Grand Forks City Council members gave the green light to two major downtown residential projects Monday.
One is a $6.3 million, 50-unit apartment complex on the site of the Civic Auditorium, which would include some commercial space.
The city will offer the land, worth $160,000, for free, a $1.2 million grant from federal funds to help demolish the auditorium and a tax abatement of as long as five years.
If the building were assessed at the full value and paying 2009 property tax rates, $126,500 would go into local government coffers every year.
Council President Hal Gershman said it costs the city about $60,000 a year now to take care of the auditorium. It pays no taxes, being owned by the city, and has not had a tenant for years.
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Jim Galloway from JLG Architects presented the council with a rendering of the proposed building, which is of a modern design with spots of bright yellow and red.
He said the design would fit with the other more modern buildings in that area of downtown.
The other project is a $2.3 million 14-unit apartment complex for the chronically homeless near the old post office building.
The city would provide the land, worth $43,800, and a
$2 million grant from federal funds.
The building would be owned by Prairie Harvest, a nonprofit group. Nonprofits are exempt from property taxes.
Housing for the chronically homeless is a part of an initiative by the mayor to help reintegrate them into society. Studies cited by the city say this would reduce the cost to society, such as emergency room care for the homeless who are vulnerable to drug and alcohol abuse.
But full approval of the project awaits staff consultation with the county. City leaders want the building to be closer to the street corner for the sake of aesthetics. That would require the county's permission because some of the land was transferred to the city from the county.
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The city attorney would also have to review the issue in more depth. He said he hadn't been aware of it until Monday.
Reach Tran at (701) 780-1248; (800) 477-6572, ext. 248; or send e-mail to ttran@gfherald.com .
