ADVERTISEMENT

ADVERTISEMENT

Kilbourne investment group receives tax breaks for riverside apartments in downtown Fargo

The $23.4-million project will offer 114 market-rate apartments with first-floor, indoor parking for an estimated 190 residents.

Riverhouse Render by JLG Architects.PNG
Here is an overhead view of what the new riverside apartments may look like on the northeast edge of downtown Fargo.
Rendering by JLG Architects
We are part of The Trust Project.

FARGO — A six-story apartment building along the riverfront in the northeast corner of downtown Fargo could be under construction this fall.

An investment group organized by the Kilbourne Group called Great Plains Block 3 received tax breaks for the project on a 4-1 vote by the Fargo City Commission on Monday, June 13.

Commissioners approved a five-year Renaissance Zone property tax break followed by a nine-year tax increment financing district agreement.

Commissioner Tony Gehrig cast the lone "no" vote.

The $23.4-million project will offer 114 market-rate apartments with first-floor, indoor parking for an estimated 190 residents.

ADVERTISEMENT

Amenities will include a rooftop patio offering views of the Red River corridor, green space on the southeast corner of the project near the intersection of Fourth Avenue North and Second Street North, a club room and bicycle parking.

The company said the structure will contribute to downtown Fargo's population growth and create a better connection between downtown and the riverfront.

City Strategic Planner Jim Gilmour said Kilbourne, the developer on the project and the force behind several residential and mixed-use buildings in the downtown area, will pay about $162,000 for the lot. They also own another lot to the south that will be part of the project.

The property tax break will be $1.6 million for the five years of the Renaissance Zone, and then the city's TIF district will reimburse the company for $1.4 million over the following nine years to repay them for demolishing the buildings on the site, addressing any environmental problems and replacing public infrastructure near the site.

The company was eligible for up to $3.7 million in TIF funding, a statewide program designed to help developers upgrade rundown areas of the city.

This TIF district has been established across a large swath of the east side of downtown in the riverfront area to continue its revitalization with several publicly owned lots having been sold to developers. The TIF area also includes the vacant former Mid America Steel site right along the river which is slated for development down the road with no lots sold yet.

The estimated taxable value of the new riverside property will increase from $1.6 million to almost $20 million with taxes paid increasing substantially when breaks expire.

Gilmour said the company hopes to start work in the underutilized area in the northeast corner of downtown this fall, but it might take until next spring to complete architectural work.

An almost 50-year veteran of the newspaper business, Amundson has worked for The Forum and Forum News Service for 15 years. He started as a sport reporter in Minnesota. He is currently the city and night reporter for The Forum. bamundson@forumcomm.com 701-451-5665
What to read next
The future site of Capstone Classical Academy, a religious private school, will be built on 18 acres at the corner of 43rd Street and 64th Avenue South in Fargo.
Robert Paulsen said he understands that the National Justice Party and others may be using his personal tragedy to promote their agenda, but he wants justice for his 14-year-old daughter who was killed in June 2021 in Fargo.
Police say the shooter called 911 and confessed.
These students met requirements for their universities' academic honors for the spring 2022 semester.