Economic Development Incentives Committee- July 28, 2026 Minutes
ECONOMIC AND DEVELOPMENT INCENTIVE COMMITTEE
Fargo, North Dakota
Regular Meeting Tuesday, July 28, 2026
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 1:00 p.m., Tuesday July 28, 2026.
The committee members present or absent are:
Members Present: Commissioner Ken Peterson, Mayor Josh Boschee, Lucas Paper, Matt Schlenvogt, John Cosgriff, Jon Eisert
Others Present: Jackie Gapp, Robert Wilson, Michael Splonskowski, Ryan Osseim, Mike Thummel, Mark Williams
Commissioner Peterson called the meeting to order at 1:00 p.m. A roll call was conducted and a quorum was established.
Agenda Approved
A motion was made and seconded to approve the agenda as presented. Motion carries.
Minutes Approved
A motion was made to approved April 28, 2026, meeting minutes. John Cosgriff moved. The motion was seconded by Lucas Paper. Motion carries.
Valley Process Technologies Property Tax Incentive Application
• Michael Splonskowski introduced a request from Valley Process Technologies for a five-year property tax exemption on the improvement value of a proposed Fargo facility.
• Project overview:
o Ryan Osseim, Chief Business Development Officer with the Greater Fargo Moorhead Economic Development Corporation, introduced the project and Mike Thummel, founder and CEO of Valley Process Technologies.
o The company specializes in products and services for ethanol, biofuel, sugar beet, potato and other industrial food-processing facilities.
o The company proposes to reactivate more than 35,000 square feet in the former Clinagen facility near 42nd Street and Main Avenue.
o The project represents approximately $15 million in capital investment.
o The expansion is expected to create 22 positions during the first year and 51 positions by the third year.
o Average wages are projected to be approximately $37.00 per hour during the first year and $45.24 per hour by the third year.
• Company presentation:
o Thummel stated Valley Process Technologies began operations in November 2022 and currently employs 14 full-time and two part-time employees.
o The company provides technical services and specialized chemicals for industrial processing and has developed a nonhazardous alternative to chemicals traditionally used to descale processing equipment.
o The proposed Fargo facility would support production of enzymes, yeast, biologics and other value-added agricultural products.
o The building's existing laboratory, refrigeration and pharmaceutical-grade spaces make it suitable for the proposed operation.
o The Fargo facility would supplement rather than replace the company's Wahpeton operations. Rail access in Wahpeton would support the receipt of materials and shipment of truckload quantities to Fargo.
o Proposed positions would primarily include production operators, laboratory technicians and warehouse and logistics personnel. Approximately 80% of the positions would not require a four-year degree.
• Committee discussion:
o Members discussed the company's projected growth, the anticipated number and types of jobs and the projected first-year operating loss during construction, equipment commissioning and commercialization.
o Staff stated the application exceeded the minimum score required under the City's current incentive evaluation policy.
o Members discussed the EDIC's role in reviewing applications and forwarding recommendations to the City Commission.
o Discussion also addressed whether incentive recipients are subsequently reviewed to determine if employment, wage and investment commitments have been met.
o Staff and Greater Fargo Moorhead Economic Development Corporation representatives reported that annual questionnaires are sent to businesses with active incentive agreements to measure job creation and wages against application commitments.
o Results from the next incentive review are expected to be presented to the EDIC and City Commission in September or October.
o Staff stated discussions are continuing with the City Attorney's Office regarding clawback provisions and other remedies when a recipient does not meet its commitments.
A motion was made to recommend approval of the five-year property tax exemption requested by Valley Process Technologies. John Cosgriff moved. The motion was seconded by Lucas Paper. On roll call vote, Jon Eisert, John Cosgriff, Mayor Josh Boschee, Commissioner Ken Peterson, Lucas Paper and Matt Schlenvogt voted aye. Motion carries unanimously.
Economic Development Incentive Policy and Land Development Code Discussion
• Mayor Boschee stated the City's economic development incentive policies are expected to undergo an in-depth review during the fall.
• Committee members discussed accountability, community impacts and whether existing incentive policies should be updated.
• Land Development Code update:
o Mark Williams, Planning Department, stated consultants are expected to return in late August to continue work on the second draft of the Land Development Code.
o Strategic Economics is reviewing historical tax increment financing, payment-in-lieu-of-tax and Renaissance Zone incentive data.
o The analysis is intended to determine the cost of incentives to the City, when those costs are recovered and which projects have produced the greatest public benefit.
o Results are anticipated in September or October.
• Mayor Boschee noted that compiling incentive information has been a largely manual process involving multiple departments and recordkeeping systems. The City may need to consider technology and other resources to improve forecasting, planning and accountability.
• No formal action was taken on this discussion.
A motion was made and seconded to adjourn the meeting. Motion carries.
The meeting was adjourned at 1:37 p.m.