APPROVE LUTHERAN SOCIAL SERVICES HOUSING SETTLEMENT
The City of Minot entered into two sub-recipient agreements with Lutheran Social Services housing with one to construct and operate a 6 unit Family Homeless Shelter and the other to construct 17 units of LMI rental apartments with both projects located on the same site with the physical address of 1901 South Broadway, Minot, ND. On January 15, 2021, Lutheran Social Services North Dakota which includes its subsidiary, Lutheran Social Services Housing (LSSH), announced it was ceasing all operations effective immediately. This decision included stopping all work on the Broadway Circle Project. Pursuant to the sub-recipient agreements as well as HUD rules, it is the City’s obligation as the CDBG-NDR Grantee to either take possession of all assets which have benefited from CDBG-NDR funds and/or procure repayment from the sub-recipient of all CDBD-NDR funds which have been paid for Broadway Circle.
It is recommended the City Council approve Settlement Agreement with Lutheran Social Services Housing to close out Broadway Circle Project which will include conveying property at 1901 South Broadway to the City.