Economic Development Incentives Committee

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Economic Development Incentives Committee - August 15, 2023 Minutes

Fargo, North Dakota

Regular Meeting Tuesday, August 15, 2023

The August 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, August 15, 2023.

The committee members present or absent are:

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

Members Absent: Michael Splonskowski

Others Present: Jackie Gapp and James Haley

Commissioner Piepkorn called the meeting to order at 1:15 p.m.

Review of Public Comments on Proposed Policy Changes

• Jim Gilmour:
o Draft of polices was sent to developers but not able to get them on the website
o Made contact with the parks and willing to meet
o Did receive comments from developers
o If we are to make revisions, what kind of facilities do we want to support
o The term P3 is not common to most. Would like to rename it.
• Commissioner Piepkorn:
o What do you recommend for public comments?
 Jim Gilmour: Would like to get some put on the website where the public can email Jim Gilmour.
• Surface parking lot: Block 9 has 400 parking space would be an entire city block. Surface parking takes up a lot of space.
• Lucas Paper:
o Taking more time on this is really useful. Need to revisit Public Private Partnership title.
o Can this be a unit per acre number?
o Types of projects needs to be defined and more economically driven
• Levi Bachmeier:
o Should be intentional about splitting the projects that are considered and which body takes action on each
o Need to prove that you are going beyond and contributing to the long term density of our region
o It shouldn’t matter what the attraction is but if we are leveraging incentives for longer term investment, the committee needs to take a longer look.
o Need to make sure that the committee is being specific regarding requirements3
o Would like to consider splitting major project types
 Types should go to a different committee per political aspects
• Jon Eisert:
o Need to aggregate all the points the committee is making with public input and go line by line to form a policy with what the committee is looking for and what the public wants.
• Mayor Mahoney:
o Primary Sector- Manufacturing to expand. Has this changed over time?
o Water park issue- what would disqualify it for primary sector setting?
• Joe ?? EDC:
o There isn’t a black and white answer.
o Different per state.
 Fargo- primary sector is an entity that produces majority of its revenue from selling its products and services across the country and around the globe.
o Looking at majority of revenue per core business. Example: Drekker Brewing
• Mayor Mahoney:
o If the project brings in additional $60-$80 million to the project, is that worth value net in the long term.
o Water Park- $180 million, $120 million or $100 million and if you do a 10 year TIF is that enough to TIF it.
o Need to know what the city does with green space.
• Jim Gilmour:
o Block 9- over $100 million for one block. Over a $1000 per square foot
o Would like to take a look at typical developments in Fargo and see where they want to set the margin.
• Jon Cosgriff:
o Need to look at the project and the required surface parking and then ask can we provide an incentive. Also need to look at the additional taxable value.
• Jessica Ebeling:
o We need more prospective from various different groups
• Mayor Mahoney:
o Would like a side by side table with taxable value for 10 years.

Discussion will be continued to the next meeting Tuesday, August 22nd.

The meeting was adjourned at 1:55pm.