Fargo City Commission - June 13, 2022 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 4:30 o’clock p.m., Monday, June 13, 2022.
The Commissioners present or absent were as shown following.
Present: Gehrig, Piepkorn, Preston, Strand, Mahoney
Absent: None
Mayor Mahoney presiding.

Mayor Mahoney announced that the City of Fargo Board of City Commissioners will meet in Executive Session in the City Commission Chambers for the purpose of providing settlement negotiation instructions to the City Attorney regarding the employment of Police Officer Justin Nachatilo. Negotiation between the City and the Employee’s counsel will have an adverse fiscal effect on the bargaining or litigation position of the City. Thus, an Executive Session for this matter is authorized pursuant to North Dakota Century Code § 44-04-19.1 subsections 2
and 9. He said a motion would be in order to discuss providing settlement negotiation instructions to the City Attorney in Executive Session rather than in an open meeting.

Commissioner Piepkorn moved the Commissioners meet in Executive Session in the Red River Room as authorized by NDCC, Section 44-04-19.1 subsections 2 and 9 to discuss said matter.

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

At 4:31 o’clock p.m. the Board moved to the Red River Room to discuss the matter in Executive Session.
Members present: Gehrig, Piepkorn, Preston, Strand, Mahoney.

The Executive Session closed at 5:02 o’clock p.m. and the meeting reconvened in public session at 5:03 o’clock p.m.
All Commissioners present. Mayor Mahoney presiding.

The Mayor read a message with the following information: June 13th through the 19th is Men’s Health Week and June 27th is National HIV Testing Day; the annual Summer Reading Challenge theme is “Oceans of Possibilities;” the Water Utility was awarded a $172,000.00 grant for engineering services to design specific water main improvements in Fargo; the Water Utility participated in a voluntary EPA program to help plan climate resiliency projects to help with source water availability and management during times of drought; and a video was shown featuring the unveiling of the new lighting system illuminating “The Spirit of the Sandbagger” sculpture.

Order of Agenda Approved:
Commissioner Piepkorn moved the Order of the Agenda be approved, moving Item No. “18” 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 Preston moved that the Minutes of the Regular Meeting of the Board held on May 31, 2022 be approved as read.
Second by Gehrig. All the Commissioners voted aye and the motion was declared carried.

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

1. Receive and file Gas Franchise Ordinance, City of Fargo, Cass County, North Dakota.

2. 2nd reading and final adoption of the following Ordinances; 1st reading, 5/31/22:
a. Annexing a Certain Parcel of Land Lying in a Portion of the Northwest Quarter of Section 10, Township 138 North, Range 49 West of the 5th Principal Meridian in Cass County, North Dakota.
b. Rezoning Certain Parcels of Land Lying in Christianson 32nd Avenue South Second Addition to the City of Fargo, Cass County, North Dakota.
c. Rezoning a Certain Parcel of Land Lying in Magnum North Addition to the City of Fargo, Cass County, North Dakota.
d. Rezoning a Certain Parcel of Land Lying in Laverne’s Second Addition to the City of Fargo, Cass County, North Dakota.
e. Rezoning Certain Parcels of Land Lying in Covey Ranch Second Addition to the City of Fargo, Cass County, North Dakota.
f. Rezoning Certain Parcels of Land Lying in Westrac Third Addition to the City of Fargo, Cass County, North Dakota.
g. Enacting Section 8-1026 of Article 8-10 of Chapter 8 of the Fargo Municipal Code Relating to Designated Passenger Loading Areas and an Ordinance Amending Section 1-0305 of Article 1-03 of Chapter 1 of the Fargo Municipal Code Relating to Classification of Ordinance Violations.

3. Resolution Establishing Designated Passenger Loading Areas
(Attachment “A”).

4. Site Authorizations for Games of Chance:
a. West Fargo Hockey Association at Fort Noks.
b. North Dakota Horse Park Foundation at Legends.

5. Applications for Games of Chance:
a. ND Long Term Care Association for a raffle on 9/15/22.
b. Fargo Moorhead Derby Girls for a raffle on 7/9/22.
c. ALS Association for a raffle on 8/22/22; Public Spirited Resolution.
d. AO1 Foundation, Inc. for a raffle on 6/21/22.
e. Stomp for a raffle on 6/20/22.
f. North Dakota CPA Society Foundation for a raffle on 6/21/22.
g. Villa Nazareth d/b/a CHI Friendship for a raffle on 10/21/22.
h. Steve Weidner FM Junior Tour for a calendar raffle from 7/1/22 to 6/30/23.

6. Renewal of the Alcoholic Beverage and Live Entertainment Licenses until 6/30/23, contingent upon all essential requirements for renewal being met by 6/30/22.

7. Change Order No. 11 in the amount of $54,862.70 and a time extension to the substantial and final completion dates of 9/1/22 and 9/15/22 for Project No. FM-16-A1.

8. Change Order No. 1 for a time extension to the substantial and final completion dates of 10/24/22 and 11/7/22 for Project No. MP-20-A2.

9. Red River Water Course Setback Waiver for construction of improvements at 225 4th Avenue North.

10. Consent to Construction Agreement with Don’s Car Washes, Inc. at 2727 13th Avenue South.

11. Easement (Temporary Construction Easement) with Fargo Country Club for Project No. FM-22-B1.

12. Bid advertisement for the following Projects:
a. No. HD-22-A.
b. No. UR-22-B.

13. Bid award to Gast Construction Company, Inc. in the amount of $150,340.00 for the GTC Elevator Refurbish (AFB22087).

14. 90-day extension of FMLA leave for Fire Captain Jesse Schmidt.

15. Purchase of Service Agreement with Mapleton Public School District.

16. Notice of Grant Award from the ND Department of Health and Human Services for the Title X Family Planning Program (CFDA #93.217).

17. Notice of Grant Award from the ND Department of Health and Human Services Family Planning Telehealth Infrastructure Enhancement and Expansion Grant (CFDA #93.217).

18. Market adjustments for equipment operators and related positions (moved to the Regular Agenda).

19. Set June 27, 2022 at 5:15 p.m. as the date and time for a hearing on a dangerous building at 1108 18th Street North.

20. Monthly rate of $129.00/stall for reserved parking at the Mercantile Parking Ramp.

21. Resolution Approving Written Agreements for the Milton Earl Activity Home Investment Partnership Program Funds for new construction at 708 4th Avenue North (HUD Home Grant Funds)(Attachment “B”).

22. Application for Appropriation from Civil Asset Forfeiture Fund in the amount of $30,583.79 for updating/upgrading ballistic protection for Narcotics and Street Crimes Unit detectives and computer equipment for staff in Criminal Investigations Division.

23. Landfill Agreement (Use of Fargo Landfill) with Fat Man Trash, LLC, effective 6/13/22.

24. Change Order No. 1 for a decrease of -$1,345.42 for Project No. WA2005.

25. Change Order No. 1 in the amount of $1,142.00 for Project No. WA2012.

26. Contracts and bonds for Project Nos. FM-19-C1, FM-22-C2 and TP-21-B1.

27. Bills in the amount of $11,189,908.88.

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

Documented CatEx Addendum Design Modification for 52nd Avenue South Street Reconstruction Project Approved (Improvement District No. BN-23-A1):
The Board received a Report of Action from the Public Works Projects Evaluation Committee stating they reviewed correspondence from Division Engineer Jeremy Gorden regarding an addendum for the Documented CatEx for 52nd Avenue South Street Reconstruction Project. They said the City completed the original environmental document for this project in 2018 when 52nd Avenue South between 45th and 63rd Street was constructed and completed in 2019. The current project under design runs from 63rd Street South to Sheyenne Street and is set to bid in November. The addendum is needed to address West Fargo and Cass County’s desire to modify the existing roundabout on Sheyenne Street, they said, and the additional cost for this work will be shared between West Fargo and Cass County, and estimated at $961,000.00. They said PWPEC voted to approve the addendum and select the 2 x 1 roundabout as the preferred design modification.

Commissioner Gehrig moved the Documented CatEx Addendum to select the 2 x 1 roundabout modification for 52nd Avenue South Reconstruction Project (Improvement District No. BN-23-A1) be approved.

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

Agreement - Early Building Permit Request for The Rye at Tillstone Apartments Approved (Improvement District No. BN-22-F1)
The Board received a Report of Action from the Public Works Projects Evaluation Committee stating the Committee reviewed an application for an early building permit submitted by The Rye at Tillstone Apartments located at 3740 55th Avenue South, 3750 55th Avenue South and 5676 38th Street South located within The District of Fargo Fourth Addition. They said bids for New Utility and Paving Construction Improvement District No. BN-22-F1 were awarded on May 31, 2022 with a substantial completion date of August 1, 2023, which includes construction of paving in front of this facility. They said as part of the early building permit, the applicant has provided a check that will provide a deposit that could be used to repair any impacts from the site construction to the municipal project. This lot has 1,653.31 feet of frontage; therefore, the deposit will be $33,066.20, they stated.

Commissioner Gehrig moved the Agreement - Early Building Permit Request for The Rye at Tillstone Apartments (Improvement District No. BN-22-F1) be approved.

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

Contract Amendment No. 6 for Improvement District No. MS-17-A0 Approved:
The Board received a communication from the Public Works Projects Evaluation Committee stating Contract Amendment No. 6 is for additional services for out-of-scope work on Improvement District No. MS-17-A0 (PN-19-B).

Commissioner Gehrig moved Contract Amendment No. 6 with Houston Engineering in the amount of $116,196.00 for Improvement District No. MS-17-A0 be approved.

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

Two Access Easements (Street Easement) with Southeast Cass Water Resource District Approved (Improvement District No. BN-22-C1):
The Board received a communication from Land Acquisition Specialist Shawn Bullinger requesting approval of two Access Easements (Street Easement) with the Southeast Cass Water Resource District in association with Improvement District No. BN-22-C1.

Commissioner Gehrig moved the two Access Easements (Street Easement) with the Southeast Cass Water Resource District in association with Improvement District No. BN-22-C1 be approved.

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

Permanent Easements (Street and Utility) with LaVerne A. Montplaisir Family Trust and Montplaisir Ag and Rental, LLP Approved (Improvement District No. BN-22-C1):
The Board received a communication from Land Acquisition Specialist Shawn Bullinger requesting approval of Permanent Easements (Street and Utility) with LaVerne A. Montplaisir Family Trust and Montplaisir Ag and Rental, LLP in association with Improvement District No. BN-22-C1.

Commissioner Gehrig moved Permanent Easements (Street and Utility) with LaVerne A. Montplaisir Family Trust and Montplaisir Ag and Rental, LLP in association with Improvement District No. BN-22-C1 be approved.

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

New Paving Construction Improvement District No. PN-22-M (Rocking Horse Farms 6th Addition):
Commissioner Gehrig moved the following action be taken in connection with New Paving Construction Improvement District No. PN-22-M1:

Adopt Resolution Creating Improvement District No. PN-22-M:
WHEREAS, The Board of City Commissioners of the City of Fargo, North Dakota, deems it expedient that Improvement District No. PN-22-M1 in the City of Fargo, North Dakota, be created

On 51st Avenue South between Rocking Horse Road South and Veteran's Boulevard.
On 59th Street South between 51st Avenue South and 52nd Avenue South.
On Rocking Horse Road South between Rocking Horse Circle and 51st Avenue South.

COMPRISING:
Lot 1, Block 1 Rocking Horse Farm 6th Addition.
All the unplatted land in the southeast quarter of Section 32, T139N, R49W of Cass County.
All of the foregoing is located in the City of Fargo, Cass County, North Dakota.

NOW, THEREFORE, BE IT RESOLVED, That New Paving Construction Improvement District No. PN-22-M1 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. PN-22-M:
Direct City Engineer to report as to the general nature, purpose and feasibility relative to the construction of Improvement District No. PN-22-M1 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 $1,702,026.90.)

Order Plans and Specifications for Improvement District No. PN-22-M:
Direct City Engineer to prepare Plans and Specifications for the construction of Improvement District No. PN-22-M1 in the City of Fargo, North Dakota.

Adopt Resolution Approving Plans and Specifications and Engineer's Report for Improvement District No. PN-22-M:
WHEREAS, The Board of City Commissioners of the City of Fargo, North Dakota, has created Improvement District No. PN-22-M 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. PN-22-M 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 Improvement District No. PN-22-M 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 New Paving Construction Improvement District No. PN-22-M 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 the entire cost of said improvement be specially assessed against the benefited property in said improvement district in amounts proportionate to and not exceeding the benefits to be derived by them respectively from said improvement.
Protests against the proposed New Paving and Construction must be in writing and must be filed with the City Auditor's Office within 30 days after 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. PN-22-M:
Direct City Auditor's Office to publish a Notice, as required by law, calling for bids for the construction of Improvement District No. PN-22-M in the City of Fargo, North Dakota.

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

Contract for New Paving and Utility Construction Improvement District No. BN-22-L1 Approved:
Commissioner Gehrig moved the Contract between the City of Fargo and Master Construction Company, Inc. for New Paving and Utility Construction Improvement District No. BN-22-L1 in the City of Fargo, North Dakota, be approved.

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

Contract Bond for New Paving and Utility Construction Improvement District No. BN-22-L1 Approved:
Commissioner Gehrig moved the following described Contract Bond be approved as to sufficiency:
Endurance Assurance Corporation, in the amount of $1,249,304.50, for New Paving and Utility Construction Improvement District No. BN-22-L1 in the City of Fargo, North Dakota.

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

Contract for New Utility Construction Improvement District No. UN-22-M1 Approved:
Commissioner Gehrig moved the Contract between the City of Fargo and Dirt Dynamics, LLC for New Utility Construction Improvement District No. UN-22-M1 in the City of Fargo, North Dakota, be approved.

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

Contract Bond for New Utility Construction Improvement District No. UN-22-M1 Approved:
Commissioner Gehrig moved the following described Contract Bond be approved as to sufficiency:
RLI Insurance Company, in the amount of $1,255,415.82, for New Utility Construction Improvement District No. UN-22-M1 in the City of Fargo, North Dakota.

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

Market Adjustment for Equipment Operators and Related Positions Approved Effective June 13, 2022 (Moved from the Consent Agenda):
The Board received a communication from Public Works Director of Operations Ben Dow, Solid Waste Utility Director Terry Ludlum and Human Resources Director Jill Minette stating the Finance Committee approved an out-of-grade market adjustment for Equipment Operators I, II and III and related positions in Public Works and Solid Waste departments due to recruitment and retention issues for those positions.

Mr. Dow said they have had significant issues hiring and retaining. He said starting pay for a position with a Commercial Driver’s License (CDL) has been advertised at $21.99 per hour for six months and during that time only 10 applications have been received and the City has tried to hire three; however, when an offer was made they went back to their previous employers who counteroffered. He said the Street Department is missing 12 people out of 63 operators. He said this was brought to the attention of Administration, HR and the Finance Committee, and HR was directed to conduct an in-house market evaluation of salaries seen in the public and private sectors, and the findings have been included in the agenda packet. He said the request is to approve the reclassification of Operator IIs and IIIs, Crew Leaders and various affected positions, keeping equity in mind.

Ms. Minette said the market data shows the City’s starting rates of pay are below 6-10 percent and have really fallen behind and an adjustment is in order for recruiting and retention.

Commissioner Strand said he suspects there is a gratitude that this is being addressed; however, he also senses a concern that this is not enough and every department has concerns.

In response to a question from Commissioner Strand asking if adjustments have been addressed for employees on call, Mr. Dow said that is included in some of the data collected.

Mr. Dow said a night shift differential was included in the 2022 budget and it was well received; however, it is not quite enough and the City is still losing people.

Commissioner Preston said there are high vacancy rates in the Police Department and Planning, and she would hate to see this addressing only one department.

In response to a question from Commissioner Preston asking the status of the full market survey, Ms. Minette said it was launched in February and the final report was received two weeks ago and distributed to the department heads. The data will be reviewed over the next several weeks to determine which positions will advance for market adjustments. After that analysis, she said, it will move to the Position Evaluation Committee and ultimately rolled into the budget process as market adjustment requests.

Mayor Mahoney said the budget team is looking at it and it will be addressed in the budget for 2023 so the Commissioners will have a look then.

Commissioner Preston said she recognizes there is an immediate issue with this type of position; however, she would hate to see leaving any singular positions behind. She said she struggles with addressing one department and not the others.

Ms. Minette said occasionally when there are significant recruiting or retention issues, more specific positions are looked at. She said the regional survey focuses on cities in the region and they felt it important to look at the local and private sector markets as well.

Mr. Dow said many employees have been lost to other contractors. Commissioner Preston is correct, he said, all the departments need to be looked at, this is something that affects the entire operation and will happen more and more with various departments. He said his biggest concern is they have gone three and four months and not received an application.

Commissioner Preston moved the market adjustment for equipment operators and related positions be approved effective June 13, 2022.

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

Resident Comments:
Branden Krieger spoke about Police reporting and internships; Christopher Coen spoke about data for the Wildlife Management Program and transparency; and Richard Thomas spoke about the Wildlife Management Program and safety issues.

Parcels of Land in MHB Guardian Addition Rezoned (1 2nd Street South):
At a Hearing held on May 3, 2022 the Fargo Planning Commission recommended approval of a change in zoning from DMU, Downtown Mixed Use to DMU, Downtown Mixed Use and P/I, Public Institutional.
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.

Current Planning Coordinator Donald Kress said this 4.77 acre property was developed in 1972 with the Park East apartments, which included 122 residential units, yielding a density of about 25 units per acre. He said the property was acquired by the Cass County Joint Water Resource District (CCWRD) on behalf of the Diversion Authority in 2014, and demolition of the apartments was completed in 2016. Between 2016 and 2020, a flood control levee and lift station were constructed on the property that will become Lot 2, Block 1. He said CCJWRD deeded the title of the entire property to the City after construction projects were completed. The developer acquired the rights to develop the property that will become Lot 1, Block 1, through a City Request for Proposals process early this year, he said, and the developer intends to construct a multi-story, multi-purpose building on Lot 1. Lot 2 will not be developed, he said, as it is a City owned lot with a levee and lift station

Commissioner Preston 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 Preston, Gehrig, Piepkorn, Strand and Mahoney voted aye.
No Commissioner being absent and none voting nay, the Resolution was adopted.

First Reading of an Ordinance Rezoning a Certain Parcel of Land Lying in MHB Guardian Addition to the City of Fargo, Cass County, North Dakota:
Commissioner Preston 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 MHB Guardian Addition to the City of Fargo, Cass County, North Dakota be placed on first reading.

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

Resolution Adopted Approving MHB Guardian Addition:
Commissioner Preston offered the following Resolution and moved its adoption:
BE IT RESOLVED BY THE BOARD OF CITY COMMISSIONERS OF THE CITY OF FARGO:
WHEREAS, A Plat has been filed in the office of the City Auditor entitled “MHB Guardian Addition” containing 2 Lots, 1 Block and 4.77 acres of land more or less, located at 1 2nd Street South; and
WHEREAS, A Hearing was held May 3, 2022 by the Fargo Planning Commission, and notice of such Hearing had been published, as required by law, and said Plat had been approved by the Fargo Planning Commission and by the City Engineer; and
WHEREAS, The City Auditor's Office published a Notice of Hearing on said Plat in the official newspaper for the City of Fargo on June 1 and 8, 2022 that a Hearing would be held in the Commission Chambers, City Hall, Fargo, North Dakota at 5:15 p.m., June 13, 2022 at which time said Plat would be considered and all interested persons would be heard.
NOW, THEREFORE, BE IT RESOLVED, That the findings and recommendations of staff and the Planning Commission be accepted and the Plat entitled “MHB Guardian Addition” be and the same is hereby in all things affirmed and approved on the basis that it complies with the Standards of Article 20-06, and all other applicable requirements of the Land Development Code, and that the Mayor of the City of Fargo and the appropriate City Officials are hereby directed to endorse their approval on the Plat and then direct Petitioner to file same for record in the Office of the Recorder of Cass County, North Dakota.

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

Renaissance Zone Project for Great Plains Block 3 Venture, LLC Approved:
A Hearing had been set for May 31, 2022 to receive comments on a Renaissance Zone Project for Great Plains Block 3 Venture, LLC at 225 4th Avenue North and 419 3rd Street North.
At the May 31, 2022 Regular Meeting, the Hearing was continued to this day 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.

Strategic Planning Director Jim Gilmour said this is for the same project as the Tax Increment Financing (TIF) item that is next on the agenda, the developer has applied for both incentives thus two different motions are required. This item is for the Renaissance Zone incentive, the next item is the Developer Agreement for approval of a TIF to support the project. He said the Renaissance Zone application presented by Great Plains Block 3 Venture, LLC meets all of the minimum criteria set forth in the Renaissance Zone Plan and is consistent with the established goals and objectives, and it is recommended that the project be approved. He said earlier this year the Commission selected this group to purchase this City owned property that was formerly a School District warehouse. He said the project includes construction of a new 6-story, 184,500 square foot residential building with 100 plus units, main floor parking, with at least one parking spot per apartment and a room for at least 25 bicycles. The overall investment is about $29 million, he said, and construction is anticipated to begin later in 2022 with completion in 2025. He shared a map of the property and said the northern portion is what the City owns and the southern portion is owned by the Downtown Fargo Real Estate Fund managed by Kilbourne. He said a new LLC formed creates the Great Plains Block 3 Venture that will acquire both properties and develop this project. He said the Diversion Authority approved the sale; however, if the sale should not happen, the City would have the option to repurchase the property. The incentive for the 5-year Renaissance Zone would be zero property taxes on the structures for a period of 5 years and then, if approved, there would be an additional $1.4 million in TIF funds provided to the developer in the form of a TIF note, he said. The agreement includes that the City would provide an encroachment agreement so there could be exterior parking on the east side and the developer is giving an easement to the City for access over a strip of land on the north side for access for emergency vehicles to get around to the back of the building or maintenance on the flood wall. It received approval from the Renaissance Zone Authority and the Economic Development Incentive Committee, he said, and the financial reviewer determined the project would not be feasible without this financing.

In response to a question from Commissioner Gehrig asking if the Renaissance Zone and TIF incentives run at the same time, Mr. Gilmour said the Renaissance Zone would run the first five years and the TIF is estimated to run about 9 years for approximately a 14-year total period.

Commissioner Piepkorn moved the Renaissance Zone application for a new construction project filed by Great Plains Block 3 Venture, LLC for a project located at 225 4th Avenue North and 419 3rd Street North be approved and the income tax and property tax exemptions be granted as recommended by the Renaissance Zone Authority.

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

Developer Agreement with Great Plains Block 3 Holdings, LLC for Tax Increment Financing District No. 2021-01 Approved:
A Hearing had been set for May 31, 2022 to review a Developer Agreement for Tax Increment Financing (TIF) District No. 2021-04, which consists of a 114-unit apartment building with parking on the main floor. TIF money of approximately $1.4 million would be used for demolition and site cleanup, public works improvements and administration of the property at 419 3rd Street North and 225 4th Avenue North.
At the May 31, 2022 Regular Meeting, the Hearing was continued to this day and hour,
No written protests have been filed for the attention of the Board.
The Board determined that no person is present at this Hearing to protest or offer objection thereto.

Strategic Planning Director Jim Gilmour said the developer is requesting the funds to demolish buildings and cleanup the sites, address any environmental issues and replace public infrastructure. The estimated length of the TIF district would be about nine years following the end of the Renaissance Zone incentives, he said. The City’s financial advisor, PFM, reviewed the project, he said, and stated the base scenario without public assistance along with the sensitivity analysis demonstrates the project would unlikely be feasible without assistance and the estimated internal rate of return is appropriate given the risk level for this type of project. He said the developer’s goal is to start construction this fall as the project must be completed by the end of 2025.

Commissioner Piepkorn moved the Developer Agreement with Great Plain Block 3 Holdings, LLC for Tax Increment Financing District No. 2021-01 be approved.

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

Construction Update:
City Engineer Brenda Derrig said it was a late start this year and there is a lot of construction going on. As of today, she stated, there have not been any safety incidents this year. Information on projects is available on social media sites, she said, and she gave an overview of the projects. She said the Citywide crack fill project has been completed and ongoing projects include 13th Avenue South concrete rehabilitation, 21st Avenue South, 18th Avenue South/40th Street Reconstruction, 7th Avenue North/Oak Street, 3rd Avenue North and 7th Street, 21st Street South, Citywide sidewalk project, asphalt and mill overlay, chip seal and concrete spot repair. Additional ongoing projects are storm sewer repairs, drain repairs, street light and traffic signal rehabilitations and Citywide pavement marking, she said. In some cases, she said, as when there are issues with streetlights, they are all assembled into one project to bid for a better price. There are new development projects in the works, she said, including the 64th Avenue South overpass, underground utility installation at 64th Avenue and 45th Street South and at Veterans Boulevard and installation of sanitary sewer at Crossroads Corporate Center. Other additional ongoing projects are EOLA, Valley View Estates 2nd Addition, Meadow View Addition, Madelyn’s Meadows 4th Addition, she said, and multiple locations of asphalt wear course. Upcoming projects, she said, include new development at Rocking Horse Farms, The District of Fargo 4th Addition, Golden Valley 6th Addition, J-Street Apartments, Woodcrest Levee and Lift Station, 42nd Street South/Drain 27 and Hawk installations. Good strides are being made for the 13th Avenue South Concrete Rehabilitation project, she said, extending the life of that concrete. Eight inch water main and transmission water main are being installed on 21st Avenue South, she said, and old cast iron pipe is being replaced with PVC pipe. At 18th Avenue South/40th Street South a street reconstruction project is underway she said, as well as paving 7th Avenue North and Oak Street. She said some closures will be seen on I-29 in the area of 45th Street South and 64th Avenue South when they start to install bridge beams over the Interstate, the Park District is doing work in the area and the NDSCS Career Workforce Academy is being built in the area. She said when the 2023 water main replacement project was approved they started sending out postcards to give a heads up that projects will be coming forward and a link was included for more information. She said bids were opened last Friday for 32nd Avenue South and they were higher than what they were in February so they are evaluating costs and options to bring forward to the Public Works Projects Evaluation Committee and then it will come to the Commission again. She said there are some issues with material shortages and getting materials on time so there will be a balance between completion dates, trying to mitigate impact to the public and costs.

In response to a question from Commissioner Strand asking how contract completion deadlines are affected when such problems arise, Ms. Derrig said they would work with contractors as they go through the projects for time extensions or costs. She said historically a project could be bid now and started in the fall; however, now they are letting developers know that more than likely due to material shortages, they cannot start until next year.

Applications for Property Tax Exemptions for Improvements Made to Buildings Approved:
a. David Haugrud, 901 9th Street South (5 year).
b. Christopher Nelson and Kyja Kristjansson-Nelson, 338 Elmwood Avenue South (5 year).
Commissioner Piepkorn moved the applications be approved.

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

Appointments to the Special Assessment Commission Approved:
The Board received a communication from Mayor Mahoney recommending Dylan Dunn be appointed to the Special Assessment Commission to fill the unexpired term of Daniel Dunn, who has resigned. In addition, the term of Randy Engelstad expires on July 1, 2022 and he is willing to continue his service on the Board.

Commissioner Preston moved Dylan Dunn be appointed to fill the unexpired term of Daniel Dunn on the Special Assessment Commission for a term ending
July 1, 2024 and the reappointment of Randy Engelstad for a three-year term ending July 1, 2025.

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

Appointments to the Native American Commission Approved:
The Board received a communication from Mayor Mahoney recommending Suzanne Senske be appointed to the Native American Commission to fill the vacancy created by the death of Sonya Donahue. In addition, the terms of Amanda Strauss and Ashley Littlewolf expire on June 30, 2022, and they are willing to continue their service on the Board.

Commissioner Preston moved Suzanne Senske be appointed to fill the unexpired term of Sonya Donahue on the Native American Commission for a term ending June 30, 2024, and Amanda Strauss and Ashley Littlewolf be reappointed for three-year terms ending June 30, 2025, on the Native American Commission.

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

Appointments to the Library Board Approved:
The Board received a communication from Mayor Mahoney stating the terms of Amy Ouren and Rachael Steenhold expire on June 30, 2022. He said State law limits Library Board members to two, three-year terms and Rachael Steenhold has served two terms. In addition, Scott Beaulier is moving out of the area and will no longer be eligible to serve. His term would have expired on June 30, 2023. He said he is recommending the appointment of Hannah James for a three-year term ending June 30, 2025, the appointment of Wanda Mengelkoch to fill the vacancy created by the resignation of Scott Beaulier for a term ending June 30, 2023, and to reappoint Amy Ouren for a three-year term ending June 30, 2025.

Commissioner Preston moved the appointment of Hannah James for a three-year term ending June 30, 2025, the appointment of Wanda Mengelkoch to fill the unexpired term of Scott Beaulier for a term ending June 30, 2023, and the reappointment of Amy Ouren for a three-year term ending June 30, 2025 on to the Library Board be approved.

Second by Strand. On call of the roll Commissioners Preston, Strand, Piepkorn, 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, June 27, 2022.
Second by Strand. All the Commissioners voted aye and the motion was declared carried.

The time at adjournment was 5:49 o’clock p.m.