A shift of $1.78 million in disaster resilience money will help fill the funding gap for the Broadway Circle project.

The Minot City Council approved the allocation among other funding re-distributions in the Community Development Block Grant-Disaster Recovery program. The changes shift leftover funds from completed projects to other areas of need in the resilience program. The changes also must be approved by the U.S. Department of Housing and Urban Department.

The $1.78 million re-allocated from the Downtown Sewer and Water Improvements item would go toward the 17-unit low- to moderate-income housing that is part of the Broadway Circle project. The project along South Broadway also includes a family shelter and space for a food pantry and soup kitchen. 

Project BEE took on Broadway Circle after Lutheran Social Services of North Dakota declared bankruptcy. Information provided to the council cited rising costs and other unexpected impacts of the COVID-19 pandemic, as well as denied loan funding to Project BEE, as holding back the project from getting started.

“Signing the contract before the funding is in place I just think is fundamentally flawed and wrong,” council member Roscoe Streyle said. “That’s what happened here — to build this without having all the funding in place and now we’re asked to come in, save the project.”

Although the project is mostly good and the funding sources appropriate, the problem is in the way it was handled, Streyle said. Streyle cast the only vote against the reallocation of funds.

City Manager Harold Stewart said the council’s action puts funding in place for the initial contract, but it is likely more money will be needed to complete the project.

“My plea is to the public, particularly the private sector, to come forward and support this. So far, all the funding for this project has come from the city or from the federal government through these NDR funds, the county through the ARPA funds. And so, I would encourage the community to step forward financially. If there’s a need for additional funds due to delays, I would hope our community will step forward and provide that funding to help make this happen,” Stewart said.

The amendment approved by the council also included:

— $47,012 to the Comprehensive Landfill Master Plan to cover costs with that completed project. Funds would come from Cooks Court Affordable Senior Apartments ($30,036); 55th Street Crossing Affordable Housing Development ($11,542); Fire Station and Apparatus ($3,198); Sunset Ridge Workforce Housing ($911); and Fieldcrest Workforce Housing ($1,326).

— $361,144 to Acquisition/Demolition of Blighted Flooded Properties from Small Rental Program ($95,176); Landfill Expansion ($29,310); Demolition of Flooded Properties ($130,370); Rehabilitation of Flooded Properties ($77,441); and Reconstruction of Flooded Properties ($28,846).

— $1.22 million to Administration from Downtown Sewer and Water Improvements ($92,560); Revolving Loan Fund ($764,000); Northern Sewer Project ($326,510); and Imagine Downtown Minot Parking Facility ($36,067). The re-allocation will bring the city’s administration budget to $2.5 million, which along with $859,275 budgeted for CDM Smith, brings total grant administration spending to $3.37 million.

Separately, the council voted to seek proposals from buyers interested in acquiring the Home Sweet Home property. Proceeds of a sale would count as income in the National Disaster Resilience Program. The city had used NDR funds to acquire and relocate the historic house, which had served as a gift shop before the 2011 flood.