Board of City Commissioners - June 22, 2026 Minutes

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 4:15 o'clock p.m., Monday, June 22, 2026.
The Commissioners present or absent were as shown following:
Present: Kolpack, Piepkorn, Strand, Turnberg, Mahoney.
Absent: None.
Mayor Mahoney presiding.

Mayor Mahoney announced that the Board of City Commissioners will retire into Executive Session in the Red River Room for the purpose of (1) receiving its attorney’s advice regarding and in anticipation of reasonable predictable civil litigation with James and Vicki Ingstad regarding their property located at 1102 32nd Avenue South and to receive its attorney’s advice and guidance on the legal risks, strengths and weaknesses of an action of a public entity, which if held in public, would have an adverse fiscal effect on the City; and (2) for purposes of discussing negotiation strategy with its attorney or other negotiator regarding a pending annexation proceeding with Fercho Properties, LLP and to receive its attorney’s advice and guidance on the legal risks, strengths and weaknesses of an action of a public entity, which, to discuss these matters in an open meeting will have a negative fiscal effect on the bargaining and/or litigation position of the City. Thus, an Executive Session for this matter is authorized pursuant to North Dakota Century Codes 44-04-19.1 subsections 2, 5 and 9 and North Dakota Century Code § 44-04-19.2, subsection 1.

Commissioner Kolpack moved the Commissioners meet in Executive Session in the Red River Room as authorized by North Dakota Century Codes § 44-04-19.1 subsections 2, 5 and 9 and North Dakota Century Code § 44-04-19.2, subsection 1 to discuss said matters.

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

At 4:17 o’clock p.m. the Board moved to the Red River Room to discuss the matters in Executive Session.
Members present were: Kolpack, Piepkorn, Strand, Turnberg, Mahoney.

The Executive Session closed at 4:45 p.m. and the meeting reconvened in public session at 5:00 o’clock p.m.
All Commissioners present.
Mayor Mahoney presiding.

Plaques were presented to Director of Strategic Planning and Research Jim Gilmour, who is retiring after serving the City for more than 31 years, and to Executive Assistant Kember Anderson, who is leaving the City after 17 years.

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

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

Minutes Approved:
Commissioner Turnberg moved that the Minutes of the Regular Meeting of the Board held on June 8, 2026 be approved as read.

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

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

1. Letter of Support for Synclaire Events Center to the ND Opportunity Fund Consortium.
2. Certificate of Completion with Great Plains Block 3 Holdings, LLC and Tax Increment Revenue Note of 2026 (Tax Increment District 2021-01 Project).
3. Authorize the Mayor to sign documents that allow property tax exemptions approved by the City Commission to be the community match for the Bank of ND Flex PACE Program.
4. Authorize City Administration to sign letters of support for the ND Opportunity Fund Program.
5. Waive requirement to receive and file an Ordinance one week prior to 1st reading and 1st reading of an Ordinance Amending Section 1-0305A of Article 1-03 of Chapter 1 of the Fargo Municipal Code Relating to Classification of Ordinance Violations.
6. 2nd reading, waive reading and final adoption of an Ordinance Amending Section 21.1-0102 of Article 21.1-01 of Chapter 21.1 of the Fargo Municipal Code Relating to the International Residential Code; 1st reading, 6/8/26.
7. Agreement Concerning Annexation and Standstill Period with Fercho Properties, LLP and APLD FAR-01 LLC.
8. Renewal of the Alcoholic Beverage Licenses and Live Entertainment Licenses until 6/30/27, contingent upon all essential requirements for renewal are met by 6/30/26.
9. Site Authorizations for Games of Chance.
10. Applications for Games of Chance.
11. Developer Agreement with Rising Investments, LLC for Horizon Addition.
12. Amendment No. 3 in the amount of $50,000.00 ($25,000.00 City of Fargo’s share) for Project No. QN-23-B0.
13. Agreement Regarding Deferral of Special Assessments for Enclave Covey, LLC.
14. Contract and bond for Project No. NR-26-C3.
15. Contract and bond for Project No. NR-26-C4.
16. Contract and bond for Project No. UR-26-A1.
17. Amendment No. 6 in the amount of $27,892.00 for Improvement District No. BN-25-A0.
18. Memorandum of Offer to Landowner for Easement (Temporary Construction Easement) with Alexander J. Herz and Cassie D. Herz (Improvement District No. BR-26-G1).
19. Create Improvement District No. BR-26-D and adopt Resolution of Necessity (Paving and Utility Rehab/Reconstruction).
20. Receive and file the Amendment to the Limited Franchise Agreement with Cass County Electric Cooperative, Inc., adding the area annexed by the City of Fargo on 4/14/26.
21. Items from FAHR Meeting:
a. Receive and file General Fund - Budget to Actual through 5/31/26.
b. Acceptance of an anonymous donation of $1,500.00 and related budget adjustment.
c. Request to overfill the 8/3/26 Fire Academy by one firefighter position.
d. Downtown Parking Policy/Procedure and rate structure updates as presented.
e. Amendment No. 2 to Consulting Agreement with czb, LLC (RFP22159).
22. Reallocation of approximately $1.5 million in unspent Series 2024G bond proceeds to facility-related projects, as presented.
23. Notice of Grant Award from the ND Department of Emergency Services for FY 2025 State Homeland Security Grant Program and related budget adjustments.
24. Notice of Grant Award from the ND Department of Environmental Quality for Water Pollution - EPA Block (CFDA #66.605).
25. Rural Health Transformation Program Grant Agreement from the ND Department of Health and Human Services and the Rural Health Transformation Project (CFDA #93.798).
26. Resolution approving Plat of Horizon Addition (Attachment “A”).
27. Resolution approving Plat of Timber Parkway Twelfth Addition (Attachment “B”).
28. Resolution approving Plat of Grafstrom Second Addition (Attachment “C”).
29. Resolution approving Plat of Lenthe’s Second Addition (Attachment “D”).
30. Change Order No. 2 in the amount of $143,000.00 for Project No. WA2502.
31. Contract and bond for Project No. WA2506.
32. Contract and bond for Project No. WA2512.
33. Bill of Sale with Cass Rural Water Users District to transfer the ownership of the Effluent Reuse Facility to the City of Fargo.
34. Bills in the amount of $14,479,337.27.

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

Application Filed by Divine Taste of Africa Cuisine Catering Services LLC d/b/a Divine Taste of Africa for an Alcoholic Beverage License Continued to July 20, 2026:
A Hearing had been set for this day and hour on the application filed by Divine Taste of Africa Cuisine Catering Services LLC d/b/a Divine Taste of Africa for a Class "GH" Alcoholic Beverage License at 855 45th Street South, Suite A1, notice of which had been duly published in the official newspaper for the City of Fargo.

Commissioner Piepkorn moved the Hearing be continued to 5:05 p.m. on Monday, July 20, 2026.

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.

Hearing on an Application Filed by La Terraza LLC d/b/a La Terraza Mexican Bar & Grill for an Alcoholic Beverage License Continued to July 20, 2026:
A Hearing had been set for this day and hour on the application filed by La Terraza LLC d/b/a La Terraza Mexican Bar & Grill for a Class "FA" Alcoholic Beverage License at 5570 32nd Avenue South, notice of which had been duly published in the official newspaper for the City of Fargo.

Commissioner Piepkorn moved the Hearing be continued to 5:05 p.m. on Monday, July 20, 2026.

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.

Application Filed by Polished Nail Spa, Inc. d/b/a Polished Nail Spa for an Alcoholic Beverage License Approved:
A Hearing had been set for May 26, 2026 on the application filed by Polished Nail Spa, Inc. d/b/a Polished Nail Spa for a Class "W" Alcoholic Beverage License at 4265 45th Street South No. 129, notice of which had been duly published in the official newspaper for the City of Fargo.
At the May 26, 2026 Regular Meeting, the Hearing was continued to this day and hour.
No written protest or objection to the granting of the application has been received or filed in the office of the City Auditor, and said application has been approved by the Police Department as to the character of the applicant.
The Board determined that no person is present at this Hearing to protest or offer objection to the granting of the application.

Commissioner Piepkorn moved the application 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.

Application Filed by BCKM Enterprises d/b/a North Brewing for an Alcoholic Beverage License Approved:
A Hearing had been set for May 26, 2026 on the application filed by BCKM Enterprises d/b/a North Brewing for a Class "Y" Alcoholic Beverage License at 3105 North Broadway #7, notice of which had been duly published in the official newspaper for the City of Fargo.
At the May 26, 2026 Regular Meeting the Hearing was continued to this day and hour.
No written protest or objection to the granting of the application has been received or filed in the office of the City Auditor, and said application has been approved by the Police Department as to the character of the applicant.
The Board determined that no person is present at this Hearing to protest or offer objection to the granting of the application.

Commissioner Piepkorn moved the application 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.

Application to Transfer the Alcoholic Beverage License from SMC Fargo JV, LLC d/b/a Fargo Courtyard to Brandt Hospitality Group, Inc. d/b/a Fargo Courtyard Approved:
A Hearing had been set for this day and hour on the application to transfer the Class "ABH" Alcoholic Beverage License from SMC Fargo JV, LLC d/b/a Fargo Courtyard to Brandt Hospitality Group, Inc. d/b/a Fargo Courtyard at 2249 55th Street South, prior notice of which had been duly published in the official newspaper for the City of Fargo.
No written protest or objection to the granting of the application has been received or filed in the office of the City Auditor, and said application has been approved by the Police Department as to the character of the applicant.
The Board determined that no person is present at this Hearing to protest or offer objection to the granting of the application.

Commissioner Piepkorn moved the application 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.

__Hearing on a Dangerous Building located at 111-113 32nd Avenue North: City Attorney’s Office Directed to Prepare the Appropriate Findings of Fact and Order:
A Hearing had been set for this day and hour on a dangerous building located at 111-113 32nd Avenue North.
Inspections Director Shawn Ouradnik said the property is a wood frame bi-level duplex built in 1976. He said the building is vacant and uninhabitable due to conditions and no utility service. The key issues, he said, include no current water services, missing siding, junk stored under the deck and in rear yard, numerous structural defects, water damage, deficient smoke detectors, electrical hazards and broken windows. Vagrants have broken in previously, he said and there are general unsafe conditions and extensive junk accumulation as well as more than 35 calls for service since January 2023. The property ownership has been in dispute due to the owner’s incarceration, bank foreclosure and documents provided by a tenant showing possible rights to manage the property, he said. The tenant was issuing leases, taking money and taking water service from neighbors during this time, he stated. The water at the home was disconnected and the curb stop had to be filled with sand, he said, in order to keep those in the house from turning the water on without authorization. The court issued a Special Execution in January 2026, he said, directing the Sheriff to proceed with the foreclosure sale of the property; however, the most recent docket entry reflects the Special Execution was returned by the Sheriff with no action taken. The foreclosure sale is also listed as closed, he said.
In response to a question from Commissioner Strand asking if there is any potential for the City to reach out to the bank or whoever holds the title to let them know they have a window of opportunity to salvage the property, Mr. Ouradnik said notices for dangerous buildings are sent to every party involved, including any banks with a financial interest and any owners listed on Cass County records. He said all are fully notified of everything and Inspections is willing to work with them on extensions if there are circumstances outside of their control.
Commissioner Piepkorn said he lives in North Fargo and residents have contacted him about this property. He said there have been multiple law enforcement issues at this property, including complaints about vagrancy and other activities.

Commissioner Piepkorn moved the City Attorney’s Office be directed to prepare and serve the owner with the appropriate Findings of Fact and Order and the Inspections Department be authorized to solicit proposals for the removal of this structure if it is not removed within the time allowed by the Board’s Order.

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

Parcels of Land in Lost Creek First Addition Rezoned (6685 57th Street South and 5120 64th Avenue South):
At a Hearing held on May 5, 2026 the Fargo Planning Commission recommended approval of a change in zoning from AG, Agricultural to SR-4, Single-Dwelling Residential, SR-5, Single-Dwelling Residential, MR-3, Multi-Dwelling Residential with a C-O, Conditional Overlay, and P/I, Public and Institutional. The City Auditor's Office published a Notice of Hearing stating this is the time and date set for said Hearing at which time all interested persons could appear and would be heard. At the May 26, 2026 Regular Meeting, the Hearing was continued to this day and hour.
Planning Director Nicole Crutchfield said this project is uniquely challenging due to the fact that it represents the first subdivision and zoning request reviewed under the 2024 Growth Plan, pushing the absolute edge of City growth where regional infrastructure is not yet in place. The situation is further complicated by conflicting recommendations, she said and a timeline that requires reviewing policy development simultaneously with the specific permit request, rather than handling them separately. Although the Planning Department typically seeks a continuation or a denial when such policy conflicts arise, she stated, the developer is pushing forward due to strict time constraints and high market demand. Multiple City departments and external agencies, including Engineering, Public Works, Police, Fire and the West Fargo School District, are recommending denial due to technical concerns regarding future infrastructure, flood protection and public safety, she said. This complex review coincides with the upcoming Covey Ranch development nearby, she said, making a "yes" to this Plat a direct commitment to future infrastructure demands, a decision made heavier by Legislative actions regarding a 3% cap and the City's recent Moody's rating downgrade.

City Engineer Tom Knakmuhs said the proposed Lost Creek development requires significant, unbudgeted infrastructure investments totaling between $5.5 million and $20 million, excluding local interior roads. To support the area, he stated, the City would need to spend nearly $1 million to extend the sanitary sewer system via a new lift station and approximately $600,000.00 to extend a 16-inch water main. Major decisions also loom for the surrounding roadways, he said, specifically regarding whether to pave 64th Avenue and Veterans Boulevard to a rural asphalt standard or an urbanized concrete section. While a "yes" vote from the City Commission would mandate that these infrastructure improvements happen, he said, it would not dictate immediate funding mechanisms. He said funding remains a separate decision for the Commission, which must decide whether to continue the historical practice of special assessments for greenfield developments or require the developer to pay for the infrastructure directly. Compounding these challenges are severe, unresolved disagreements within the Developer's Agreement, he said. The developer has redlined the agreement to keep Veterans Boulevard as gravel instead of asphalt, insisted that all future improvements must be special assessed and added language to waive requirements for flood-proof basements, he said. Engineering strongly advises preserving the Commission's authority and funding flexibility, he said, and this level of policy debate is highly unusual for a standard plat application and still hinges on a formalized Memorandum of Understanding (MOU) with the City of Horace.

Ms. Crutchfield said that while the City prefers to separate long-range policy development from technical reviews, this application has triggered a quasi-judicial process with a strict, legally mandated "shot clock" timeline that requires swift action to avoid automatic approval by default. She said she understands the developer's tight schedule and the broader challenges of housing availability, yet the core issue is that the necessary structural engineering and infrastructure designs were not completed before the permit application was submitted. She said she has prepared two options for the City Commission to consider:
Option 1: To accept the findings and recommendations of staff and move to deny the proposed zone change and Plat.
Option 2: To accept the findings and recommendation of the Planning Commission and approve the proposed 1) zone change from AG, Agricultural to SR-4, Single-Dwelling Residential, SR-5, Single-Dwelling Residential, MR-3, Multi-Dwelling Residential with a C-O, Conditional Overlay, and P/I, Public and Institutional; and 2) Plat of Lost Creek First Addition, as the proposal does comply with Fargo Growth Plan 2024, Sections 20-0906.F (1-4) and 20-0907 of the Land Development Code and all other application requirements of the Land Development Code subject to the following conditions to be met prior to the Plat recordation:
1. Technical review of the Plat shall be completed and approved by the City Engineer.
2. A Developer Agreement must be approved by the City Commission and shall:
a. Preserve the City Commission's authority to determine the timing, design and paving standards for future infrastructure improvements;
b. Preserve the City Commission's authority to determine the funding mechanism for future infrastructure improvements;
c. Affirm compliance with all applicable flood protection, floodplain management, FEMA and City requirements; and
d. Address any other terms deemed necessary by the City Commission.
3. An Amenities Plan shall be approved by the City.
4. A Memorandum of Understanding (MOU) between the City of Fargo and the City of Horace regarding the design, construction, ownership, operation and maintenance of Veterans Boulevard shall be approved.
5. Public Works and Police service impacts shall be evaluated and incorporated into future City budget and service planning processes.
To protect the City, she said, Planning's proposed conditions would preserve the City Engineer’s authority to approve the technical review, maintain the City Commission's oversight of the Developer Agreement and mandate a finalized Infrastructure Agreement with the City of Horace to ensure Veterans Boulevard actually has a connecting road.

Commissioner Piepkorn said the situation presents two competing recommendations based on vastly different perspectives: the staff’s recommendation to deny, which upholds the City's established planning frameworks, and the developer's push for approval, given that a denial would legally prevent them from reapplying for three months. Beyond the procedural conflict, he said, there are significant public safety concerns, noting that the site lacks any trees within 300 yards, a vulnerability reminiscent of past infrastructure and safety challenges faced during heavy snow years on 19th Avenue North. In such open areas, he said, multiple winter storms cause severe drifting even after the weather clears, meaning approval would legally commit the City to clearing snow in a location that currently lacks nearby Police and Fire infrastructure. While the financial costs of expanding these services are incredibly high, he said, public safety must remain the City's number one priority.

Public Works Director Ben Dow said dropping the development into the middle of a wide-open field, with a mile of open terrain and a regional retention pond to the north, leaves it completely vulnerable to severe winter weather. Even a minor 20-mile-per-hour wind would blanket the area in heavy snow drifts, he stated, while a full-blown blizzard would make clearing and maintaining the half-mile stretch leading to the development nearly impossible. This poses a severe risk to emergency services, he said, as the City is legally and professionally obligated to respond to fires, medical emergencies or Police calls. Budget constraints prevent Public Works from adding personnel to handle this expansion, he said, and he warned that reliably guaranteeing response times will be incredibly difficult and attempting to service the area would inevitably pull vital resources away from established neighborhoods in town.

Commissioner Piepkorn said a valuable lesson was learned when Davies High School was built off 25th Street. He said it was fiercely debated whether to lay down temporary asphalt and utilize a rural road design and as we now know, that entire area filled in incredibly fast and he predicts the exact same rapid growth will happen in the Lost Creek development. He said the right thing to do is to put the permanent, correct infrastructure in the ground from day one. It is a massive amount of money, he said; however, he strongly encourages the Commission to do it right the first time.

City Administrator Michael Redlinger said the City’s Comprehensive Growth Plan and the GO2030 initiative specifically address the immense resources required at the edge of City development. The City has repeatedly been challenged to define a strict Return on Investment (ROI) for these edge expansions, he said and the City’s consultants working on the Land Development Code update are actively trying to build an ROI model. He said the current data is not solid enough to project an accurate, long-term return on investment.

In response to a question from Commissioner Strand asking about the regional infrastructure that is estimated to cost $20 million and would initially be special assessed; however, does that $20 million get bonded by the City to facilitate the development, Finance Director Susan Thompson said that is correct and it would add to the City’s total debt. She said the City is managing roughly $1.37 billion to $1.5 billion in total debt and historically, the City has utilized bonding backed by future development to facilitate this kind of growth. She said this project would be wrapped into the annual assessment process. Every year, she said, the City issues a Refunding Improvement Bond to cover all ongoing construction, which routinely includes neighborhood infrastructure projects like this one. She said the City is not going to get away from the debt; it is simply a matter of how much debt is the City willing to take on and for what specific purposes. Those are the serious fiscal considerations the City Commission needs to weigh, she said.

Mr. Redlinger said the City is trying to establish a new review process for applications to better understand the immediate and long-term cost implications of supporting long-range housing growth. He said that due to the fact that this site is located a substantial distance away from existing infrastructure, the geographic gap will create serious operational challenges. This situation revives a philosophical debate held about 10 years ago regarding whether the City should stop special assessing properties and prioritize infill development over greenfield expansion, leaving questions about whether this project will pay for itself or yield a true return on investment, he said. Historically, the City's gold standard was to ensure developers paid for interior laterals and local infrastructure to maintain orderly growth, he stated; however, there is no simple, black-and-white answer as to the right approach. Ultimately, he said, installing regional infrastructure has become vastly more expensive in the current economic environment and he emphasized the City must be incredibly thoughtful and methodical about its long-range plans.

In response to a question from Commissioner Turnberg asking if Option No. 2 is selected, does the City Commission need to decide tonight how infrastructure will be paid for or is that something that can be worked out later, Ms. Crutchfield said that process would align with the specific language in condition No. 2b of Option No. 2.

Mayor Mahoney said the core difficulty with this proposal is that it departs from the City's historical pattern of development, such as Davies High School or the Osgood area, which typically took 10 to 20 years of continuous building to yield a true ROI and it currently lacks a consensus regarding special assessment funding. While the Planning Department evaluates projects with an eye toward affordable housing, he stated, this proposal is uniquely problematic due to the fact that it features 15 active, unresolved redlines on the Developer's Agreement containing terms that are completely unreasonable for the City to accept. For instance, he said, the City must retain the authority to decide whether a regional arterial road is built with concrete or asphalt to prevent taxpayers from footing the bill for a failed road in five years, especially since neighboring Horace is already struggling to fund the massive infrastructure expansion this project triggers on its border. Ultimately, this situation presents a perfect opportunity for a comprehensive policy discussion with the incoming Commissioners and Mayor to determine future development incentives, he said. A vote for denial would require the developer to wait three months to reapply under updated rules, he said, while an approval with conditions would force both parties back to the table to iron out these major technical disputes.

Commissioner Turnberg moved to accept the findings and recommendations of the Planning Commission and approve the rezoning and Plat for Lost Creek First Addition contingent upon the conditions being met in Option No. 2.

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

First Reading of an Ordinance Rezoning Certain Parcels of Land Lying in Lost Creek First Addition to the City of Fargo, Cass County, North Dakota:

Commissioner Turnberg moved the requirement relating to receipt of the Ordinance by the Commission one week prior to first reading be waived and that the Ordinance Rezoning Certain Parcels of Land Lying in Lost Creek First Addition to the City of Fargo, Cass County, North Dakota be placed on first reading.

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

Resolution Adopted Approving Lost Creek First Addition:

Commissioner Turnberg offered the following Resolution and moved its adoption:
BE IT RESOLVED BY THE BOARD OF CITY COMMISSIONERS OF THE CITY OF FARGO:
WHEREAS, A Plat has been filed in the office of the City Auditor entitled “Lost Creek First Addition” containing 196 Lots, 11 Blocks and 104.84 acres of land more or less, located at 6685 Veterans Boulevard South and 5120 64th Avenue South; and
WHEREAS, A Hearing was held May 5, 2026 by the Fargo Planning Commission, and notice of such Hearing had been published, as required by law, and said Plat had been approved by the Fargo Planning Commission and by the City Engineer; and
WHEREAS, The City Auditor's Office published a Notice of Hearing on said Plat in the official newspaper for the City of Fargo on May 13 and 20, 2026 that a Hearing would be held in the Commission Chambers, City Hall, Fargo, North Dakota at 5:05 p.m., May 26, 2026 at which time said Plat would be considered and all interested persons would be heard. At the May 26, 2026 City Commission meeting, the Hearing was continued to June 22, 2026 at which time said Plat would be considered and all interested person would be heard.
NOW, THEREFORE, BE IT RESOLVED, That the findings and recommendations of staff and the Planning Commission be accepted and the Plat entitled “Lost Creek First Addition” be and the same is hereby in all things affirmed and approved on the basis that it complies with the Standards of Article 20-06, and all other applicable requirements of the Land Development Code, and that the Mayor of the City of Fargo and the appropriate City Officials are hereby directed to endorse their approval on the Plat and then direct Petitioner to file same for record in the Office of the Recorder of Cass County, North Dakota.

Second by Kolpack. On the vote being taken on the question of the adoption of the Resolution Commissioners Turnberg, Kolpack, Strand and Mahoney voted aye.
Commissioner Piepkorn voted nay.
The Resolution was adopted.

EAPC Kilbourne Group/Downtown Civic Center Accepted as First-Ranked Proposal for the Convention Center Project: City Directed to Begin Negotiations with EAPC Kilbourne Group for a Development Agreement and the City Attorney's Office Directed to Prepare the Appropriate Amendments to the City's Lodging Tax Ordinances, including Article 3-14 of the Fargo Municipal Code:
City Attorney Ian McLean said on November 5, 2024, voters approved amending the City's Home Rule Charter to authorize a 3% lodging tax with the proceeds of the new lodging tax to be utilized for the costs associated with the construction of a Convention Center and for future capital improvements, maintenance and operation of the Convention Center. The 3% lodging tax will have a term of 25 years once it is commenced, he said. The City Commission thereafter created a Convention Center Committee to create and manage a Request for Proposal process for the selection of a Convention Center project, he stated, subject to the approval of the City Commission. The Committee began meeting in February 2025, he said and continued its work through April 2026. At that time, he said, the Committee ranked the final four proposals and provided its rankings and recommendations to the City Commission. On April 27, 2026, the Committee's chairman presented the Committee's recommendations to the City Commission, he said. The City Commission approved a motion directing City staff and the City Attorney's Office to begin a financial due diligence review of the two highest-ranked proposers, he said, for purposes of evaluating a potential public-private partnership for the construction of a Convention Center. On May 21, 2026, the City Commission held an Informational Meeting at which time the City Attorney's Office provided an update and summary of the due diligence responses submitted by the two finalists and the City Commission was provided an opportunity to ask questions of both finalists, he said. On May 26, 2026, the City Commission directed City staff to continue the due diligence process and engage Baker Tilly to perform an independent financial evaluation of the two finalist proposals and provide an update at the June 22, 2026, meeting, he said. The next step in this process is for the City Commission to select one of the two finalists as the first-ranked proposal and authorize City staff to begin negotiations with the selected proposer regarding a Development Agreement and related project documents, he said. Selection as the first-ranked proposal does not constitute approval of a Development Agreement, he said, approval of any public financing, approval of any Tax Increment Financing structure or authorization to commence construction. Rather, he said, selection of a first-ranked proposal authorizes City staff to proceed with negotiations with the first-ranked proposal toward a Development Agreement and continue any additional due diligence deemed necessary related to the first-ranked proposal. Regardless of which proposal is selected as the first-ranked proposal, he said, there remain numerous items that must be negotiated and evaluated as part of any potential Development Agreement. Any proposed Development Agreement, financing documents, Tax Increment Financing proposals, Lodging Tax Ordinances or related agreements will be presented to the City Commission for consideration and approval at a future public meeting, he stated. If negotiations with the first-ranked proposer are unsuccessful or the City determines that proceeding with the first-ranked proposal is not feasible, he said, the City may discontinue negotiations and begin negotiations with the other finalist. Additionally, the City cannot begin collecting the 3% lodging tax until it approves amendments to the City's Lodging Tax Ordinances for such purposes, including defining the start and end of the 25-year term, he stated. City staff’s goal is to have any Development Agreement and lodging tax Ordinances approved this Fall, he said, which would provide sufficient time to notify affected hotels and implement the new lodging tax rate for collection beginning January 1, 2027, ahead of anticipated construction in the Spring of 2027.

Commissioner Kolpack said the Convention Center location choice is a historic, long-term decision regarding public asset stewardship and the future shape of Downtown Fargo. She said while an independent financial comparison did not yield a clear frontrunner, she supports the Brewhalla site due to the fact that it offers free land, shifts operating risk away from taxpayers and features a highly defensible Tax Increment Financing (TIF) model. Rather than forcing a compromise, she said, she proposes a dual-destination strategy inspired by Sioux Falls, South Dakota by building the Convention Center at Brewhalla to capture one-time regional visitors, while preserving the Downtown Civic Center site for a future Performing Arts Center to cultivate permanent, local retail patrons. Citing visionary historical expansions such as West Acres and the Northern School Supply building, she said the Brewhalla proposal minimizes taxpayer risk, honors the Convention Center Committee's rankings and maximizes future cultural and economic opportunities for subsequent generations.

Commissioner Piepkorn said the decision needs to be driven by fact rather than emotion. He said there is no new TIF being proposed for the Downtown site, whereas a $100 million TIF is being proposed for the Brewhalla site without prior consensus from the County or School District. He asked who would fund the proposed Performing Arts Center and urged everyone to look closely at the Baker Tilly report, noting the word "risk" appears throughout the entire document for both projects. He said if public property projects fail, General Fund tax dollars will be required to cover the losses and from his perspective, the least risky approach is to utilize an existing facility such as the FARGODOME or the Civic Center to lower public exposure, rather than proceeding with a high-risk proposal that could financially burden taxpayers.
Commissioner Kolpack said a key difference in the Brewhalla proposal was the developer's explicit agreement to accept operational losses as part of their risk.

Commissioner Strand said the City is looking at a minimum $40 million bonding obligation, meaning City debt will grow regardless of the chosen project. He said he is concerned that if the project fails to cash flow, it could become a public boondoggle paid out of the taxpayers' pockets.
Mayor Mahoney said the specific bonding issue would be repaid using a 3% lodging tax revenue.
Commissioner Strand said his concern is if the economy declines, the City will ultimately be responsible for sustaining the deficit past the first two years, noting he wanted a clearer, less ambiguous answer from Baker Tilly on which project carries the least risk to the public.
Mayor Mahoney said Baker Tilly indicated both projects carry operational risks and his responsibility as Mayor is to act in the best interest of the entire community. He said a future Performing Arts Center could be located at the Brewhalla site instead and he said there have been past difficulties raising $70 million for a Performing Arts Center and two previous FARGODOME expansion votes failed. He said the local Science Museum is currently struggling to secure $50 to $60 million, illustrating how difficult fundraising can be in the community. He said the Downtown proposal is backed by 30 local business owners and he credited City Administration for successfully raising Downtown property values from $250 million to $1 billion over the years. He said if the City rejects the Downtown site, it faces a $2 million demolition cost for the Civic Center with no clear replacement plan, leaving two adjacent City buildings with no value. The Downtown proposal incorporates those buildings into a revenue-generating project and an existing riverfront TIF could provide up to $1 million in revenue to cover potential losses. He said initial operational losses for the first five years are structured to be covered on a declining scale and a Convention Center is smaller than the FARGODOME and carries lower potential losses. He said he thanks the competing developers for their excellent presentations; however, Downtown needs the support at this time.

Commissioner Strand moved that the proposal of EAPC Kilbourne Group/Downtown Civic Center be deemed and accepted as the first-ranked proposal for the Convention Center Project and the City is to immediately begin negotiations with the first-ranked proposer for a development Agreement for the Convention Center and hotel project and the City Attorney's Office to prepare the appropriate amendments to the City's lodging tax Ordinances, including Article 3-14 of the Fargo Municipal Code.

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

Use of Tax Increment Financing (TIF) Funds for the Convention Center Project Approved: City Staff Directed to Identify the Appropriate Action to be Taken by the City to Authorize Such Use for the Convention Center Project and to Report Back to the City Commission with Staff’s Recommendations:

Commissioner Strand moved the use of Tax Increment Financing (TIF) funds for the Convention Center Project be approved and City staff be directed to identify the appropriate action to be taken by the City to authorize such use for the Convention Center Project and to report back to the
City Commission with staff’s recommendations.

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

Request for Spirit of Fargo Funds for Use at the Resource and Recovery Center Approved:
City Attorney Erik Johnson said that during the 2009 flood, the Mayor partnered with the Impact Foundation and Dakota Medical Foundation to establish the Spirit of Fargo Fund, which raised approximately $280,000.00. He said that while the money was initially used for student scholarships, no funds have been spent since 2017, leaving a current balance of about $144,000.00. The fund's original purpose of flood fighting was later expanded by the Impact Foundation to encompass other natural disasters, he stated, and the Mayor is exploring whether these remaining funds can be directed toward the new Resource and Recovery Center, which provides temporary shelter during natural disasters and it satisfies the donors' intent. He said approving the Resolution will allow the Impact Foundation to officially release the remaining money to the City for this project.

Mayor Mahoney said he is requesting the City Commission consider the Resolution requesting the Impact Foundation approve the release of the remaining money in order to help pay for the the fit-up, installation of necessary fixtures and equipment, and supportive operations including winter warming shelter, at the new Resource and Recovery Center. He said the fund agreement provides that the funds be used to support initiatives, programs and projects in the areas of education, economic development and civic/faith-based partnerships in the Cass County area to reduce the negative impact of flooding and other natural disasters. He said the City and the surrounding area have experienced both river- and rainfall-event flooding and other natural disasters including ice storms, snow storms and blizzards, and extreme cold spells as well as infrastructure failures that can result from such natural disasters including fires, power outages, frozen water pipes and plumbing, loss of heat and the like. He said the people affected by such events will include Fargo residents, travelers and others and those people will need the supportive assistance and programing, including temporary winter warming shelter, being provided at the Resource and Recovery Center in the event of such disasters.

Olivia Fischer spoke.

In response to a question from Commissioner Kolpack asking if this is just for disaster-related projects and it meets the criteria, Mr. Johnson said the Impact Foundation Board of Trustees will ultimately make the determination. He said that Board needs to receive the official request from the City, which is what an approval vote would be.

In response to a question from Commissioner Turnberg asking if there were an event such as a tornado, would this money be used to help displaced residents, Mr. Johnson said it would.

Commissioner Turnberg said her concern is the City keeps pumping money into a rental and the City does not own the building where the Resource and Recovery Center is located. She said the building was supposed to be funded by donors.
In response to a question from Commissioner Turnberg asking if donations are not coming in, Mayor Mahoney said donors are coming through; however, not quite to the level he had hoped. With the Convention Center discussion, the City also had the option to buy the Resource and Recovery building; however, that goes away now with the Convention Center not being at the Brewhalla site. The current space could be permanent, he said, and the intent would be to perhaps have the State purchase it.

Commissioner Turnberg moved that this issue be delayed for the new Commission and Mayor to decide since the Foundation Board will not be meeting until August.

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

Mayor Mahoney said if there is not enough funding from donors coming in, the City will have to make up the deficit, which puts a burden on the General Fund. He said the results of the Resource and Recovery Center moving has made a huge impact Downtown. The Center is serving people in need, he stated and there are 35 nonprofits working with the City. This is giving money to an organization that helps decrease the cost for the City, he said, which is fiscally smart and when the fund was set up, it was to help people and that is how it is going to be used.
Commissioner Strand moved the Resolution titled “Resolution – Use of “Spirit of Fargo” Funds for the Resource and Recovery Center Fit-Up and Programming in the Event of Flooding and Natural Disasters,” and referred to as “Attachment E,” be adopted and attached hereto.

Second by Kolpack. On the vote being taken on the question of the adoption of the Resolution Commissioners Strand, Kolpack and Mahoney voted aye.
Commissioners Piepkorn and Turnberg voted nay.
The Resolution was adopted.

Human Rights Commission Concluded:
City Attorney Directed to Amend Any Associated Ordinances and Resolutions for the Human Rights Commission, Arts and Culture Commission and Native America Commission:

Commissioner Strand said over the past several years, the City Commission has engaged in ongoing discussions regarding the future and effectiveness of several advisory boards, including the Arts and Culture Committee (ACC), the Native American Commission (NAC) and the Human Rights Commission (HRC). He said ACC has been placed on permanent hold unless budgeted or Federal grant assistance is needed and supported by the City Commission, NAC has concluded and moved to a transition plan, to include an independent community-based group that will continue to work collaboratively with the City through city engagement and the HRC was deferred to a subsequent City Commission. As the City Commission representative attending Human Rights Commission meetings, he said, he observed the HRC’s work and challenges firsthand. Throughout its history, he said, the HRC has evolved in response to community needs; however, it continues to face the inherent tension between advocacy and the governance framework within which it operates. After careful consideration, he said, he is recommending the City Commission conclude the HRC in its current form. He said he wants to express his sincere appreciation to all past and present members for their dedication, service and commitment to advancing human rights within the community. He said he believes the mission of promoting and protecting human rights is best served through active community engagement, partnerships with local organizations and grassroots initiatives. By operating as an independent, community-oriented entity, he stated, a human rights organization can more effectively mobilize community partners and advance its mission beyond the limitations of a governmental advisory board. The City remains committed to the principles of human rights, he stated and looks forward to fostering a strong and collaborative relationship with a community-based human rights organization moving forward. He stated a previous decision was to let this decision be made by the new Commissioners and Mayor and if the decision is to let this wait, he is okay with that; however, he has concluded that if it is not working, do not pretend it is working.

Commissioner Kolpack said there was a specific request by the HRC to make this decision after the new Mayor was seated and she will not support this.

Mayor Mahoney said part of the difficulty in the past in making a decision was the Chair of HRC was running for Mayor, which made it somewhat political. He said the HRC members can work with the State human rights group and form a chapter in Fargo.
Commissioner Strand moved the Human Rights Commission be concluded and the City Attorney be directed to amend any associated Ordinances and Resolutions for the Human Rights Commission, the Arts and Culture Commission and the Native American Commission.

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

Scott Bladholm Reappointed to the Special Assessment Commission:
The Board received a communication from Mayor Mahoney recommending that Scott Bladholm be reappointed to the Special Assessment Commission.

Commissioner Piepkorn moved Scott Bladholm be reappointed to the Special Assessment Commission for a three-year term ending July 1, 2029.

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.

Wanda Mengelkoch and Paul Jensen Reappointed to the Library Board:
The Board received a communication from Mayor Mahoney recommending that Wanda Mengelkoch and Paul Jensen be reappointed to the Library Board.

Commissioner Piepkorn moved Wanda Mengelkoch and Paul Jensen be reappointed to the Library Board for three-year terms ending June 30, 2029.

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.

Scott Brekke and Robert Nelson Reappointed to the Liquor Control Board:
The Board received a communication from Mayor Mahoney recommending that Scott Brekke and Robert Nelson be reappointed to the Liquor Control Board.

Commissioner Piepkorn moved Scott Brekke and Robert Nelson be reappointed to the Liquor Control Board for three-year terms ending July 1, 2029.

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.

Appointments to the Planning Commission:
The Board received a communication from Mayor Mahoney recommending that Scott Stofferahn and Paul Gleye be reappointed to the Planning Commission. He said Tyler Mohs has resigned his position on the Planning Commission; therefore, he is recommending Daniel Sundberg be appointed to fill his position.

Commissioner Piepkorn moved Scott Stofferahn and Paul Gleye be reappointed and Daniel Sundberg be appointed to the Planning Commission for three-year terms ending June 30, 2029.

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.

Applications for Property Tax Exemptions for Improvements Made to Buildings Approved:
a. The Polansky Family Joint Revocable Trust (5 years).
b. 7 Oak Homes LLC (5 years).
c. Austin and Morgan Steichen (5 years).
Commissioner Piepkorn moved the applications be approved.
Second by Kolpack. On call of the roll Commissioners Piepkorn, Kolpack, Strand, Turnberg and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.

A video was shown highlighting Mayor Mahoney’s 21 years of service to the City of Fargo.

Wess Philome and Austin Sletmoe spoke.

The meeting adjourned at 7:03 o’clock p.m.