Economic Development Incentives Committee- November 25, 2025 Minutes
ECONOMIC AND DEVELOPMENT INCENTIVE COMMITTEE
Fargo, North Dakota
Regular Meeting Tuesday, November 25, 2025
The March 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 1:00 p.m., Tuesday March 24, 2026.
The committee members present or absent are:
Members Present: Dave Piepkorn, Mayor Mahoney, Lucas Paper, Matt Schlenvogt, John Cosgriff, Jon Eisert, Erik Barner, Robert Wilson
Others Present: Jim Gilmour, Jackie Gapp, Michael Splonskowski
Others Absent: Levi Bachmeier
Commissioner Piepkorn called the meeting to order at 1:00 p.m.
Minutes Approved
A motion was made by John Cosgriff to approve the minutes from July 22, 2025. Lucas Paper seconded. Motion carries.
Central at the Horizon
• Jim Gilmour began the discussion by providing updates on the project.
• Project Funding Updates:
o The North Dakota Housing Finance Agency (NDHFA) had funded seven projects statewide, including the Central on Horizon, using low-income housing tax credits and other housing funds.
o Two other Fargo projects were included in the state funding awards: a Housing Authority project on 25th Avenue South (funded with 9% low-income housing tax credits), and a project by Beyond Shelter at 64th Avenue South (which had a pilot incentive approved a year ago and is currently reapplying). The Housing Authority will need a pilot incentive for feasibility on their project
o It appears that all funding for Central on Horizon is in place, except for the Payment in Lieu of Taxes (PILOT).
o The project is characterized as moderate-income workforce housing, addressing a community need. The income limits for this project are higher than those seen in Beyond Shelter or Housing Authority projects. A financial advisor determined that the project would not be feasible without the requested incentives.
• Developer Presentation (David Wessner, VP of Development for NX Group):
o The NX Group, based in Indianapolis, Indiana, specializes in 4% low-income housing tax credit (LIHTC) projects and is active in about 20 states, focusing heavily on Midwestern and Great Plains states.
o The site is located in a qualified census tract and has been zoned for high-density development by the city.
o The developer has been approved for the Renaissance zone incentive for the first 5 years and is requesting a 15-year PILOT to ensure the project moves forward.
o The NX Group confirmed that they officially received the 4% federal tax credits this morning (which provide 30-40% of the total capital stack/equity). They also secured $3 million from the North Dakota Housing Incentive Fund.
o The developer noted that 4% LIHTCs are non-competitive, but they typically only cover about 35% of the project cost, making other resources necessary for feasibility.
• Affordability: 100% of the units will be capped at 60% area median income (AMI). Rents will be limited to 30% of the 60% AMI, which is defined as housing burdened. The project is required to accept vouchers from the Fargo Housing Authority.
• Project Design: The plan includes full parking and amenity space on the first floor, with four residential stories above the garage. The developer focuses on creating accessible housing for families, offering a heavy number of two and three-bedroom units, and no studios.
• Cost and Financing Structure: The cost per unit is roughly $360,000. The developer explained that this higher cost is typical for such projects due to significant bond and legal costs. Additionally, the NX Group takes a deferred developer fee, reinvesting a large chunk back into the deal to generate more tax credit equity.
• Rents and Fees: The projected rent for a one-bedroom unit will be closer to $1,100 (based on anticipated 2026 income). The listed monthly pet fee of $420 represents the totality of fees for the whole project. The individual fee is generally around $10 to $15 per month per pet.
• Environmental Remediation: The land was formerly a coal gasification plant. Excell Energy completed extensive remediation (including hauling out contaminated soil and placing a cap) in 2018, leading to current environmental covenants. The NX Group plans to comply with all covenants by maintaining a five-foot clean cap on the site, building a podium, and installing an active radon system.
• Project Longevity: The NX Group typically holds the property until the full federal tax credit period is over. Due to the Housing Incentive Fund (HIF) award, the affordability period for the Central on Horizon project will be somewhere between 15 and 30 years.
A motion was made to approve the Central at the Horizon project. John Cosgriff approved. Mayor Mahoney seconded.
Cass County Tax Incentive Policy
• Jim Gilmour introduced the Cass County Tax Incentive Policy update.
• Policy Highlights:
o The policy encourages cities to limit incentives to five years but indicates support for ten years.
o It focuses on the primary sector and expresses support for low-income housing projects. This support for low-income housing is considered a positive change.
o For incentives outside of the low-income housing or primary sector, the County will participate at only 50% of the City's participation.
o Robert (representing the County) explained that the County Commission implemented the policy to tighten approvals, especially following the enactment of property tax caps, as the County is heavily reliant on property taxes for revenue. The City of Fargo is less impacted by the cap because it utilizes other fees (e.g., water, mosquito) for revenue .
o A key procedural change is that the County now intends to look at incentive applications prior to the initiating agency (City) to get the whole picture.
• There’s a concern that being overly restrictive on tax incentives could lead to the loss of projects and eventually result in higher property taxes for residents, noting that incentives have historically reduced property taxes by approximately five mils.
No action was taken on this item, as it was for discussion and informational purposes regarding Cass County's policy.
Incentives Reporting
• This item was referred to the EDIC to review and potentially improve monitoring procedures for job creation and primary sector projects.
• Current Status and Proposed Action:
o Staff (Jim Gilmore and Eric Johnson) will draft a new incentive policy/agreement to replace the current state form. This new document will clarify reporting frequency, requirements, and consequences for non-compliance.
o A recent internal report noted that some companies appeared non-compliant, but this was sometimes due to reporting requirements only covering the first two years of a five-year commitment. In several cases, companies that did not report had exceeded their job creation commitments significantly (e.g., committing 40 jobs and creating 100).
o The first attempt at reporting resulted in only two companies not participating.
o Staff is working with the Economic Development Corporation (EDC) to integrate reporting with the EDC’s existing business retention expansion (BRX) visits to avoid duplication.
• The EDIC noted that Fargo’s strategic approach to incentives is a "solid process".
• Policy Recommendation:
o It was recommended that if a company does not meet job creation requirements, staff should bring the issue back to the EDIC for review and explanation (e.g., due to automation, economic shifts) rather than implementing automatic termination.
Jim Gilmour will provide a summary of the proposed reporting changes at the next EDIC meeting.
Commercial Redevelopment Policy Amendment
• The amendment is designed to encourage infill redevelopment by incentivizing the conversion of older, less dense commercial spaces (like office parks) into mixed-use, higher-density projects (e.g., housing above commercial, similar to "The Block project" in South University).
• This approach aligns with the Go 2030 plan which promotes higher density redevelopment within the city rather than focusing solely on expansion at the edges of town.
• The maximum incentive term would be 10 years.
• Evaluation criteria would include assessing the value per square foot and the floor area ratio, seeking greater density than surrounding commercial areas. Other criteria include opportunities for economic development (e.g., incubators) and the incorporation of shared parking, which is vital for achieving higher density.
Motion was made to recommend approval of the Commercial Redevelopment Policy Amendment to the City Commission, pending a final review with the Planning Department approved by John Cosgriff. Seconded by Erick Barner.
The meeting was adjourned at 2:03 pm.