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PROCEEDINGS OF THE CITY COUNCIL
OF THE CITY OF GRAND FORKS, NORTH DAKOTA
February 16, 2010

The city council of the city of Grand Forks, North Dakota met in the council chambers in City Hall on Tuesday, February 16, 2010 at the hour of 5:30 o’clock p.m. with Mayor Brown presiding. Present at roll call were Council Members Bjerke, McNamara, Glassheim, Christensen, Kreun - 5; absent: Council Member Gershman (excused absence, on city business), Bakken - 2.

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 items during the past week and upcoming events:
Winter Fest was very successful this past weekend, great use of the greenway; thanks to the organizers and sponsors of this event.
Tomorrow is the State of the City speech, and if you can't make it, will have it on GFTV2 and the website later this week for your viewing. The event is at 11:30 a.m. until 1:00 p.m. at the Alerus Center.

PRESENTATION BY SSRI

Cordell Fontaine, director of Social Science Research Institute at the University of North Dakota, presented results of the Grand Forks second-hand smoke study and to assess perceptions related to second hand smoke and where smoking should be allowed or prohibited in the city of Grand Forks and to measure the levels for the legislation to eliminate smoking in various public places.

EMPLOYEE RECOGNITION

Mayor Brown reported there were seven city employees who have reached employment milestones and recognized the following employees and thanked them for their dedication.
Lt. Rahn Farder, 20 years with the Grand Forks Police Department;
Patty Goebel, 20 years with the city and currently works in the Grand Forks Police Records Department;
Randy Fetsch, 20 years, captain with the fire department;
LeahRae Amundson, 20 years, public works coordinator;
Jim Knudson, 15 years with public works;
Christy Senechel, 10 as dispatcher with 911 Center;
Sandy Berggren, 10 years as accounting specialist in finance department.

GRANT EXEMPTION OF REMODELING IMPROVEMENTS
TO COMMERCIAL/RESIDENTIAL BUILDINGS

The staff report from the city assessor relating to applications for exemption of remodeling improvements to commercial and residential buildings as follows: 221 South 4th Street, 1514 Charwood Court, 1110 South 12th Street; 1007 Cottonwood Street; 811 Letnes Drive; 909 Reeves Drive; 3240 Royal Drive; 1201 South 9th Street; and 904 29th Avenue South; with recommendation to grant exemption of increased value for three years.

It was moved by Council Member Kreun and seconded by Council Member Glassheim that this recommendation be approved. Carried 5 votes affirmative.
ADOPT TAX INCREMENT FINANCING POLICY

The staff report from the city assessor relating to Grand Forks Tax Increment Financing Policy, with recommendation to adopt Grand Forks Tax Increment Financing Policy.

It was moved by Council Member Christensen and seconded by Council Member Kreun to move approval of the recommendation to adopt the Grand Forks Tax Increment Financing Policy.

Howard Swanson, city attorney, reported in response to the request by the city council at the last meeting has included the additional requirements required by the city council, to make specific written findings, to include requirement for an annual report, and to give you the authority to act upon reports or failure to comply, and added subsection VI. Authority to Suspend and Rescind or Revoke and understands the motion is to adopt the revised version as recently distributed.

Upon call for the question and upon voice vote, the motion carried 4 votes affirmative, Council Member Bjerke voting against the motion.

APPROVE PRIORITY LIST FOR SECOND ECONOMIC
STIMULUS PACKAGE

The staff report from the engineering department relating to projects for Second Economic Stimulus Package, with recommendations to approve the priority list in the 2010 Economic Stimulus Package Project List; direct staff to submit Federal Aid Project requests under the 2010 Economic Stimulus Program to the Grand Forks/East Grand Forks Metropolitan Planning Organization (MPO) for consideration to the 2010 MPO TIP; authorize staff to submit plans to the ND Department of Transportation for purpose of bidding; and authorize Service/Safety Committee to act on changes to project list.

It was moved by Council Member Kreun and seconded by Council Member Glassheim that this recommendation be approved. Carried 5 votes affirmative.

ADOPT RESOLUTION CREATING SPECIAL ASSESSMENT
DISTRICT, ACCEPT ENGINEER'S REPORT AND ADOPT
RESOLUTION OF NECESSITY FOR PAVING PROJECT NO.
6101, DISTRICT NO. 642

The staff report from the engineering department relating to creating special assessment district for Project No. 6101, District No. 642, paving South 48th Street from 16th Avenue South to 32nd Avenue South, with recommendation to create special assessment district, approve the engineer's report, including estimate of cost, an assessment district map and further that we direct engineering department to prepare detailed plans and specifications for construction, and that we declare intent to sell bonds to finance these improvements.

Council Member Kreun introduced the following resolution creating the assessment district, which was presented and read: Document No. 9248 - Resolution.

The city auditor presented and read the engineer's report on Paving Project No. 6101, District No. 642: Document No. 9249 - Report.
Council Member Kreun introduced the following resolution of necessity, which was presented and read: Document No. 9250 - Resolution.

It was moved by Council Member Kreun and seconded by Council Member Glassheim that the recommendation be approved and that the resolution creating the special assessment district, the engineer's report and the resolution of necessity for Paving Project No. 6101, District No. 642, be accepted and adopted. Upon roll call the following voted "aye": Council Members Bjerke, McNamara, Glassheim, Christensen, Kreun - 5; voting "nay": none. Mayor Brown declared the motion carried and the report and resolutions adopted.

ADOPT RESOLUTION CREATING SPECIAL ASSESSMENT
DISTRICT, ACCEPT ENGINEER'S REPORT AND ADOPT
RESOLUTION TO PREPARE PLANS AND SPECIFICATIONS
FOR SEWER PROJECT NO. 6101.4, DISTRICT NO. 466

The staff report from the engineering department relating to creating special assessment district for Project No. 6101.4, District No. 466, storm sewer and drainage on South 48th Street from 17th Avenue South to 32nd Avenue South, with recommendation to create special assessment district, approve the engineer's report, including estimate of cost, an assessment district map and further that we direct engineering department to prepare detailed plans and specifications for construction, and that we declare intent to sell bonds to finance these improvements.

Council Member Kreun introduced the following resolution creating the assessment district, which was presented and read: Document No. 9251- Resolution.

The city auditor presented and read the engineer's report on Sewer Project No. 6101,4, District No. 466: Document No. 9252 - Report.

Council Member Kreun introduced the following resolution to prepare plans and specifications, which was presented and read: Document No. 9253 - Resolution.

It was moved by Council Member Kreun and seconded by Council Member Glassheim that the recommendation be approved and that the resolution creating the special assessment district, the engineer's report and the resolution to prepare plans and specifications for Sewer Project No. 6101.4, District No. 466, be accepted and adopted. Upon roll call the following voted "aye": Council Members Bjerke, McNamara, Glassheim, Christensen, Kreun - 5; voting "nay": none. Mayor Brown declared the motion carried and the report and resolutions adopted.

APPROVE REQUEST FOR FUNDING ASSISTANCE FROM
GRAND FORKS REGIONAL AIRPORT AUTHORITY TO
RECONSTRUCT AIRPORT DRIVE

The staff report from the city administrator relating to funding assistance request from Grand Forks Regional Airport Authority to reconstruct Airport Drive at the Grand Forks International Airport, with recommendation to provide to the Grand Forks Regional Airport Authority for reconstruction of Airport Drive, 1) City funding contribution for up to $50,000 and 2) a 3.5% loan for up to $50,000 and up to 10 years.

Council Member Bjerke moved that we approve a loan for up to $100,000 for 10 years at 3.5% interest.
The motion died for lack of a second.

Council Member Christensen reported that the County came up with a $100,000 grant and the recommendation from the finance committee with a $50,000 grant and a $50,000 loan; and moved approval of a $50,000 grant and a $50,000 loan at 3.5% for 10 years. The motion was seconded by Council Member McNamara. Upon call for the question and upon voice vote, the motion carried 4 votes affirmative, Council Member Bjerke voted against the motion.

AWARD BIDS FOR PROJECT NO. 6476, SHARED USE
PATH ON 42ND STREET, FEDERAL PROJECT NO.
STM-TEU-6-986(100)104

The staff report from the engineering department relating to bids for Project No. 6476, Shared Use Path on 42nd Street, Federal Project No. STM-TEU-6-986(100)104, with recommendation to award contract to low bidder, Opp Construction, in the amount of $184,301.25 , contingent on NDDOT concurrence.

It was moved by Council Member Kreun and seconded by Council Member Christensen that the recommendation be approved and the contract awarded to Opp Construction. Upon roll call vote the following voted "aye": Council Members McNamara, Glassheim, Christensen, Kreun - 4; voting "nay": Council Member Bjerke - 1. Mayor Brown declared the motion carried and the contract awarded.

AWARD BIDS FOR PROJECT NO. 6425, CONCRETE
PANEL REPLACEMENT ON 13TH AVENUE SOUTH, FEDERAL PROJECT NO. STM-SU-6-986(097)101

The staff report from the engineering department relating to bids for Project No. 6425, Concrete Panel Replacement, Mill and Overlay and Incidentals on 13th Avenue South (S.20th Street to Cherry Street), Federal Project No. STM-SU-6-986(097)101, with recommendation to award contract to low bidder, Opp Construction, in the amount of $373,335.80, contingent on NDDOT concurrence.

It was moved by Council Member Kreun and seconded by Council Member Glassheim that the recommendation be approved and the contract awarded to Opp Construction. Upon roll call vote the following voted "aye": Council Members Bjerke, McNamara, Glassheim, Christensen, Kreun - 5; voting "nay": none. Mayor Brown declared the motion carried and the contract awarded.

AWARD BIDS FOR PROJECT NO. 6405, CONCRETE
PANEL REPLACEMENT, ETC. ON CHERRY STREET,
FEDERAL PROJECT NO. STM-SU-6-086(089)093

The staff report from the engineering department relating to bids for Project No. 6405, Concrete Panel Replacement, Pavement Marking and Mill and Overlay on Cherry Street (25th Avenue South to 47th Avenue South), Federal Project No. STM-SU-6-986(089)093, with recommendation to award contract to low bidder, Opp Construction, in the amount of $761,811.80, contingent on NDDOT concurrence.

It was moved by Council Member Kreun and seconded by Council Member Glassheim that the recommendation be approved and the contract awarded to Opp Construction. Upon roll call vote the following voted "aye": Council Members Bjerke, McNamara, Glassheim, Christensen, Kreun - 5; voting "nay": none. Mayor Brown declared the motion carried and the contract awarded.

INTRODUCE ORDINANCE RELATING TO STORMWATER
MANAGEMENT

The staff report from the engineering department relating to introduction of revisions of Chapter XV of the Grand Forks City Code relating to stormwater management, with recommendation that the City grant preliminary approval of the ordinance amending Chapter XV, relating to stormwater management, and repealing existing Article 12, Chapter XVIII and schedule the public hearing of the ordinance for March 15, 2010.

It was moved by Council Member Kreun and seconded by Council Member Glassheim that this recommendation be approved. Carried 5 votes affirmative.

Council Member Kreun introduced an ordinance entitled "An ordinance repealing Article 12 of Chapter XVIII of the grand Forks City Code, Land Development Code, relating to Stormwater Management and adoption of Article 6 of Chapter XV of the Grand Forks City Code relating to stormwater management", which was presented, read and passed on its first reading.

APPROVE SPECIFICATIONS AND SOLE SOURCE
PURCHASE OF LENCO BEARCAT

The staff report from the police department relating to Lenco BearCat, with recommendation to approve specifications and sole source purchase of the vehicle in the amount of $270,897.00).

It was moved by Council Member Kreun and seconded b Council Member Glassheim that the motion be approved. Upon roll call the following voted "aye": Council Members Bjerke, McNamara, Glassheim, Christensen, Kreun - 5; voting "nay": none. Mayor Brown declared the motion carried.

APPROVE OUTDOOR FIRING RANGE SURFACE
IMPROVEMENT PROJECT

The staff report from the police department relating to outdoor firing range surface improvement project, with recommendation to approve the surface improvement project.

It was moved by Council Member Kreun and seconded by Council Member Glassheim that this recommendation be approved. Upon call for the question and upon voice vote, the motion carried 5 votes affirmative.

APPROVE SPECIFICATIONS FOR BOMB SQUAD
QUICK RESPONSE VEHICLE

The staff report from the police department relating to bomb squad quick response vehicle, with recommendation to approve the specifications.

It was moved by Council Member Kreun and seconded by Council Member Glassheim that this recommendation be approved. Carried 5 votes affirmative.
APPROVE REDEVELOPMENT OF CIVIC
AUDITORIUM PARKING LOT

The staff report from the urban development director relating to redevelopment of civic auditorium parking lot, with recommendation to approve the project as described: construction by MetroPlains of a 30 story building with 40 one and two bedroom affordable rental units plus common areas, along with site improvements to include 60 surface parking spaces on Lot 1, Block 2, Renewal Resubdivision No. 5, and further that contingent on LIHTC approval, the City convey to MetroPlains the lot for which the city assessor estimates the land value at $222,000; provide a $375,000 HOME loan; and act on MetroPlains' application for a property tax exemption for up to five years, as allowed under NDCC 40-58.

It was moved by Council Member Christensen and seconded by Council Member Glassheim that the recommendation be approved.

Mr. Swanson reported there have been some recent requests from the developer, that MetroPlains is asking that they be allowed to establish a limited partnership to operate the project as opposed under the corporate name of MetroPlains, that in the document there are still a few non-substantive matters to be completed, and that the motion would also include approval by the city attorney's office and that the motion specifically authorize the assignment from MetroPlains to limited partnership. The mover and second agreed to the addition to the motion.

Upon call for the question and upon voice vote, the motion carried 4 votes affirmative, Council Member Bjerke voted against the motion.

AWARD BID FOR REHABILITATION OF PROPERTY
AT 430 SOUTH FIFTH STREET

The staff report from the urban development director relating to rehabilitation of 430 South Fifth Street, with recommendation to award bid to Craftmasters, LLC.

It was moved by Council Member Glassheim and seconded by Council Member Kreun that this recommendation be approved. Upon call for the question and upon voice vote, the motion carried 4 votes affirmative, Council Member Bjerke voting against the motion.

APPROVE PRELIMINARY PLAT OF SHADYRIDGE
ESTATES NINTH ADDITION

The staff report from the Planning and Zoning Commission relating to request from Michael Marcotte for preliminary approval of the plat of Shadyridge Estates Ninth Addition to the city of grand Forks, ND (located on Desiree Drive), with recommendation to give preliminary approval to the plat, subject to the conditions shown on or attached to the review copy and schedule a public hearing on the plat for March 15, 2010.

It was moved by Council Member Kreun and seconded by Council Member Glassheim that this recommendation be approved. Carried 5 votes affirmative.

INTRODUCE ORDINANCE AMENDING ZONING
MAP TO INCLUDE WITHIN SHADYRIDGE ESTATES PUD
(PLANNED UNIT DEVELOPMENT) CONCEPT
DEVELOPMENT PLAN, AMENDMENT NO. 5,
VARIOUS PROPERTIES LOCATED IN VICINITY OF
ADAMS DRIVE AND SHADYRIDGE COURT

The staff report from the Planning and Zoning Commission relating to request from Michael Marcotte for preliminary approval of an ordinance to amend the zoning map to exclude from the Shadyridge Estates PUD (Planned Unit Development), Concept Development Plan, Amendment Number 4, and to include within the Shadyridge Estates PUD (Planned Unit Development), Concept Development Plan, Amendment Number 5, all of Shadyridge Estates First, Second, and Third Additions, Shadyridge Estates Fourth and Fifth Resubdivisions, Shadyridge Estates Sixth, Seventh and Eighth Additions, Greenwood Subdivision, unplatted portions of Section 26, and all those lands to be platted as Shadyridge Estates Ninth Addition, all located in the vicinity of Adams, drive and Shadyridge Court, with recommendation to give preliminary approval to the ordinance, subject to the conditions shown on or attached to the review copy, and set a public hearing for March 15, 2010.

It was moved by Council Member Kreun and seconded by Council Member Glassheim that this recommendation be approved. Carried 5 votes affirmative.

Council Member Kreun introduced an ordinance entitled "An ordinance to amend the zoning map of the city of Grand Forks, North Dakota, to rezone and exclude from the Shadyridge Estates PUD (Planned Unit Development), Concept Development Plan, Amendment No. 4 and to include within the Shadyridge Estates PUD (Planned Unit Development), Concept Development Plan, Amendment No. 5, all of Shadyridge Estates First Addition, Shadyridge Estates Second Addition,, Shadyridge Third Addition, Shadyridge Fourth Resubdivision, Shadyridge Fifth Resubdivision, Shadyridge Estates Sixth Addition, Greenwood Subdivision, unplatted portions of Section 26, Shadyridge Estates Seventh Addition, Shadyridge Estates Eighth Resubdivision, and all those lands to be platted as Shadyridge Estates Ninth Addition to the city of Grand Forks, North Dakota", which was presented, read and passed on its first reading.

INTRODUCE ORDINANCE TO ANNEX ALL OF
SHADYRIDGE ESTATES NINTH ADDITION,
NOT PREVIOUSLY ANNEXED TO THE CITY

The staff report from the Planning and Zoning Commission relating to petition from Michael Marcotte for an ordinance to annex Shadyridge Estates Ninth Addition to the city of Grand Forks, ND (located on Desiree Drive), with recommendation to give preliminary approval to the ordinance and set a public hearing date as required by law.

It was moved by Council Member Kreun and seconded by Council Member Glassheim that this recommendation be approved and the public hearing be set for March 15, 2010. Carried 5 votes affirmative.

Council Member Kreun introduced an ordinance entitled "An ordinance to annex all of Shadyridge Estates Ninth Addition, not previously annexed, to the city of Grand Forks, North Dakota, together with the full width of all platted streets and public rights of way contingent thereto", which was presented, read and passed on its first reading.

INTRODUCE ORDINANCE TO AMEND ZONING MAP
TO INCLUDE WITHIN THE GOLDEN VALLEY PUD
(PLANNED UNIT DEVELOPMENT), CONCEPT DEVELOP-
MENT PLAN, AMENDMENT NO 4, PROPERTIES IN
VARIOUS ADDITIONS

The staff report from the Planning and Zoning Commission relating to request from Bishop Michael Cole on behalf of Gospel Outreach Church for preliminary approval of an ordinance to amend the zoning map to exclude from the Golden Valley PUD (Planned Unit Development), Concept Development Plan, Amendment No. 3 and to include within the Golden Valley PUD (Planned Unit Development), Concept Development Plan, Amendment No. 4, Lot 1, Block 2, Aurora Plaza Addition, all of Amundson's Second Resubdivision, Nodak Resubdivision, Golden Valley First and Second Additions, Lots 3 and 4, Block 1, Aurora Plaza Addition and Lot B, Block 1 of the Replat of Lots 1 and 2, Block 1, Aurora Plaza Addition (located at 2587 South 42nd Street), with recommendation to give preliminary approval of the ordinance, and set a public hearing for March 15, 2010.

It was moved by Council Member Kreun and seconded by Council Member Glassheim that this recommendation be approved. Carried 5 votes affirmative.

Council Member Kreun introduced an ordinance entitled "An ordinance to amend the zoning map of the city of Grand Forks, North Dakota, to rezone and exclude from the Golden Valley PUD (Planned Unit Development), Concept Development Plan, Amendment No. 3 and to include within the Golden valley PUD (Planned Unit Development), Concept Development Plan, Amendment No. 4, Lot 1, Block 2, Aurora Plaza Addition, all of Amundson's Second Resubdivision, Nodak Resubdivision, Golden Valley First and Second Additions, Lots 3 and 4, Block 1, Aurora Plaza Addition and Lot B, Block 1 of the Replat of Lots 1 and 2, Block 1, Aurora Plaza Addition to the city of Grand Forks, North Dakota", which was presented, read and passed on its first reading.

INTRODUCE ORDINANCE TO ANNEX LOT B,
BLOCK 1, AURORA PLAZA RESUBDIVISION

The staff report from the Planning and Zoning Commission relating to request from Bishop Michael Cole on behalf of the Gospel Outreach Church to annex parts of Lot B, Block 1, Aurora Plaza Addition, not previously annexed to the city of Grand Forks, North Dakota (located at 2587 South 42nd Street), with recommendation to give preliminary approval to the ordinance and set public hearing date as required by law.

It was moved by Council Member Kreun and seconded by Council Member Glassheim that this recommendation be approved and the public hearing be set for March 15, 2010. Carried 5 votes affirmative.

Council Member Kreun introduced an ordinance entitled "An ordinance to annex Lot B, Block 1, Aurora Plaza Resubdivision to the city of Grand Forks, North Dakota, together with the full width of all platted streets and public rights of way contiguous thereto", which was presented, read and passed on its first reading.

INFORMATIONAL ITEMS

An update regarding director of Public Safety Answering Point was presented for council's information.

A draft ordinance amending indoor smoking restrictions; information regarding referral by governing body was presented for council information.

Council Member Bjerke stated that he will not vote to change ordinance as it is now written, nor vote to put it on the ballot as he doesn't think it is appropriate to spend any money on an advisory vote; that if believe what experts tell us, would vote to ban the sale, use and possession of tobacco within the city limits, and not accept any revenue generated by any tobacco taxes.

Council Member Christensen stated that originally we passed a smoking ordinance following what the State had passed and codified. That the cities of Fargo and West Fargo have gone pretty much smoke free that he has a copy of the ballot question from West Fargo. We have a survey that has a lot of credibility, the survey was in excess of 900 people and results that have a margin of error of around 3.5%, and we have a survey that suggests a substantial number of people in our community would like smoke free situation to be expanded. We can do three things, do nothing, can act as a council and legislate or can put it to a vote of the people but didn't see any reason why we would duck this issue when we have a substantial survey. There are number of businesses that would be impacted but not so sure the impact is as great as we think it would be.

Council Member Glassheim stated this is the first time had opportunity to discuss and that the council should have a work session on it - if put on the ballot we have to have something to the county auditor by April 13, 2010 and have sufficient time to decide whether put it on the ballot or not - and if decide not to do that, then have time to discuss and legislate. He stated his basic decision is that it is the government's duty to protect its citizens from harm, have laws to do that, science is clear that second hand smoke is harmful and this is one more step in trying to control harm that some people do to other people - and that our job is to protect people from harm and thinks we should do that.

Council Member McNamara stated he didn't think a study ought to compel the council to put something on a ballot, if that was the criteria to get something on a ballot doesn't think you will see anybody collecting signatures but only have a survey. He stated he isn't a smoker and doesn't like to go in places where there is smoke and that is his choice, that it is a legal activity in the United States, and these individuals have private businesses and the people that go into those places know the dangers, and have that choice - is sympathetic to Mr. Bjerke's argument and ban the sale of it.

Mr. Swanson stated as he indicated in his memo he was requested by Mr. Christensen to draft ordinance which would eliminate most of the exemptions that currently exist in our current ordinance. Council Member Kreun suggested having a work session to discuss information, make an informed decision on the issue, and make recommendation to the council.

Council Member Glassheim stated the proposal has surfaced that we ban all tobacco products in Grand Forks, but isn't this interstate commerce and do we have any authority to ban tobacco; Mr. Swanson will research that issue.

A letter from Jim Porter, 3596 Prairie Drive, strongly encouraging the council to directly and without delay take action in enacting a comprehensive smoke-free ordinance that will protect all citizens and visitors of Grand Forks from the dangers of secondhand smoke, was entered into the minutes.

A work session was scheduled for Wednesday, February 24, 2010 at 5:00 p.m.

APPROVE BILL LISTING

Vendor Payment Listing No. 10-04, dated February 11, 2010, totaling $1,992,985.20, was presented and read.

It was moved by Council Member Bjerke and seconded by Council Member Kreun that these bills be allowed and that the city auditor be authorized to issue warrants in payment of the same. Upon roll call the following voted "aye": Council Members Bjerke, McNamara, Glassheim, Christensen, Kreun - 5; voting "nay": none. Mayor Brown declared the motion carried and the bills ordered paid.

APPROVE MINUTES FEBRUARY 1, 2010

Typewritten copies of the minutes of the city council held on Monday, February 1, 2010 were presented and read. It was moved by Council Member Bjerke and seconded by Council Member Christensen that the minutes be approved as read. Carried 5 votes affirmative.

COMMENTS BY MAYOR AND COUNCIL

1) Council Member Bjerke reported they have received memos from the city attorney concerning the NSP Funds for North 4th Street and for the development of Prairie Harvest and asked Mr. Swanson if he could give synopsis of those memos. Mr. Swanson stated with respect to the proposal that was acted upon by the council for the rehabilitation of two homes using NSP funds, he determined that those projects had to be publicly bid, that they had not been bid nor properly advertised, that the department has requested an extension of time for the use of those funds and that the department will be moving forward with a public bid opening of the rehabilitation projects. The motion that was passed by the city council was to approve contingent upon city attorney approval and that he had informed council in his memorandum that he was not approving either of those contracts, the contractors have been informed of that decision.

With respect to the Prairie Harvest project council has a memo from him and that he has raised a series of concerns or issues on multiple levels raising from title issues on the property that the project was originally proposed on, the title issues to the property that the project was looking to be moved to, whether or not the City can actually convey the property where the site was being proposed to, along with issues with respect to parking restrictions. There are continuing efforts to research the title problems and the applicant, Prairie Harvest, has been advised of those issues and would be dependent upon what they want to do but there are very serious issues with respect to the viability of that project.

2) Council Member McNamara stated he wanted to inform the residents of Ward 2 that he will not be running for city council.

3) Council Member Glassheim asked Mr. Swanson if there are remedies going forward that might be possible or if the Prairie Harvest project is so embroiled that it can't be untangled and what is the status. Mr. Swanson stated because the issues are of multiple levels believes there are potential solutions to the title problem, many of those solutions are in the hands of Grand Forks County and what procedure they have to follow, not aware, but has corresponded with the Grand Forks County States Attorney and shared our title opinions with them but has not had a response; the title issues for the most part lie with them. With respect to whether the city council could move forward with a conveyance of property of the lot that was to the northernmost that was adjacent to the sidewalk or the street, there is no provision in his opinion or the City Code to make a direct conveyance to that property without having gone through some type of public bidding, public sale proposal. One of the options that may or may not be viable is a long term lease, that he hasn't had any communication back from Prairie Harvest and not sure whether the department has or not; thinks there are potential solutions but that the problems are the issues and concerns are probably much deeper than Prairie Harvest had anticipated.

3) Council Member Christensen stated a solution that occurred to him in reading Mr. Swanson's memo would be a quit claim deed, which means they make zero warranties as to the status of the title of the property, could convey it, but hasn't addressed advertising it for sale. He stated if we were to make a quit claim deed then the purchaser, be it Prairie Harvest, doesn't matter as to how long they want to hold the property and probably could go with a quiet title action themselves, but doesn't know how that would impact the money from the State; they have until February 28 to get the project approved at State level, and if not money would be deobligated.. Mr. Hoover reported they have had verbal approval from the State for an extension so can work through these issues if they are solvable and going to be a very short window.

ADJOURN

It was moved by Council Member Bjerke and seconded by Council Member Kreun that we adjourn. Carried 5 votes affirmative.

Respectfully submitted,



Saroj Jerath
City Auditor

Approved:
________________________________
Michael R. Brown, Mayor