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MINUTES-SPECIAL COMMITTEE OF THE WHOLE
Monday, March 3, 2003 - 7:00 p.m._________

The city council met as the Committee of the Whole on Monday, March 3, 2003 in the council chambers in City Hall with Mayor Brown presiding. Present at roll call were Council Members Brooks, Hamerlik, Glassheim (teleconference), Gershman, Christensen, Kerian, Kreun - 7; absent: none.

Boy Scout Troop No. 130 led the city council in the pledge of allegiance to the flag (Eric Anderson, leader, Peter Abrahamson, Michael Adams, Christopher Barnes, Michael J. Faller, Alex Guy, Danny James, Andrew Klitz, Mathew Klitz, Bret Morgan, Carl A. Nikle).

PRESENT AWARDS

Mayor Brown reported that Sgt. Ferguson will be presented the ND American Legion Ray Atol Law Enforcement Officer of the Year award.

Department Vice Commander James Karas of the North Dakota American Legion Executive Committee (Eastern Region) reported that several years ago the American Legion in North Dakota started several new programs, first was the Police Officer award, etc., that Grand Forks has a recipient of the Ray Atol award by the American Legion, that Ray Atol was the chief of police for many years at Williston, ND and also a State Legion Commander, and presented this award to Sgt. Michael J. Ferguson of the Grand Forks Police Department and read the award - for outstanding service to the community through carrying out his duties as a police officer for the city of Grand Forks in a manner which reflects credit on all law enforcement officers, and for dedication to his profession above and beyond the call of duty. His service on the Grand Forks police force alone with his outstanding community involvement exemplifies the American Legion's dedication of service to community, state and nation.

Council Member Gershman stated that the audience has not seen the awards and decorations that Sgt. Ferguson has had, that he saved numerous lives and has medals for valor and suggested that the City of Grand Forks in our next publication of our minutes/agenda that we recognize Sgt. Ferguson and list the awards and decorations, its incredibly impressive.

Mayor Brown reported that John Stiles, Grand Forks District Legion Commander and Chamber of Commerce MAC member will present to Chief Packett as representative of the city of Grand Forks, an Employer Support of the Guard and Reserve "My Boss is a Patriot" award. He stated that this award nomination was submitted by Sgt. Roger Pohlman during his recently completed ND National Guard activation.

Mr. Stiles reported that the award is a federally mandated program within the Department of Defense under the Assistant Secretary for Defense, the program is set up to help the civilian employer of Guard and Reserve members; that both the employer and military members have certain rights within this program, and presented the award to Chief John Packett.

Mayor Brown also thanked the community for support of his on-going state of the city address, that it was his honor and pleasure to discuss the success of city government, the city council and the community. He thanked the Chamber for hosting the event; and that he appreciates all the comments he has received, especially since they've been constructive, and need to be able to continue discussing this proposal in a positive way and to make sure that the discussion is with facts and correct information.

He also thanked the World Junior Hockey officials for spending time in Grand Forks this weekend, that he is expecting a great turn out for the tournament in 2004 and 2005.
Congratulations to the staff of Ralph Engelstad Arena and the Alerus for putting on a first class event this weekend.
Congratulations to Grand Forks Central, State High School Championship Hockey Team, and congratulations to both Central and Red River for representing Grand Forks so well.

COMMITTEE OF THE WHOLE DISCUSSION ITEMS

2.1 Grand Forks Air Force Base Retention Committee funding.
Council Member Gershman stated the committee has been formed and this request for $250,000 per year for the next three years to be used by the Base Retention Committee for their efforts and future consultant strategies and related expenses and this will give the Committee the time and money to start their work in earnest, and would recommend that we discuss this tonight and move it on for special city council meeting next Monday night. The Committee does meet March 11 and would know that this money would be available for the Base Retention efforts; it has been stated that there's nothing more important facing us now is to be successful in the base closure efforts. It was noted that the request would be for this year and for 2004 and 2005.

2.2 Resolution supporting the siting of the Grand Forks Park District Aquatics Center on City
property north of the Alerus Center and the Commitment of up to $2 million for the con-
struction of the Aquatics Center.______________________________________________
Council Member Glassheim questioned if the City owns the land where this would be placed; and it was noted that the City owns the land; and questioned the source of the $2 million.
The city auditor reported that the initial source of funding would be $880,000 which is the money that we would pay the Park District for Riverside out of the flood control project, and the remaining amount and preliminary source which would be up to the council to decide, could come out of a balance in the Economic Development Fund based on tourism use of this property or excess sales tax. Glassheim asked if we are limiting ourselves to $2 million in this resolution; Mayor Brown stated at this time, yes. Glassheim stated that the recommended council action is to request staff to develop a financing recommendation to accomplish the City's contribution to the siting, construction and funding of the Park District's Aquatics Center and if it is for the $2 million in strongly in favor of it and if that includes development plans for significant extra dollars, not sure he wants to vote in favor of it. Mayor Brown stated it was included in the staff report, and outlines commitment of up to $2 million for the construction of the Aquatics Center.

Council Member Hamerlik stated the $880,000 was committed several years ago for the Riverside Pool because it was on the wet side of the dike and that is a commitment that has been made and is not additional money, the other portion of up to $1 million is really what we would be voting on as other money for the Center; and asked if we should put a sunset clause on this - should give ample time, whether 5 years or something to that effect, that it could be extended if need be - favors a sunset clause.

Council Member Brooks stated that land is used for parking and if there is a plan for how we replace that parking, what it's going to cost and where it is going to go, and would like to see a joint powers agreement with the Park District where we have some control as we enter into this project as we're two political subdivisions within the city and two separate governing boards a- committing $2 million with nothing in writing. Mr. Duquette stated this is an initial preliminary request, would be bringing back those development agreements or agreements with the entities involved and are looking at developing further parking out there Council Member Brooks asked when money would be changing hands or agreement in place; Mr. Duquette stated he was not prepared to give a set time as when the money begins to exchange hands, and would recommend that we don't begin to fund anything until they get routine construction bills coming back to the City that we would approve.

Council Member Kerian stated that she would like to see this continued to the next meeting where it might be actually voted on by the council and giving people an opportunity to speak to it; and would like to hear from the Park Board of their plans. John Staley, Park District, stated that the model has been made and raised successfully, that the city of Dickinson did very much the same thing we're talking about, where the city council and the park district formed a joint powers agreement and the sales tax was put on a ballot and approved by the voters and that created money that went to retire the debt on their new community center which is a $12 million facility, and the dollars are also used to handle the operation shortfall, and in that community they decided to have a significant shortfall because they wanted fees to be affordable to the citizens, and would use the rest of the money for property tax relief and other structural projects, and is working there. Jamestown and Valley City, Williston are all doing the same kinds of things with their school districts, and agrees that we need a joint powers agreement and can work that out.

Council Member Kerian asked what they would be doing in the near term to move this along. Mr. Staley reported that their Board approved an information campaign so just getting information out to the public about what water parks are and what aquatic centers are, and plan to have a survey around the third week of April to see what the mood of the people is in terms of determining the size, etc., exactly how they are going to fund it and hoping the council will go along with the Mayor's plan and come up with the sales tax and that is council determination.

Mayor Brown stated the resolution allowing the Park District to site the Park District Aquatics/Community Center on City property situated north of the Alerus Center and next to the proposed Canad Inn, and the resolution outlines the commitment of up to $2 million for the construction of the Aquatics Center and allowing staff to move forward, and that is the issue before us this evening. Council Member Kerian stated the citizens may be interested in what happens with the $2 million and what it means to commit $2 million in terms of this project and what else will be done. Mr. Staley stated in looking at the council to see how they might react to the Mayor's plan and what they would have to do after that.

Council Member Gershman stated he has heard a lot of size, numbers, $7 million and $10 million, $15 million, etc. and asked what it would take to secure the hotel to start planning and construction - that he believes that is a $7 million water park, an expandable water park, if the issue is the hotel at the Alerus then go for the $7 million water park that can be expanded and once show that works, thinks the public will be more receptive to an expandable - and that would be his advise because of moving the process forward of the hotel at the Alerus, which is very important for this community.

Council Member Christensen stated he agreed with Mr. Gershman's comments, that this process started to finish the Alerus and opportunity presented itself for the Park District to team with the City and have an Aquatics facility constructed, and that at the December 5 meeting the commitment was made by himself and Council Member Kreun and that they would hope to get this council to go with $2 million, and under the impression because $7 million water park, that it was going to be funded by the Park District, that they have bonding capacity for $5 or $6 million and that this is a joint powers, where City is contributing some money and giving free land and access to additional land to expand the fitness center and the water park up to the boundary line, and the reduction of that land is going to cost this community a substantial sum of money to replace the parking and agrees with Mr. Gershman and wants to make sure we do not lose the initiative on this hotel. He stated he heard Mr. Staley say we have to fund for the shortfall and if there is a shortfall and if problems as far as what it costs to operate, you're teaming with a partner, the City of Grand Forks who has revenues to assist the Park District in the shortfall rather than levying taxes - and hope this moves forward and that the only thing we're voting on tonight is the first resolution which is honoring our commitment to assist the Park District with $2 million of our funds towards the construction of the facility.

Council Member Brooks asked what is the difference between water park and aquatics center or is there one. Mr. Staley stated between the water slide on South Washington and this project quite different - it is a multiple of different activities that are different sizes for different age groups of people - it is meant to attract whole groups and keep them there because so much activity and bring them back - this will have several water slides and variety of other things, have a pool - programs for lessons and therapeutic things, etc.

Council Member Kreun stated we should realize that on December 5 there was a three-way agreement made and it was first step in getting all the groups together, wasn't a binding agreement, but rather getting to a point where all three parties (hotel developer, the Park District and the City) could say we'll work together; that this is the next step in working together with all three of those entities to forward our progress in the development of this issue. He stated he has heard some people say this is too quick, actually this discussion took place on December 5, hasn't changed for several months and with the relationship between the three parties, this is starting the plans and specifications, ordering steel, supplies if we're going to go forward with this, and each and every day at this point that we wait, puts that goal of attaining the opening of any of this for the Juniors in 2004 and 2005, and urge them not to put this off any more than this evening, very critical and jeopardize this plan and project.

Council Member Glassheim stated whether we vote tonight or week from tonight, and if adopting this resolution would not be the legal commitment of money or land but that those would wait for additional specific draftings which would come back to the council, is it a concept they've agreed to or legal commitment of land and money. Mr. Swanson, city attorney, stated the actual language of the resolution is a little bit open and subject to interpretation in that regard, and would advise that though there will be future agreements that would have to be modified, you should consider whatever action taken tonight as creating some binding effect upon the City.
Glassheim stated that depending upon what the final agreements are one might change one's mind, one would like to know what one is binding oneself to and is little concerned - doesn't have problem in adopting it in concept but little concerned about what doing exactly. He stated he was a little unclear about Mr. Kreun's comment, that this is not going forward until the Park District or someone gets $7-8 million dollars worth of financing and if waiting a week not holding anything up.

Council Member Kreun stated this is a three-way agreement between developer, the City and the Park District and in order for everybody to get their funding mechanisms in order, their bank loans in order this is a crucial time now that includes the City making sure we have our funding mechanisms in place, the Park District and the developer, and most crucial for the developer because they have to get a loan and these things have to be in place and if don't get a loan and don't get the drawings started, steel ordered, etc. it jeopardizes the whole project - this is part of the process to put all of that in place. Glassheim stated if crucial thing is that the Park District gets a significant part of its funding accrual, which would take some time. Council Member Kreun stated in the agreement we're working together and if all three have to be in place for this to happen. Glassheim stated he didn't think the Park District could have their funding in place for several months. Kreun stated the commitment has to be there and that is what they are asking for.

Council Member Christensen stated that the sense in speaking with the council is that next Monday this will be approved and is his understanding that the Park District will come to council with the resolution of $1 million; that he understands Mr. Kreun's sense of urgency and that the process is in place for a committee of the whole and that the citizens should have an opportunity to at least contact council members next week; and vote on next Monday, first item of business.

Terry Bjerke stated he has several questions on this issue, and has to do with strategic long term planning, stated he was concerned when going to large public works projects because not so sure they get the total cost, and has some questions - if starting to give away City money, hopes this is going to be addressed as he is not the only citizen who would like to know the real cost of this is going to be and not piecemeal it and do all at once. He stated that the hotel is mentioned in this and that they will be using CDBG money to buy the land but has not heard any way of how pave that land and that is cost of this project and needs to be added to the total cost so get accurate number. The council discussed up to $2 million and that Riverside pool money is moot point, but the $1.1 million, his word for excess sales tax is over-taxation, means that you took in more than you needed, and it always seems that excess sales tax is spent rather than going to property tax relief. He stated now there are discussions of an increased sales tax and $13 million for the water park and start adding the numbers up - Mayor Brown stated that was not germane to this discussion, that what is before us is dedicating a site and up to $2 million, and other is speculation. Mr. Bjerke stated they are willing to vote a week from Monday to give someone $2 million and don't know what they are going to build and what it is going to cost and have no idea of the total cost, no idea of the project but going to vote to give them money without a strategic long term plan. Mayor Brown stated they expect the Park District to present a plan next week of what is entailed in this before the vote. Mr. Bjerke stated that next week the citizens are going to find out what the Park District is going to propose, the cost of the project and how it is going to be funded, where is money going to come from to replace land that it is going to sit on currently, where is money coming from to pave that land and all these questions will be addressed next Monday night.

Council Member Christensen stated Mr. Bjerke's questions are good and there will be answers, what they are asked to be doing this evening is honor the commitment they made in December for $2 million of which $880,000 actually is for the Riverside Park and rest will come out of various funds. He stated they have told the Park District in various meetings that it can be sited on our land, and the money that we have for CDBG will be used to purchase the land and to pave the land because they have a plan for that - can't answer that to the dollar but is in consideration and can implement that plan when they build the hotel, because when they build the hotel a lot of the jobs will be people who qualify under the various programs. He stated this has to be done to honor our commitment to the developers and has to be done so that the Park District can move forward tomorrow night as far as their commitment; that the developers will go forward with developing of their plans and financing arrangements - that this is the first step and have the same concerns and not starting on this project without knowing what's at end of destination - that they are going to be looking at this and that the Mayor and Mr. Schmisek are giving them good information and others - and there's not an open checkbook here.

Mr. Bjerke stated his main concern is when start piecemealing money out over time hard for the citizens to keep track and if into strategic long term planning, and can have one meeting and determine this is what they are going to build, cost, etc. and bring it back. Council Member Christensen suggested that they are going to get a report on hotel, aquatics center on a monthly - every six-week basis.

Mayor Brown recognized Council Members Kreun and Christensen for their excellent work on this item.

ADJOURN

It was moved by Council Member Gershman and seconded by Council Member Christensen to adjourn. Carried 7 votes affirmative.

Respectfully submitted,



John M. Schmisek
City Auditor