Renaissance Zone Authority - February 22, 2017 Minutes
Regular Meeting: Tuesday: February 22, 2017:
The Regular Meeting of the Renaissance Zone Authority of the City of Fargo, North Dakota, was held in the City Commission Room at City Hall at 8:00 o'clock a.m., February 22, 2017.
The Renaissance Zone Authority members present or absent were as follows:
Present: Dr. Dean Bresciani, Bruce Furness, Chad Peterson, Commissioner Dave Piepkorn, Deb Mathern
Absent: Cari Luchau, Steve Swiontek (tried calling in but there were technical issues with City system), Commissioner Tony Grindberg
Chair Mathern called the meeting to order.
Item 1: Approve Order of Agenda
Member Peterson moved the Order of Agenda be approved as presented. Second by Commissioner Piepkorn. All Members present voted aye and the motion was declared carried.
Item 2: Minutes: Regular Meeting of January 25, 2017
Member Furness moved the minutes of the January 25, 2017 Renaissance Zone Authority meeting be approved. Second by Member Bresciani. All Members present voted aye and the motion was declared carried.
Item 3: Review Application from DFI BE LLC (Rehabilitation) at 123 Broadway North: APROVED
Planner Derrick LaPoint presented this item for a proposal to rehabilitate the existing two-story building at this site, for future commercial use by multiple tenants. Mr. LaPoint stated staff is recommending approval as the proposal does meet the guidelines and all required approval criteria.
Project Manager Mike Zimney, Kilbourne Group, spoke on behalf of the application. He stated the projected timeline for the project is to begin renovation on the second floor this spring, the first floor this summer, with the goal of completion in the summer of 2018.
Member Bresciani moved to approve the application submitted by DFI BE LLC, and to grant the property tax exemption and the State income tax exemptions as allowed by the North Dakota Renaissance Zone law, contingent upon completion of the project and verification of costs. Second by Member Furness. On call of the roll Members Furness, Peterson, Bresciani, Mathern, and Commissioner Piepkorn voted aye. Absent and not voting: Members Luchau, Swiontek, and Commissioner Grindberg. The motion was declared carried.
Item 4: Review Application from Harvest Capital LLC (Rehabilitation) at 19½ & 23½ 8th Street South: APPROVED
Derrick LaPoint presented this item for a proposal to rehabilitate the existing two-story structure at this site. He added construction would begin this spring/summer, with the goal of completion in the fall of 2017. Mr .LaPoint stated staff is recommending approval as they proposal does meet the guidelines and all required approval criteria.
Applicant Joel Jaeger, Harvest Capital, LLC, spoke on behalf of the application.
Member Furness moved to approve the application submitted by Harvest Capital LLC, and to grant the property tax exemption and the State income tax exemptions as allowed by the North Dakota Renaissance Zone law contingent upon completion of the project and verification of costs. Second by Commissioner Piepkorn. On call of the roll Members Peterson, Furness, Bresciani, Mathern, and Commissioner Piepkorn voted aye. Absent and not voting: Members Luchau, Swiontek, and Commissioner Grindberg. The motion was declared carried.
Item 5: Review request to add two (2) additional RZ Blocks (Attachment 4)
Derrick LaPoint presented this item for a request to add two additional blocks to the current Renaissance Zone blocks. He referred to a handout submitted by the applicant to the Board, which outlined the specific areas being requested. Mr. LaPoint noted that 46 blocks have been designated with a cap of 49 blocks total, giving the Board the authority to recommend adding and removing blocks as projects are proposed.
Board discussion clarified that an amendment to the existing Renaissance Zone plan would need to be drafted for the addition of the two blocks. The Renaissance Zone plan amendment would need to be approved by the Renaissance Zone Authority, City Commission, and the Department of Commerce.
Applicants Jade Nielsen and Ian Johnson spoke on behalf of the application.
Member Peterson requested staff to reassess the existing Renaissance Zone plan/map, identify the blocks that remain inactive to-date and could be replaced by recent proposals received, and present the findings to the Board at the next meeting.
Member Furness moved to direct staff to prepare an amendment to the existing Renaissance Zone plan, and present to the Board at a future meeting. Second by Member Bresciani. On call of the roll Members Peterson, Furness, Bresciani, Mathern, and Commissioner Piepkorn voted aye. Absent and not voting: Members Luchau, Swiontek, and Commissioner Grindberg. The motion was declared carried.
Item 6: Legislative Update
Planning Director Jim Gilmour presented updates on the legislative items pertaining to the City’s existing Renaissance Zone program. He also shared the specific changes made to the following two bills that are still active:
House Bill 1182 would eliminate income tax exemptions from the existing Renaissance Zone Program. Approved in the House as amended, and moves onto the Senate Committee.
Senate Bill 2166 would prohibit property receiving benefits from both a renaissance zone and a tax increment financing district. This bill is still in the Senate.
House Bills 1326 and 1388, and Senate Bill 2055 failed at the committee level.
Item 7: Other Business
No other business was discussed.
The time at adjournment was 8:53 a.m.