Economic Development Incentives Committee

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Economic Development Incentives Committee - April 26, 2023 Minutes

Fargo, North Dakota

Regular Meeting Tuesday, April 25, 2023

The April meeting of the Economic and Development Incentive Committee of the City of Fargo, North Dakota was held in the City Commission Room at City Hall at 1:00 p.m., Tuesday, April 25, 2023.

The committee members present or absent are:

Members Present: Dave Piepkorn, John Cosgriff, Jon Eisert, Lucas Paper, Mayor Mahoney, Jim Buus and Jessica Ebeling.

Members Absent:

Others Present: Jackie Gapp and Levi Bachmeier

Commissioner Piepkorn called the meeting to order at 1:00 p.m.

Minutes Approved

A motion was made by John Cosgriff to approve the minutes from January 24, 2023. Jon Eisert seconded. Motion carries.

Corvert Property Tax Exemption Application

• Ryan Aasheim- CEO
• Richard Walsh- Corvert CEO
• Experts in pulmonary medical devices
• Previously were in California. Richard Glenn introduced them to Fargo
• Currently leasing space at the NDSU Research and Tech Park
• 8 NDSU Interns hired last year. 8 new NDSU interns this year along with 1 post doc.
• Next phase is growing into manufacturing
• West 45th Business Center
• Year 1, 15 jobs with salary starting at $92,000. Year 2, 26 jobs with salary starting at $97,000
• 75 employees in the next 5 years
• Developing a new technology: hospital home ventilator and have a pipe line of new products: transport ventilators, post ICU ventilators, CPAPs and BIPAPs.
• Should be fully up and running and out California by December 31, 2023

Motion to approve tax exemption was made by Mayor Mahoney. Jim Buus seconded. Motion carries

NP Apartments
• Keith Leer- Kilbourne VP of Development and Construction
• 10 year tax exemption:
o 5 year Renaissance- current
o 5 year TIFF- next
o $350,000 year to the city after the exemptions expire.
• Total square feet: 366,000
o 155,000 sf Residential- 168 apartments
o 172,000 sf Parking- 463 parking spaces
o 36,000 sf Theater
o 3,000 sf Retail
• Total Project Costs: $61 MM
o $36 MM Mixed Use
o $5MM Theatre (core and shell only)
o $20MM Parking ramp
• Should be fully completed om late 2025

• Commissioner Piepkorn: Will the apartments have access to parking?
o Yes, there will be a parking connection
• Jim Buss: What is the net gain of parking spaces vs a number of surface spots?
o Net gain would be about 200 at this site

Motion to approve 5 year TIFF tax exemption was made by Jon Eisert. Jim Buus seconded. Motion carries

HB 1215
• Repeal section six of the Century Code: the requirement of business incentive agreements
• Beginning August 1st, cities are no longer required to have business incentive agreements

Mayor Mahoney: Renaissance Zone Bill update
Jim Gilmore: It has passed both houses and on its way to the governor.
- Significant change was the Renaissance on property tax and income tax exemption can now be given for eight years instead of five years

Discuss Public/Private Partnership Policy
• Adopted this policy in 2021
• Trying to limit public assistance to areas where it is essential
• EPIC water park by Anderson Field- trying to get parking
• No action will be today. Will discuss at next meeting

The meeting was adjourned at 1:50pm.