Economic Development Incentives Committee - July 18, 2023 Minutes
ECONOMIC AND DEVELOPMENT INCENTIVE COMMITTEE
Fargo, North Dakota
Special Meeting Tuesday, July 18, 2023
The July meeting of the Economic and Development Incentive Committee of the City of Fargo, North Dakota was held in the City Commission Room at City Hall at 1:30 p.m., Tuesday, July 18, 2023.
The committee members present or absent are:
Members Present: Dave Piepkorn, John Cosgriff, Jon Eisert, Mayor Mahoney, Jim Buus, Jim Gilmour, Levi Bachmeier and Lucas Paper.
Members Absent: Jessica Ebeling
Others Present: Jackie Gapp
Commissioner Piepkorn called the meeting to order at 1:30 p.m.
Minutes Approved
A motion was made by John Cosgriff to approve the minutes from May 23, 2023. Jon Eisert seconded. Motion carried.
Review of PILOT Request for Water Park Project
• Jim Gilmour:
o 17 year PILOT
o 2 buildings: Waterpark and hotel combined. Other building TBD
o Parking ramp of about 500 vehicles for the public
• 2 Recommendations:
o Approval of 10 year property tax exemption
o To deny the tax exemption
• Matt Steinberg- PFM:
o $3.2 million short between 10 year and 17 year PILOT
o Developer stated they would not be able to get financing if they did not get the exemption
• Blake Nybakken- EPIC:
o To replace 500 spaces in parking ramp would take away $78 million in developable space
o Reasons to approve per EPIC:
Economic impact
Public benefits
Elimination of risk
o The Lights increased the value of the property surrounding it
o Met with Sally (director) from the Red River Zoo
A benefit would be that people would use it for other parking such as baseball, curling, etc.
o The Park District has written a letter of support and see the direct benefit of the parking ramp
• 4 acres in the center would be open to the public.
o Pickle ball, outdoor ice rink, trail system, etc.
o Signed off on a land restriction
• The difference from 17-10 years is a $3.2 million gap for EPIC that they would need to figure out how to finance.
• Tamara (Director of Finance)- EPIC:
o Anything less than a 17 year PILOT they wouldn’t be able to do the model
o May have to shrink the parking ramp
o PFM changed their numbers which increased their NOI. This is not realistic for them and their banking group
• Matt Steinberg-PFM:
o EPICS numbers did not include inflationary numbers
o PFM included inflationary numbers which they feel is more realistic
1.5% growth rate on revenues
2.0% growth rate on expenditures (used in model)
Public Questions:
• Tyler Brandt- Suite Shots & King Pinz:
o Came in a few years back with a $200 million project (high density/mix-use/outdoor activites- Eagleridge)and was denied
o When you’re short on money, you have to find it
Says this is not a lighted area
Parking ramps downtown were needed
This is a green area
• Alex Christianson- Christian Companies:
o Feals like using public funds for private benefit
o They bid on land too-prime real estate
o If they knew they could get a TIF their offer could be higher
o No one is against the project
• Mark Bucholz-
o Appreciate what they have done in the community
o They said they would pursue a TIF- these projects have evolved and changed
o If incorrect in facts, they want to be informed of that
• Commissioner Piepkorn-
o Pointed out Fargo now has a finite border where as in the past we didn’t
o The policy will need to change. It will need to fit the needs of the future
• Mayor Mahoney-
o Park board is involved in this situation
o Maybe do 10 years instead of 17 years
o Different businesses in the vicinity also want the parking ramp such as The Red River Zoo and the Park board.
• John Cosgriff:
o Feels like there might support for a 10 year project
o Would like a definitive given a 10 year vs. a 17 year
o If this goes forward as 10 years, will it still be $181 million?
Would like a look at parking required vs density that they are trying to achieve.
Motion to approve 10 year PILOT contingent on the $180 million investment was made by Mayor Mahoney. John Cosgriff seconded. Motion carried.
Discuss changes in policy for public-private partnership projects
Will continue next meeting
The meeting was adjourned at 1:49pm.