting “nay”: Council Members Bouley, Carpenter, Lunak, Martinson - 4. Chairman Carpenter declared the motion carried.

MATTER OF OPENING ACCOUNT AND SIGNATURE
AUTHORIZATION FOR JDA AT NORTHWEST BANK

This matter was pulled from the agenda.

MATTER OF LEASE TO NOAH’S ARK BUILDING
WITH MODERN INFORMATIONS SYSTEMS

Chairman Carpenter reported that the request is for approval of a lease of 4500 sq. ft. of Noah’s Ark building for use of
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July 19, 1999 - Page 3_______

a warehouse facility and authorizing JDA to bid the construction of the necessary enclosure for the area to be leased to Modern Information Systems to include a 100 sq.ft. office, and additionally request authorization to award the bid to the lowest bidder, and if the bid amount does not exceed $25,000 and if the bidder’s proposal meets the bidding requirements; funding for this construction will come from revenue generated by the facility through other leases and the improvements will be repaid by the tenant in the form of an increased rent structure amortized over four years. Chairman Carpenter asked for a motion to authorize leasing of the property by appropriate officials to enter into a lease with Modern Information Systems. it was moved by Council Member Babinchak and seconded by Council Member Lunak. Carried 15 votes affirmative.

ADJOURN

It was moved by Council Member Bakken and seconded by Council Member Lunak that that we do now adjourn. Carried 15 votes affirmative.

Respectfully submitted,



John M. Schmisek
City Auditor