Tax-Exempt Review Committee - September 28, 2020 Minutes
TAX EXEMPT REVIEW COMMITTEE
Fargo, North Dakota
Special Meeting Monday, September 28, 2020
The September special meeting of the Tax Exempt Review Committee of the City of Fargo, North Dakota was held in the City Commission Room at City Hall at 11:30 a.m., Monday, September 28, 2020.
The committee members present or absent are:
Present: Dave Piepkorn, Bruce Grubb, Mayor Tim Mahoney, Kent Costin, John Cosgriff, Jim Buus, Jim Gilmour, Mike Splonskowski
Absent: Jessica Ebeling, Jackie Gapp, Levi Bachmeier, Erik Johnson, Joe Raso
Commissioner Piepkorn called the meeting to order at 11:30 a.m.
Minutes Approved
A motion was made by Bruce Grubb to approve the minutes from the August meeting held on August 25, 2020. Kent Costin seconded, motion carried.
Application for PILOT for Aldevron, LLC
Jim Gilmour stated the location is at 30th Avenue South and University, it would create 51 additional jobs. Aldevron projected a year ago they would add 105 jobs over 5 years and actually had 117 jobs over a year. In 2016 they projected 85 jobs over 5 years and actually added 192 jobs in 3 years. The application for taxes is $0 dollars for years 1-5 and 50% of the estimated value in year 6 with that increasing 2% a year through year 10. Year 11 they would be back to full taxes.
Troy Brendemuhl explained that the existing building would need to be gutted and revamped so they can do bio-manufacturing at the research level. There is a range of jobs from scientists to quality control to managers and supervisors.
Mayor Tim Mahoney moved to approve, Kent Costin seconded, motion carried.
Application for TIF for River Lofts
Jim Gilmour explained there are a lot of extraordinary costs that go along with developing this site, from clean up to a levee. The financial advisor stated the most they would be able to receive is $3,589,000, even at that rate they do meet the, but-for test. Without this there is no bank in the world that would give them a loan for this. It is still a high risk project. There was concern they weren’t meeting policy #8, however there will be a remnant piece of land that will benefit from the improvements and Jesse Craig is planning to construct eight to ten townhomes on that which will add another $2 million of investment, with that added in it would meet policy #8. The other factor is they are taking on a flood protection dike that will benefit the neighborhood. Currently there is an emergency levee that is put in during emergencies, the permanent levee would eliminate the need for that.
Mayor Tim Mahoney moved to approve, Jim Buus seconded, motion carried.
Dave Piepkorn adjourned the meeting at 11:43 a.m.