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PROCEEDINGS OF THE CITY COUNCIL
OF THE CITY OF GRAND FORKS, NORTH DAKOTA
December 5, 2005

The city council of the city of Grand Forks, North Dakota met in the council chambers in City Hall on Monday, December 5, 2005 at the hour of 7:00 o’clock p.m. with Mayor Brown presiding. Present at roll call were Council Members Brooks, Glassheim, Gershman, Christensen, Kerian, Kreun - 6; absent: Council Member Hamerlik - 1.

The Grand Forks Angels Hockey Assn., with girls age 14 and under with various age classes, led the city council in the pledge of allegiance to the flag.

Mayor Brown 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.

Mayor Brown commented on various events during the past week and upcoming events:
That this weekend he attended the Bikers Toy Drive presentation and thanked everyone involved, the Bikers raised toys for the families of people who were deployed and there will be 60 children with additional gifts.
This morning he had the pleasure of attending the Slumberland Beds for the Holidays Program, that they have been doing this since 1996 and gave over 42 beds to 30 homes, they had 150 applicants, and makes a big difference to the community; Wal-Mart donated $1,000 for bedding and is the third year in a row that they have done that; the Northwood churches ladies made 43 quilts and the women are aged 85 to 93; thanked Housing Authority and manager of Slumberland and Grand Forks Fire Fighters Local 1099, RBB Electric, Inc., Applegren Construction, Lumber Mart, Prairie Harvest, Hansen Ford, Deitz Business and Whalen's Moving & Storage for helping deliver those beds and put them together for those families and thanks to all involved.
That our fire chief's son went 7 and 0 in wrestling this weekend and was a winner at the Mandan tournament, and congratulations to him and all the parents doing their best to raise great kids.
That our community has seen several National Guard units being sent to the war in Iraq recently and need to keep these dedicated men and women in our thoughts and take every opportunity to support their families.
That on December 14 they are calling a committee of the whole special meeting regarding the landfill at 5:00 p.m.

PRESENTATION BY SALVATION ARMY

Mayor Brown introduced Envoy Mike Fuqua from the Salvation Army and encouraged everyone in the community to help throughout the season and to make a special effort at B & N Oil tomorrow as hoping to raise $10,000 in a single day and thinks as a community we can do that.

Envoy Mike Fuqua stated that this year, 2005, is the 110th year that the Salvation Army has been working in the Greater Grand Forks area, working with the less fortunate of this community to help provide the basic needs of food and shelter, clothing and spiritual sustenance. Needs knows no season. He gave a brief update on assistance they have provided to families in the community. He stated that this Christmas season they are reaching for a rather large goal of $170,000, $70,000 from the red kettles you see around town and offered thanks to those individuals who will man those kettles, and special thanks to volunteers; will raise about $100,000 from letters, this is their largest fund raising effort of the year and hope it is obvious to all that the work of the Salvation Army is to help meet the needs of those that are less fortunate; pleased to be considered a key service delivery agency, a place of spiritual sustenance, and may God continue to bless Grand Forks and may the Salvation Army always be here to work toward that end.

Council Member Gershman acknowledged the work they do and also noted that Curt Kreun who is chair of their Board and a council member gives much time to the city and takes the time to be chair of a very important organization. Envoy Fuqua stated that Mr. Kreun puts in much time and appreciates him.

MONTHLY FLOOD PROTECTION PROJECT UPDATE

Al Grasser, city engineer, stated that regarding Phase IV, flood protection project, contractor has started work on the drain by Merrifield Road, that is outside the normal part of the city but is part of the flood protection project. He noted that as we now have some snow and that there is sledding off of the Belmont dike and are going to be putting signs on the dike asking people not to be sledding down the wet side of the levee as there is a storm water holding pond and bikepaths there and ask everybody's cooperation - the dry side is okay. He stated because the construction activity is still going on in various parts do not have an authorized snowmobile trail through the greenway this year; that the project is nearing completion but still lots of odds and ends out there where the contractor is still working. He stated the greenway organization has lost an ardent volunteer recently, Dick Compton passed away and he had done volumes of work in the greenway, one of his legacies is Christmas in the Park as he put a lot of effort and time into that project and acknowledged his good work and express our condolences.

A short video update showing some of the areas of the flood project that are completed or nearing completion was presented.

ADOPT ORDINANCE NO. 4104, AMENDING SECTION
21-0205 RELATING TO DESCRIPTION OF CLASS 1 AND
CLASS 3 ALCOHOLIC BEVERAGE LICENSE TO PROVIDE
SAMPLES

An ordinance entitled "An ordinance amending Section 21-0205 of the grand Forks City Code relating to Class 1 alcoholic beverage license", which had been introduced and passed on its first reading on November 21, 2005.

Mayor Brown asked if there was anyone present who had comments to make on this matter; there were none.

Council Member Gershman asked to be recused from voting on this matter, and it was so moved by Council Members Kreun and Kerian. Carried 5 votes affirmative.

Upon call for the question of adoption of the ordinance and upon roll call vote, the following voted "aye": Council Members Brooks, Glassheim, Christensen, Kerian, Kreun - 5; voting "nay": none; Council Member Gershman recused. Mayor Brown declared the ordinance adopted.

CONTINUE SECOND READING OF AN ORDINANCE
RELATING TO DEFINITION OF A "BAR" AS IT RELATES
TO SMOKING IN PUBLIC PLACES AND PLACES OF
EMPLOYMENT
An ordinance entitled "An ordinance amending Section 13-1102(1) of the Grand Forks City Code regarding relating to the definition of a "bar" as it relates to smoking in public places and places of employment", which had been introduced and passed on its first reading on November 7, 2005.

Mayor Brown asked if there was anyone present who had comments to make on this matter; there were none.

It was moved by Council Member Kerian and seconded by Council Member Kreun to adopt the ordinance.

Council Member Christensen stated in reading the Attorney General's opinions that the sale of alcoholic beverages within the bar must be the primary source of revenue derived by the institution and believes that this is broader than what the council should go with, as it says, "in which the sale or service of activities which are only incidental to the consumption of alcoholic beverages" and is of the opinion that we should adopt the Attorney General's language rather than this language and suggested that all of the council members get copies of these opinions for their review.

Mr. Swanson, city attorney, stated with due respect to Mr. Christensen, he disagrees; that specifically the Attorney General's opinions didn't deal with the restaurant, but dealt with a bingo parlor and the Attorney General specifically focused on the determination as to whether or not those sales were incidental, that he doesn't believe it is broader and is of the opinion that we don't have much choice and have to fall in line with the Attorney General's opinions, the draft of that definition was not intended to go further than what the Attorney General has already told us, in both opinions September 9, 2005 where he was specifically rendering an opinion with respect to a bar and a restaurant and also identified incidental's consumption of beverages and the September 27, 2005 opinion didn't relate to restaurants, rather related to a bingo facility, that he has a different interpretation apparently than Mr. Christensen.

Council Member Gershman requested to be recused from voting on this issue, and it was so moved by Council Members Brooks and Kreun. Carried 6 votes affirmative.

Council Member Christensen suggested that the council members review these opinions before making this decision, and moved to table second reading of the ordinance for 2 weeks. Council Member Brooks seconded the motion. Upon roll call the following voted "aye": Council Members Brooks, Gershman, Christensen, Kreun - 5; voting "nay": Council Members Glassheim, Kerian - 2. Mayor Brown declared the motion carried and this item held for 2 weeks.

APPROVE APPLICATION FOR MOVING PERMIT TO MOVE
STORAGE BUILDING TO 509 BELMONT ROAD, SUBJECT
TO CONDITIONS

The city auditor reported that the notice of public hearing on the application by William Huot to move a storage building from Reynolds, ND to 509 Belmont Road, had been continued until this evening.
The staff report from the inspections department relating to public hearing for moving permit application to move a storage building to be used as a storage building from Reynolds, ND to 509 Belmont Road, with recommendation to approve the moving permit to move a storage building to 509 Belmont Road.

Mayor Brown opened the public hearing.

Sally Marin, 515 Belmont Road, stated she and her husband own the property adjacent to Mr. Huot, that at the last meeting a question was raised as to whether this was a zoning issue or a moving permit issue, that this is a zoning issue because Mr. Huot runs a commercial operation in a residential, R-2 Historical District, the moving permit ordinance is based on zoning and many of the factors in that ordinance on moving permits are based on zoning. She stated that the current garage on Mr. Huot's property is used primarily as a repair shop, and is used in his business operation; this new shed or storage building that he wants to move in back of this garage will allow him to expand his commercial activities in this residential neighborhood. At the last meeting Mr. Huot stated he would use this only for storage of personal articles in his yard, and showed photos of other garages in this alleyway which he states were in disrepair thereby inferring that this structure conforms to other garages or structures in that area, that their garage was built in 1997 and neighbors to the south of them built garage in the early 1990's, and 2 garages on the other side of him are also newer structures in good repair. She asked if this decision should be based on minimum standards, should structure coming in conform to newer structures or older ones. She stated if this new structure does increase the commercialization of their neighborhood it will cause undue or serious depreciation in the value of other properties in this neighborhood in violation of this ordinance or the zoning code.

Willie Huot, 509 Belmont Road, that the building to be moved is a storage shed not a garage and the building permit has nothing to do with the tree service that he runs, that he has been asked to take the equipment out of his yard and has done that and his yard is void of anything to do with tree equipment, and the garage that he has is a two-story garage, very small and no room to store bicycles, grills, etc. and that is the intention of the building is to use it as storage shed in the back of the building; he has indicated to Ms. Collings that it is intention to have this building totally renovated by the middle of July of next year, and would include new siding, new windows and doors and if the roof needed to be replaced, would also do that. He stated there is a wide variety of quality and conditions of garages in the neighborhood and it is his intention, if granted the permit, to have this building completely renovated and if not would voluntarily remove that building from the premises at his own expense, and will assure the council and neighbors that that building will be totally renovated by the middle of July next year. He stated he has room in his home that he uses for his tree business for phone service, and everything to do with tree service has been moved to East Grand Forks.

Mayor Brown closed the public hearing.

Council Member Gershman stated he has some concerns because of the timeline of the first complaint which was June 7 and asked what the impervious surface percentage is for backyards. Ms. Collings stated impervious surface 40% coverage in that area, that this is a large lot, 75x190 ft., and has reviewed the numbers for new shed and a lot of coverage allowed, and not a specific impervious surface for the backyard.

Council Member Gershman moved to deny the application for moving permit. Council Member Christensen seconded the motion.

Council Member Glassheim stated that Mr. Huot stated that if not finished renovating the building by the middle of July, 2006, he would be willing to move the structure at his own expense, and asked if they can put such a condition on a moving permit. Mr. Swanson stated the council does have the authority to impose reasonable restrictions or conditions on a moving permit, that it can where the property owner is suggesting that to be a condition, and if he were to disagree at that time it would be difficult for you to impose costs upon him except in the course of special assessment; that if you are intent upon establishing a date of all repairs and modifications that have to be completed, that you have some type of either a bond establishing that or some type of deposit that in the event that it failed by whatever date you pick that the forfeiture procedures go forward and perhaps that bond or deposit would be an equivalent amount of the cost of removal; that is a performance bond whether you wanted to specify it as a bond or other surety which may include a letter of credit and those would be available dependent upon the credit worthiness of the applicant, timeline.

Council Member Glassheim moved an amendment for approval of the moving permit conditioned upon the applicant filing a letter of credit or other surety in the amount of $2,000.00 to remove the structure if improvements not completed by July 31, 2006. The motion died for lack of a second

Council Member Glassheim stated that many moving permits that they receive move a substandard building in, and then are corrected and that is the point of having inspections inspect them and the point of our making conditions for them to improve it, that the applicant could build the same size building and legal for him to do that and has nothing to do with his business, a three-month period is not very long, doesn't see that this will reduce anybody's property values or be of harm in that neighborhood, and doesn't understand on what grounds we are turning it down and doesn't see why not allow it.

Council Member Christensen stated this gentleman is in the tree trimming business and it appears that we would be facilitating that which the neighbors would like to discourage, and wants to begin precluding these types of home businesses and would like to see the inspections department get tougher and that we continually see problems on enforcement and is inviting the mayor to bring that into his budget next year.

After further discussion Council Member Glassheim moved to amend the motion to approve the moving permit conditioned upon the applicant filing a letter of credit or other surety in the amount of $2,000.00 to move the structure if improvements not completed by July 31, 2006. Council Member Christensen seconded the motion. Carried 5 votes affirmative; Council Member Gershman voted against the motion,

Upon call for the question, as amended, and upon voice vote, the motion carried 6 votes affirmative.

APPROVE 2005 SIDEWALK WARRANTS

The staff report from the finance department relating to matter of 2005 sidewalk warrants, with recommendation to award 2005 sidewalk warrants ($135,000) to Wells Fargo Brokerage Service, LLD/Public Finance Division, with interest rate of 4.8%

It was moved by Council Member Gershman and seconded by Council Member Kreun that this recommendation be approved. Upon voice vote the motion carried 6 votes affirmative.

RECEIVE TABULATION OF BIDS, ESTIMATE OF
TOTAL COST AND AWARD CONTRACT, WATERMAIN
PROJECT NO. 5534, DISTRICT NO. 288

The city auditor presented and read tabulation of bids which had been received and opened on November 28, 2005 for Watermain Project No. 5534, District No. 288, indicating that Robinson Excavating, Inc. was the low bidder based upon their bid in the amount of $50,091.00.

The city engineer's estimate of total cost on Watermain Project No. 5534, District No. 288, in the amount of $52,600.00, was presented and read.

The staff report from the engineering department relating to bids for Project No. 5534, District no. 288, watermain for 2400 block of South 42nd Street, with recommendation to award contract to low bidder, Robinson Excavating, Inc. in the amount of $50,091.00.

It was moved by Council Member Gershman and seconded by Council Member Kreun that this recommendation be approved and the resolution awarding the bid was presented and read: Document No. 8787 - Resolution. Upon roll call the following voted "aye": Council Members Brooks, Glassheim, Gershman, Christensen, Kerian, Kreun - 7; voting "nay": none. Mayor Brown declared the resolution adopted and the contract awarded.

APPROVE PROJECT CONCEPT REPORT FOR PROJECT
NO. 5703, AND DIRECT STAFF TO PROCEED WITH
FINAL DESIGN

The staff report from the engineering department relating to Project Concept Report for Project No. 5703, Paving 47th Avenue South from South Washington Street to Cherry Street, with recommendation to direct staff to proceed with the final design.

Council Member Kerian stated they had received a letter from Webster, Foster & Weston, that there will be another public input meeting on Tuesday, December 13, at 7:00 p.m. and that our engineering department has asked us to authorize them to go ahead to proceed with the design from South Washington Street to Belmont Road, and moved that we proceed with design from South Washington Street to Belmont Road at this time, and that following the hearing we take any additional action that would be appropriate. Council Member Gershman seconded the motion.

Council Member Christensen asked why wouldn't we amend the 2006 federal aid urban request of $1.7 million, the only issue here is whether or not we are going to have a bikepath or two five-foot sidewalks or whether have a bikepath on the south side of the road, that he believes the DOT will go with the 8 ft. width, and why not approve everything except for that issue.

Mr. Grasser stated they could go ahead and do that tonight, there will be some potentially minor changes in cost depending upon which option we might choose, the bike lanes on the street are going to be more expensive and may want to bump the $1.7 million by $50,000 or $100,000, but if don't do that then don't need that money. He stated that their full recommendation continued on to authorize the City to advance fund in the event that the DOT can't deliver all those funds in 2006. Mr. Christensen stated we have sources of money where we can advance fund but the cost of advance funding outweighs the cost of mobilization, and that really is not an issue.

Council Member Kerian moved to leave the federal aid urban request at $1.7 million and authorize City to advance funding if NDDoT cannot deliver the full request in 2006, and asked for change in the motion. Council Member Gershman agreed with the change in the motion.
Upon call for the question and upon voice vote, the motion carried 6 votes affirmative.

AWARD BID FOR FIRE COMMAND VEHICLE

The staff report from the fire department relating to awarding bid for fire command vehicle, with recommendation to award bid for tow vehicle with selected options to North Central Ambulance Sales in the sum of $53,951.95.

It was moved by Council Member Gershman and seconded by Council Member Kreun that this recommendation be approved. Upon voice vote, the motion carried 6 votes affirmative.

APPROVE 2005 HOLIDAY BONUS HOURS

The staff report from the Human Resources director relating to 2005 holiday bonus hours, with recommendation to approve employee holiday bonus of four (4) hours, pro-rated for contracted, classified and benefited non-classified employees to be taken between council approval date and February 1, 2006, time off is to be scheduled and approved by department heads.

It was moved by Council Member Brooks to approve the recommended council action with a change of the date of February 1, 2006 to no later than July 1, 2006, with a satisfactory performance of evaluation. Council Member Gershman seconded the motion.

Mr. Duquette stated he had no issue with the extension of the date to July 1, 2006, but would ask the council not to consider connecting it to a performance matter but would prefer supervisors and managers to deal with performance issues by management rather than tying them with the holiday bonus

Council Member Brooks stated he would withdraw that part of the motion, Council Member Gershman agreed.

Upon call for the question and upon voice vote, the motion carried 6 votes affirmative.

APPROVE EXEMPTION OF TRANSIENT MERCHANT
LICENSING FOR FIRST NIGHT GREATER GRAND FORKS

The staff report from the information center relating to transient merchant license exemption for First Night Greater Grand Forks, with recommendation to approve that the 2005 First Night Greater Grand Forks vendors (performers and artists) are exempt from purchasing transient merchant licenses.

It was moved by Council Member Gershman and seconded by Council Member Kreun that this recommendation be approved. Carried 6 votes affirmative.

INTRODUCE ORDINANCE RELATING TO PERFORMANCE
BOND REQUIRED FOR CONTRACTOR

The staff report from the inspections department relating to first reading of an ordinance amending Sections 19-0103 and adding Sections 19-0123 through 19-0127 of the Grand Forks City Code related to a general contractor license, with recommendation for first reading of the ordinance and preliminary approval of the ordinance.

It was moved by Council Member Gershman and seconded by Council Member Kreun that this recommendation be approved. Carried 6 votes affirmative.

Council Member Kerian introduced an ordinance entitled "An ordinance adopting Article 29 of Chapter
XXI of the Grand Forks City Code relating to general contractors", and "An ordinance amending Section 19-0103 of the Grand Forks City Code relating to performance bond required", which were presented, read and passed on first reading.

APPROVE FIVE-YEAR INTERGOVERNMENTAL
TRANSPORTATION AGREEMENT WITH CITY OF
EAST GRAND FORKS, MN

The staff report from the superintendent of public transportation and director of public works relating to fire-year Intergovernmental Transportation Agreement with the City of East Grand Forks, MN with recommendation to approve agreement for public transportation service with the city of East Grand Forks, MN

It was moved by Council Member Gershman and seconded by Council Member Kreun that this recommendation be approved. Upon call for the question and upon voice vote, the motion carried 6 votes affirmative.

INTRODUCE ORDINANCE RELATING TO STORM
SEWER, FLOOD PROTECTION AND GREENWAY SERVICE
CHARGES

The staff report from the director of public works relating to stormwater and flood protection/greenway operation and maintenance fees, with recommendation to approve stormwater and flood protection/ greenway maintenance fees and subsequent ordinance changes, that the fees shall be as follows and effective on the February 2006 utility bill: stormwater: residential fee - $1.75 per month, commercial - storm water run off unit (RU) of $0.76; and flood protection/greenway: residential fee - $1.15 per month, commercial - $0.185 per 1,000 square feet.

Ross Weiler, 701 North 3rd Street, stated he was very concerned about the precedent that is being set by charging citizens years in advance for work that has not been completed and sometimes not even started yet, that is akin to deficit spending or borrowing from future generations and that the dike funding should not be implemented in advance of the dike actually being needed to be mowed, there are many people struggling in this community to pay their mortgages, taxes, assessments as it is without adding new fees on top of existing ones, and please take into consideration the enormous debt loads that have been taken on by middle class people to survive and recover from the flood that they went through in this community.

Council Member Christensen stated that this issue is just the opposite, the money that we raise that we would use for on-going maintenance of that portion of the greenway which is finished and which will be further developed next year, won't come out of the money we have allocated in the dike construction fund, rather it will be used out of this money where we are having a fair allocation of the users so it will actually reduce the final amount of the special assessment going forward, and if we pick up several hundred thousand dollars a year for the next couple years is money we won't have to assess our citizens in the final scheme of things because now we are paying for whatever maintenance we have for our greenway out of the money we have to build the dike so we are borrowing and will special assess and charge people for that over a 15-year period.

Council Member Kreun moved approval of the recommendation with a change on the non-residential properties rate from $0.185 to $0.10 per 1,000 sq.feet; and introduced an ordinance for first reading. Council Member Christensen seconded the motion. Carried 6 votes affirmative.

Council Member Kerian introduced an ordinance entitled "An ordinance repealing and re-enacting Section 15,0117.1 of the Grand Forks City Code relating to storm sewer, flood protection, and greenway service charges", which was presented, read and passed on its first reading.

APPROVE BUDGET AMENDMENTS

The staff report from the office of urban development relating to budget amendment request to set up transfer in/transfer out for approved 2004 CDBG bricks and mortar projects in the mount of $188,178.00.

The staff report from the office of urban development relating to budget amendment request for FTZ bond paid in full in the amount of $305,106.00.

It was moved by Council Member Gershman and seconded by Council Member Kreun that these budget amendments be approved. Carried 6 votes affirmative.

APPROVE IMPLEMENTATION OF RENTAL REHAB.
PROGRAM

The staff report from the urban development office relating to Rental Rehabilitation Program, with recommendation to approve implementation of the Rental Rehabilitation Program.

Council Member Gershman stated that the council created a core downtown in the renaissance zone where you could not develop on the first floor, and the way this ordinance reads is that you would not be able to do that anywhere in the renaissance zone because there are other properties in the renaissance zone that do have first floor which could be renovated, and moved approval of the recommendation with an addition that only properties located within the city's renaissance zone are initially eligible for assistance. Council Member Brooks seconded the motion.

Upon call for the question and upon voice vote, the motion carried 6 votes affirmative.

APPROVE RENAISSANCE ZONE PROJECTS GF-38
AND GF-39

The staff report from the office of urban development relating to Grand Forks Renaissance Zone Projects GF-38 and GF-39, with recommendation to approve the projects and authorize staff to submit the projects to the North Dakota Department of Commerce, Division of Community Services for action.

It was moved by Council Member Gershman and seconded by Council Member Kreun that this recommendation be approved. Upon call for the question and upon voice vote, the motion carried 6 votes affirmative.

APPROVE CHANGE IN MONEY MANAGER IN THE
DEFINED BENEFIT PENSION PLAN

The staff report from the Pension and Insurance Committee relating to matter of change in money manager in the Defined Benefit Pension Plan, with recommendation to approve the recommendation to contract with Voyageur Asst Management for money manager services in the Defined Benefit Pension Plan.

It was moved by Council member Gershman and seconded by Council Member Kreun that this recommendation be approved. Upon call for the question and upon voice vote, the motion carried 6 votes affirmative.

APPROVE BILL LISTING AND ESTIMATE SUMMARY

Vendor Payment Listing No. 05-23, dated December 2, 2005, and totaling $738,211.33, and Estimate Summary in the amount of $408,931.19, were presented and read.

It was moved by Council Member Kerian and seconded by Council Member Brooks that these bills be approved and the city auditor be authorized to issue warrants in payment of the same. Upon roll call the following voted "aye": Council Member Brooks, Glassheim, Gershman, Christensen, Kerian, Kreun - 6; voting "nay": none. Mayor Brown declared the motion carried and the bills ordered paid.

APPROVE MINUTES NOVEMBER 7, 2005

Typewritten copies of the minutes of the city council meeting held on November 7, 2005 were presented and read. It was moved by Council Member Gershman and seconded by Council Member Glassheim that these minutes be approved as read. Carried 6 votes affirmative.

MAYOR AND COUNCIL MEMBER COMMENTS

1) Council Member Brooks stated that on Saturday night he was downtown to watch the parade of lights, which had a good turnout and was very good.

2) Council Member Kerian stated that on the smoking discussion that has come up, we have ordinances with respect to health in this community, and invites people to help servers who are in those bars and restaurants and not have smoking in their area and to encourage others to do the same.

3) Council Member Kreun stated that one of our police officers, Lt. Mark Nelson, was activated to go to Afghanistan and we appreciate the status and commitment that they bring forth and also recognized three patrolmen, Roger Pohlman, Josh Mendez and Rich Fuka who returned from active duty; we continuously have some of our staff on active duty and want to show our appreciation and support for them and their families, and asked Chief Packett to give our thanks to them for their service.

He mentioned the letter from Taras Sokolyk in reference to the existing agreement with Canad on the entertainment complex that has the movie theatre in it, and asked if we shouldn't draft some language to let them have the ability to change the venue but give us some control over what goes in there, and perhaps Mr. Swanson look at that for the next committee of the whole meeting so that it is complete and finished, but also have some our input into it, be pro-active rather than reactive.

Council Member Christensen stated the issue is that we as a council and community agreed to give Canad Inn substantial tax breaks and we extended them money for advertising, etc. and maybe the industry has changed so that it may not be feasible for them to go forward with a cinema complex, but it seems there is no pressing need to get into an amendment of the agreement at this juncture because they still have an agreement that says they are going to deliver that and we have an agreement that says when we get an entertainment complex consisting of three things we will do certain things, one of which is we will advance $l,050,000 of sales tax dollars for advertising, and another is that when we have an entertainment complex, there will be a 5-year tax break, that is a substantial sum of money. He stated if use Mr. Carsen's number of 2.4% could be up to $950,000 per year and the council made a covenant with the people when we advanced and agreed to the contract, and is a little hesitant to jump into changing our agreement at this point until such time as we see progress, get a report from our architects, and until such time as see performance; and if they can't get a cinema complex done in 18 months because the agreement we have just says that once they start a cinema complex they have to have it done in 18 months; nothing in that agreement that says when they have to deliver the cinema complex but to get the amenities and what we agreed as a city to give them, they have to have all three, and should start a little slow to see what goes on before we start talking about amending an agreement.

Council Member Kreun stated it has to be a cinema complex and if that doesn't work, it would hinder them from going out to look for other amenities and why not give them the flexibility to take a look at other amenities with our same governing process that we have.

Mr. Duquette stated he had intended to bring this next week to the committee of the whole for discussion,
that he can't speak for the fiscal partners related to this project but has had some discussions with Mr. Thorstensen who is the party that the letter is addressed to and he has expressed an interest to have some kind of formal understanding, that the backend of the situation relates to what happens if we can't put a cinema together and that there are discussions and negotiations going on but if it doesn't happen he wants to make sure he can still put something in there to make his money work in this project and that was gist of what he was suggesting; and thinks it is worthy of committee of the whole discussion next week vs. work session so that Canad can be here and get this into the discussion. He stated this will require city council approval if there is any modification of anything.

3) Council Member Gershman stated he attended the sendoff for the National Guard on Friday, 152 men and women are off to Afghanistan and when see families and sacrifice they are willing to make, and wished them God's speed.

ADJOURN

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

Respectfully submitted,



John M. Schmisek
City Auditor

Approved:
______________________________________
Michael R. Brown, Mayor