The Williston City Commission approved a loan to a developer during a special meeting Monday evening whose request had previously been rejected last week.

George Gaukler of Valley Realty Inc. of Valley City had previously had his loan request rejected on a split vote between four of the commissioners present at their regular meeting last week.

Mayor Ward Koeser said the special meeting was called after further consideration about the critical housing situation facing Williston.

"I spent considerable time thinking about this and have had a number of people visit with me about this. Later on Thursday morning I received a call from George," said Koeser.

Gaukler told the commission again how he plans on building two 36-plex apartment buildings in Williston. The loan terms he sought are a $300,000 loan at zero percent interest for three years. The money is to come from STAR Fund dollars. Gaukler told commissioners he had received a verbal commitment, "from an out-of-state bank on one of the buildings, but I don't yet have a commitment from a local bank on the other."

Gaukler understands the commissioners concerns, but said he's built apartments in Williston on multiple occasions in the past. He said with his last project, he returned $50,000 in STAR Fund dollars to the city when he refinanced.

He added although he is taking a risk with this project, he felt his strong relationship with the city in the past and his guarantee on the loan should be good enough.

Koeser then began a discussion on the overall housing situation in Williston. He told the commission he had Workforce Development Coordinator Shawn Wenko to gather some business representatives at the meeting Monday evening. The thought behind having them attend was so they could address the housing situation from an employment standpoint and the issues they're facing in terms of bringing in new hires.

Jon Maristuen of Ebel Integrators was first to address the commission.

"We're trying to add electricians, the problem is they're hard to come by. We've had people who are qualified, but the housing was the issue," said Maristuen.

He said they're hoping to make one or two new hires in the coming months.

Bob Skurdahl with Halliburton told the commission it is planning on up to 100 hires within the next several months.

"Right now we're struggling to find places for people," said Skurdahl.

He added this is with the current situation, which may become even tougher if nothing is done soon.

Wayne Bieberdorf of Hess Corp. told the commission although Hess is centralizing its workforce in its new Tioga facility, it still has workers living in Williston. There's also the secondary workers doing repairs who are coming and are going to need motel rooms as well.

Koeser also read an e-mail he received from Jesse Stundal of S&S sales stating that because of the housing situation, it opened an office in Minot and sent workers there instead.

Wenko told the commission, "the number one thing it comes down to is the question of housing" when potential employees are considering a move to Williston.

Economic Development Director Tom Rolfstad echoed that sentiment.

"We find ourselves in this ironic situation where we have the workers, but we don't have the housing. You're not going to be able to bring prices down without building," said Rolfstad.

Commissioner Brent Bogar, who wasn't present at last Tuesday's meeting, asked Gaukler why he needed to have a zero percent interest loan.

He also asked if it would threaten the project itself to have the matter put to the STAR Fund Committee until next week to do some further due diligence.

Gaukler said having a zero percent interest loan helps with equity, and said he thought it was fair since he'd returned STAR Fund dollars on his last project. He added it's getting late in the fall, and every day could potentially bring on winter weather and sink the project.

Commissioner Howard Klug said the city needs all the housing it can get and he appreciates Gaukler's work with the city. He asked, however, about how building more apartments might lower the value of current resident's homes.

Commissioner Brad Bekkedahl replied the intent is not to hurt the current homeowners. He added a "middle-ground" needs to be found to supply enough housing, and housing affordable to all citizens.

Commissioner James Lawson asked whether or not the city is opening itself up to having to allow such loans to other developers if they were to come forward in the spring or at some point. Koeser replied the city likely would need to provide some sort of incentive to get more developments under way, saying it is becoming extremely difficult to get financing or even attract developers.

After further discussion, the commission voted 3-2 in favor of the loan to Gaukler, with Klug and Lawson voting no.