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Fargo City Commission Chambers Hero

Board of City Commissioners - August 28, 2017 Minutes

The Regular Meeting of the Board of City Commissioners of the City of Fargo, North Dakota, was held in the City Commission Room at City Hall at 5:00 o'clock p.m., Monday, August 28, 2017.
The Commissioners present or absent were as shown following:
Present: Gehrig, Grindberg, Piepkorn, Strand, Mahoney.
Absent: None.
Mayor Mahoney presiding.

The Mayor asked for a moment of silence acknowledging the sadness felt in the metro area over the recent tragic loss of Fargo resident Savana LaFontaine-Greywind. He thanked the Fargo Police Department and other agencies for their work on the case.

The Mayor read a statement with the following information: About 500 children and families attended the Carlson Library’s Solar Eclipse Viewing Party; Job Service data shows employment continues to increase; building permits for three large projects were issued in August: NDSU Foundation Housing, Mid America Steel and Border States Electric; since 2008 the Wastewater Reuse Facility has produced 2.8 billion gallons of treated wastewater for the Tharldson Ethanol Plant in Casselton; Fargo Cass Public Health has a limited amount of mini-grants to support worksites achieving the designation of being Infant-Friendly; Fit Small Business named North Dakota as the Best State to Survive the Next Recession and Fargo as the Best City in North Dakota to Survive a Recession.

Order of Agenda Approved:
Commissioner Grindberg moved the Order of the Agenda be approved.
Second by Gehrig. All the Commissioners voted aye and the motion was declared carried.

Minutes Approved:
Commissioner Piepkorn moved that the Minutes of the Regular Meeting of the Board held on August 14, 2017 be approved as read.
Second by Grindberg. All the Commissioners voted aye and the motion was declared carried.

Consent Agenda Approved:
Commissioner Strand moved the Consent Agenda be approved as follows:

1. Receive and file an Ordinance Amending Section 25-1509, of Article 25-15 of Chapter 25 of the Fargo Municipal Code Relating to Alcoholic Beverages.

2. 1st reading of the following Ordinances:
a. Amending Section 8-0321(B)(1) of Article 8-03 of Chapter 8 of the Fargo Municipal Code Relating to Use of a Wireless Communication Device Prohibited.
b. Enacting Article 8-0322 of Chapter 8 of the Fargo Municipal Code Relating to Distracted Driving.
c. Amending Section 1-0305 of Article 1-03 of Chapter 1 of the Fargo Municipal Code Relating to Classification of Ordinance Violations.

3. 2nd reading, waiving reading and final adoption of an Ordinance Rezoning Certain Parcels of Land Lying in Osgood Townsite Fifteenth Addition, Fargo, Cass County, North Dakota.

4. Resolution related to the Roberts Street Parking Ramp – Kesler Parcel at 624 2nd Avenue North (Attachment “A”).

5. Applications for Games of Chance:
a. YWCA Cass Clay for a raffle on 9/7/17.
b. Nativity Church of Fargo for a raffle on 11/5/17.
c. River Keepers for a raffle on 10/1/17.
d. 4 Luv of Dog Rescue for a raffle on 11/11/17.
e. Assistive for a raffle on 9/25/17; Public Spirited Resolution.

6. Professional Services Agreement with the Greater Fargo Moorhead Economic Development Corporation.

7. Agreement for Services with Samantha Nienow to build an online training module for the Child Care Physical Activity Step 1.

8. Notice of Grant Award for the Title X Family Planning Program services (CFDA Nos. 93.217 and 93.994).

9. Letter of Agreement for Consultant Services with A. Straus & Associates, Inc. dba Maverick & Boutique in an amount not to exceed $49,000.00 for strategic planning at the Fargo Public Library.

10. Resolution establishing a name for the existing public right of way to Roberts Alley (Attachment “B”).

11. Change Order No. E-1 for an increase of $24,658.36 for the Police Department Remodeling Project at the Border States Electric Building (electrical construction contract).

12. Interlocal Agreement with Cass County and allocation of the 2017 Edward Byrne Memorial Justice Assistance Grant (JAG) Program funding in the amount of $47,021.00 (CFDA #16.738).

13. Forward Contract with Hartland Fuel Products for fuel purchasing in the 1st and 2nd Quarters of 2018.

14. Purchase of one anti-ice skid from Northern Truck Equipment Corporation in the amount of $29,980.00.

15. Purchase of one brush chipper from Trenchers Plus in the amount of $68,200.00.

16. Permanent Easement (Underground Utility) with Val-Ed Joint Venture LLP for City owned property at 302 42nd Street South.

17. Waiver from Sheyenne River Setback Ordinance for improvements to the Sheyenne River Pump Station at 6832 52nd Avenue South.

18. Change Order No. 1 for an increase of $51,289.97 for Project No. FM-15-B2.

19. Final Balancing Change Order No. 3 for an increase of $1,941.10 for Project No. FM-14-62.

20. Bid award in the amount of $48,020.00 to Subsurface, Inc. for Project
No. UR-17-F1.

21. Bid advertisement for Project Nos. FM-17-B and TR-17-A.

22. Contracts and bonds for Project No. EP-17-A and The Fargo Project – Overlook, Natural Play, Trails.

23. Change Orders for Project No. WA1301
a. No. 11 for an increase of $71,950.00 for the general construction contract.
b. No. 9 for an increase of $25,724.23 for the mechanical construction contract.

24. Bills in the amount of $13,636,177.55.

Second by Grindberg. On call of the roll Commissioners Strand, Grindberg, Gehrig, Piepkorn and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.

Declaration of Easement for Improvement District No. PR-17-A0 Approved:
The Board received a communication from Land Acquisition Specialist Shawn Bullinger requesting approval of a Declaration of Easement for City property associated with Improvement District No. PR-17-A0.
Commissioner Strand moved the Declaration of Easement (Street and Utility) associated with Improvement District No. PR-17-A0 be approved.

Second by Grindberg. On call of the roll Commissioners Strand, Grindberg, Gehrig, Piepkorn and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.

Final Balancing Change Order No. 2 for Improvement District No. BN-15-M1 Approved:
Commissioner Strand moved approval of Final Balancing Change Order No. 2 for an increase of $18,741.20 for Improvement District No. BN-15-M1.

Second by Grindberg. On call of the roll Commissioners Strand, Grindberg, Gehrig, Piepkorn and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.

Amended Final Balancing Change Order No. 3 for Improvement District No. UR-15-B1 Approved:
Commissioner Strand moved approval of the Amended Final Balancing Change Order No. 3 for a decrease of $31,532.20 for Improvement District No. UR-15-B1.

Second by Grindberg. On call of the roll Commissioners Strand, Grindberg, Gehrig, Piepkorn and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.

Change Order No. 1 for Improvement District No. BN-17-B1 Approved:
Commissioner Strand moved approval of Change Order No. 1 for an increase of $76,991.99 for Improvement District No. BN-17-B1.

Second by Grindberg. On call of the roll Commissioners Strand, Grindberg, Gehrig, Piepkorn and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.

Bids Received for Sanitary Sewer, Water Main, Storm Sewer, Asphalt Pavement, Concrete Curb and Gutter, Street Lighting and Incidentals Improvement District No. BN-17-H1:
The bids for Sanitary Sewer, Water Main, Storm Sewer, Asphalt Pavement, Concrete Curb and Gutter, Street Lighting and Incidentals Improvement District
No. BN-17-H1 in the City of Fargo, North Dakota were opened at 11:30 o'clock a.m., Wednesday, August 23, 2017 and the bids were found to be as follows:

Fox Underground, Inc. Fargo, ND
Bid: $677,199.75

Sellin Brothers, Inc. Hawley, MN
Bid: $768,087.22

Ryan Contracting Shakopee, MN
Bid: $773,893.30

R.L. Larson Excavating, Inc. St. Cloud, MN
Bid: $793,113.70

BEK Consulting, LLC Dickinson, ND
Bid: $837,989.80

Quam Construction Company, Inc. Willmar, MN
Bid: $908,838.92

George E. Haggart, Inc. Fargo, ND
Bid: $976,243.90

Dakota Underground Company, Inc. Fargo, ND
Bid: $1,131,881.50

Contract for Sanitary Sewer, Water Main, Storm Sewer, Asphalt Pavement, Concrete Curb and Gutter, Street Lighting and Incidentals Improvement District No. BN-17-H1 Awarded to Fox Underground, Inc. in the Amount of $677,199.75:
Commissioner Strand offered the following Resolution and moved its adoption:
WHEREAS, The City Engineer has prepared and filed a detailed statement of the estimated costs of Sanitary Sewer, Water Main, Storm Sewer, Asphalt Pavement, Concrete Curb and Gutter, Street Lighting and Incidentals Improvement District
No. BN-17-H1; and
WHEREAS, The Board of City Commissioners of the City of Fargo has considered the bids received August 23, 2017 for Sanitary Sewer, Water Main, Storm Sewer, Asphalt Pavement, Concrete Curb and Gutter, Street Lighting and Incidentals Improvement District No. BN-17-H1 in the City of Fargo, North Dakota; and
WHEREAS, The City Engineer's tabulation of the bids received for Sanitary Sewer, Water Main, Storm Sewer, Asphalt Pavement, Concrete Curb and Gutter, Street Lighting and Incidentals Improvement District No. BN-17-H1 shows the bid of Fox Underground, Inc. of Fargo, North Dakota, in the sum of $677,199.75 to be the lowest and best bid received.
NOW, THEREFORE, BE IT RESOLVED, That the Board of City Commissioners finds and declares the bid received from Fox Underground, Inc. in the sum of $677,199.75 is the lowest and best bid received.
BE IT FURTHER RESOLVED, That the contract for Sanitary Sewer, Water Main, Storm Sewer, Asphalt Pavement, Concrete Curb and Gutter, Street Lighting and Incidentals Improvement District No. BN-17-H1 in the City of Fargo, North Dakota, be and the same is hereby awarded to Fox Underground, Inc. for the sum of $677,199.75, subject to the supervision, inspection and approval of the City Engineer, and in accordance with the Plans and Specifications filed in the office of the City Auditor.

Second by Grindberg. On the vote being taken on the question of the adoption of the Resolution Commissioners Strand, Grindberg, Gehrig, Piepkorn and Mahoney voted aye.
No Commissioner being absent and none voting nay, the Resolution was adopted.

Contract for Concrete Pavement Rehabilitation and Incidentals Improvement District No. PR-17-F1 Approved:
Commissioner Strand moved approval of the Contract between the City of Fargo and Opp Construction LLC for Concrete Pavement Rehabilitation and Incidentals Improvement District No. PR-17-F1 in the City of Fargo, North Dakota.

Second by Grindberg. On call of the roll Commissioners Strand, Grindberg, Gehrig, Piepkorn and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.

Contract Bond for Concrete Pavement Rehabilitation and Incidentals Improvement District No. PR-17-F1 Approved:
Commissioner Strand moved approval of the following described Contract Bond as to sufficiency:
Travelers Casualty and Surety Company of America, in the amount of $1,028,188.29, for Concrete Pavement Rehabilitation and Incidentals Improvement District No. PR-17-F1 in the City of Fargo, North Dakota.

Second by Grindberg. On call of the roll Commissioners Strand, Grindberg, Gehrig, Piepkorn and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.

Contract for Street Lighting and Incidentals Improvement District No. SL-17-E1 Approved:
Commissioner Strand moved approval of the Contract between the City of Fargo and Moorhead Electric for Street Lighting and Incidentals Improvement District No. SL-17-E1 in the City of Fargo, North Dakota.

Second by Grindberg. On call of the roll Commissioners Strand, Grindberg, Gehrig, Piepkorn and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.

Contract Bond for Street Lighting and Incidentals Improvement District No. SL-17-E1 Approved:
Commissioner Strand moved approval of the following described Contract Bond as to sufficiency:
Western Surety Company, in the amount of $668,812.96, for Street Lighting and Incidentals Improvement District No. SL-17-E1 in the City of Fargo, North Dakota.

Second by Grindberg. On call of the roll Commissioners Strand, Grindberg, Gehrig, Piepkorn and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.

Contract for Sanitary Sewer Force Main and Incidentals Improvement District No. UN-15-B1 Approved:
Commissioner Strand moved approval of the Contract between the City of Fargo and Master Construction Company, Inc. for Sanitary Sewer Force Main and Incidentals Improvement District No. UN-15-B1 in the City of Fargo, North Dakota.

Second by Grindberg. On call of the roll Commissioners Strand, Grindberg, Gehrig, Piepkorn and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.

Contract Bond for Sanitary Sewer Force Main and Incidentals Improvement District No. UN-15-B1 Approved:
Commissioner Strand moved approval of the following described Contract Bond as to sufficiency:
Western Surety Company, in the amount of $1,424,190.00, for Sanitary Sewer Force Main and Incidentals Improvement District No. UN-15-B1 in the City of Fargo, North Dakota.

Second by Grindberg. On call of the roll Commissioners Strand, Grindberg, Gehrig, Piepkorn and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.

Fargo Policy Fellowship Presentation on Affordability in Fargo:
Assistant Planner Tyrone Grandstrand said the focus of this year’s 8-week fellowship project was on affordability in Fargo. He said this year, the Planning Department worked with three fellows: Catlyn Christie, Katie Black and Mary-Bianca Fuller. The topic of affordability was chosen for the inaugural project from interviews with Roosevelt core neighborhood residents, the work and focus of the Community Development Committee and the overlap with the work underway in the pilot performance analytics program.

Ms. Fuller and Ms. Christie shared a PowerPoint presentation giving an overview of the Fargo Policy Fellowship Project.
Ms. Fuller said Ms. Christie, Ms. Black and herself worked this summer researching how Fargo could be made more affordable, which is a complex issue. She said numerous interviews were conducted, case studies researched and criteria was established to objectively analyze each alternative. According to the 2015 FM Regional Workforce Study, she said, Fargo is expected to fill more than 30,000 jobs by 2019; however, nearly half of those jobs are projected to be low-skilled service sector jobs paying $13.00 per hour. Cities that are able to tackle affordability more effectively will have an advantage in terms of attracting and retaining business, talent and creating an all-around healthy community, she stated. In terms of achieving financial stability, she said, it is difficult, if not impossible, at $13.00 per hour, especially in a household with children. She said while the City has tax incentives for developers such as TIFs and PILOTs, which have been successful in promoting infill development and decreasing blight, they are not being fully used to increase affordable housing as they were originally designed. An option, she said, would be requiring developers using incentives to have a minimum of 20 percent of their units to be affordable under HUD standards.

Ms. Christie said the team is offering the top three specific recommendations for implementation: Community Land Trust (CLT); increased home retrofit assistance; and policies such as tax incentive finance policies to acquire affordability. She said home ownership is valued in the community; however, fewer than 12 percent of active home listings are priced below $150,000.00, largely inaccessible to this workforce population. A CLT is a nonprofit that acquires property and maintains ownership of the land permanently while ownership of the house is separate, she said, and the CLT model, which was recommended by the workforce study, could create a ladder to home ownership that can grow over time. She said the North Dakota Housing Finance Agency recently announced a $3 million bridge loan designed to advance CLTs in North Dakota. She said allowing special assessment funding for home retrofit assistance would be beneficial.

Commissioner Grindberg said he was impressed with the group’s work and the next step is to work with the Planning Department on the recommendations.

Commissioner Strand expressed appreciation to the policy team and the Planning Department and said he looks forward to the City implementing as much as possible of the recommended actions.

Application Filed by R & R LLC d/b/a Reese Riley Bistro for a Class “GH” Alcoholic Beverage License Denied:
A Hearing had been set for this day and hour on the application filed by R & R LLC d/b/a Reese Riley Bistro for a Class "GH" Alcoholic Beverage License at 2653 45th Street South, notice of which had been duly published in the official newspaper for the City of Fargo.
City Auditor Steve Sprague said this application came before the Board about a month ago and was denied. The application is before the Board again with an additional partner, he said and there were some significant criminal history items found which are fairly recent. He said the recommendation from the Liquor Control Board is to deny the application.

Commissioner Grindberg moved the application be denied.

Second by Gehrig. On call of the roll Commissioners Grindberg, Gehrig, Strand, Piepkorn and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.

Application Filed by Dakota Pie LLC d/b/a Blaze Pizza for a Class “GH” Alcoholic Beverage License Approved:
A Hearing had been set for this day and hour on the application filed by Dakota Pie LLC d/b/a Blaze Pizza for a Class "GH" Alcoholic Beverage License at 1443 42nd Street South, notice of which had been duly published in the official newspaper for the City of Fargo.
No written protest or objection to the granting of the application has been received or filed in the office of the City Auditor, and said application has been approved by the Police Department as to the character of the applicant.
The Board determined that no person is present at this Hearing to protest or offer objection to the granting of the application.
Commissioner Grindberg moved the application be approved.

Second by Strand. On call of the roll Commissioners Grindberg, Strand, Gehrig, Piepkorn and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.

Parcels of Land in Original Townsite Addition Rezoned (111 9th Street South):
At a Hearing held on August 1, 2017 the Fargo Planning Commission recommended approval of a change in zoning from MR-3, Multi-Dwelling Residential to DMU, Downtown Mixed-Use on Original Townsite Addition.
The City Auditor's Office published a Notice of Hearing stating this is the time and date set for said Hearing at which time all interested persons could appear and would be heard.

Commissioner Grindberg offered the following Resolution and moved its adoption:
WHEREAS, All legal requirements in connection with the above-described request for rezoning have been complied with; and
WHEREAS, There have been no written or verbal protests to the request for rezoning and no one is present to protest thereto.
NOW, THEREFORE, BE IT RESOLVED, That the findings of staff be accepted and the rezoning be approved on the basis that the proposal satisfactorily complies with the Comprehensive Plan, Standards of Section 20-0906.F (1-4) and all other applicable requirements of the LDC.

Second by Gehrig. On the vote being taken on the question of the adoption of the Resolution Commissioners Grindberg, Gehrig, Strand, Piepkorn and Mahoney voted aye.
No Commissioner being absent and none voting nay, the Resolution was adopted.

First Reading of an Ordinance Rezoning Certain Parcels of Land Lying in Original Townsite Addition, Fargo, Cass County, North Dakota:
Commissioner Grindberg moved the requirement relating to receipt of the Ordinance by the Commission one week prior to first reading be waived and that the Ordinance Rezoning Certain Parcels of Land Lying in Original Townsite Addition, Fargo, Cass County, North Dakota be placed on first reading.

Second by Gehrig. On call of the roll Commissioners Grindberg, Gehrig, Strand, Piepkorn and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.

Renaissance Zone Project for DFI Dillard, LLC at 223 and 229 Roberts Street North Approved:
A Hearing had been set for this day and hour to receive comments on a Renaissance Zone Project for DFI Dillard, LLC at 223 and 229 Roberts Street North.
No written protest or objection to the Project has been received or filed in the City Auditor's Office.
The Board determined that no person is present to protest or offer objection to the Project.

Planner Derrick LaPoint stated the Renaissance Zone Project application presented by DFI Dillard, LLC at 223 and 229 Roberts Street North meets all of the minimum criteria set forth in the Renaissance Zone Plan and is consistent with the established goals and objectives. He said project would consist of an approximately 93,500 square foot, six-story mixed use building with commercial use on the ground floor and 89 residential units above. The current true value of the existing surface parking lot property is $166,000.00, he said, and the estimated value of the buildings after improvements is $13.4 million. He said the estimated 5-year property tax exemption is $967,471.15 and the 5-year income tax exemption is estimated at $5,000.00. The property has an existing TIF on it, he said, which is in place to fund the parking garage directly to the south that the City has operated. The estimated property taxes after 5 years is $200,000.00, he said.

Commissioner Piepkorn moved the Renaissance Zone application filed by DFI Dillard, LLC for a new construction project located at 223 and 229 Roberts Street North be approved and the income tax and property tax exemptions be granted as recommended by the Renaissance Zone Authority.

Second by Grindberg. On call of the roll Commissioners Piepkorn, Grindberg, Strand and Mahoney voted aye.
Commissioner Gehrig voted nay.
The motion was declared carried.

Fifth Amendment to the Development Agreement with Block 9 Partners LLC Approved:
City Attorney Erik Johnson said the critical part of the amendment to the development agreement with Block 9 Partners is that, in order for the City to be involved with the project, the deadlines need to be shifted. The real estate transaction that starts this needs to coincide with the sale of the bonds financing the construction of the ramp, he said.

Kilbourne Group President Mike Allmendinger said that over the last 12 months, more than 40 meetings have taken place involving City departments, Fargo Parks, U.S. Bank and adjacent neighbors. Mortenson Construction, a contractor very experienced in working in urban downtown environments, is involved in helping plan for the best project possible, he said. In May 2016, the project was proposed at $95 million, he said, and it is now at $117 million. Over 20,000 hours of preconstruction work has been logged for design, development, construction, legal and finance teams, he said, and over $5 million has been invested to date by Block 9 Partners in preconstruction work. He said there are no changes to the financial ask for the project and no tax dollars have been spent to date. He said the design of the community plaza has evolved and it is expected to host more than 100 events the first year with a goal of 250 events per year in time. The parking garage has continued to develop from its early design, he said, and its construction documents are very close to being completed. The previous building design had 19 floors, he said, and it is now an 18-story building with 289,000 square feet. He said one additional floor is being planned for hotel use and one less floor as residential. Because the building has six mixed uses, there is complexity with financing, he said, and the banking partner has to be solidified and the project is not in a position to break ground this fall. The appraisal process will take time, as will closing on a banking package, he said, which will be followed by the awarding of construction contracts with additional time needed to prepare for preconstruction staging work. All that means it will take 7-10 months of work before being able to break ground, he said, and that makes the amendment necessary for the project to happen.

In response to a question from Commissioner Gehrig about whether the commitment of the City goes up as the project costs increase; and if the building is of more value, does that mean the City is on the hook for more, Planning Director Jim Gilmour said the City Assessor may value the building at a higher or lower amount for tax purposes. He said TIF proceeds and money from the developer are used to pay off bonds and the City’s bond level is $15 million for construction plus bond fees and interim financing. He said the amount that goes to the developer is $15 million regardless of the size of the project.

Commissioner Gehrig said besides a TIF, there is a Renaissance Zone exemption on part of the project, as well as a PILOT. Both of those exempt taxes at 100 percent for a period of time, he said, so it is logical to conclude that as the project amount goes up, the amount being exempted also goes up. He said, as far as claiming the amendment does not change the financial ask, the terms are changing due to delays and the very fact that the building will cost more changes it.

Mr. Allmendinger said costs are actually going up even with a floor being removed from the project. The program is not changing, he said, and the longer the delays, the higher the costs go up, he said, so there is motivation to break ground as soon as possible. He said the request is not asking for additional years for PILOT or TIF.

Commissioner Piepkorn said he feels the City needs to receive something in return for this business deal. These developers are expert businessmen, he said, and extending this unilaterally is not a good business decision for the City. He said while it is a great project, of course the developers are happy to get an open-ended $17 million free line of credit. He said the question should be “what does the City get in return?” He does not support the extension now, he said, although he would later if his question gets addressed. This is an opportunity to get some things back, he said.

Commissioner Grindberg said as he sees it, this does not change from what the prior Board agreed to. In the construction world, he said, it is natural to assume prices go up, and all this does is extend the bonding period to continue forward. He acknowledged the Board has divided opinions on incentives; however, he said, that is not what is being addressed now. Tax collections on the existing property are miniscule compared to the return when this comes off incentives and back to the City, he said. The role of government is to provide stable, predictable environments, he said, and to renege on this commitment may devastate this project, and send the wrong message to developers about projects appropriate for Board actions, be it incentives or public-private partnerships. He said this project will have a profound effect on the community when fully operational.

Commissioner Strand said when the previous Board considered this project, he expressed concerns about its qualifications for a PILOT incentive policy. Since that time, he said, the policy has been revisited and modified such that now it does qualify. He said he is not inclined to want to turn down a previous Commission’s decision and intends to honor the previous decision.

Commissioner Gehrig said the City is on the hook for $30 million with TIF, Renaissance Zone and PILOT exemptions and if the project is delayed, the exemptions will be $32, $33, $35 million, the amount is not known. He said it is not the role of government to play developer and this is an example of why the City should not get involved in big projects like this.

Commissioner Grindberg moved the Fifth Amendment to the Development Agreement with Block 9 Partners LLC be approved.

Second by Strand. On call of the roll Commissioners Grindberg, Strand and Mahoney voted aye.
Commissioners Gehrig and Piepkorn voted nay.
The motion was declared carried.

Appointment to the Historic Preservation Commission:
The Board received a communication from Mayor Mahoney recommending that Nathan Larson be appointed to the Historic Preservation Commission to fill the unexpired term of Mike Hahn, who has moved away from North Dakota. The Mayor is recommending that since the current term expires October 31, 2017, Mr. Larson also be appointed to fill a three-year term following that date and that Mr. Larson’s appointment to the Board expire on October 31, 2020.
Commissioner Piepkorn moved Nathan Larson be appointed to the Historic Preservation Commission for a term ending October 31, 2020.

Second by Grindberg. On call of the roll Commissioners Piepkorn, Grindberg, Strand, Gehrig and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.

Commissioner Gehrig moved that the Board adjourn to 5:00 o’clock p.m., Monday, September 11, 2017.
Second by Piepkorn. All the Commissioners voted aye and the motion was declared carried.
The time at adjournment was 5:51 o’clock p.m.