Broadway Circle consists of a commercial space, a six-unit family homeless shelter and a 17-unit low- to moderate-income (LMI) apartment complex, located along South Broadway.

In May, the city council authorized staff to proceed with the development of an agreement with Pathfinder Services of North Dakota (PSND) to operate the shelter and apartments and manage the commercial leases with the Lord’s Cupboard Food Pantry and Oishii Ramen.

Two agreements were developed.

A commercial lease agreement grants PSND a 20-year lease, beginning Nov. 1, for Broadway Circle at rent of $4,500 a month. Rent would be waived through March 2026 if the money is instead reinvested in items necessary to maintain Broadway Circle. PSND would manage all maintenance, utilities and property taxes. The city would retain responsibility for insurance, billing PSND for the cost.

Mark Jantzer, now Minot mayor, speaks at a ribbon cutting July 31 in front of the family shelter at Broadway Circle prior to a ribbon cutting. At left of Jantzer is Kaitlyn Weidert, representing Sen. Kevin Cramer’s office, and at right is Sally Johnson with Sen. John Hoeven’s office. Behind them is Chris Plank, who was National Disaster Resilience manager for the city at the time.

The lease includes an option for PSND to purchase the property for $1.3 million after the 20 years, with rent payments credited toward the purchase price. Much of the project was funded by the National Disaster Resilience Program, but $1.3 million in city funds were allocated to complete the construction after the city took back the project from Project BEE.

In the event PSND elects not to come up with about $230,000 after 20 years to make the purchase, the property would remain with the city, which would consider how to proceed at that time.

“Being involved in the selection process for Pathfinder, I feel confident in where they’re headed,” council member Mike Blessum said. “This lays out and gives them the best possibility of being successful, which, to me, is number one. That is the most important part. We need a functioning and running homeless shelter to meet the federal obligations that the city is under for 20 years.”

A separate agreement outlines how PSND will operate and maintain Broadway Circle. PSND will be responsible for all interior and exterior maintenance, will maintain HUD-compliant financial systems, submit quarterly reports and undergo annual audits, develop an affirmative marketing plan and pursue alternative funding sources to sustain operations.

The city will monitor PSND quarterly, appoint a nonvoting board member to PSND’s board and may charge a $1,000 annual monitoring fee. Both parties have the ability to terminate the agreement with prior notice.

Finance Director David Lakefield acknowledged no interest on the $1.3 million would be obtained over the 20 years, but he added the city’s actual expense was somewhat less than the $1.3 million allotted.

“So, the difference between what was actually spent and the $1.3 million is essentially going to be some interest over that period of time,” he said.

The city also retains responsibility for major exterior improvements, although Lakefield noted the complex is new or already renovated space, making the need for major improvements less likely. However, he said there are potentially items that could arise in the 20 years. The agreement states the city will prioritize available funding to assist but is not obligated if not available, he said. Any funding likely would come from federal grant dollars, he added.

In response to council questioning, Lakefield explained nonprofit properties are not assessed property taxes, but taxes will be included in costs assessed to for-profit renters of the commercial properties. The apartment complex also may have some tax obligation, he said.

Mayor Mark Jantzer said he has heard from organizations working in the homelessness field that support Broadway Circle. He said the nonprofit community is “hoping that we are able to move forward with this because the need for a place for some of the homeless in our community is high.”