Tax-Exempt Review Committee - October 5, 2021 Minutes
TAX EXEMPT REVIEW COMMITTEE
Fargo, North Dakota
Regular Meeting Tuesday, October 5, 2021
The September 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 1:00 p.m., Tuesday, October 5, 2021.
The committee members present or absent are:
Present: Dave Piepkorn, Mayor Tim Mahoney, Bruce Grubb, John Cosgriff, Kent Costin, Mike Splonskowski, Erik Johnson, Jim Gilmour, Jackie Gapp
Absent: Levi Bachmeier, Jim Buus, Jessica Ebeling, Joe Raso
Commissioner Piepkorn called the meeting to order at 1:00 p.m.
Minutes Approved
A motion was made by Mayor Tim Mahoney to approve the minutes from August 24, 2021. John Cosgriff seconded, motion carried.
2021 TRC Draft
Jim Gilmour stated that it was suggested to change the name of the Tax-Exempt Review Committee to the Economic Development Incentives Committee
Dave Piepkorn stated that he supports a name change. He feels it should be positive and not cause confusion.
Ryan Aasheim of the Fargo Moorhead EDC stated that West Fargo has EDAC (Economic Development Advisory Committee) and Moorhead has the EDA (Economic Development Advisory). He is not sure how many people pay attention to the names, and stated he wouldn’t be concerned about any confusion.
A motion was made by John Cosgriff to change the name as suggested, Kent Costin seconded, motion carried.
Committee Voting Membership change
• Two (2) staff members moved from voting roles to advisory roles
• Two (2) non-staff voting members to be designated
• Consistency with other City-appointed committees
Kent Costin stated that he and Bruce Grubb would still be involved behind the scenes.
Mayor Tim Mahoney moved to approve staff as suggested, John Cosgriff seconded, motion carried.
New Housing
• Property exempt in 2021 ~ $79 million
• Two-year exemption on $150,000
• Builder and home owner eligible
Proposed Changes:
None
Remodeling And Additions
• Property exempt in 2021 ~ $22 million
• Five-year exemption
• Building must be 25 years old
Proposed Changes:
• Expand exemption from three (3) to five (5) years in buildings 25 – 40 years old
• Building additions outside of downtown would qualify
• Building additions larger than existing building require Committee review
Job Creation PILOT
• 22 projects in the past five (5) years
• Five-year exemption is standard
• 10-year enhanced exemption is available for extraordinary projects
Proposed Changes:
• Exclusive to primary sector businesses
• New scoring system
• Review of safety record
• Additional monitoring requirements
• Reporting requirements
Low Income Housing PILOT
• Six (6) projects in the past five (5) years
• Low-income housing tax credits
Proposed Changes:
• Financial review by North Dakota Housing Finance Agency replaces review by The City of Fargo
Core Neighborhood PILOT
• One (1) project in the past five (5) years
Proposed Changes:
• Replaces policy that was exclusive to University Mixed Use Zoning
• Longer exemptions will be considered for affordable housing
• A housing study to identify community needs is pending
Downtown Housing PILOT
• Seven (7) projects in the past five (5) years
Proposed Changes:
• Longer exemptions will be considered for affordable housing
• A housing study to identify community needs is pending
Brownfield TIF
• Four (4) projects in the past five (5) years
Proposed Changes:
• Now exclusive to “brownfield”, “slum” and “blighted” sites
• Greenfield applications are no longer considered
Public Private Partnerships (P3)
• Four (4) P3s in the past five (5) years
Proposed Changes:
• This is a new section consistent with past P3 developments
• Plan development must be approved by the Fargo City Commission following a recommendation from the Economic Development Incentives Committee
• Plans must include public facilities, public activities and/or incentives that are essential for the implementation of the plan
• Plans must be consistent with City plans, provide a community benefit and public assistance is essential in order for any development to occur on the site
John Cosgriff moved to approve all changes as proposed, Mayor Tim Mahoney seconded, motion carried.
The meeting was adjourned at 1:47 pm.