Fargo City Commission - May 26, 2026
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 4:30 o'clock p.m., Tuesday, May 26, 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 to discuss negotiating strategy or provide negotiating instructions to its attorney or other negotiator regarding contracts with Interstate Parking, which are currently being negotiated and to discuss these matters in an open meeting will have a negative fiscal effect on the bargaining position of the City. Thus, an Executive Session for this matter is authorized pursuant to North Dakota Century Code 44-04-19.1, subsection 9 and North Dakota Century Code § 44-04-19.2, subsection 1.
Commissioner Strand moved the Commissioners meet in Executive Session in the Red River Room as authorized by North Dakota Century Code § 44-04-19.1, subsection 9 and North Dakota Century Code § 44-04-19.2, subsection 1.
Second by Piepkorn. All the Commissioners voted aye and the motion was declared carried.
At 4:33 o’clock p.m. the Board moved to the Red River Room to discuss the matter in Executive Session.
Members present were: Kolpack, Piepkorn, Strand, Turnberg, Mahoney.
The Executive Session closed at 4:46 p.m. and the meeting reconvened in public session at 5:00 o’clock p.m.
All Commissioners present.
Mayor Mahoney presiding.
A video was shown featuring Fargo’s Name a Garbage Truck Contest.
Order of Agenda Approved:
Commissioner Piepkorn moved the Order of the Agenda be approved.
Second by Kolpack. All the Commissioners voted aye and the motion was declared carried.
Minutes Approved:
Commissioner Kolpack moved that the Minutes of the Regular Meeting of the Board held on May 11, 2026 be approved as read.
Second by Turnberg. All the Commissioners voted aye and the motion was declared carried.
Consent Agenda Approved:
Commissioner Piepkorn moved the Consent Agenda be approved as follows:
1. Receive and file 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.
2. Waive requirement to receive and file an Ordinance one week prior to 1st reading and 1st reading of an Ordinance Amending Ordinance No. 5536 Pertaining to Zoning of EOLA Second Addition and J & O 45th Street Apartments Addition to the City of Fargo, Cass County, North Dakota.
3. Settlement Agreement with Dan Wahl concerning the Dangerous Building located at 1544 3rd Avenue South.
4. Site Authorizations for Games of Chance.
5. Applications for Games of Chance.
6. Documented CatEx and Section 4(f)/6(f) for the Red River Bridge Replacement at 12th Avenue (Project No. QR-25-B0).
7. Crossing Surface Installation Agreement with BNSF Railway Company (Project No. RR-26-A1).
8. Bridge Maintenance Agreement with the City of Moorhead, the Park District of the City of Fargo and Clay County for the Red River Bridge.
9. Power Occupancy Agreement with TKE Fraternity for the property located at 1131 14th Street North.
10. Bid award to Key Contracting, Inc. in the amount of $390,845.00 for Project No. UR-26-A1.
11. Bid awards for Project No. NR-26-C2, contingent upon DEQ approval:
a. Key Contracting, Inc. in the amount of $571,947.00 (general construction contract).
b. JDP Electric, Inc. in the amount of $38,919.00 (electrical construction contract).
12. Memorandum of Offer to Landowner for Easement (Temporary Construction Easement) with Jean Pich, Trenton Pic-Armbrust and Vance Pic-Armbrust (Improvement District No. BR-26-G1).
13. Create Improvement District No. UR-26-G and adopt Resolution of Necessity (Sanitary Sewer Lining).
14. Contract and bond for Improvement District No. PR-26-E.
15. Items from FAHR Meeting:
a. Receive and file General Fund - Budget to Actual through 4/30/26.
b. Receive and file Sales Tax Revenue - Accrual Basis.
c. Amendment with Tyler Technologies, Inc. to provide DHD software until 12/31/26.
d. Bid award to HS GovTech in the amount of $95,460.00 and related budget adjustment (RFP26033).
e. Purchase of Service Agreement with Northern Cass Public School District.
f. Sidewalk repair and replacement at the FARGODOME in the amount of $82,000.00 and related budget adjustment (Project No. SR-26-A1).
g. Interfund Loan Agreement between Funds 226 and 227 and related budget adjustments for the purchase of land for the development of a Fire training facility (EX26186).
16. Resolution approving Plat of Selkirk Place Fifth Addition (Attachment “A”).
17. Resolution approving Plat of Bowers Second Addition (Attachment “B”).
18. Resolution approving Plat of Simonson Companies Fifth Addition (Attachment “C”).
19. Bid award to Fargo Freightliner in the amount of $233,000.00 for the purchase of one rear load refuse truck (RFP26177).
20. Services Agreement - Sidewalk Snow and Ice Removal Services City Owned Properties with Valley Green & Associates for the 2026/2027 snow season (RFP22139).
21. Services Agreement - Sidewalk Snow and Ice Removal Services Code Enforcement with Turf Tamers LLC and Valley Green & Associates for the 2026/2027 snow season (RFP22129).
22. Bid award to Precision Dirtworks, LLC in the amount of $556,065.00 for Project No. WA2512.
23. Bills in the amount of $11,452,313.
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.
Hearing on an Application Filed by Polished Nail Spa, Inc. d/b/a Polished Nail Spa for an Alcoholic Beverage License Continued to June 22, 2026:
A Hearing had been set for this day and hour 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 #129; however, the Auditor’s office has requested the Hearing be continued to June 22, 2026.
Commissioner Piepkorn moved the Hearing be continued to 5:05 o’clock p.m. on Monday, June 22, 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 BCKM Enterprises d/b/a North Brewing for an Alcoholic Beverage License Continued to June 22, 2026:
A Hearing had been set for this day and hour on the application filed by BCKM Enterprises d/b/a North Brewing for a Class "Y" Alcoholic Beverage License at 3105 North Broadway #7; however, the Auditor’s office has requested the Hearing be continued to June 22, 2026.
Commissioner Piepkorn moved the Hearing be continued to 5:05 o’clock p.m. on Monday, June 22, 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 Fargo HRA Low Income Housing for Payment in Lieu of Tax Exemption (PILOT) Approved:
A Hearing had been set for this day and hour on an application filed by Fargo HRA Low Income Housing for a payment in lieu of property tax exemption (PILOT) for a project located at 1711 25th Avenue South which the applicant will use for a 65-unit low income, multi-family residential apartment building.
No written protests have been filed for the attention of the Board.
The Board determined that no person is present at this Hearing to protest or offer objection thereto.
Jim Gilmour, Director of Strategic Planning and Research, said this is an application from the Fargo Housing Authority along with Blue Line Development. He said Blue Line Development is a partner in this project due to the fact that they are able to obtain and sell low-income housing tax credits, which is crucial in financing; however, it also makes this project subject to property taxes which is the reason for the property tax exemption request. He said if someone is going to provide low-income housing, they cannot afford to pay full property taxes, especially on a project such as this which serves very low-income people.
Chris Brungardt, Fargo Housing and Redevelopment Authority, said previously at this location there were 14 duplexes or 28 units, which were two and three bedrooms. He said Fargo Housing received permission from HUD to demolish those duplexes and return with a 65-unit multi-family building consisting of one, two and three-bedroom units. Those units will be 100% vouchered, he stated, which means each unit will have a project-based voucher, which will limit residents to a maximum income of 50% of the area median income or less. He said the Fargo School Board and Cass County have voted to fully participate in this exemption.
In response to a question from Commissioner Strand asking about future housing needs, Mr. Brungardt said there is an overwhelming demand for low-income housing in Fargo. He said the recently reopened, 100-unit Lashkowitz building is currently being filled, yet a waiting list of more than 600 people remains. This figure does not include applicant backlogs for regular Housing Choice Vouchers, he said, or for other Fargo Housing projects. He stated that filling low-income developments is never an issue, and demand will only intensify as the City grows. To meet this need, he said, Fargo Housing plans to develop additional low-income units, including the proposed redevelopment of the Burrell and Colonial sites north of City Hall, while evaluating other locations across the City. He said there are specialized tools available to Fargo Housing that private developers lack, such as the Faircloth-to-RAD conversion tool, which restores rental assistance subsidies that were lost when public housing units were demolished or sold over the last 20 years. While Fargo once managed more than 600 public housing units, he said, that number has fallen below 300. This leaves a gap of approximately 300 units for which Fargo Housing can still secure federal funding, he said.
Commissioner Piepkorn moved that the application filed by Fargo HRA Low Income Housing for a 17-year payment in lieu of tax exemption (PILOT) for a project located at 1711 25th Avenue South pursuant to Chapter 40-57.1, NDCC 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.
Application Filed by Najaxa Software, LLC for a Five-Year Property Tax Exemption Approved:
A Hearing had been set for this day and hour on an application filed by Najaxa Software, LLC for a property tax exemption for a project located at 201 5th Street North which the applicant will use for a technology services and software development company.
No written protests have been filed for the attention of the Board.
The Board determined that no person is present at this Hearing to protest or offer objection thereto.
Jim Gilmour, Director of Strategic Planning and Research, said this is an application for a property tax exemption for a project that includes technological services and software development. Najaxa Software is proposing to move into the 14th floor of the Radisson building in Downtown Fargo, he said and the company is currently located Downtown and would be moving to this new location in order to add jobs. This move will allow them to employ people who are no longer in the Fargo metro area or who have never been here, he said, bringing them to the City for very good, high-paying jobs. The Economic Development Incentives Committee recommended approval based on its scoring criteria, he stated. This project scored 178, and since only 120 points are needed to recommend approval, this company received a very strong score, he said.
Ryan Aasheim, Greater Fargo Moorhead Economic Development Corporation, said this is a great example of the rewarding work the GFMEDC gets to do. There are all of these wonderful companies operating in this marketplace that are primary sector in nature, he said, adding value to goods and services, using intellectual property and developing software technology. This company was originally formed in Las Vegas in 2018, he said and moved to Fargo after COVID and is now going through some expansion and growth. The business is currently located in about 2,800 square feet of office space Downtown, he said and due to the fact that the company is growing, it needs to bring on more team members to capitalize on new business opportunities. To achieve this, he said, the company is transitioning from a semi-remote work model to bringing everybody back into the office, which includes moving several people full-time into the Fargo market who do not currently live here. With this expansion, the company will be adding two employees every year for the next five years, he said and these jobs have an average salary of $81,000.00. The company has been looking at other marketplaces to expand, he stated; therefore, this local incentive is crucial.
Jamie Evenson, founder and Chief Executive Officer of Najaxa Software, said the company is a staffing technology company that builds software-as-a-service solutions that are offered to large staffing agencies doing $25 million to more than a billion dollars in revenue. The company operates entirely outside the state of North Dakota, she said, as well as in Canada and does not have any customers in North Dakota at this time, as the focus is primarily national and international. She said she is looking to bring everybody in-house due to the fact that she feels everyone collaborates better and makes better products when everyone is together. The goal is to hire two-plus people a year, she stated; however, looking at where the company is at now, her growth goals might be conservative. At a minimum, she said, she fully expects to see at least two additional people per year.
In response to a question from Commissioner Strand asking about claw back inclusions for all incentives, Mr. Gilmour said the City is currently updating that process. Assistant City Attorney Erik Johnson has been working on a new business incentive agreement that companies will be required to sign, he said and there will be mandatory annual reporting until job goals are met for the first five years. If those goals are not met, he said, the project will come back before the City Commission, who would decide whether to grant a company more time or end the incentive and initiate a possible claw back. He said the overarching framework is in place and what is actively being built now is a structured annual reporting and auditing mechanism, which the City has not yet formalized.
In response to a question from Commissioner Strand asking if there will be a strict enforcement requirement to report, Mr. Gilmour said the new agreement will make reporting a much firmer requirement. Admittedly, he said, in the past, some of these agreements slipped through the cracks or the City did not get the signed documents back. However, the EDC has been doing a good job lately of following up on all current agreements, he said.
In response to a question from Commissioner Kolpack asking about the company’s experience working with the City and the EDC throughout the application process, Ms. Evenson said she was not aware of the EDC before this process started. She said the company moved into its current space about two and a half years ago and Joey Ness from the EDC reached out. At first, she said, she thought it was a sales pitch; however, Mr. Ness assured her that looking into what the EDC had to offer would be in the company’s best interest and the process since then has been great. When someone starts a company, they do not always know who to go to or even what questions to ask, she said. The EDC process has been exceptional and very easy, she said, and it has definitely been a positive experience. She said she would highly recommend it to anyone starting a business in Fargo.
Commissioner Piepkorn moved that the application filed by Najaxa Software, LLC for a 5-year property tax exemption pursuant to Chapter 40-57.1, NDCC be approved.
Second by Kolpack. On call of the roll Commissioners Piepkorn, Kolpack, Turnberg and Mahoney voted aye.
Commissioner Strand voted nay.
The motion was declared carried.
Hearing on Community Development Block Grant (CDBG) and HOME Investment Partnerships Program (HOME) 2026 Action Plan and Budget and Amendments to 2025 Action Plan and Citizen Participation Plan:
Planning Director Nicole Crutchfield said the Planning Department staff has prepared the 2026 Action Plan for the use of U.S. Department of Housing and Urban Development (HUD) funds. She said $1,343,686.76 is anticipated to be available for the 2026 Community Development budget and staff is also proposing amendments to the City’s 2025 Action Plan and the required Citizen Participation Plan. The City is currently in the Public Hearing phase for these plans, she said, and no action from the Board is required at this time with final consideration of the plans and proposed amendments to be determined at the June 8, 2026 City Commission meeting. She said every year, she presents the annual allocation from HUD, as the City has chosen to participate in Community Development Block Grant (CDBG) and HOME grant programs and the City is currently on year two of a five-year consolidated plan. Every five years, she said, the Planning Department undergoes a major goal-setting process, and then follows those goals over the course of the subsequent five years. This presentation represents updates for year two of five, she said. The CDBG is primarily used for construction-related initiatives such as public facility improvements, property acquisition and community programs, she stated and the HOME program is specific to providing housing. This year, the City has chosen to initiate a new tenant-based rental assistance program in partnership with Southeast North Dakota Community Action Agency (SENDCAA), she said. For the majority of the CDBG funds, the City has chosen to pivot toward internal use for alley paving in neighborhoods, she said. Through public outreach, she said, the comprehensive plans, core neighborhood plans and the housing study, she has formed some key goals related to affordable housing, including ending and preventing homelessness, public infrastructure and Federally required fair housing. The actual dollar amounts this year are determined by a formulaic approach set by Congress, she said, and the City was notified about 60 days ago regarding the City’s allocation and chose to direct those funds into existing programs. This includes $102,000.00 for administration, $120,000.00 for public services and $550,000.00 for capital neighborhood improvements, which is the alley paving project, she stated. For the housing-related tenant-based rental assistance, a small amount of contingency coverage is carried in case a program needs to be adjusted, she said. The first alley paving project will be in the Madison neighborhood, she said and those details will be given to the City Commission once the plan gets closer to execution. She said there are standard HUD requirements regarding the citizen participation plan, which involves routine updates where the City must notice the public if edits are made to the participation process itself.
In response to a question from Commissioner Strand asking if this allocation is increasing or decreasing, Ms. Crutchfield said the allocation remains relatively flat every year. She said it typically varies by only $50,000.00 to $100,000.00 annually and the fluctuation depends entirely on whether other jurisdictions fall into or out of formula eligibility rather than any Congressional funding shift.
Dan Madler, Chief Executive Officer of Beyond Shelter, asked the City to revise its 2026 HUD Annual Action Plan before the final vote on June 8th to prioritize long-term affordable housing development over short-term assistance and infrastructure. He said he recognizes the immediate crisis-bridge value of rental assistance and the validity of neighborhood infrastructure projects; however, once those funds are spent, they do not leave behind lasting community assets or expand the City's housing supply.
Ms. Crutchfield said these Federal funds are becoming increasingly impossible to use for the large-scale types of construction projects that Beyond Shelter builds. Allocating a direct contribution of $500,000.00 into a multi-million-dollar construction project, which a City staff of basically two people must then monitor and administrate for a 20-year compliance period, is not a sustainable administrative model, she said. She would welcome an Informational Meeting to take a deeper dive into the regulatory difficulties, she stated and currently there are several past projects with sub-recipients that are struggling to maintain compliance with Federal regulations, which illustrates how difficult these large, multi-year projects are to manage. The most reliable way for her small team to guarantee compliance is to use the funds internally, she said, where they can directly manage the audits and financial systems. This is a nationwide issue, she said and it is not unique to Beyond Shelter. Local jurisdictions across North Dakota, as well as the State itself, have actively turned away from using CDBG funds for this type of development. For HOME funds, attempting new construction has become difficult due to stringent Federal Section 3 and Davis-Bacon wage laws.
Commissioner Strand said there was discussion about two years ago about a regional housing authority model to oversee all of these separate entities; however, that never materialized.
Ms. Crutchfield said it has not happened for a number of reasons. At the metro-wide level, she said she is having trouble getting the joint jurisdictions to pick up the baton regarding the regional housing study.
In response to a question from Commissioner Strand asking if it would be possible to convene various housing stakeholders and developers before the June 8th vote, Ms. Crutchfield said she could try; however, the City is under an incredibly tight deadline and if the submission window is missed, there is a risk of these funds being de-allocated from Fargo entirely.
City Administrator Michael Redlinger said he would propose an Informational Session where housing partners can share these frustrations. It is important to have a frank, transparent conversation with the public to highlight where the regulatory challenges lie, he said, as well as where there are opportunities for improvement.
The Mayor closed the Public Hearing.
Resolution Adopted Approving Lake Agassiz Addition (417 and 501 Main Avenue):
A Hearing had been set for this day and hour to consider approval or denial of an application requesting a Plat of Lake Agassiz Addition.
Current Planning Coordinator Donald Kress said an earlier version of this subdivision, titled the L.J. Laffen Addition, was contingently approved by the City Commission in 2021. Due to a change in the relationship between the City and the intended developer of Lot 1 at the time, he said, the L.J. Laffen Addition was never completed or recorded. He said the L.J. Laffen Addition has been withdrawn and the previous developer is not involved in the Lake Agassiz Addition. This is an entirely new plat that the original development partner is not involved in, he said and it is classified as a major subdivision due to the fact that it dedicates right-of-way along Main Avenue. He said there is a City parking lot on the west side and on the east side is the Lake Agassiz Regional Development Corporation building. The plat divides the property down the Lake Agassiz and City sides, he said.
In response to a question from Mayor Mahoney asking what exactly is this action doing, Mr. Kress said this is taking the property and formally platting these two properties. The Lake Agassiz Regional Development Corporation is going to remain in the same place they are, he said and then the City will have a platted lot to be able to sell.
Commissioner Piepkorn 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 “Lake Agassiz Addition” containing 2 Lots, 1 Block and 1.05 acres of land more or less, located at 417 and 501 Main Avenue; 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.
NOW, THEREFORE, BE IT RESOLVED, That the findings and recommendations of staff and the Planning Commission be accepted and the Plat entitled “Lake Agassiz 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 Turnberg. On the vote being taken on the question of the adoption of the Resolution Commissioners Piepkorn, Turnberg, Kolpack, Strand and Mahoney voted aye.
No Commissioner being absent and none voting nay, the Resolution was adopted.
Hearing on Zoning Changes and Plat for Lost Creek First Addition (6685 Veterans Boulevard and 5120 64th Avenue South) Continued to June 22, 2026: Staff Given the Discretion to Extend the Hearing to July 20th if Necessary:
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.
Planning Director Nicole Crutchfield said the Planning Department evaluates applications based on growth, land use, utilities and overall serviceability, requiring coordination across multiple City departments and the School District. She said the Commission faces three potentially confusing structural options: following the staff's recommendation, accepting the Planning Commission's differing recommendation or voting for a formal continuation.
Current Planning Coordinator Donald Kress said the property represents a rare growth anomaly due to the fact that it was annexed in 2006 without any concurrent development or infrastructure extensions. He said unlike traditional incremental developments such as Selkirk Place, the proposed 193-lot Lost Creek First Edition plat sits far to the west across from the City of Horace. Its primary access point, Veterans Boulevard, remains a minimum-maintenance road, he said, though a corridor cost-sharing Memorandum of Understanding (MOU) is currently being negotiated with Horace. While the Fargo Park District has cooperated on trail planning, the West Fargo School District has expressed facility capacity concerns regarding the development, he said. Using the 2024 Growth Plan's grid system, he said, the surrounding areas within Super Grid A (Grids 1, 2, 3) remain undeveloped or outside City limits, leaving an infrastructure gap between this western site and the City's active core at 45th Street and 64th Avenue South.
Ms. Crutchfield said the application is before the City Commission due to the fact that the Planning Commission attempted to balance a regional housing shortage with critical timing and pacing concerns raised by peer agencies. Reviews from Public Works and the School District highlighted a pressing need to evaluate long-term infrastructure funding over a 5-to-10-year horizon, she stated, directly impacting the upcoming 2027 budget. She said staff does not believe the project is inherently flawed, she said; they just want to pause to address these complex financial policy questions, which are typically resolved in Informational Sessions prior to a formal hearing. State Century Code and local zoning Ordinances dictate strict legal deadlines to act on live applications, she said and holding the Public Hearing immediately was a statutory necessity. She said there are three motion options for this application:
Option 1: Allows the project to advance per the Planning Commission's recommendation; however, placing strict conditions on the developer to finalize engineering designs, an amenities plan, a special assessment framework for the 2027 budget and the shared corridor MOU with Horace.
Option 2: Staff's formal recommendation for a straight timing pause to resolve these policy issues.
Option 3: A formal continuation to June 22nd or July 20th to allow for additional deliberation outside the current election cycle.
Mayor Mahoney said this is a complex issue and there are several critical factors that need to be resolved before moving forward. The City faces a budgetary question regarding the long-term cost of adding Public Works staff to service an area located this far out, he said. The City must also evaluate the infrastructure implications of what appears to be inefficient leapfrog development, he stated, specifically identifying the exact costs the City must absorb to connect this site. There are also concerns regarding the special assessment policy, he said and the Commission needs to determine if the City should handle specials differently for an isolated, detached development of this nature. While a formal continuation appears to be the best route, he said, the Commission must remain mindful of how this fits into the City's broader operational timeline.
Commissioner Piepkorn said the City's Public Safety and regulatory timelines need to be addressed, which must take priority over a developer's timeline. While the FM Area Diversion project is scheduled for completion this fall, he stated, it must still go through a formal certification process. Once certified, it will change construction practices and flood insurance requirements due to the fact that developers will no longer be forced to bring in large amounts of fill to elevate these sites, he said. The Land Development Code diagnostic updates are actively underway, he said and should be finalized before approving major outlying subdivisions. Beyond the financials, there is a vital public safety component to consider, he said. This proposed development currently contains a wide-open landscape without a single tree, he stated and in a severe North Dakota blizzard with high winds and blowing snow, exposed corridors like this experience total whiteouts and massive drifts. When these roads drift over, Police and Fire cannot reach residents in an emergency, he said. The City must be prudent and cautious, he stated and this area will eventually develop; however, operational and public safety responsibilities come first.
In response to a question from Commissioner Strand asking what are the pros and cons of holding off on a decision in order to hold an Information Session, Ms. Crutchfield said the primary legal obligation was to ensure the Public Hearing was held, as this is an active, legally binding application under statutory deadlines.
John Youness, Eagle Ridge Development, said Fargo is facing a severe shortage of single-family housing. The City averages 360 housing starts annually, he said; however, currently there are only about 100 vacant lots available City-wide. Due to the fact that the development process, including entitlements, plat approval, engineering, bidding and infrastructure construction, takes at least two years before home building can even begin, delaying the project now would create a critical two-year gap with zero new lot inventory, he said. A prolonged shortage will lead to fewer housing starts, lost sales tax revenue, fewer new residents and a negative cascading effect on local businesses, he said. It would also make it impossible to meet the City's housing study goal of building 7,500 to 8,000 single-family homes by 2032, he stated. The City has already invested nearly $80 million in the immediate quadrant, he said, including the 64th Avenue South interchange, the Lake Fargo regional system, 45th Street infrastructure extensions and a new Fire station, and it is counterintuitive to stop paved roads less than a mile from these new highway ramps and force traffic onto gravel. He said the project is not being rushed, noting that he has been in transparent, active discussions with City staff for several months.
Commissioner Piepkorn said since the developer has confirmed that actual construction is two years away, there is time to get these issues clarified. He said he supports Option Three.
Commissioner Strand said the scale of this investment is remarkable and the discussion boils down to balancing smart growth versus focused growth and finding middle ground. He said this reminds him of the Davies High School expansion, when the school was built far south beyond any existing development. At the time, he said, people thought Osgood and the surrounding areas would never fill up, yet they filled in within 10 years. The demand is clearly there, he said; the focus now must be on navigating the financial implications, the carrying costs and the City services that accompany it.
Commissioner Kolpack said the concern is the 3% infrastructure revenue cap. When the City cannot identify the exact funding source to support General Fund operations, which includes Public Works staffing, it creates a serious issue for the budget process. Whether this impacts the 2027, 2028 or 2029 budget, she said, that financial question must be answered. Everything about this application is unique and departs from how the City has conducted business for the last 30 years, she said. Discussions need to happen to determine how growth systems must change to accommodate the 3% cap, she said.
In response to a question from Commissioner Turnberg asking what are the ramifications of delaying this project and would the developer consider moving their efforts to a neighboring city, Mr. Youness said it takes a massive amount of effort to get these developments moving on the front end. A delay ultimately postpones when that infrastructure can be designed and constructed, he said and it will take City staff substantial time to design these large-scale projects, such as bringing the sewer line over from 45th Street and completing the extra half-mile of road. While he has other active projects in neighboring areas, he said, he hesitates to say he would shift all of the focus away. He said he is a Fargo developer and he has made it his business to provide housing options for this community and he intends to keep trying to do that.
Don Dabbert, President of Lost Creek and Dabbert Custom Homes, said as a Fargo builder and developer, he is here due to the critical need for housing in the metro area. He said historically, when reviewing lot maps with the City, a healthy market meant maintaining a two- to three-year inventory of lots. Today, he said, the area is facing a crisis with only two weeks to two months of inventory available. He said he sees the direct impact of this when he meets with clients who want to live in Fargo; however, they are forced to build in Horace or West Fargo due to the fact that Fargo has no available lots. Whether this project is delayed by four weeks or two months, he said, the larger systemic challenges, such as special assessments and inventing hybrid financing models, will not be solved in that short timeframe. These are complex, ongoing discussions, and while he remains hopeful, he cannot afford to wait indefinitely for perfect clarity. He said approving this project to move to the next step does not mean he will be breaking ground tomorrow, he said; actual construction is still a long way off. However, getting this into the pipeline allows everyone to plan for the future, he said. Previous developments, including Deer Creek, Davies and Osgood faced similar hurdles, he said; however, those ultimately became highly successful developments.
Mayor Mahoney said there are several critical items that would benefit from a temporary delay. He said he is meeting with the Mayor of Horace soon regarding a shared sewer project and securing a deal with Horace would reduce overall infrastructure costs and help fund necessary road construction. Special assessments are being evaluated, he stated, specifically whether developers should absorb a portion of these costs and he is weighing whether to hold this discussion now or wait until the new Commission is seated. The City is facing serious budgetary constraints, he said and the 3% legislative cap has made it difficult for the City to manage growth. Over the last decade, Fargo grew by 20%, he stated, one of the fastest-growing cities in the Midwest. Historically, Fargo has never slowed its development with 400 to 500 homes typically built in a year, he said; however, last year that number dropped to 200, and this year looks equally challenging and lot inventory has plummeted. Nothing is gained by rushing this decision, he said. There needs to be an open meeting soon so Commissioners can fully understand the situation and the City must work with Engineering to determine where to direct Capital Improvement Plan (CIP) funds and where to map future growth, he said, such as the upcoming decisions regarding 64th Avenue. He does not want to slow the City's development, he said and a brief pause is needed to have these essential financial conversations. He said he favors Option 3 which allows City staff to hold further discussions and bring the developer into the room to find an honest, affordable path forward for everyone.
Commissioner Piepkorn moved the Hearing be continued to 5:05 p.m. on Monday, June 22, 2026 and to allow City staff the discretion to extend it to July 20, 2026 if necessary.
Second by Strand. On call of the roll Commissioners Piepkorn, Strand, Kolpack, Turnberg and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.
Staff Directed to Continue the Due Diligence Process for the Top-Two Ranked Finalists for the Convention Center Project and have Baker Tilly Perform an Independent Financial Evaluation, Reporting Back by the June 22nd City Commission Meeting:
City Attorney Ian McLean said during the week of April 27th, the City Attorney's office identified financial, legal and risk allocation topics, which were provided to both teams. On May 4th, he said, he met with both proposal teams and decided the best path forward was to issue written due diligence questions to avoid anything getting lost in translation. The questions were sent out on May 11th and by May 18th, he stated, the teams provided thorough responses totaling about 80 pages. An Information Meeting was held with the City Commission on May 21st to discuss the responses, he said and on May 22nd, he and Finance Director Susan Thompson had a call with Baker Tilly and were told the City Commission could either choose a proposal or request more due diligence. He said Baker Tilly was also told the current Commission has only two meetings left and would want any due diligence report back prior to the June 22nd meeting, which they indicated they could provide. He said when it comes to due diligence, there are two buckets: Transactional, which assesses whether the parties can fulfill their promises; and Selection, which determines which proposal presents the lower long-term financial risk and a greater likelihood of successful delivery. Baker Tilly was also asked to score the projects on a scale of 1 to 100 and explain their metrics, he said. There is a misconception that once a developer is selected, construction starts the next day, he stated; however, after selection the City must enter into a Development Agreement with contingencies, the tax Ordinance must be amended, and depending on the proposal, a TIF (Tax Increment Financing) District would have to be created or it must be determined how to utilize the existing Riverfront TIF District. The Downtown proposal also requests Renaissance Zone incentives and it involves purchasing the former Police headquarters; therefore, a sales price would have to be set. He said selling bonds takes multiple months and Baker Tilly has said it wants to go to market and sell the bonds in 2026 due to the fact that they expect the market to remain stable until a new Congress takes over in January. The developer must secure bank financing and a written commitment from a hotel brand, he said and finally, architectural drawings and a guaranteed maximum price must be approved before construction starts. Many of these steps will happen simultaneously, he said and construction would most likely begin in the spring of 2027. He said there are three potential motion options:
Option 1: Make a final selection (either Brewhalla or Downtown) and authorize the City Attorney to prepare tax Ordinance amendments.
Option 2: (Only applicable if Option 1 passes) Direct staff to begin the TIF discussion.
Option 3: Direct staff to continue the due diligence process and have Baker Tilly perform an independent financial evaluation, reporting back by the June 22nd Commission meeting.
In response to a question from Mayor Mahoney asking if Baker Tilly could come back with the report by June 8th, Mr. McLean said that is unlikely. He said a June 8th meeting means a June 4th agenda deadline and financial information needs to be gathered from both teams.
Rocky Schneider and Charlie Johnson spoke.
Commissioner Piepkorn said the Downtown proposal offered $500,000.00 for the old Police headquarters building and the current assessed value of that property is $2.3 million. He said if the Downtown proposal goes forward, the Police property needs to go through an RFP process in order to maximize the City’s assets.
Commissioner Kolpack said this Commission needs to make the decision before the election and she supports Option 3. She said the Commission needs a thoughtful, side-by-side financial impact analysis for this decision. She supports both projects for different reasons, she said and she needs to see a true side-by-side comparison.
Mayor Mahoney said this is one of the most important decisions this Commission will make. The critical question for this project, he stated, similar to the FARGODOME and Civic Center, is whether it will pay for itself and how the City handles potential operational losses. The FARGODOME has done well using its escrow account; however, a Convention Center will need financial support. The Commission must decide what makes the best financial sense for the City, he said and a side-by-side risk analysis from Baker Tilly is the final chapter needed.
Commissioner Kolpack moved staff be directed to continue the due diligence process for the top-two ranked finalists for the Convention Center Project and have Baker Tilly perform an independent financial evaluation, reporting back by the June 22nd City Commission meeting.
Second by Piepkorn.
Commissioner Strand moved to amend the motion to direct City staff to continue the due diligence process and have Baker Tilly perform an independent financial evaluation for the Downtown location only, reporting back by the June 22nd City Commission meeting.
Second by Turnberg. On call of the roll Commissioners Strand and Turnberg voted aye.
Commissioners Kolpack, Piepkorn and Mahoney voted nay.
The motion failed for lack of a majority.
On call of the roll on the original motion Commissioners Kolpack, Piepkorn, Strand, Turnberg and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.
City Staff and the City Attorney’s Office Directed to Engage in Conversations with North Dakota State University, Fargo-Moorhead Baseball, Inc. and Any Other Related Parties on the Future Operations of Newman Outdoor Field:
Mayor Mahoney said when Rick Berg was interim president at NDSU, he and City Administrator Michael Redlinger had some initial conversations about Newman Outdoor Field and he wanted to bring it forward to the Commission for input. Commissioner Piepkorn has also worked to find a path forward with the RedHawks and due to the fact that staff at NDSU has concerns about the site, it was time to move this initiative forward.
City Administrator Michael Redlinger said Newman Outdoor Field is a unique facility. The physical structure is owned by the City, he said; however, it sits on State property on the NDSU campus and it is operated day-to-day by a private baseball club. He said it is also utilized by NDSU for its own baseball operations. Due to this set-up, there is a somewhat fragmented relationship between the parties, he said and what he is looking to address in future talks is the significant amount of deferred maintenance at the facility. The stadium is 30 years old, he said and the City’s Facilities team, NDSU's team and Commissioner Piepkorn have had productive conversations in the past; however, it is critical those talks are renewed. He said the focus needs to be on creating a new operating model, establishing a comprehensive capital improvement plan and addressing Americans with Disabilities Act accessibility improvements and other maintenance activities that have been put off for too long. This will put the facility in the best possible position for future success, he stated and ensure it meets the needs of the public, the City and NDSU. He said this collaborative process will take place over the summer, engaging both the existing leadership team at NDSU and the incoming university president, and he will come back and provide periodic updates to the City Commission.
Commissioner Piepkorn moved City staff and the City Attorney’s Office be directed to engage in conversations with North Dakota State University, Fargo-Moorhead Baseball, Inc. and any other related parties on the future operations of Newman Outdoor Field.
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.
City Staff and the City Attorney’s Office Directed to Engage in Conversations with the Fargo-Moorhead Science Museum on the Potential Use of the Mid America Steel Site at 92 and 106 NP Avenue North:
Commissioner Strand said creating a Science Museum is one of the many concepts being discussed in the community and this effort has been underway for several years. He said several years ago he reached out to the museum’s leadership and walked them through the Civic Center a few times to see if that facility could work for them. Ultimately, it did not align with their vision and practical needs, he said; however, the process has continued. After ongoing conversations involving multiple entities and locations on both sides of the river, he said, the Science Museum leadership has formally asked if the City is open to exploring potential opportunities and they are hoping to focus on the Mid America Steel site. He said this motion is simply an invitation to open the door and explore whether this path is feasible for Downtown.
Commissioner Piepkorn said he supports establishing a Science Museum Downtown; however, he objects to utilizing the Mid America Steel site for the project. He said the property should be subject to a formal RFP process and that development should hinge on the completion and certification of the Diversion project. He suggested leveraging the Greater Fargo Moorhead Economic Development Corporation’s site certification program to determine the property's highest and best use.
Ryan Aasheim, Greater Fargo Moorhead Economic Development Corporation, said the organization's certified site program, known as Document Ready Sites, requires a cooperative landowner willing to price the property and aggregate critical site data. This background work includes utility mapping, geotechnical testing, Phase I and Phase II environmental assessments, wetland delineation and floodplain analysis, he said. The program serves as a speed-to-market tool designed to capture national and international industrial or commercial investments via external site selectors, he said.
Commissioner Piepkorn said no one has inquired about the Mid America site and it has been sitting for more than four years. He said there are environmental issues at the site and the EPA is hopefully going to help the City; however, it will take several steps before it would be ready for commercial use.
Mr. Aasheim said there are a lot of upfront costs just to even understand the viability of a project at the site. If someone came along and did all of that pre-work, it makes that site more marketable; however, if Fargo is competing with 10 other places and all things are equal, but there is a blank spot on the Fargo sites due to the fact that Fargo does not understand the potential environmental impacts, then Fargo is going to be taken off that list.
Rocky Schneider spoke.
Reid Matson, Chairman of the F-M Science Museum, said the present request was strictly to initiate an exploratory dialogue rather than to seek immediate City resources or funding. He said that the Commission looks beyond the immediate real estate transaction value of the site, noting that its true civic value lies in its potential to drive Downtown tourism, stimulate the local economy and enhance community quality of life.
Jessie Rock, representing the F-M Science Museum, said the proposed facility's technical specifications and community engagement framework include a planned 60,000-square-foot destination museum that will feature 23,000 square feet of exhibit space, with an anticipated attendance of 250,000 visitors in its first two years before stabilizing at 200,000 annual attendees. She said the project's scope was developed in collaboration with local scientists, educational stakeholders and STEM workforce partners to address regional technical skill gaps and curriculum standards. She said the project has the potential to capture the overnight tourist market and provide a world-class winter facility for regional families.
Commissioner Kolpack said she certainly supports the idea of a Science Museum in the metro; however, this is a confusing motion and she does not want to limit those conversations regarding what other possibilities are out there. If this is just a beginning conversation with the City that becomes what it becomes with no expectations or limitations, she will support that.
Commissioner Strand said there are other requirements, guidelines or guardrails that need to be present in this conversation going forward if any partnership unfolds and see where it could go.
Commissioner Strand moved City Staff and the City Attorney’s Office be directed to engage in conversations with the Fargo-Moorhead Science Museum on the potential use of the Mid America Steel site at 92 and 106 NP Avenue North.
Second by Kolpack. On call of the roll Commissioners Strand, Kolpack, Piepkorn, Turnberg 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.
Public Comments:
Dylan Hanson and Scott Brekke spoke.
The meeting adjourned at 6:59 o’clock p.m.