Board of City Commissioners - October 7, 2019 Minutes

The Regular Meeting of the Board of City Commissioners of the City of Fargo, North Dakota, was held in the City Commission Chambers at City Hall at 4:00 o'clock p.m., Monday, October 7, 2019.
The Commissioners present or absent were as shown following:
Present: Gehrig, Grindberg, Piepkorn, Strand, Mahoney.
Absent: None.
Mayor Mahoney presiding.

City Attorney Erik Johnson announced that the City Commission will meet in Executive Session to discuss ongoing negotiations with the Fargo Municipal Airport Authority. The Executive Session will allow discussion of negotiating strategy and to provide negotiating instructions to the City’s negotiator or attorneys with respect to said negotiations and the potential agreement between the City and the Fargo Municipal Airport Authority has financial implications and an open meeting discussion of the negotiations, strategy and direction to the City’s negotiator would create an adverse fiscal effect on the bargaining position of the City. This Executive Session is authorized pursuant to ND Century Code Section 44-04-19.1(9).

Commissioner Strand moved the Commissioners meet in Executive Session in the River Room as authorized by NDCC, Section 44-04-19.1(9) to discuss said matter.

Second by Piepkorn. All the Commissioners voted aye and the motion was declared carried.

At 4:01 o’clock p.m. the Board moved to the River Room to discuss said matter in Executive Session.
Members present were: Gehrig, Grindberg, Piepkorn, Strand, Mahoney.

The Executive Session closed at 5:03 o’clock p.m. and the meeting reconvened in public session at 5:06 o’clock p.m.
Members present were: Gehrig, Grindberg, Piepkorn, Strand, Mahoney.

Commissioner Piepkorn moved the City Commission further discuss the details of the Memorandum of Understanding (MOU) proposal with the Airport Authority in an Executive Session after hearing back from the Airport Authority relative to the proposed MOU following the Airport Authority’s October 22, 2019 meeting.

Second by Strand. On call of the roll Commissioners Strand, Piepkorn, Gehrig, Grindberg and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.
City Attorney Erik Johnson said for clarification, a motion for an Executive Session will still be required at that time and this motion does not suggest the Board could move into it without its normal process.

Flag Ceremony and Indigenous Peoples Day Recognition:
The Board received a communication from Planning Director Nicole Crutchfield and Native American Commission Chair Sharon White Bear stating the flags of five tribal nations will be on display at the entrance of City Hall through November 3rd in honor of Indigenous Peoples Day on October 14th and Native American Heritage Month (November). They said each flag represents one of the five federally recognized tribal nations located within North Dakota and Mayor Tim Mahoney accepted these flags during last year’s Indigenous Peoples Day Celebration. They said in 2015, the Fargo City Commission passed a Resolution recognizing the second Monday in October as Indigenous Peoples Day, and this year the City of Moorhead also passed a Resolution. They said the two cities are starting a tradition of jointly recognizing this day through a series of event and the public is encouraged to participate in events co-hosted by the Fargo Native America Commission on Monday, October 14th. The events planned are the Moorhead-Fargo Indigenous Peoples Day Morning Kickoff at Moorhead City Hall, Indigenous Peoples Day Competency Lunch and Learn at Fargo City Hall and the Inaugural Moorhead Peoples Day Meal and Powwow at Moorhead High School. They said during November’s Native American Heritage Month the Fargo Library and partners will host the annual Native American Festival and Education Series.

Ms. White Bear said Grand Forks was the first city to accept the tribal flags, Fargo was second and the Capitol accepted the flags third. A representative explained the meanings of the images on each of the tribal flags: Joe Williams – Sisseton Wahpeton Oyate; James Moran – Mandan, Hidatsa & Arikara (MHA); Lenore King – Spirit Lake Tribe; Anna Johnson – Turtle Mountain and Chippewa/Ojibwae/Anishinaabe; and Ms. White Bear – Standing Rock. Guy Fox performed a song in honor of the flags. Ms. White Bear thanked James Moran and Gary Stroh who put up a tipi outside City Hall from the MHA Nation Tribal Tourism.

Order of Agenda Approved:
Commissioner Piepkorn moved the Order of the Agenda be approved, moving Item No. “30” from the Consent Agenda to the Regular Agenda.

Second by Gehrig. All the Commissioners voted aye and the motion was declared carried.

Minutes Approved:
Commissioner Gehrig moved that the Minutes of the Regular Meeting of the Board held on September 23, 2019 be approved as read.

Second by Strand. All the Commissioners voted aye and the motion was declared carried.

Consent Agenda Approved:
Commissioner Grindberg moved the Consent Agenda be approved as follows.
1. 1st reading of the following Ordinances:
a. Amending Section 10-0103 of Article 10-01 of Chapter 10 Relating to the Sale of Tobacco, Sale of Tobacco to Minors and Use and Possession by Minors Prohibited, and Sale of Flavored E-Liquid to Minors Prohibited.
b. Amending Section 1-0305(C)(3) of Chapter 1 of the Fargo Municipal Code Relating to Classification of Ordinance Violations.
c. Enacting Section 10-0105 of Article 10-01 of Chapter 10, Relating to the Sale of Flavored E-Liquid to Minors Prohibited.
d. Amending Sections 35-0101, 35-0103 and 35-0105 of Article 35-01 of Chapter 35 Relating to the Authority for the Sale of Tobacco Products.

2. 2nd reading and final adoption of the following Ordinances; 1st reading, 9/23/19:
a. Amending Section 16-0204 of Article 16-02 of Chapter 16, 16-0217 of Article 16-02 of Chapter 16, and 16-0304 of Article 16-03 of Chapter 16 of the Fargo Municipal Code Relating to Waterworks System.
b. Amending Sections 3-1301 and 3-1302 of Article 3-13 of Chapter 3 of the Fargo Municipal Code Relating to Lodging Tax.

3. Purchase Agreement with Minda, LLC.

4. Applications for Games of Chance:
a. Kick it with Kate Cancer Benefit for a raffle on 11/21/19; Public Spirited Resolution.
b. Dakota Medical Foundation for a raffle on 10/18/19.
c. El Zagal Shrine Arab Patrol for a raffle on 3/13/20.
d. Bennett Elementary PTA for bingo from 11/1/19 to 5/29/20.
e. River Keepers for a raffle on 10/13/19.
f. FM Raise Your Spirits, Inc. for a raffle and raffle board on 10/25/19.

5. Site authorization for Fargo Metro Baseball Association at Specks Bar.

6. Change Order No. 3 for an increase of $73,800.13 for Project No. UR-19-A1.

7. Change Order No. 11 for an increase of $13,690.00 for Project No. FM-15-K1.

8. Final Balancing Change Order No. 3 for an increase of $27,975.30 for Project No. SR-19-A1.

9. Final Balancing Change Order No. 3 for an increase of $10,694.65 for Project No. TR-17-A1.

10. Amendment No. 1 with Houston Engineering in the amount of $24,000.00 for Project No. FM-19-F0.

11. Amendment No. 4 with KLJ in the amount of $1,730.00 for Project No. FM-15-K0.

12. Access Agreement with David J. Clardy for property located at 1349 Elm Circle North (Project No. FM-19-E).

13. Encroachment Agreement with 701 Brew, LLC.

14. Encroachment Agreement (Canopy and Parking) with Farmers Union Oil Company of Moorhead, Minnesota.

15. Sole Source Procurement with ICS General Contractor to service and repair the Magic Carpet II football turf mechanical system.

16. Rejection of bids for the Newman Outdoor Field-Stadium Reroof Project and rebid in the first quarter of 2020.

17. Memorandum of Understanding with the Fargo Park District for processing FEMA reimbursements for the spring 2019 flood event.

18. Notice of Grant Award with the ND Department of Emergency Services – Division of Homeland Security for the FY 2019 State Homeland Security Grant Program.

19. Notice of Grant Award – Restricted Funding from the ND Department of Health and Human Services for regional public health network opioid implementation (CFDA #93.354).

20. Contract Agreement for Services (Amendment) with Erica Frank.

21. Missiontracker Service Agreement with MissionTracker, LLC.

22. Service Agreement with Fargo Public Schools Department of Support Services.

23. Agreement for Services with Nate Hendrickson.

24. Contract Agreement for Services with American Lung Association.

25. Agreement for Services with Megan Nies.

26. Grant award with the US Food and Drug Administration for food code training for FCPH Environmental Practitioners.

27. Notice of Grant Award from the ND Department of Health for regional public health network implementation (CFDA #93.758).

28. Direct the City Attorney’s Office to revise existing and draft new Ordinances pertaining to pet shops, pet licensing and licensing and boarding.

29. Agreement for Physician Services with Heidi Lako-Adamson, M.D.

30. Grant from Lutheran Social Services of ND to provide TB Nurse Case Management and interpretation for new refugees for FY 2020 (Moved to the Regular Agenda).

31. Purchase of the remaining replacement Panasonic mobile data computers for Police vehicles (PBC17065).

32. Resolution Approving Amendments to the Community Development Block Grant (CDBG)/HOME 2019 Action Plan (Attachment “A”).

33. Traffic Safety Contract with the ND Department of Transportation (CFDA Nos. 20.616 and 20.600).

34. NDDES grant funds for the purchase of a ROOK Tactical Vehicle, attachments and trailer.

35. Notice of Grant Award from the NDDES for the FY 2019 State Homeland Security Grant Program (CFDA #97.067).

36. Firehouse Subs Public Safety Foundation grant funds for the purchase of a 2019 Kubota RTV UTV.

37. Bid award to M.J. Dalsin Co. of ND, Inc. in the amount of $85,912.00 for partial roof replacement at Public Works (RFP19153).

38. Bid award for lease contract to CapFirst Equipment Finance for one crawler dozer for $156,902.00 per year for four years with the fifth year buy back to General Equipment (RFP19016).

39. Contracts with Master Construction Company, Inc., Precision Dirtworks, LLC, Diesel Dogs Trucking and Industrial Builders, Inc. for trucking services for snow hauling services (RFP19140).

40. Bid award to Valley Green and Associates in the amount of $2,208.09 for sidewalk snow and ice removal services (RFP19142).

41. Bills in the amount of $9,468,274.93.

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

Change Order No. 2 and Time Extension for Improvement District No. AN-19-G1 Approved:
Commissioner Grindberg moved Change Order No. 2 for an increase of $59,772.50 and time extension to June 1, 2020 for Improvement District
No. AN-19-G1 be approved.

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

Change Order No. 3 and Time Extension for Improvement District No. BN-19-J1 Approved:
Commissioner Grindberg moved Change Order No. 3 for an increase of $6,492.05 and a 1-day time extension for Improvement District No. BN-19-J1 be approved.

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

Change Order No. 3 for Improvement District No. BR-18-F1 Approved:
Commissioner Grindberg moved Change Order No. 3 for an increase of $11,416.02 for Improvement District No. BR-18-F1 be approved.

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

Change Order Nos. 8-19 for Improvement District No. BN-19-A2 Approved:
Commissioner Grindberg moved Change Order Nos. 8-19 in the total amount of $131,227.50 for Improvement District No. BN-19-A2 be approved.

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

Change Order No. 2 for a Time Extension for Improvement District No. TN-19-A1 Approved:
Commissioner Grindberg moved Change Order No. 2 for a time extension to June 1, 2020 for Improvement District No. TN-19-A1 be approved.

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

Final Estimate and Amendment No. 1 for Improvement District No. SN-16-B1 Approved:
Commissioner Grindberg moved the Final Estimate and Amendment No. 1 in the amount of $42,980.22 for Improvement District No. SN-16-B1be approved.

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

Portland Cement Concrete Pavement, Curb and Gutter, Storm Sewer, Sanitary Sewer, Watermain, Sidewalk, Street Lighting, Landscaping and Traffic Signals Improvement District No. BR-19-A (On Main Avenue from University Drive North to Broadway):
Commissioner Grindberg moved the following action be taken in connection with Portland Cement Concrete Pavement, Curb and Gutter, Storm Sewer, Sanitary Sewer, Watermain, Sidewalk, Street Lighting, Landscaping and Traffic Signals Improvement District No. BR-19-A:

Adopt Resolution Creating Improvement District No. BR-19-A:
WHEREAS, The Board of City Commissioners of the City of Fargo, North Dakota, deems it expedient that Improvement District No. BR-19-A in the City of Fargo, North Dakota, be created

On Main Avenue from University Drive North to Broadway.

COMPRISING:
An area bound on the north by 4th Avenue North, bound on the west by University Drive North and South, bound on the east by Broadway North and South, bound on the south by 3rd Avenue South, including all of its vacated alleys, unplatted land, railroad right-of-way and the west 360’ of the north 745’ of the Park District of the City of Fargo property known as Island Park.

All of the foregoing is located in the City of Fargo, Cass County, North Dakota.

NOW, THEREFORE, BE IT RESOLVED, That Portland Cement Concrete Pavement, Curb and Gutter, Storm Sewer, Sanitary Sewer, Watermain, Sidewalk, Street Lighting, Landscaping and Traffic Signals Improvement District No. BR-19-A in the City of Fargo, North Dakota, be and the same is hereby created.

Request Report and Estimate of Cost from the City Engineer for Improvement District No. BR-19-A:
Direct City Engineer to report as to the general nature, purpose and feasibility relative to the construction of Improvement District No. BR-19-A in the City of Fargo, North Dakota; as well as an estimate of the approximate cost of said construction. (The Engineer's estimate of cost is $13,625,498.00.)

Order Plans and Specifications for Improvement District No. BR-19-A:
Direct City Engineer to prepare Plans and Specifications for the construction of Improvement District No. BR-19-A in the City of Fargo, North Dakota.

Adopt Resolution Approving Plans and Specifications and Engineer's Report for Improvement District No. BR-19-A:
WHEREAS, The Board of City Commissioners of the City of Fargo, North Dakota, has created Improvement District No. BR-19-A in the City of Fargo, North Dakota, as required by law; and
WHEREAS, Plans and Specifications and the Engineer's Report prepared by the City Engineer, have been considered.
NOW, THEREFORE, BE IT RESOLVED, That the Plans and Specifications and Engineer's Report for the construction of Improvement District No. BR-19-A in the City of Fargo, North Dakota, be and the same are hereby approved and ordered filed in the Office of the City Auditor.

Adopt Resolution Declaring Portland Cement Concrete Pavement, Curb and Gutter, Storm Sewer, Sanitary Sewer, Watermain, Sidewalk, Street Lighting, Landscaping and Traffic Signals Necessary:
BE IT RESOLVED BY THE BOARD OF CITY COMMISSIONERS OF THE CITY OF FARGO:
That it be and is hereby declared necessary to construct Portland Cement Concrete Pavement, Curb and Gutter, Storm Sewer, Sanitary Sewer, Watermain, Sidewalk, Street Lighting, Landscaping and Traffic Signals Improvement District No. BR-19-A in the City of Fargo, North Dakota, according to the Engineer’s Report for this district and the Plans and Specifications approved by the Board of City Commissioners of the City of Fargo, North Dakota, filed in the Office of the City Auditor, and open for public inspection. A map of the district is attached hereto and incorporated as if fully set forth herein.
That a portion of said Portland Cement Concrete Pavement, Curb and Gutter, Storm Sewer, Sanitary Sewer, Watermain, Sidewalk, Street Lighting, Landscaping and Traffic Signals Improvement District No. BR-19-A is to be paid from Street Sales Tax, and approximately 18.94% is to be assessed against the benefited property in amounts proportionate to and not exceeding the benefits to be derived by them respectively from said improvement.
Protests against the proposed Portland Cement Concrete Pavement, Curb and Gutter, Storm Sewer, Sanitary Sewer, Watermain, Sidewalk, Street Lighting, Landscaping and Traffic Signals must be in writing and must be filed with the City Auditor's Office within 30 days after the first publication of this Resolution.
BE IT FURTHER RESOLVED, That the City Auditor's Office is hereby instructed to publish this Resolution, as required by law.

Direct City Auditor's Office to Call for Bids for Improvement District No. BR-19-A:
Direct City Auditor's Office to publish a Notice, as required by law, calling for bids for the construction of Improvement District No. BR-19-A in the City of Fargo, North Dakota.

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

State Water Commission Request for Cost Reimbursement for FM Diversion Flood Project Costs Approved:
The Board received a communication from Finance Director Kent Costin stating the State Water Commission is requesting $6,250.00 for cost reimbursement for the FM Metropolitan Area Flood Risk Management Project for August 2019. He said the request is for expenses related to the Oxbow/Hickson/Bakke component of the project.

Commissioner Grindberg moved the cost reimbursement request in the amount of $6,250.00 for the FM Diversion Flood Project for expenses related to the Oxbow/Hickson/Bakke component of the project be approved.

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

State Water Commission Request for Cost Reimbursement for FM Diversion Flood Project Costs Approved:
The Board received a communication from Finance Director Kent Costin stating the State Water Commission is requesting $750,500.56 for cost reimbursement for the FM Metropolitan Area Flood Risk Management Project for August 2019.
Commissioner Grindberg moved the cost reimbursement requests in the amount of $750,500.56 for the FM Diversion Flood Project be approved as presented.

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

Renaissance Zone Project for Great Plains Mercantile Holdings, LLC Approved:
A Hearing had been set for September 23, 2019 to receive comments on a Renaissance Zone Project for Great Plains Mercantile Holdings, LLC for a new construction project located at 401 Broadway North; 410 and 412 5th Street North.
At the September 23, 2019 Regular Meeting, the hearing was continued to this date and hour.
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.

The Board received a communication from Planning Director Nicole Crutchfield stating the Renaissance Zone Project application presented by Great Plains Mercantile Holdings, LLC meets all of the minimum criteria set forth in the Renaissance Zone Plan and is consistent with the established goals and objectives. She said the Renaissance Zone Authority unanimously recommended approval of the project. She said pursuant to the application, the intent of the project is to transform the former Goodyear Service Station and surface parking lots into a 6-story, 115,000 square foot building with 370 structured parking stalls, 11,000 square feet of ground floor commercial, 100 apartments and a line of for-sale townhomes adjacent to the Great Northern Bicycle Company building to the north. She said Phase 1 is the 370 stall parking garage, developed as a public-private partnership and Phase 2 is the mixed-use portion of the project. She said the application indicates an investment of $20,816,279.00 which exceeds the minimum investment threshold as set forth in the plan.

Commissioner Piepkorn moved the Renaissance Zone application filed by Great Plains Mercantile Holdings, LLC for a project located at 401 Broadway North; 410 and 412 5th 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.

Renaissance Zone Project for 201 Hospitality, LLC Approved:
A Hearing had been set for September 23, 2019 to receive comments on a Renaissance Zone Project for 201 Hospitality, LLC for a rehab project located at 201 5th Street North.
At the September 23, 2019 Regular Meeting, the Hearing was continued to this date and hour.
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.

The Board received a communication from Planning Director Nicole Crutchfield stating the Renaissance Zone Project application presented by 201 Hospitality, LLC meets all of the minimum criteria set forth in the Renaissance Zone Plan and is consistent with the established goals and objectives. She said the Renaissance Zone Authority unanimously recommended approval of the project. She said pursuant to the application, the intent of the project is to complete extensive interior renovations. The rehabilitation would be a full renovation of all rooms which includes new carpet, granite, vinyl wall covering, the fitness room will be expanded and the public space will have a light remodel, with construction beginning in the fall of 2019. She said the application indicates an investment of nearly $6,000,000.00, which exceeds the minimum investment threshold as set forth in the plan.

Commissioner Grindberg moved the Renaissance Zone application filed by 201 Hospitality, LLC for a rehab project located at 201 5th Street North be approved and the income tax and property tax exemptions be granted as recommended by the Renaissance Zone Authority.

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

Hearing on a Petition for a Zoning Change in Harwoods First Addition Continued to November 18, 2019 (701 University Drive North and 702 12th Street North):
This was the time and date set for a Hearing on a petition requesting a zoning change from DMU, Downtown Mixed Use with a C-O, Conditional Overlay to DMU, Downtown Mixed Use and a request to repeal the C-O, Conditional Overlay on Lot 1, Block 7, Harwoods First Addition; however, the applicant has asked that the Hearing be continued to November 18, 2019.

Commissioner Grindberg moved the Hearing be continued to 5:15 o’clock p.m. on Monday, November 18, 2019.

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

Parcels of Land in Agassiz Nursery Addition Rezoned (4203 University Drive South):
At a Hearing held on September 3, 2019 the Fargo Planning Commission recommended approval of a change in zoning from LC, Limited Commercial to LI, Limited Industrial on a portion of Lot 2, Block 1, Agassiz Nursery Addition (PKG Contracting).
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.

Planning Coordinator Donald Kress said the subject property has the same owner as the adjacent lot to the south at 4301 University Drive South, PKG Office Investments, and is used by the same business, PKG Contracting, Inc. He said in 2009, PKG Contracting acquired the subject property and began to expand into it primarily for outdoor storage. The purpose of the zoning change is to better match the existing use, he stated.

Commissioner Strand 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 Grindberg. On the vote being taken on the question of the adoption of the Resolution Commissioners Strand, Grindberg, Piepkorn, Gehrig 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 Agassiz Nursery Addition to the City of Fargo, Cass County, North Dakota:
Commissioner Strand 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 Agassiz Nursery Addition to the City of Fargo, Cass County, North Dakota be placed on first reading.

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

Parcels of Land in Agassiz Nursery Addition Rezoned (1421 42nd Avenue South):
At a Hearing held on September 3, 2019 the Fargo Planning Commission recommended approval of a change in zoning from SR-3, Single-Dwelling Residential to P/I, Public and Institutional on Lot 1, Block 1, Agassiz Nursery Addition (City of Fargo).
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.

Planning Coordinator Donald Kress said this is a City owned property where a single-family home used to be. He said it was removed in about 2017 to place a flood control levee through the property soon after the removal. He said the zone change’s purpose is to better match the existing use for a City-owned flood buyout property.

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 Agassiz Nursery Addition to the City of 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 Agassiz Nursery Addition to the City of 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.

Corrected Plat of The Edge Addition to the City of Fargo Affirmed (502 University Drive North and 1321 5th Avenue North):
The Board received a communication from Planning Coordinator Donald Kress regarding the correction by Resolution of The Edge Addition Plat that was approved by the City Commission on May 7, 2018 and recorded on May 18, 2018. He said the plat created two lots, Lot 1 is owned by
DFI AU, LLC and Lot 2 is owned by The Edge Artist Flats, LLC. Subsequent to recordation of the plat, he said, the owners discovered two easements were incorrectly depicted and after thoroughly investigating options for correcting the errors, both owners determined the most effective means is through a corrected plat as provided in NDCC Section 40-50.1-07 et seq. He said a resolution regarding the correction was adopted by the Board on September 9, 2019, published as required and staff has not received any objections. He said the purpose of the hearing is to hear and consider:
a. Any written objections that have been filed with the City by any interested owner of the Affected Property as to the proposed
plat-corrective work or its cost; and
b. Any objections by any interested party or parties who, after having viewed the proposed corrected plat that has been filed with the City and is available for viewing at the Department of Planning and Development, Fargo City Hall.

Daniel Bueide, Bueide Law Firm, said he represents DFI AU, and in his 29 years he has never used this procedure before and probably never will again. A couple of unfortunate errors occurred with the plat, he said, and no better way could be found to correct the technical issues than to do this seldom used procedure.

Commissioner Grindberg moved the corrected Plat of The Edge Addition by Resolution be affirmed, with Plat recordation contingent upon the City Engineer’s final review and signing of the Plat.

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

Removal of Three Elm Trees on 3rd Avenue and 11th Street North Approved:
The Board received a communication from City Forester Scott Liudahl stating that his role is to advocate for tree preservation when possible. He said there has been an increase in large tree removals during the last 2-3 years due to large redevelopments occurring in certain locations. Tree removals bring public comments, he stated; however, typically afterwards. He shared a photo of 12th Street North before and after the Woodrow Apartments were built, where trees were removed as part of the project. He said in that case, an appraisal was done and compensation was received for the value of those assets. In the Downtown Mixed Use Zoning (DMU), building to the property line is allowed, he said, and often large mature trees infringe or encroach into that area well outside of the right-of-way. Options can be considered, he said, such as other ways to remove the trees and still accommodate a project, or whether it is it best to accept the appraised value. He said sometimes pruning can be done as part of the compromise when working with developers. He said there is a need to focus on how to achieve more public participation and input on tree removals versus after removal when the negative comments are coming in. The proposed Mosaic Apartment Complex at 312 11th Street North is a 5-story, 92-unit complex zoned DMU and was previously residential with a heavy population of street trees. He showed photos of the two elms on 11th Street that are in fairly good condition, he said, and one on 3rd Avenue, which is in lower condition. He suggested the following options: if not able to compromise on this plan, accept the appraised value for the trees; ask the City Attorney to look at the current Ordinance to see if adjustments can be made as these developments come into place, to include a public comment process; and look at pro-tree changes in the DMU zoning.

In response to a question from Commissioner Gehrig asking whether there is pushback from developers on the appraised value of the trees, Mr. Liudahl said typically not, they will pay it. Either the funds go to the general fund or back into the Forestry revenue account to be used for other tree planting projects, he said, and the Forestry Department plants more than 1,100 trees per year.

Austin Morris, Enclave Development, said there has been back and forth with staff related to tree preservation as it relates to this project and also a broader discussion on impacts to long term development in the Downtown area. Based on past projects and policy, he said, density and DMU zoning did not need to be considered as far as how much land could be built on within a lot or a few blocks. He said he does not feel the tree on 3rd Street is savable, nor are the other two based on how much canopy would have to be removed. He agrees there is a need to further discuss how to handle trees in a DMU zoning. This project’s design is complete and is ready to start, he said, so the challenge now is that it cannot easily be adjusted.

Ben Dow, Director of Operations, said the options are to preserve and protect, which right now there really is not an Ordinance that can stand behind that, or to move forward with the tree removals, applying the appraisal values to be paid. He said there will be more of this as these projects grow and move into other areas that were once residential. The DMU zoning has been focused around Downtown which did not have a lot of trees, he said.

Commissioner Piepkorn said he finds it ironic that the tree in the picture appears to have been butchered by the utility company. Perhaps the City needs to start charging for the damage inflicted on the trees, he said. Trees are a precious commodity in North Dakota and part of history dating back to tree claims, he said. He supports a policy and the expertise of the Forestry Department is needed to guide developers so plans are followed and for a mix of trees, he said.

Commissioner Grindberg said he agrees with Commissioner Piepkorn. He said while it is time to move on with this project, there are things that have come up with trees over the years, such as the flood protection project at Lindenwood. There have been conscious decisions that could have been made differently, he said, such as in south Fargo where trees seem to be taken out with no particular planning. He said he sees a need for a policy for the entire City, not only the Downtown.

In response to a question from Commissioner Strand asking if this is addressed in the Downtown Strategic Plan, Planning Director Nicole Crutchfield said long-range planning for a Core Neighborhood Plan, GO2030 and Downtown InFocus Plan all focus on the importance of trees, landscaping and beautification; however, until Ordinances are in place to mandate these things, it is staff’s vision and dreams. She said more specifics related to Forestry Ordinances and policies would be helpful.

Commissioner Strand said the State Highway project on 10th Street North called for removing 10 or 11 trees and before all were taken, a citizen, Christine Johnson, brought it to light which saved a couple of the trees. This could be done more often, and he suggested using an approach for projects that identifies the trees in advance, places values on them and an opportunity for a discussion to save them.

Commissioner Gehrig moved the three elm trees, one at 1111 3rd Avenue North and two at 306 and 312 11th Street North be removed and payment accepted for those trees, as presented.

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

Commissioner Grindberg moved appropriate staff be directed to work with the City Attorney’s office to amend the current Ordinance to reflect a more pro-tree preservation aspect by March 1, 2020.
Second by Strand.

In response to a question from Commissioner Gehrig about whether it would be limited to the DMU zoning, Commissioner Grindberg said he feels it would be a green light to evaluate the entire city, more than just Downtown.

In response to a question from Commissioner Strand on whether Fargo has done anything like the cities that acknowledge their canopy coverage, Mr. Liudahl said those cities have a certain goal of coverage and Fargo has not done a canopy study.

Commissioner Strand moved to amend the motion to include a study and potential recommendations for canopy coverage policies for the City.

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

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

Applications for Property Tax Exemptions for Improvements made to Buildings Approved:
a. Norman D. and Jodi J. Robinson, 907 35th Avenue South (3 year).
b. Chad A. Mertz T/O/D, 1014 20th Street South (5 year).
c. Lesley P. and Marsha L. Wilke, 1353 3rd Street North (5 year).
d. Todd J. and Kimberly J. Kramer, 2951 Southgate Drive South (5 year).
e. Derald C. and Pamala R. Brunette, 1601 5th Street South (5 year).

Commissioner Grindberg moved the applications be approved.

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

Incentive Option for the Main Avenue Reconstruction Project Approved (Improvement District No. BR-19-A1):
The Board received a communication from the Public Works Projects Evaluation Committee stating two incentives are proposed for the Main Avenue project with a maximum incentive of $500,000.00. They said Incentive 1 would be for Phase 2, the portion between Broadway and 8th Street. The contract documents allow for 100 days to complete this phase and they suggest an incentive of $5,000.00/day for a maximum of 20 days ($100,000.00) for this area. Incentive 2, they said, would be for the overall completion of all phases associated with the project. They said they would propose an incentive of $10,000.00/day for 40 days with a maximum incentive of $400,000.00. Staff recommends making a request to the NDDOT to include an incentive on the Main Avenue project, they stated.

City Engineer Brenda Derrig said Main Avenue incentives were successful this year. On 4th Street through Broadway, which had an incentive milestone of September 15th, was opened August 17th, she said, and an incentive paid at $10,000.00 per day, so the total incentive was $290,000.00. She said the 2nd Street and Main Avenue intersection had an incentive milestone of 75 calendar days to complete and it closed on August 19th and is scheduled to open October 10th which qualifies for the full incentive of $200,000.00.

In response to a question from Commissioner Strand about whether using incentives in any way compromises safety, Ms. Derrig said they are never asked to do anything that would put anyone at risk. The appropriate timing is looked at for those sections and whether extended time or additional crews could be used is examined, she said.

Commissioner Gehrig moved the incentive be approved as presented contingent upon concurrence with the NDDOT.
Second by Piepkorn. On call of the roll Commissioners Gehrig, Piepkorn, Grindberg, Strand and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.

Appointments to the Parking Commission:
The Board received a communication from Mayor Mahoney recommending that Brian Hayer be reappointed to the Parking Commission and that Austin Morris be appointed to a three-year term to replace Margie Bailly.

Commissioner Grindberg moved Brian Hayer be reappointed and Austin Morris be appointed to the Parking Commission for three-year terms ending June 30, 2022.

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

At 6:00 the Board took a five-minute recess.
After recess: All Commissioners present. Mayor Mahoney presiding.

Public-Private Partnership for the Mercantile Property Approved:
The Board received a communication from Strategic Planning Director Jim Gilmour stating in April 2019, the Board directed staff to draft a Development Agreement and financing plan with Great Plains Mercantile Holdings, LLC for a parking garage on the northeast corner of Broadway and 4th Avenue North. He said staff has worked with the Kilbourne Group on a Development Agreement to implement a Public Private Partnership that includes new private development and City-owned parking on the block. He said the development would include a City-owned parking garage with about 369 spaces, 15,000 square feet of main floor commercial space on Broadway and 4th Avenue, a police substation and parking office, public restrooms, approximately 100 apartments and about 9 owner-occupied housing units. He said Tom Smith will develop the owner-occupied housing and Great Plains Mercantile Holdings will develop the rest of the private development including space for lease to the City for police, parking offices and restrooms. He said two Development Agreements are needed: one with Great Plains Mercantile Holdings for the development of its portion of the project; and a Development Agreement with Tom Smith for housing on the north side of the parking garage. He said actions needed to approve the project are as follows:
• Approve an agreement with Walker Consultants to monitor the project for the City.
• Authorize the Mayor to sign the Development Agreement with Great Plains Mercantile Holdings after approval of the construction plans by Walker Consultants.
• Direct staff to prepare a Development Agreement with Tom Smith for the owner-occupied housing units.
• Approve a Resolution on project financing.

Mr. Gilmour said there are minor revisions to page 12 of the proposed Development Agreement. As far as parking needs Downtown, he said, there are almost 100 people on waiting lists for either the Roberts or Civic ramp and Block 9 has 135 people parking there temporarily until RDO moves Downtown. He said there are new businesses as well and a need for more short-term parking. This fits well with the InFocus Plan that called for mixed-use on Broadway and 4th Avenue, he said, and this does it well with housing above main-floor commercial. It brings new housing Downtown, he said, and helps a number of small apartments that do not have their own parking. As far as costs, he said, the City would have an agreement with Great Plains Mercantile Holdings, who would build the facility for a maximum cost, including land, of $12.25 million. He said there is money in the budget for City-controlled costs and contingencies for such things as if underground tanks or poor soils are found, the City pays 40% up to a maximum of $235,000.00. Other unknown costs are 5th Street improvements, he said, and there will be some property taxes and specials during construction. Walker Consultants will monitor the project and Information Services will work on fiber connection and a recorder at the site. He said he believes $22 per square foot will be the lease cost for the City’s space and it will be included in the 2021 budget. He said $13 million will be borrowed for the facility and the revenue to pay off those bonds would come from the people who park or have property Downtown. There will be revenue from the Mercantile parking facility and increased rates at other parking facilities, he said, and financing from two TIF districts already in place. He said the City-owned parking lot on the corner of Main Avenue and Broadway would be sold, and some investors from Duluth have interest in the acquiring the site for mixed-use development. He said with the approval of the Development Agreement, the future actions required to implement the financing plan and pay for costs of the parking facility are:
• Approval of the sale of $11 million in bonds.
• Approval of a loan for $2 million with Research Park Ventures.
• Increase parking rates in existing parking facilities by about $243,000.00 a year.
• Sale of the parking lot at Broadway and Main Avenue.

Commissioner Gehrig said the Robert’s ramp goes into debt each year and this ramp would operate similarly. The ramp does not fund itself and Fargo taxpayers are going into debt for these things that will never pay themselves off, he said, even with a TIF and parking revenue coming in. He said the more ramps that go up, the more money people lose and now the City will be a half to three-quarter million dollars in debt by just these two ramps. If the list of companies shared by Mr. Gilmour want parking, let them build it, he said, it is not up to the City of Fargo to pay for their parking. For some reason because it is Downtown the City is supposed to foot the bill and that is not okay, he said.

Mr. Gilmour said the Parking Authority was created due to the fact that businesses Downtown that need only two or three spaces cannot afford to build parking facilities; therefore, parking facilities were built to benefit the whole Downtown. While some companies may be large enough to build a parking facility, most do not have those kinds of resources, he said.

Commissioner Piepkorn said Roberts Commons is a phenomenal success. Its property taxes in 2015 were $2,412.36, he said, and once all the deferments go off, nearly $500,000.00 per year will be collected in property taxes. He said Downtown is unique and successful and parking is part of development, otherwise businesses and customers will not come. Fargo is the Downtown for the region, he said, and Fargo has to continue to invest in it.

Commissioner Gehrig said he will be 61 years old in 25 years when they start paying taxes. It is a bad return on investment, he said, plus it is being assumed that nothing would be built in these places without incentives. What is desired is businesses that will be there forever, he said, rather than incentive-driven growth that if incentives are pulled away, the market will crash. It is being built up bigger than needed, getting an ROI of 25, 26, 40 years and calling it a success, he said.

In response to a question from Commissioner Strand asking about the concept of increasing parking rates to others by a quarter million dollars per year and penalizing people already Downtown 12.5% to 20% to fund a new ramp they may not even be using, Mr. Gilmour said the desire is to have the Parking Authority pay for itself. He said there is no general fund appropriation for parking and the desire is to keep it that way. He said the most popular places to park are Roberts Commons and the Civic Ramp so he is suggesting those go up to $129/month and if one wants to pay less they would go out further and perhaps go to Island Park for $60/month.

In response to a question from Commissioner Strand asking about building parking ramps when people are saying they will be obsolete soon with rideshares, changing technology and transportation options, Mr. Gilmour said parking demands continue to grow. The amount of parking per square foot of housing may be less in the future and one of the things being incorporated in this is residential units, he said, and not everyone will be able to go without owning cars. He said if car demand does diminish, the surface lots would be the first to develop and if in 25 years it is harder to rent spots, it will be paid for. He said he feels there will always be individual car ownership and a need to put them some place at night and during the day when working, so he does not feel structured parking will go away.

In response to a question from Commissioner Strand asking would this project be put at risk if future Commissions do not buy into the increased parking rates or if they favor selling the asset at Broadway and Main Avenue to dedicate the funds for this particular project, Mr. Gilmour said he expects those actions to take place in the next six months while all the Commissioners are still seated.

In response to a question from Commissioner Strand asking whether the project could be jeopardized if a future Board does not agree to the terms, Mr. Gilmour said if this Board does not sell the parking lot within the next year, another source would need to be found to make the annual bond payments. He said there will be a recommendation from the Parking Commission on rates soon.

Mayor Mahoney said the assumption is that Mr. Gilmour is working with a pretty viable buyer; however, it could happen that it may not be for the desired price, which would then have to be addressed. He said the Board is making some commitments to this project.

Commissioner Strand said there are some question marks and he is not inclined to easily support the parking increases for everybody, which could put a quarter million dollars in jeopardy. He is not convinced about selling assets and suggested exploring other financing avenues to adjunct this in case there are political bumps in the road with Mr. Gilmour’s recommendations.

Mr. Gilmour said the lot that may be sold is underutilized. He said there are about 70 spots with only 60 rented and there are spots available across the street at the Island Park ramp so it is an asset that could be sold. If it is decided not to do these things, an alternative to finance those will be needed, he said; however, it is important to move forward. He said they would like the Agreement approved now to break ground in November and be open in September of next year.

In response to a question from Commissioner Strand asking whether the applicant has the intention of asking for PILOTs or other incentives, Mr. Gilmour said a 5-year Renaissance Zone exemption was approved and within the Developer’s Agreement, they are not able to apply for a PILOT or any Tax Increment Financing; however, there is a TIF District that comes to the City to pay for the bonding costs, he said.

Commissioner Grindberg moved the agreement with Walker Consultants in the amount of $54,500.00 to provide professional parking consulting services be approved.

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

Commissioner Grindberg moved the Development Agreement with Great Plains Mercantile Holdings, LLC be approved contingent upon construction plans being approved by Walker Consultants.

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

Commissioner Grindberg moved appropriate staff be directed to prepare a Development Agreement with Tom Smith for the owner-occupied housing units.

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

Commissioner Grindberg moved the Resolution titled “Preliminary Resolution Approving the Financing of the Mercantile Project, the Issuance of Bonds and the Mercantile Development Agreement” and referred to as Attachment “B” be adopted and attached hereto.

Second by Piepkorn. On the vote being taken on the question of the adoption of the Resolution Commissioners Grindberg, Piepkorn, Strand and Mahoney voted aye.
Commissioner Gehrig voted nay.
The Resolution was adopted.

Grant from Lutheran Social Services of ND to provide TB Nurse Case Management and Interpretation for New Refugees for FY 2020 Approved (Moved from the Consent Agenda).
Commissioner Strand moved that the grant from Lutheran Social Services of ND to provide TB Nurse Case Management and Interpretation for New Refugees for FY 2020 be approved.

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

The meeting adjourned at 6:32 o’clock p.m.