The Mandan City Commission met in regular session at 5:30 p.m. on April 17, 2018 in the Ed Bosh Froehlich Room at City Hall, Mandan, North Dakota.
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1 Page 1 of 7 The Mandan City Commission met in regular session at 5:30 p.m. on April 17, 2018 in the Ed Bosh Froehlich Room at City Hall, Mandan, North Dakota. A. ROLL CALL: 1. Roll Call of All City Commissioners. Commissioners present were Helbling, Braun, Rohr, Davis and Laber. Department Heads present were Police Chief Ziegler, Deputy Bier, Assistant City Attorney Oster, City Administrator Neubauer, Fire Chief Nardello, Business Development and Communications Director Huber, Planning & Engineering Director Froseth, City Assessor Aeschliman, Building Official Ouradnik and Principal Planner John Van Dyke. Absent: Finance Director Welch. 2. If I Were Mayor Essay Contest Winners. Mayor Helbling reported the North Dakota League of Cities (NDLC) recently held an If I Were Mayor Essay Contest for 3 rd and 7 th grade students across the state. The City of Mandan selected contest winners from the local submissions and invited them to participate in a Mandan City Commission meeting tonight. Reagan Grubb, a 3rd grade student in Mrs. Miller s class at St. Joseph and Kelbi Pritchett, a 7 th grade student at Mandan Middle School were the winners. Each of them were presented a certificate, a City of Mandan shirt, and $50 in Mandan Bucks provided by the Mandan Progress Organization. Both students were invited to read their essays. They were congratulated by Mayor Helbling, the City Commissioners and the audience on their accomplishments. B. APPROVAL OF AGENDA C. MINUTES: 1. Consider approval of the minutes from the April 3, 2018 Board of City Commission Regular Meetings. Commissioner Laber moved to approve the minutes as presented. Commissioner Davis seconded the motion. Roll call vote: Commissioner Rohr: Yes; Commissioner Davis: Yes. Commissioner Laber: Yes; Commissioner Braun: Yes; D. PUBLIC HEARING: 1. Conduct a public hearing to consider adoption of a resolution vacating the south 6 of the public right-of-way in Block 13 of the Heart View Addition. Planning & Engineering Director Froseth presented a request to conduct a public hearing to consider adoption of a resolution vacating a portion of the public right-of-way of Main Street adjacent to 1211 West Main Street, Block 13 of the Heart View Addition. During the title research work done on the property, it was discovered that the Ereth s home at 1211 West Main Street currently encroaches onto the Main Street right-of-way by a few feet. The Ereth s expressed their desire to correct this problem by bringing their home fully within their lot. A city records search did not reveal how this problem developed but there is consensus that this exists. The Ereth s are requesting a vacation of the south 6-feet of lots 1 and 2 of Block 13 of the Heart View Addition which effectively acts as Main Street right-of-way. The property owners, Brad and Mary Ellen Ereth, in compliance with the requirements of NDCC , submitted to the City of Mandan a request to vacate the south 6-feet of lots 1 & 2 of
2 Page 2 of 7 Block 13 of the Heart View Addition. This will extend their property 6-feet to the north and if approved, will bring their house onto the property to be approved. An exhibit of the vacation was presented by Director Froseth. He stated that there has been no objection from MDU or the Dept of Transportation for the right-of-way vacation request. Notices were sent out and published in the newspaper for anyone to object and no correspondence or calls have been received. The Engineering and Planning Office recommends approval of this vacation. Mayor Helbling announced this is a public hearing to consider adoption of a resolution vacating the south 6-feet of the public right-of-way in Block 13 of the Heart View Addition. He invited anyone to come forward to speak for or against the request. A second announcement was made to come forward. Hearing none, this portion of the public hearing was closed. E. BIDS: F. CONSENT AGENDA 1. Consider approval of Veteran s Credit for Alexander Alston. 2. Consider approval of Local Permit for Invisible Innocence Council on May 5, 2018 at the Harvest Grille. 3. Consider approval of Veteran s Credit for Dana Keller. 4. Consider approval of out of state travel request for Water Treatment Facility staff. 5. Consider approval of monthly bills. 6. Consider approval of Local Permit for Mandan Student Council on May 9, 2018 at the Mandan High School Auditorium. Commissioner Laber moved to approve the Consent Agenda as presented. Commissioner Davis seconded the motion. Roll call vote: Commissioner Rohr: Yes; Commissioner Davis: Yes. Commissioner Laber: Yes; Commissioner Braun: Yes; Commissioner Helbling. G. OLD BUSINESS: H. NEW BUSINESS: 1. Introduction of new employee. John Van Dyke started on April 9th as Principal Planner. Planning and Engineering Director Froseth introduced John Van Dyke as New Principal Planner for the City of Mandan. He began his new position on April 9, John was previously providing planning services for municipalities across North Dakota with Interstate Engineering. John has worked throughout North Dakota at Ray, Horace, Wahpeton and Beulah. John is originally from Boise, ID and attended Boise State University where he obtained his Bachelor s Degree in Economics and a Master s in Community and Regional Planning. On behalf of the City of Mandan, Mayor Helbling extended a welcome to John to his new position. 2. Update on Lower Heart Project. Planning and Engineering Director Froseth introduced Bill Robinson, LHWRD presented an update on the Lower Heart Water Resource District s Flood Risk Reduction Project. Bill Robinson reported that the Lower Heart Water Resource District (LHWRD) has been working on a Lower Heart River flood risk reduction project for some time. They are at a point in the
3 Page 3 of 7 process where they feel an update to Mandan City Commission is prudent. A map was presented to depict the areas included under the plan. An update on FEMA s levy plan mapping process will be given at a later time. Mandan property values will be able to sustain the market conditions. Future developments will continue at the normal pace without flood insurance premium overhead. This has been has been work in progress over the last five years with the Corp of Engineers to correct problems. The City is eligible for federal funding if there were flooding repairs to be done. It is critical that Mandan maintains an approved status with the Corp. He reviewed what has been maintained for the 100 year flood plan. This is the same information that was presented to Morton County recently and there have been some updates including the statements of qualifications for the number of engineers and they have been working through the selection process for a project engineer. The State Water Commission met on April 12, 2018 and at that meeting, funding for continued work had been preserved, not approved yet, but preserved for discussion at the June 13, 2018 meeting. With regard to FEMA, there is a grant application to cover engineering costs on this project of which the application was $134,000 of which the Lower Heart has committed to a cost share of $34,000 with a grant of $100,000. That has passed the regional process and has been forwarded on to the federal level. The timeframes for responses for all the funding of the projects are expected to be forthcoming in May or June and then finalized by October 2018, the City will need to determine their cost share for the funding of the projects. He reported that the main point of concern is the levy that runs from the trolley to Memorial Highway. Commissioner Laber inquired if resources from the City of Mandan were needed at the June 13 th meeting with the State Water Commission. Mr. Robinson replied that they do want to hear from the sponsor and in this case it will be Lower Heart. Commissioner Laber inquired if Senator Cook and Representative Schmidt involved? Mr. Robinson said that Representative Schmidt was in contact recently and Senator Cook is aware but conversations will occur with them prior to the June meeting. Commissioner Davis inquired if there has been contact with congressional contacts to help with appropriations through FEMA or other channels? Mr. Robinson replied that Senators Hoeven and Heitkamp offices have been contacted. Commissioner Davis inquired about flood control for the city such as dams that we could look at to control from the Heart. Mr. Robinson said he visited a Minot engineer and they have had similar problems to what we have. They have looked at upstream options, but one of the main issues relate to ice jams in the Missouri River and upstream controls such as exist at Heart Butte, do not have an effect on ice jams. Mayor Helbling commented that there are no immediate concerns about the system failing us. 3. Consider Mandan Growth Fund (MGF) Committee recommendations. (i) Application for Flex PACE interest buy down by Developers, LLC for phase II of Memorial Square Shopping Center. Business Development and Communications Director Huber presented the MGF recommendation for Interest Buy Down for Developers, LLC. At the MGF April 9, 2018, they reviewed an application for an interest buy down of permanent financing for Phase II of Memorial Square Shopping Center at 4524 Memorial Highway. The applicant is seeking to participate in the Bank of North Dakota (BND) Flex PACE program. The application would maximize the buy down over a five-year period as allowed by the MGF guidelines. The total amount is $285, BND will provide 65% or $185, of the
4 Page 4 of 7 amount, with the local community required to provide 35% or $99, The buy down is for an estimated principal amount of $1,450,000 with the total project cost at $1,600,000. She explained that the project involves construction of a 13,335 sf building on the same site as Phase I, which will be fully leased pending action on New Business 3ii involving Shoezam Shoes. Phase II will have eight 1,667 sf lease spaces or retail storefronts. Having a retail shopping center in Mandan is important to attracting national tenants seeking to be located next to other national tenants. Many national tenants will only consider locations in shopping centers rather than stand-alone locations because of economics and other synergies. The applicant is requesting the interest buy down to help reduce lease rates to provide a competitive advantage for retail and restaurant locations in Mandan. It is estimated that the Flex PACE buy down may amount to a difference of about $2.50 per sf on a lease rate. The new building will be subject to full property tax and tenants are likely to generate local sales tax revenue as well. The applicant expects that the businesses who will be leasing space in the Phase II development will create 64 jobs. Plans are to begin construction this spring and completion is expected to take five months. A future Phase III provides a site for a separate approximate 5,000 sf building, such as a restaurant. There are six individual partners invested equally in the project. Randy Rhone is the managing partner of this property. Director Huber further explained that to help reserve funds for as many economic development projects as possible and particularly those where assistance is structured as a forgivable loan or a 0% interest loan, the MGF guidelines since September 2016 have indicated standard applications for Flex PACE should be submitted to the Lewis and Clark Development Group (LCDG) for consideration loan committees overseeing its revolving loan pools. LCDG revolving loan funds don t allow for financing of passive real estate, which is the situation when a commercial property is not at least 50% owner occupied. For this reason, the application was presented to the MGF for consideration. The MGF did provide the local share of $53,846, as a repayable loan for an interest buy down for Phase I of the project at a 2% interest rate. The MGF recommendation would structure the local match of $99, as a repayable loan with an interest rate of 2.5% to beginning accruing at the start of the buy down period anticipated to be 60 months, and repayable within two years thereafter, for a total maximum loan length of approximately 7 years. The LCDG will administer and service the loan for the City of Mandan for a 1% origination fee and all hard costs to be paid by the borrower and a 1% servicing fee on payments collected after the buy-down period ends. Developers, LLC, is not applying for any additional incentives; however, there is a chance that businesses leasing spaces in the building could individually apply for the Retail and Restaurant Incentive, the Restaurant Rewards Program, and/or an interest buy down. City Attorney Malcolm Brown was in attendance at the MGF meeting for the review and consideration of the application. A separate agreement would be forthcoming with the Lewis and Clark Development Group for administration and servicing of the loan for the local share of the buy down. Attorney Brown will also draft a guaranty agreement with the investors who make up
5 Page 5 of 7 Developers, LLC. This will be required once the final loan amount is known and before any disbursement of funds. The applicant will need to enter into a business incentive agreement with BND and the City of Mandan and will submit an annual jobs verification report for five years after receipt of the interest buy down. In addition, the automatic doors will also be required on each tenant space. The MGF voted 7-0 (with one member abstaining) to recommend approval of the interest buy down for Developers, LLC with a local match not to exceed $99, for a 5-year buy down period. The funding is to be structured as a repayable loan at 2.5% interest to begin accruing at the start of the buy down period. The recommendation includes a requirement for guarantees from each guarantor of at least 150% of their ownership of the loan. The Growth Fund uncommitted balance for economic development projects is approximately $297,757. If this application is approved, it would be reduced to $197,813. Randy Rhone, one of the principal owners in this project was present to answer any questions. Commissioner Davis moved to approve the interest buy down for Developers, LLC, for Memorial Square Shopping Center Phase II with the local match not to exceed $99, to be structured as a repayable loan with the term, rate and guarantees as recommended. Commissioner Rohr seconded the motion. Roll call vote: Commissioner Rohr: Yes; Commissioner Davis: Yes; Commissioner Laber: Yes; Commissioner Braun: Yes; (ii) Application by Shoezam Shoes for a Retail Incentive for a location at 4524 Memorial Highway. Business Development and Communications Director Huber presented the MGF recommendation for Shoezam Retail Incentive for a location at 4524 Memorial Highway. She stated that at the April 9, 2018, MGF meeting, they reviewed the Shoezam Shoes application for the Retail Incentive Program. The shoe store focuses on higher end women s shoes. The store has existed for 28 years in Bismarck; 10 years with the first owner and 18 years under the ownership of Bob and Connie Lundin. When the Lundin s purchased the business, it was a 1,000 sf Naturalizer shoe store in Kirkwood Mall, in Bismarck, in the year Because they were facing a significant rent increase and to allow for expansion, they moved their business in 2007 to Pinehurst Square shopping area (near Kohl s and Lowe s). They chose not to renew their lease there in the fall of 2017 and now need to relocate by May 1, They have found that there business is a destination for women seeking quality shoes and service. They now wish to take this opportunity to refocus the store on the top 15 brands, primarily European footwear. Because European footwear comes in full sizes only and without multiple widths, they will not need to stock as much inventory and therefore need less square footage. They may implement some self-service features that they ve found to be more desired by younger customers. They estimate gross sales to be at least $700,000 annually, which would generate at least $12,250 in local sales tax. The applicants are seeking to lease 1,182 sf in the Memorial Square Shopping Center (Phase I) at 4524 Memorial Highway. They have 3 employees and intend to add 2 more. Projected store
6 Page 6 of 7 hours will be Monday thru Friday from 10 a.m. until approximately 7 p.m. and Saturdays 5 pm. The actual days and hours may vary in accordance with the hours of other tenants in the shopping center. There is a significant gap between the demand for shoes in Mandan and Morton County as compared to the supply or sales occurring here. ESRI data for Mandan alone puts this at $1.6 million. Statistics for Morton County estimate the gap at $3.5 million. The relocation from Bismarck to Mandan is estimated to cost $68,650 with the cost breakdown based on quotes as follows: $54,700, leasehold improvements; $3,500 point of sale system; $6,000 shelving; $1,000, décor; $2,950 moving; and $500 temporary storage. The rating system for the Retail Incentive Program has 13 different criteria. The average rating by seven MGF members (1 abstained) was a 4.12 on a scale of 1 to 5 - with 5 being the highest. So that warrants an incentive at the maximum $5-per-square-foot-rate. In 2009, the Mandan Growth Fund and City Commission set aside an amount of $60,000 toward the Retail and Restaurant Incentive Program. There is $3, of this amount remaining. Approval of the requested stipend would commit these funds with the remainder of $2, to be drawn from the uncommitted balance for economic development projects as a whole, thus that balance is approximately $297,757. If the item under New Business 3(i) is approved tonight, it would be reduced to $197,813. Approval of the retail incentive as recommended would further reduced the uncommitted fund balance to $195, The MGF has generally discontinued the practice of set asides for specific program or geography, but instead addresses business assistance needs through a handful of programs, all from the uncommitted balance for economic development projects. Shoezam is not applying for any additional incentives. City Attorney Malcolm Brown was in attendance at the MGF meeting for the review and consideration of the application. A recipient agreement will be required. The funding is structured as a forgivable loan. If the applicant were to locate outside of the City of Mandan within three years, a prorated portion of the assistance would be required to be repaid. The tenant space already has an automatic door as part of the Memorial Square Shopping Center Phase I project. The MGF voted 7-0 (with one member abstaining) to recommend approval of a retail incentive for Shoezam. The incentive rate based on committee scoring is recommended at $5.00 per square foot totaling $5,910 in assistance over 12 months to begin one month after the opening in the new location. Connie Lundin came forward to answer any questions. She spoke in support of her request and provided a history of her sales business experience in Bismarck that she now wishes to move to Mandan. Commissioner Laber moved to approve $5,910 as an incentive for Shoezam Shoes payable in 12 equal monthly installments after the start of retail operations at 4524 Memorial Highway. Commissioner Braun seconded the motion. Roll call vote: Commissioner Rohr: Yes; Commissioner Davis: Yes; Commissioner Laber: Yes; Commissioner Braun: Yes;
7 Page 7 of 7 4. Stormwater Update: Michael Gunsch, Houston Engineering, provided an update on the Storm Water Management Plan and stated that they will continue providing guidance on the overall Storm Water Program for the City of Mandan. He reported that there is continuous work in process with the Mandan City Engineering Office on projects throughout the City. In addition, the Memorial Park watershed (ball parks) communications continue on a regularly in addition to the I-94 watershed, west and north of Mandan that includes setting up detention areas for future developments. These studies will be included on the appendix of the Executive Summary. The overall completion target is by end of May before the budgeting process begins. The MS was an add-on report and the 2017 report has been submitted so the City is in regulatory compliance with those. This is an informational report and no action is required at this time. I. RESOLUTIONS AND ORDINANCES: 1. Consider adoption of a Resolution vacating the south 6-feet of public right-of-way in Block 13, Heart View Addition. Commissioner Braun moved to approve the adoption of a resolution vacating the south 6-feet of public right-of-way in Block 13, Heart View Addition. Commissioner Davis seconded the motion. Roll call vote: Commissioner Rohr: Yes; Commissioner Davis: Yes; Commissioner Laber: Yes; Commissioner Braun: Yes; J. OTHER BUSINESS: 1. Commissioner Laber reported that Saturday, April 28 th is the date set aside for the Annual Outdoor Clean-up Day in Mandan starting at 9 AM gathering at Dykshorn Park. Lunch and door prizes will be available at the conclusion of the cleanup activities. All Mandan citizens are invited to participate in this annual event. K. ADJOURNMENT: There being no further actions to come before the Board of City Commissioners, Commissioner Laber moved to adjourn the meeting at 6:45 p.m. Commissioner Davis seconded the motion. The motion received unanimous approval of the members present. The motion passed. /s/james Neubauer James Neubauer City Administrator /s/stim Helbling Tim Helbling, President Board of City Commissioners
B. APPROVAL OF AGENDA:
Page 1 of 10 The Mandan City Commission met in regular session at 5:30 p.m. on December 4, 2018 in the Ed Bosh Froehlich Room at City Hall, Mandan, North Dakota. Mayor Helbling called the meeting to order.
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