Fargo City Commission - December 9, 2024

The Regular Meeting of the Board of City Commissioners of the City of Fargo, North Dakota, was held in the City Commission Chambers at City Hall at 5:00 o'clock p.m., Monday, December 9, 2024.
The Commissioners present or absent were as shown following:
Present: Piepkorn, Preston, Strand, Turnberg, Mahoney.
Absent: None.
Mayor Mahoney presiding.

The Mayor read a message with the following information: As part of the Police Navidad campaign, members of the Fargo Police Department will read holiday-themed stories on December 11th at 10:00 a.m. and 11:00 a.m. at the Carlson Library; Job Service staff will be onsite at the Main Library on December 17th from 2 to 4 p.m.; and a video recap of the December 7th Xcel Energy Holiday Lights Parade was viewed.

Order of Agenda Approved:
Commissioner Kolpack moved the Order of the Agenda be approved.

Second by Piepkorn. All the Commissioners voted aye and the motion was declared carried.

Minutes Approved:
Commissioner Strand moved that the Minutes of the Regular Meeting of the Board held on November 25, 2024 be approved as read.

Second by Turnberg. All the Commissioners voted aye and the motion was declared carried.

Consent Agenda Approved:
Commissioner Kolpack moved the Consent Agenda be approved as follows:

1. Interest Buydown Agreement – Pace Program with the Bank of North Dakota received by the Campsite 4 LLC, Tellwell LLC and The Commons LLC.
2. ND Non-Exclusive Right to Sell Agreements with Goldmark Commercial Real Estate Inc., Property Resources Group, LLC and Dakota Commercial & Development Co. for the sale of City property west of the landfill.
3. Applications for Abatement or Refund of Taxes #s 4582 and 4583 for property located at 200 8th Street South requesting a reduction in value for 2023 from $4,413,000.00 to $3,548,000.00 and a reduction in value for 2024 from $4,413,000.00 to $3,434,000.00; staff is recommending a reduction in value to $3,700,000.00 for 2023 and 2024.
4. Receive and file an Ordinance Amending Section 8-0602, of Article 8-06, of Chapter 8, of the Fargo Municipal Code, Relating To Starting, Stopping, or Turning Movements and Required Signals.
5. 2nd reading, waive reading and final adoption of an Ordinance Enacting Article 3-24 of Chapter 3 of the Fargo Municipal Code Relating to a Sales Tax for Fire and Police Operations, Equipment, and Buildings.
6. Gaming Site Authorization for Games of Chance for Fargo Youth Hockey Association at Brewhalla.

7. Applications for Games of Chance:
a. Muskies Inc. - FM Chapter for a raffle on 2/13/25.
b. North Dakota State University - Judging Club for a raffle on 2/15/25.

8. Utility Easement with Cass County Electric Cooperative, Inc. for property at 6302 25th Street South.

9. Federal Aid Transportation Project Applications for Years 2026 through 2029.

10. Developer Agreement with 4540 Investments, LLC for Southwest Fargo Mission Second Addition.

11. Addendum No. 1 to Purchase Agreement, and Assignment and Assumption of Lease with Union of Sisters of the Presentation of the Blessed Virgin Mary, United States Province (Project No. NR-25-B1).

12. Final Balancing Change Order No. 3 in the amount of $14,206.19 for Project No. FM-19-B1.

13. Final Balancing Change Order No. 1 in the amount of $14,928.45 for Project No. TM-24-A1.

14. Final Balancing Change Order No. 4 in the amount of $34,994.50 for Project No. TR-23-A1.

15. Final Balancing Change Order No. 1 in the amount of $490.21 for Project No. UR-24-G1.

16. Negative Final Balancing Change Order No. 3 in the amount of -$35,313.40 for Project No. FM-22-C2.

17. Final Balancing Change Order No. 3 in the amount of $0.00 for Project
No. NR-23-B1.

18. Bid advertisement for Project No. ER-24-C.

19. Bid advertisement for Project No. UR-24-C.
20. Negative Final Balancing Change Order No. 2 in the amount of -$185,008.29 for Improvement District No. PN-24-A1.

21. Negative Final Balancing Change Order No. 2 in the amount of -$35,558.20 for Improvement District No. PR-24-G1.

22. Items from the FAHR Meeting:
a. Receive and file Sales Tax update.
b. Receive and file the 2025 Operating and Capital budgets for the Fargo Moorhead Convention & Visitors Bureau.
c. Allocation of $35,000.00 of 2024 Arts and Social Service Funds to Rebuilding Together for operational support.
d. 2024 Budget Adjustment requests as presented.

23. Memorandum of Agreement between Fargo Fire Department and West Fargo Fire Department to provide temporary equipment and personnel for the West Fargo Fire Department.
24. Agreement with Richland County Family Planning.
25. City of Fargo Employment Policy Revisions.
26. City Attorney’s Office directed to Amend the Findings of Fact, Conclusions and Order to reflect the extension of the deadline to 12/2/24 for property located at 1011-1013 University Drive North.
27. Resolution approving Plat of True North Addition (Attachment “A”).
28. Firearm Disposition Agreement - 2024 with Liberty Management Group, LLC d/b/a Liberty Arms Training.
29. Piggyback purchase through Sourcewell Cooperative Purchasing Agreement with Swanston Equipment in the amount of $214,428.51 for one replacement articulating sidewalk tractor with attachments (PBC25021).
30. Piggyback purchase through Sourcewell Cooperative Purchasing Agreement with Swanston Equipment in the amount of $214,428.51 for one articulating sidewalk tractor with attachments (PBC25022).
31. Piggyback purchase through the ND State Contract with North Central International LLC in the amount of $120,317.39 for one 2025 HV607 SBA International Chassis (PBC25025).
32. Piggyback purchase through the ND State Contract with North Central International LLC in the amount of $120,696.34 for one 2025 HV607 SBA International Chassis (PBC25026).
33. Bid award for Security Services to Signal of North Dakota (RFP25002).
34. Transit cost allocation spreadsheet.
35. Change Order No. 3 with CC Steel, LLC in the amount of $46,750.00 for Project No. WA2158.
36. Red River Valley Water Supply Project Memorandum of Commitment with Lake Agassiz Water Authority and Garrison Diversion Conservancy District.
37. Interim Financing Agreement Series D Small Systems Amendment associated with the Red River Valley Water Supply Project.
38. Incremental water bill credit to Cass Rural Water District for water service to the City of Horace in 2025.
39. Bills in the amount of $14,319,862.98.

Second by Turnberg. On call of the roll Commissioner Kolpack, Turnberg, Piepkorn, Strand and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.

Discussion on Hiring a Community Integration Facilitator Delayed Two Months:
Commissioner Kolpack said the Community Integration Facilitator position was identified by the ND Department of Health and Human Services (NDHHS) a couple years ago and the position exists in Grand Forks and Bismarck. She said NDHHS has wanted Fargo to look at the position and in the last several months she has had meetings with the NDHHS Office of Refugee Services, as well as with those who hold the position in Bismarck and Grand Forks. Both cities have different approaches, she said. As part of the criteria established for the position, she said, she asks that Administration appoint a Task Force with members of the New American Committee, Deputy Mayor and the NDHHS Integration Coordinator to finalize job focus areas as part of the final job description and search, and to have the process complete with the new CIF hired and in place by Second Quarter of 2025. She would like to see the position be very actionable and about removing barriers and addressing workforce issues, she said.
Commissioner Kolpack moved the City Administrator be directed to move forward with pursuing a Community Integration Facilitator for the City of Fargo, to be 100% reimbursed through the ND Department of Health and Human Services, the Office of Refugee Services.

Second by Mahoney.
Victoria Johnson, Families United for Self-Empowerment, said she supports the position; however, does not feel it should be housed in City Hall. She said it would be more effective within the School District, Global Refugee and/or Cultural Diversity as they are more equipped to help integrate the diverse population compared to City staff. She said compared to Grand Forks and Bismarck, Fargo has the most diverse resources and nonprofits that understand and support diverse groups and other cultures. She said nonprofits were ignored when the DEI position was implemented and that failed. While intentions now may be good, she said, the voices of the people who do that work need to be heard.
Commissioner Piepkorn said he will oppose it as he does not feel it is appropriate for the City to be the host. Funds are limited, he said, and responsibilities keep being imposed on staff. The next step should be talk to staff, he said, not other communities. He would favor continuing the discussion and talking to staff, he stated. Without question, he said, the City should collaborate; however, as far being the lead, that is not appropriate.
Commissioner Kolpack said the position would report directly to NDHHS; however, as written, the position is required to be part of City government to liaison with the City. She said it is about connecting the position through the State with local organizations, which would be integral. The Task Force would reach out and work with members of the New American community, she said, and have a robust dialogue to be sure the position is right for the community, to be actionable and to address workforce issues.
Commissioner Turnberg said this position feels like DEI with a different title. She said New Americans do not like something like this in government as many are fleeing governments and are skeptical of them. They have a tight, strong community, she said, and there is a diverse population of New Americans. She said she fears that putting one person in that position in government will ostracize people from different ethnicities. It is a complex issue, she said, and if it were tabled to dig deeper, she would be open to that.
Commissioner Piepkorn said there is a new State administration coming with a new Governor plus a new Federal administration. He said there will be changes soon so it may not be appropriate to act on it now.
Commissioner Strand said it may not be wise to move this into City Administration given the history with DEI. There was a change in Federal administration and mindset in 2016, he said, and the relationships with the refugee community were strained and the number of refugees and immigrants were pulled back on how many were allowed in the State. The City recently went through budgeting, he said, and was not able to come up with even an additional police officer. He could support it if he had a commitment that the State would fund every aspect of it forever, he said, or if there are options such as using Global Refugee, LIRS, Fargo Public Schools or Fargo Cass Public Health. He said there are better fits than Fargo’s administrative hallway and the City does not need to pick up a position, then later pick up the tab.
Commissioner Turnberg moved the pursuit of hiring a Community Integration Facilitator be delayed for two months.

Second by Piepkorn. On call of the roll Commissioners Turnberg, Piepkorn, Kolpack and Mahoney voted aye.
Commissioner Strand voted nay.
The motion was declared carried.

Renaissance Zone Project for Coneflower Farmhouse, LLC Approved:
A Hearing had been set for this day and hour to receive comments on a Renaissance Zone Project for Coneflower Farmhouse, LLC (Project 367-F) for the rehabilitation of a mixed-use property located at 13 and 15 8th Street South.
No written protest or objection to the Project has been received or filed in the City Auditor's Office.
The Board determined that no person is present to protest or offer objection to the Project.
Urban Development Planning Coordinator Maegin Elshaug said the Renaissance Zone Project application presented by Coneflower Farmhouse, LLC meets all the minimum criteria set forth in the Renaissance Zone Plan and is consistent with the established goals and objectives. She said the intent is to rehabilitate the basement and main floor commercial space, and potentially replace second story windows (residential) and exterior façade improvements with work to be completed by the end of January 2025. The current value is $1,236,900.00 and the proposed investment is $727,000.00 and meets the rehab investment threshold. She said the Renaissance Zone Authority recommended approval unanimously on November 27, 2024.
Commissioner Piepkorn moved the Renaissance Zone application filed by Coneflower Farmhouse, LLC for a project located at 13 and 15 8th Street South be approved and the income tax and property tax exemptions be granted as recommended by the Renaissance Zone Authority.

Second by Turnberg. On call of the roll Commissioners Piepkorn, Turnberg, Strand, Kolpack and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.

Renaissance Zone Development Plan (RZDP) Update:
A Hearing had been set for this date and hour to consider approval or denial of the Fargo Renaissance Zone Development Plan Update.
Urban Development Planning Coordinator Maegin Elshaug said the purpose of the Renaissance Zone is to encourage reinvestment in Downtown properties and it provides property and income tax incentives to property and business owners who invest in qualified projects. She said the boundary is based on population and is capped at 49 blocks. The first plan was approved in 1999 for a 15-year period, with updates required for extensions, she said. In 2014 and 2019, the Board approved the Development Plan to keep Zone status, she said, and support from the Fargo Public School District and Cass County is also required. She said vision, goals and objectives are economic vitality, housing stock diversity, a vibrant city center, seven goals from Downtown InFocus, economic development, urban design and investment thresholds. She said eligible project types are rehab, new construction, residential projects and lease. The Renaissance Zone value in 1999 was $197,375,000.00 and in 2024 it is $970,571,910.00, she stated. The 2024 Fargo Growth Plan recommends a holistic review of economic incentive tools to further define "optimal development" and it is anticipated at the conclusion of this work, the Renaissance Zone Development Plan will be updated, she said; therefore, staff is recommending an extension of the Zone for 5 years. She said the most prevalent change to the development plan is the addition of two blocks that previously had not been identified. Through public outreach, she said, staff learned of several projects in the planning phase, located in areas of Downtown that are seeing transition - northeast and west. The boundary has been updated to include blocks 58 and 59, she said, and other changes include updates to values and datasets. Along with the work of aligning economic development incentives with "optimal growth" strategies, she said, work will include evaluating and capturing robust data supporting the program, streamlining the application process and project scoring with that work intended to begin in early 2025. She said the plan review was approved by the Renaissance Zone Authority on October 23, 2024, the Cass County Commission on November 18, 2024 and Fargo Public School District on November 26, 2024.
Planning Director Nicole Crutchfield said in the findings of the Growth Plan there was a relook at all incentives, including Renaissance Zone, which led to discussion of the timing of the plan update. She said the contract with czb, LLC was extended to rewrite the Land Development Code (LDC) and start the Economic Development Incentive work. A host of meetings with czb, LLC are scheduled this week to kick off the 15-month process, she said, and concluding that work, changes can be brought back. In 2025 and beyond, she said, a holistic review will be done of economic incentive tools, data supporting the RZ program will be captured and the application processing and scoring system will be streamlined.
In response to a question from Commissioner Strand asking why the County had constraints, Ms. Crutchfield said they asked the question “isn’t the City done with the Downtown, do you really need incentives?” She said if she were to portray what she heard them say about eight months ago, perhaps they felt rushed.
Commissioner Piepkorn said developers have said the 5-year term is the same as 25 years ago, project costs have gone up making it more expensive than it used to be. He said developers say they need more time because of higher expenses. The Legislature is likely to address it, he said, so there may be changes. He said there are many things yet to develop Downtown and it is more expensive. It is less expensive to buy raw land in south Fargo than tear down buildings, he said.
Commissioner Strand suggested meeting with the County to lobby for what Fargo wants. He said to assume Downtown is done is not correct, he stated
Brian Albertson said he owns a property in City Centre Lofts and the reason he purchased a brand new condo Downtown was due to the incentives.
Commissioner Strand moved the Fargo Renaissance Zone Development Plan update be approved, as presented.

Second by Piepkorn. On call of the roll Commissioners Strand, Piepkorn, Turnberg, Kolpack and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.

Permanent Route and Service Changes for MATBUS Approved:
Assistant Transit Director Cole Swingen said discussions began this summer between NDSU and the Transit Department on the elimination of Route 32, which serviced off-campus housing south of NDSU due to NDSU budget constraints and the route was suspended for the fall semester. He said since there have been requests from NDSU students and staff for some level of service to the area which led to the collective decision to provide On-Demand service between 7:30 a.m. and 9:30 a.m. to provide students access to the main NDSU and Downtown campuses. He said the proposed changes include the addition of two hours to on-demand service, from 7:30 a.m. to 9:30 a.m. to provide service to the off-campus housing area south of 12th Avenue North in Fargo and to eliminate Route 32. He said with the elimination of Route 32, the additional On-Demand service would provide students in the area with access to the main NDSU campus and Downtown campuses.
Commissioner Strand moved the proposed route changes be approved effective January 6, 2025.

Second by Turnberg. On call of the roll Commissioners Strand, Turnberg, Piepkorn, Kolpack and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.

Applications for Abatement or Refund of Taxes #s 4566, 4586 and 4575 for Property Located at 6229 Cattail Cove South Requesting a Reduction in Value for 2022, 2023 and 2024 Approved:
City Assessor Mike Splonskowski said the appellant received the City’s recommendation of value based on the Assessor’s analysis and has accepted the new value recommendations and has waived the Hearing before the City Commission. He said during the review and analysis, the Assessor’s found the appellant was eligible for more relief than what was applied for in 2022; however, the reapplication date was past. Therefore, he said, Assessor’s is recommending a greater reduction for the 2022 value: for application #4566, reduce from $1,083,900.00 to $826,800.00 for 2022; for application #4586, reduce from $1,214,000.00 to $926,000.00 for 2023; and for application #4575, reduce from $1,447,900.00 to $1,042,600.00 for 2024. He said this property has been estimated since its construction in 2019 and during the construction phase, a staff appraiser visited the site and spoke with the builder/owner. At that time, he stated, the exterior was mostly complete and the builder/owner allowed the staff appraiser to take exterior measurements and collect notes. However, he said, the interior was not sufficiently advanced in the construction process to be reviewed and upon completion, the property owner declined to schedule an appointment for an interior inspection, instead providing information that high quality materials had been used. Based on that information, he said, the appraiser surmised that the interior would be superior to the exterior and valued the property accordingly. The appellant purchased this home as a foreclosure and appealed the 2024 true and full value on September 5, 2024, he said, and the appellant disputed the significant increase in value over a single year, the construction grade and the condition. The appellant did not respond in time to attend the local Board of Equalization, he said, and a staff appraiser physically reviewed the property on September 11, 2024, and determined the construction grade had been overstated. The grade reflects factors such as the quality of construction materials, workmanship and home design, he said. During the inspection, the owner provided details about items that had been replaced in the home and ongoing issues with the property, he said, and the subject property’s size is much larger than typical for this class of home. While its size aligns more closely with excellent-grade homes, he said, there were no sales of directly comparable properties in that category. Using excellent-grade homes for sales comparisons would suggest a higher value than is justifiable, he said; therefore, sales of smaller homes within the same class were used to establish a general range of values. These sales indicate the assessed value is high and a larger concern, he said, is comparable assessed properties are significantly lower in value, suggesting the subject property is inequitably valued and requires a reduction. He stated that during the analysis, it was determined the house was eligible for more relief than stated on the application and this conclusion was based on the cost approach and the equalized value of the subject property. While the applicant requested a reduction of 3.8%, he said, the Assessor’s Office is recommending a reduction of 23.7% for 2022.
Commissioner Kolpack moved, based upon Mr. Splonskowski’s recommendation, that the applications for abatement or refund of taxes #s 4566, 4586 and 4575 filed by Kenai Holdings LLC for property located at 6229 Cattail Cove South requesting a reduction in value for 2022 from $1,083,900.00; to $826,000.00, for 2023 from $1,214,000.00 to $926,000.00 and a reduction in value for 2024 from $1,447,900.00 to $1,042,600.00; be approved.

Second by Piepkorn. On call of the roll Commissioners Kolpack, Piepkorn, Turnberg, Strand and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion as declared carried.

Applications for Abatement or Refund of Taxes #s 4569, 4570, 4571, 4572, 4573 and 4574 for Properties Located at 4512 33rd Street North, 4451 37th Street North, 4108 33rd Street North, 4409 33rd Street North, 4455 33rd Street North and 4357 33rd Street North Requesting a Reduction in Values for 2023 Denied:
City Assessor Mike Splonskowski said the subject properties are all located north of County Highway 20 and west of I-29. For the first property at 4512 33rd Street North, the appellant is requesting a reduction of $211,000.00 or 4.3%. The appellant provided current construction costs for a similar building to support the requested reduction in value, he said, and staff routinely studies the relationship between permitted construction costs and market value, and finds that the market value of industrial buildings often exceeds construction costs, which explains the uptick in new industrial construction, particularly in 2023. The appellant’s cost analysis; however, exclude critical components tied to market value, such as site improvements and entrepreneurial incentive, he said, and these omissions result in an incomplete representation of the property's true and full value. To support the 2023 true and full value, staff utilized all three appraisal approaches and the indicated values center around $6,700,000.00 or $83.75 per square foot, he said. Staff also examined competing properties for assessment equity, he said, and analyzed the 2023 true and full value of warehouses built between 1993 and 2023 that measure larger than 20,000 square feet and found 21 such properties. The subject property is assessed lower than roughly 90% of its competitors on both units of comparison, he stated. For the next property at 4451 37th Street North, the appellant is requesting a reduction of $3,261,650.00 or 28%, he said. To support the 2023 true and full value, staff utilized all three appraisal approaches and the indicated value centers around $13,600,000.00 or $91.58 per square foot, he said. Staff also examined competing properties for assessment equity and analyzed the 2023 true and full value of the warehouses built between 2003 and 2023, measuring larger than 20,000 square feet, and found 15 such properties, he stated. The subject property is assessed below the median value on both units of comparison, he said. The next property at 4108 33rd Street North consists of two light industrial buildings and the appellant is requesting a reduction of $672,844.00 or 17%, he said. Again, he said, to support the 2023 true and full value, staff utilized all three appraisal approaches and the indicated values center around $5,052,000.00 or $93.90 per square foot. Staff also examined competing properties for assessment equity, he said, and analyzed the 2023 true and full value of manufacturing facilities built between 2003 and 2023 larger than 20,000 square feet and 21 such properties were found. The subject’s assessed value is at or below the 10th percentile of all competing properties on both units of comparison, he said. For the third property at 4409 33rd Street North, the appellant is requesting a reduction of $193,712.00 or 13%, he said. The market value of industrial buildings often exceeds construction costs, he stated, and the appellant’s cost analysis excludes critical components tied to market value, such as site improvements and entrepreneurial incentive. To support the 2023 true and full value, he said, staff utilized all three appraisal approaches and the indicated values center around $2,445,000.00 or $112.67 per square foot. Staff also examined competing properties for assessment equity, he stated, and analyzed the 2023 true and full value of all industrial properties built between 2000 and 2023 that measure between 5,000 and 20,000 square feet and found 79 such properties, excluding shop condominiums. The subject’s assessed value is below the median value on both units of comparison, he said. The fourth property at 4455 33rd Street North is a semi-tractor repair shop and office, and the appellant is requesting a reduction of $193,712.00 or 13%, he said. The appellant provides current construction costs for a large warehouse to support the requested reduction in value and the appellant’s cost analysis excludes critical components tied to market value, such as site improvements and entrepreneurial incentives, he said. To support the 2023 true and full value, staff utilized all three appraisal approaches, he stated, and the indicated values center around $2,035,000.00 or $117.12 per square foot. He said the Assessor’s analyzed the 2023 true and full value of all industrial properties built between 2001 and 2022 that measure between 8,000 and 35,000 square feet and found 148 such properties, excluding shop condominiums. The subject’s assessed value is below the 25th percentile on both units of comparison, he said. The property at 4357 33rd Street North is a warehouse, he said, and the appellant is requesting a reduction of $365,020.00 or 3.8%. The appellant’s cost analysis excludes critical components tied to market value, such as site improvements and entrepreneurial incentive. He said and these omissions result in an incomplete representation of the property's true and full value. The indicated values center around $14,291,000.00 or $90.22 per square foot, he said, and staff also examined competing properties for assessment equity (fairness). He said Assessor’s analyzed the 2023 true and full value of warehouses built between 2003 and 2023 that measure larger than 20,000 square feet and found 15 such properties. The subject’s assessed value is lower than all competing properties on both units of comparison, he said.
Kurt Bollman, CFO for County 20 Storage and Transfer Inc., said that company owns the buildings and has a decades long relationship in Fargo as a landlord of commercial warehouses. He said with the nine existing properties, County 20 pays more than $800,000.00 in actual tax to the City and County. The two new warehouses, in 2024/2025 dollars not including the land, came out at $51.70 a square foot for identical property across the street. He said 4512 33rd Street North is being appraised at $73.66 per square foot against their $51.70, a 28% increase and property tax on one building alone went from $124,000.00 to $172,000.00. In total for the six buildings, he said, having agreed to land value, they ask the older property not be valued any higher than what they are building right across the street and not be compared to those on the west side of 37th Street, which is unrealistic.
Mr. Splonskowski said the comparisons are old buildings and sales, and well in the range as supportable. He said they are being treated according to the market and comparable properties.
Commissioner Piepkorn moved, based upon Mr. Splonskowski’s recommendation, that the applications for abatement or refund of taxes #s 4569, 4570, 4571, 4572, 4573 and 4574 filed by Tari Birkelo for County 20 Storage and Transfer Inc., for properties located at 4512 33rd Street North, 4451 37th Street North, 4108 33rd Street North, 4409 33rd Street North, 4455 33rd Street North and 4357 33rd Street North requesting reductions in values for 2023 be denied.

Second by Strand. On call of the roll Commissioners Piepkorn, Strand, Turnberg, Kolpack and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.

Applications for Abatement or Refund of Taxes #4584 406 Broadway Requesting a Reduction in Value for 2024 Denied and #4585 412 Broadway Requesting a Reduction in Value for 2024 Approved:
City Assessor Mike Splonskowski said the property at 406 Broadway is a mixed-use building and the applicant is requesting a reduction in value of $290,700.00 or 24.4%. He said the property sold in February 2024 with the adjacent parcel for $1,512,200.00 or $69.79 a square foot. Assessor’s reviewed the property and reduced the 2025 true and full value, he said, then the appellant filed abatement applications for the 2024 tax year based on this reduced value. Upon review, he said, staff determined the reduction for 2024 cannot be supported based on the information provided, property data is chosen based on location, property use and age, and the sales indicated the subject property is in line with the overall market. He said the property at 412 Broadway is also a mixed-use building and the applicant is requesting a reduction in value of $137,600.00 or 18.7%. He said staff reviewed the property and reduced the 2025 true and full value and the appellant then filed abatement applications for the 2024 tax year based on the reduced value. Staff found a mix of physical conditions in this property, he said, and the front facing commercial spaces exhibit typical fit-up in average condition, while the commercial spaces on the alley exhibit fair condition with deferred maintenance. He said the apartment units are dated; however, present in average condition for their age. He said he felt it was appropriate to increase the depreciation applied to the property and reduce the value for 2024.
Blake Carlson, representing the owner, said the two properties were purchased in a combined sale earlier in the year and the purchase price was about 23% less than appraised value and the valuation should be close to what it was purchased for. He said the one property was reduced for 2025 so he would ask the 2024 value also be reduced.
Deputy Assessor James Haley said the staff appraiser visited the property and performed analysis on a cost basis and the appellant was notified of a reduction. He said when the appeal was filed for 2024, sales and comparable properties were put together and it was realized the reduced value cannot be supported. He said 2025 values are not yet certified and subject to change at any time.
Commissioner Strand moved, based on Mr. Splonskowski’s recommendation, that the application for abatement or refund of taxes #4584, filed by Blake Carlson representing LH Broadway, LLC for property at 406 Broadway be denied and the 2024 value be retained and that the application for abatement or refund of taxes #4585 filed by Blake Carlson representing LH Broadway, LLC for property at 412 Broadway be approved and the value be reduced to $621,00.00 for 2024.

Second by Kolpack. On call of the roll Commissioners Strand, Kolpack, Turnberg, Piepkorn and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.

2025 Capital Improvement Plan, 2026 Core Neighborhood Reconstruction Projects, 2026 Prairie Dog Projects and Updated Infrastructure Funding Policy Language Approved:
City Engineer Tom Knakmuhs shared a summary of the 2025 Capital Improvement Plan (CIP), 2026 Core Neighborhood Reconstruction Projects, 2026 Prairie Dog Projects and Updated Infrastructure Funding Policy language which he presented at the November 25, 2024 Finance Committee meeting. He said approval of the 2026 Core Neighborhood and Prairie Dog funded projects will allow initiation of project design and communication with impacted property owners a year in advance of construction occurring The current updated Infrastructure Funding Policy includes a provision that all caps increase 2% annually and the average annual rate of construction inflation from 2008 to 2022 was 7.19%, he said, so maintaining a 2% annual cap increase while inflation exceeds 7% poses ongoing challenges to the sustainability of the CIP funding model. He said to address this, he recommends revising the policy to state: “All caps shall be increased by 5% annually” effective with the 2026 CIP. He demonstrated the interactive Capital Improvement Plan Map on the City website.
In response to a question from Commissioner Strand asking if the cap is increased by 5% to bring it to 7%, Mr. Knakmuhs said all caps would increase annually by 5% each year so whatever the capped amount is, it would increase by 5%; current policy increases it by 2%.
Commissioner Strand said it could be reflected to the Consumer Price Index (CPI) because 5% may be too rigid if the CPI does not follow that directly.
Mr. Knakmuhs said the reason he is recommending 5% is that it becomes easier to communicate with future property owners in future capital improvement years rather than trying to estimate what that value might be. The City has fallen behind in the special assessment portion, he said, about 10 years ago it was closer to 30% being special assessed and when the Special Assessment Task Force met in 2018/2019 the goal was to be 20-25%; unfortunately, with caps increasing at 2% annually and inflation much exceeding that, it is about 15% being special assessed. He said if inflation does not hit that mark, some ground is gained. It will be monitored annually and he will return for changes if needed, he stated.
In response to Commissioner Piepkorn asking for an update on the Prairie Dog fund, Mr. Knakmuhs said there a number of funds/buckets to fill before the Prairie Dog funds are distributed and in November, Fargo’s first bucket did fill. He said that means in a month or two the City should get its first allocation of about $2.5 million. The City is on track to fill the second bucket in January or February, he said, which is an allocation of about $21.5 million.
Commissioner Kolpack moved the 2025 CIP, 2026 Core Neighborhood Reconstruction Projects, 2026 Prairie Dog Funded Projects and Updated Infrastructure Funding Policy Language be approved.

Second by Turnberg. On call of the roll Commissioners Kolpack, Turnberg, Piepkorn, Strand and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.

At 6:09 p.m. the Board took a five-minute recess.
After recess: All Commissioners present.
Mayor Mahoney presiding.

Special Assessment Deferral Request from Enclave Companies Denied (Improvement District No. BN-23-E1):
Special Assessment Coordinator Doug Durgin said the request by Enclave Companies includes three parcels within Laverne’s Addition and pertains to two Certified Assessment Districts; BN-20-M, assessed in 2022, and BN-22-C, assessed in 2024. The request also includes a future Assessment District, FN-23-E, he said, which is scheduled to be done and assessed in 2025. He said the request was made on October 8, 2024 for a three-year interest-bearing deferral, and was brought to the Public Works Project Evaluation Committee (PWPEC) on October 21, 2024. PWPEC did not support the request, which was then heard by the Finance Committee on November 25, 2024. The reasoning behind PWPEC’s denial, he said, was that the land is developable now, this type of land use is in high demand, there were concerns of financial implications to the City since the projects are bonded and the City makes annual installment payments during the deferral period. He said the two certified projects were districts for new infrastructure that were developer requested, not City initiated. He said PWPEC also felt the future assessment district on 45th Street was to support the developer requested infrastructure.
Austin Morris, Enclave Companies, said they were the developer that purchased the land from the developer who requested the infrastructure. He said the point of the deferral request is to remain competitive and they always have active requests for businesses that want to relocate or additional businesses to the community. He said they compete with a number of communities for industrial additions and their challenge when competing is total land price. For example, he said, in Sioux Falls or St. Cloud land can be purchased for $3.00 per square foot with no special assessments. Just the special assessments on these parcels is more than $4.00 per square foot, not including land price. He said to attract job-based businesses, new population and higher incomes, some support from a deferral perspective is needed. The motive is to help make Fargo competitive from an industrial construction perspective, he said.
Commissioner Piepkorn said Enclave would pay interest and market conditions are different from not that long ago. He said this would help them be a little more competitive.
In response to a question from Commissioner Strand asking if there have been deferrals where it is not agricultural but developed, Mr. Durgin said there is one instance where a platted, undeveloped parcel had been granted a deferral; however, that was not on its local infrastructure, only on its arterial infrastructure due to MidAmerica Steel creating some need for 19th Avenue North widening and development. He said there are about 40 active deferrals and most are due to City growth or granted for land that is undeveloped and unplatted.
Commissioner Kolpack moved that the special assessment deferral request from Enclave Companies be denied.

Second by Turnberg. On call of the roll Commissioners Kolpack, Turnberg, Strand and Mahoney voted aye.
Commissioner Piepkorn voted nay.
The motion was declared carried.

Recommendation to Implement Operation Safe Fargo Failed for the Lack of a Majority:
Commissioner Turnberg said she is bringing a thoughtful and thorough recommendation and her proposal for Operation Safe Fargo is to ensure the safety and well-being of all residents and individuals experiencing homelessness in Fargo. She said she worked with a homeless vet who helped her learn from another perspective. Her plan establishes immediate measures for emergency shelter, enhanced public safety and long-term solutions to address homelessness and related challenges, she stated. The City has been working tirelessly to try to implement the Resolution and Ordinance; however, she does not think they are working and they are confusing to people. She said she would like to immediately remove the Resolution and ban camping in Fargo. She said she has been working with the Police Department in Palm Springs, California and learning how they deal with their homeless issue. A resident of Fargo who also lives there brought it to her attention, she said, and much like Fargo, Palm Springs has weather extremes when it can get to be 120 degrees in the summer and is dangerous for people to be outside. Officers are given access to funded credit cards and if someone is arrested for an infraction and they see that the person is from out of town, the officer can offer jail for the infraction or help them go home, she said, and many times the people want to go home. She said the City could help people if they want to get out and give them the assistance to do that. There needs to be an emergency shelter, she said, perhaps the Civic Center; however, that was just one idea. Dr. Andrew Hennessy is in the audience, she said, and he has shared his proposal with the Commissioners and has some great ideas such as secure, insulated tents so people are not out in the elements. Operation Safe Fargo would be a substance-free environment, she said, and the Fargo Police Department would screen for outstanding warrants or level one sex offenders. The shelter would have cots, she said, pets would have to be leashed or crated at all times, and there would be security. The shelter would end May 1st, she stated, which allows time for the City to get housing proposals, to enact Housing First and get people in housing. She suggests relocating existing resources, she said, so the funds for the winter warming would be moved to this new shelter or as Dr. Andrew Hennessy suggested, insulated warm tents with cots could be a solution located near Island Park or in the industrial area. She said the Civic Center is an idea; however, some business owners do not like that. After May 1st, the Downtown Engagement Center services would be moved to Fargo Cass Public Health, she said, and that building would be sold, along with the building across the street and those funds would pay for this with the remaining funds going into the General Fund. She said she has reached out to the Governor for emergency funds and said funds from the opioid settlement need to be used for treatment and helping people who are addicted. She said the City does not have an endless pot of money and needs to follow what is working in some other cities, get people to their hometowns where they want to be and help solve this problem.
Commissioner Piepkorn said a key thing is to move all these services out of the Downtown and he does not believe the Civic Center would be appropriate. This goes back to the refugee issue, he said, the City of Fargo cannot be the sponsor, there needs to be collaboration with many entities.
Asher Lorentzen, Allison Slavik and Olivia Fischer (via conference call) said they oppose Operation Safe Fargo.
Chandler Esslinger encouraged the City to work with the FM Coalition to End Homelessness.
Matt Osbourne and Chery Bergian urged immediate action on homelessness, drug addiction and supportive housing.
Doug Sharbono and Angie Fiechtner Knapp spoke in support of Operation Safe Fargo.
Rocky Schneider encouraged incorporating Operation Safe Fargo ideas into other solutions the City is considering.
Denise VanderBush of Open Door 65 said the solution is a not one size fits all.
Commissioner Kolpack said people are trying to find the solutions to address this most urgent and pressing issue. There have been daily meetings on this topic for months, she said, and staff are working above what they normally do in a day's time to work on this issue. She said the point of the Resolution was to be flexible and evaluate what is working and what is not. She said real action will come forward in the next couple of weeks for consideration and for the first time from a group of community organizations who know this problem, who know how to work in this space and are the experts when it comes to Housing First and wraparound services. She said an important part of this solution is to get people to the help. Housing First works because a roof is a start to getting the help and removes worries about what the next night is going to be and where it's going to be, she said, and safety is central to this proposal. She said she does not support this proposal tonight; however, will support the actionable steps coming forward in a couple of weeks that address many of the concerns raised and ideas. This is a regional problem and a national problem, she said, not just a Fargo problem and Fargo does not have adequate resources to address this, it will be public/private, it will be innovation, it will be going back to the Legislature and asking for funds and new programming. She said North Dakota has resources to help and it will be looking at a Diversion Center in the future, it will be looking at moving the DEC and it will be focused on Housing First.
Commissioner Turnberg said Fargo has a great relationship with its legislators; however, there is no guarantee that money will come from the State. This is Fargo and it does not mean the rest of the State will vote for it. She said it is cold now and if the proposal is tabled or voted down, it will wait two weeks, which is too long.
Commissioner Strand said this is healthy discussion; however, just two weeks ago Commissioner Turnberg voted against the warming center. He said this is not a new crisis, several years ago he told the City if there is not protection from people freezing, he would open the Civic Center and let them in himself. He said he will still do that if it is what it takes if people are freezing to death. He said he also called the Governor and some people weren’t happy; however, he does not want headlines that because of the City’s action or inaction, human beings froze to death. He said a requirement at the dais is to follow governance procedures and this is his portfolio and he has not been visited with about this He said he appreciates these discussions about safety and involving law enforcement but the people who know what they are talking about must be included, and that is the law enforcement, the public health people and the harm reduction people. He said he would not stand for people being turned away because they are not the right people at the door for these shelters. Some great topics have been raised, he said, and this is a pressing issue and a Downtown issue that is not working adequately. He heard there are nine or ten people on the river where that had been more than 40, he said, and now there are up to 41 people in the warming center, that is a success. They are not on cots, he said; however, they are inside and not freezing. He said capacity in the Gladys Ray shelter has grown so these programs are working. More help is needed, he said, including the State's help and let's all work together, sit down with the public health people and law enforcement people, talk to them and ask them what works, what they need to do and ask what they need.
Commissioner Turnberg said she is trying to bring ideas forward. If this had not been presented, would there be debate tonight on the homeless question or a shelter question, she said. Other ideas that can be voted on and implemented are needed, she said, it is winter.
Mayor Mahoney said the safety of the community is top priority and the system has been working on this vigorously for the last eight months. He said this is all over the country and all over the world. A balance is needed to ensure adequate shelter, winter warming and housing options throughout the winter and beyond, he said, and work is needed to figure out how to address that monetarily. In partnership with the FM Coalition to End Homelessness and its membership, 70 different organizations are working on this, he said. The development of this plan is well under way and the City Commission can expect an update at the next Commission meeting on December 23rd. It is not necessary for the City of Fargo to directly intervene with Operation Safe Fargo when experts in the homeless response system are in the process of developing and implementing a thoughtful comprehensive evidence-based solution to the homelessness in the region, he said. It is good Commissioner Turnberg is bringing it to the forefront for discussion; however, the local team needs to work on this and bring forth a plan that will work. He said there appears to be a viable plan that will make many people in the community pleased. He said he sees hope for Fargo to get money from our legislative partners and he has also talked to the Governor elect who is committed to help. This is not something Fargo can do alone, he said. He will bring a better plan in two weeks, he said, and it will be something the Board can support and be proud of. He said the team has worked on it very vigorously.
Commissioner Turnberg moved the implementation of Operation Safe Fargo be approved.

Second by Piepkorn. On call of the roll Commissioners Turnberg and Piepkorn voted aye.
Commissioners Strand, Kolpack and Mahoney voted nay.
The motion failed for the lack of a majority.

Kelsey Roseth Appointed to the Civil Service Commission:
The Board received a communication from Mayor Mahoney recommending that Kelsey Roseth be appointed to the Civil Service Commission.
Commissioner Kolpack moved Kelsey Roseth be appointed to the Civil Service Commission for a term ending June 30, 2026.

Second by Strand. On call of the roll Commissioners Kolpack, Strand, Piepkorn, Turnberg and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.

Applications for Property Tax Exemptions for Improvements Made to Buildings Approved:
a. Bruce and Judith Seibel, 1638 West Gateway Circle South (5 years).
b. Brian and Annette Ingulsrud, 611 Southwood Drive South (5 years).
c. Robert and Kari Hatfield, 2725 26th Avenue South (5 years).
d. Michael and Laura Fischer, 2608 38th Avenue South (5 years).
e. Brian Milne, 5504 15th Street South (5 years).
f. Michelle Cooper, 1306 18th Street South (5 years).
g. Hugh Veit and Margaret Fitzgerald, 2014 East Rose Creek Parkway South
(5 years).
h. Rick and Karen Johnson, 1613 37 1/2 Avenue South (5 years).
i. Rick and Karen Johnson, 1613 37 1/2 Avenue South (5 years).
j. Brian and Stacy Roney, 3233 42nd Avenue South (5 years).
k. Tina Williams, 1810 11th Avenue South (5 years).
l. New Covenant Properties LLP, 1001 4th Avenue North (5 years).
m. Lauren Erdahl, 3304 18th Street South (5 years).
n. Seth and Caroline Maliske, 1703 East Rose Creek Parkway South (5 years).
o. Joanne Kaeding, 2813 10th Street North (5 years).
p. Durward and Karon Garrett, 1433 12th Street North (5 years).
Commissioner Piepkorn moved the applications be approved.

Second by Turnberg. On call of the roll Commissioners Piepkorn, Turnberg, Kolpack, Strand and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.

Liaison Commissioner Assignment Updates:
The Commissioners gave reports on the Boards and Committees on which they serve.

Resident Comments:
Cheryl Bergian spoke about the need for compassion and support for those with addiction; Jessie Azure shared neighborhood concerns about the possible location of STAND (Sex Offender Treatment ND) and the need for future Ordinance changes to the subcategory of medical facilities.

The meeting adjourned at 7:19 o’clock p.m.