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PROCEEDINGS OF THE CITY COUNCIL
OF THE CITY OF GRAND FORKS, NORTH DAKOTA
November 8, 2010

The city council of the city of Grand Forks, North Dakota met in special session in the council chambers in City Hall on Monday, November 8, 2010 at the hour of 6:30 o’clock p.m. with President Gershman presiding, pursuant to a call by Mayor Brown, which was served on all members of the city council and the city attorney. Present at roll call were Council Members Bjerke, Grandstrand, Glassheim, Gershman, Christensen, Sande, Kreun - 7; absent: none.

President Gershman announced that anyone wishing to speak to any item may do so by being recognized prior to a vote being taken on the matter, and that the meeting is being televised.

2010-14 CONSOLIDSATED PLAN UPDATE AND 2011 CDBG
AND HOME PROGRAMS

The staff report from the director of urban development relating to 2010-14 Consolidated Plan update and 2011 CDBG and HOME Programs, with recommendation to hold public hearing and approve the 2010-14 Consolidated Plan, 2011 CDBG allocation of $1,735,000 and 2011 HOME allocation of $346,000.

Council Member Christensen reported that issues were whether or not to rehabilitate the first floor of 201 South 4th Street for $490,000 but rental agreement of the 7-year lease has not been negotiated, and also agreed for funding for Mr. Senna (Shelter for the Homeless, Inc) and to the land trust and also to have a survey as to rental needs; and committee unanimously approved the staff's recommendation.

It was moved by Council Member Glassheim and seconded by Council Member Sande that the recommendation be approved. Upon call for the question and upon voice vote, the motion carried 6 votes affirmative, Council Member Bjerke voting against the motion.

NEGOTIATIONS FOR POTENTIAL ACQUISITION OF
PROPERTY NEAR NEW SOLID WASTE LANDFILL

It was noted that the city council may convene in executive session pursuant to North Dakota Century Code Section 44-04-19.1 and 44-04-19.2 to provide negotiation strategies and/or instruction regarding potential acquisition of property.

Todd Feland, director of public works, reported that Steve and Susan Jose are present this evening and would like some time to address the city council before it goes into executive session.

Steve and Susan Jose, 5850 70th Avenue North, addressed the city council, stated that they have been working on this and has been long process, have a home they love and would like to stay there, but has become impossible; several of their children have disabilities (AHD) which are daily challenges they face. They also stated that the land that they have isn't something that they bought and moved into, they built it and made it what it is. It was suggested by Mr. Feland that they stay there and try it for a while, that they did, and that they found it very difficult even as they were leaving to come here tonight there was an odor from the landfill and also bad because of noise from equipment - that they don't want to give up their home but felt forced to; did find a home that they could make work, home is older and needs quite a bit of work and does not have a shop which he needs for some side businesses (builds cabinets, etc.) and have $120,000 mortgage in order to do this.
It took them a long time to get back with an offer and were told to try to get replacement costs, did that and sent a proposal in to get negotiations going and at that time they cut off negotiations completely and did get that opened up again - requested several times for a meeting to discuss this and basically do what they are doing right now and it was denied every time. They stated that can't stay where they are at because the value of the home will go down and can't afford to lose that - they were told by realtors that they would never be able to sell it because you can't get a mortgage on a property that's in a landfill. When their neighbors sold their property they weren't ready at that time, didn't want to have to leave if didn't have to, gave an effort but finding it impossible - been there for 25 years and look out living room window and see piles of green bales and not what they want to live with.
Price of the house they are looking at $178,000, located west of town, and appraisal on the Jose's home is $145,000 and they do not have a mortgage on their current home - house slightly bigger but older and needs repairs- will have to build new shop. It was noted that the shop cannot be moved - that they were looking for some moving compensation.

Council Member Gershman stated that if there were any ideas that someone might want to put forth now or could go into executive session. Mr. Jose stated at this point they don't know what to ask for, that everything they have asked for has been turned down and don't know where the council is at. They do not have a mortgage on their present home and they will be having approx. $120,000 mortgage on new home, the new home is $178,000 which include repairs.

Mr. Feland stated the appraisal for the Jose property by their appraiser was $145,000 and in addition there is back lot, $40,000, and Jose's accepted the appraisal for the $40,000 for back lot. President Gershman stated they are going $40,000 for the shop and no issue with that; our difference is between the appraisals, and the new home being purchased.

RECESS INTO EXECUTIVE SESSION

Howard Swanson, city attorney, stated that if they would like to go into executive session for purposes of discussing a negotiation and specifically to provide instructions to your staff on negotiating with the Jose's on this property, you would need to pass a motion indicating that you would like to go into executive session under North Dakota Century Code 44-04-19.1 and 19.2 for purposes of providing negotiation instructions. Council Member Bjerke moved and Council Member Glassheim seconded the motion to go into executive session. Carried 7 votes affirmative. The city council went into executive session at 7:26 p.m.

COUNCIL RECONVENES FOLLOWING EXECUTIVE
SESSION

The city council reconvened at 7:36 p.m. after the executive session with all members present: Council Members Bjerke, Grandstrand, Glassheim, Gershman, Christensen, Sande, Kreun - 7.

It was moved by Council Member Bjerke to deny Mr. Scott's request and to terminate all negotiations, and to continue negations with the Jose's and to come back to city council next Monday night with conclusion. The motion was seconded by Council Member Sande. Upon call for the question and upon voice vote, the motion carried 7 votes affirmative.

ADJOURN

It was moved by Council Member Bjerke and seconded by Council Member Christensen that we adjourn. Carried 7 votes affirmative.

Respectfully submitted,



Saroj Jerath
City Auditor

Approved:
_________________________________________
Harold A. Gershman, President of the City Council