Minot City Council considers redirecting resilience money

MINOT, N.D. – The council put off a decision until at least mid-March, when it will have more information to determine a plan of action for possibly redirecting resilience money. The council is looking to transfer unused dollars from planning or areas such as single-family housing, where the appropriation has exceeded the need, to other projects that are short of funding, such as a new city hall or career and technical education (CTE) center. Particularly, the council would like to use leftover funds from other projects to increase the money available for property acquisitions. A need exists to acquire an additional 15 homes and seven commercial properties east of Third Street to accommodate a change in plans for flood protection in that area.

Council President Mark Jantzer proposed moving $928,922 in unspent money in accounts for a vulnerable population action plan, ecological restoration study within vacated floodwater storage areas, affordable housing neighborhood master plan and Souris River decision support tool for flood prevention planning. These planning projects are no longer needed as envisioned or have money left over after completion.

Jantzer also proposed removing the downtown gathering space, freeing up $6 million.

“The two-acre requirement, or near two-acre requirement, has been a difficulty that has pushed us from one spot to the next to the third spot, which is a few blocks distant from the middle of downtown. And while we could put some dirt in there and plant some grass and trees, the necessity for that at this point in time is maybe less than what was perceived a number of years ago,” Jantzer said.

An environmental assessment is being conducted on the proposed gathering space property along Third Street, north of the railroad tracks. Once completed, HUD approval would be sought to go ahead and begin property purchase negotiation, which resilience program manager John Zakian estimated wouldn’t happen for about another six weeks.

With his proposed project changes, Jantzer suggested $3 million be added to the existing $3.75 million available for a new city hall and the remaining nearly $3.93 million go to acquisitions. His motion failed 3-4.

Council member Paul Pitner urged delaying a decision until the council gets more clarity on the resilience projects and can determine which funds to move and where to move them.

“I feel, personally it’s a little premature to make any kind of transfer,” Pitner said. “I don’t want to delete a function of the NDR dollars, and I don’t want to transfer dollars just to come back to the table and say the CTE needs more or city hall relocation needs more.”

He also was hesitant to write off the gathering space.

“As much as I appreciate what the park board is doing and their successes, it’s not the same. We’re talking apples and oranges as far as what they’re doing on the northwest side of Minot, on the outskirts of town, putting in paths and a golf course versus a gathering space downtown,” Pitner said.

Podrygula said he doesn’t oppose a downtown gathering space.

“I agree that we need to strengthen downtown, but I have a hard time with a piece of land right next to the tracks, where there’s one train going through an hour, and there are a lot of oil cars, he said. “Be nice to have a gathering place, but the specific location we’re stuck with, that’s the thing I’m really having problems with.”

Council member Josh Wolsky suggested removing the gathering space from the resilience program but keeping a small portion of the $6 million for planning for a different gathering space. His motion to that effect failed 2-5.

Pitner said any discussion of fund transfers should include dollars set aside for low- to moderate-income (LMI) single-family housing.

The city estimates some money will remain from $12.8 million budgeted for LMI single family housing once demands on that program are met. Zakian said, at that point, the balance can be transferred elsewhere. For instance, the council might increase funding for a career and technical education center, which has been budgeted only $1.54 million. A committee looking into a CTE center is expected to present an update soon.

However, moving more than 10% of the $74.3 million grant for reasons other than completion of a project can trigger a requirement for HUD approval. Deleting projects, such as the gathering space, would be considered a “substantial” amendment to the program, requiring HUD approval. Any action to add new projects also is likely to be rejected by HUD, Zakian said.

Council member Shannon Straight said he cannot support using resilience dollars on acquisition made necessary because of BNSF Railway’s position on flood protection. Straight has been critical of BNSF’s decision to limit its contribution to $2 million for a flood project that had to be re-designed to accommodate the railroad’s business needs. The re-design significantly increased project costs, and without the money to fund the new design, the city is looking at yet another re-design that requires the acquisitions.

Straight favored putting gathering space dollars toward CTE.

“That’s money that the community, through a disaster, has earned, that would be going towards something that would be different,” he said. “But I am not going to support any dollars going towards supporting a concept just because BNSF doesn’t want to participate in the flood protection plan. I think it sets a bad precedent. I think we’re being bullied.”

Mayor Shaun Sipma said the council has a month to consider resilience activities before looming negotiations on a gathering space land purchase require action. By then a decision is necessary “as it’s become apparent to me that the gathering space likely is not going to be in one of those activities after that point,” he said.

Minot City Council considers redirecting resilience money

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Minot City Council considers redirecting resilience money

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