FARGO — Meeting jointly on Tuesday, June 25, Fargo's Renaissance Zone Authority and Tax Exempt Review Committee (TERC) approved a number of tax exemptions, including one approved by the TERC that would establish a tax increment financing (TIF) district benefiting a housing development in the area of what will be the new St. Paul's Newman Center in north Fargo.
At the start of the meeting, Downtown developer Kilbourne Group brought four projects before the boards, including two seeking tax exemption consideration from both the Renaissance Zone Authority and the TERC, one seeking tax exemption consideration from only the TERC, and one seeking exemption consideration from only the Renaissance Zone Authority.
Roers Development Inc. brought to the TERC a request for a TIF district supporting its plan to build an 85-unit apartment building and seven for-sale townhomes in an area south of the Newman Center complex, which is the focus of a separate project and which had its groundbreaking ceremony on Monday, June 24.
The TERC unanimously approved the Roers request, which now goes before the Fargo City Commission for review.
Kilbourne Group requests included a project planned for the area of 401 Broadway North and 410 and 412 5th St. N., formerly home to a Goodyear service station.
The project anticipates a six-story, 115,000-square-foot building with 370 structured parking stalls.
The proposal, valued at about $17.6 million and referred to as the Mercantile building, would include ground floor commercial space, as well as 100 apartment units and for-sale townhomes adjacent to the Great Northern Cycle store to the north.
The project received approval of a tax exemption from the Renaissance Zone Authority only.
Under that exemption and others approved by the Renaissance Zone Authority on Tuesday, property taxes would be paid for the first five years of the project based on the value of the property before improvements were made. Taxes would be paid on the full value of the improved property starting in year six.
A Kilbourne Group project is also planned for the area of 1001 and 1011 NP Ave. N., which had been home to businesses that included the Nestor lounge.
That project, valued at about $27 million, would involve construction of a four-story, 220,000-square-foot mixed-use space, including 230 parking stalls, a corner restaurant and three floors of market-rate residential units totaling 160 units.
The project received tax exemptions from both the Renaissance Zone Authority and the TERC on Tuesday.
Under exemptions approved by the TERC Tuesday, in years one through five of a project, the property owner would pay the regular, historical taxes on a property as though it was not being improved and in year six taxes on the property would start ratcheting up.
According to information provided at Tuesday's meeting, the current taxes on the area of the former Nestor lounge are about $22,000 a year. With the exemptions approved Tuesday, annual taxes paid on property in the area would rise to about $62,000 by year six of the project and to about $181,000 by year 10 of the project.
Another Kilbourne Group project is planned for an area near 1017 Fourth Ave. N. that had been home to the former Dakota Electric Supply Co.
Valued at about $12 million, the project would involve a five-story structure, with four floors devoted to apartments and parking on the ground floor. It would create about 68 apartment units and 90 parking stalls.
That project received TERC approval Tuesday for a tax exemption.
A Kilbourne Group project valued at about $19.3 million and planned for the area of 617 and 621 First Ave. N., which is currently parking lot space, was on Tuesday's agenda seeking approval of both TERC and Renaissance Zone Authority tax exemptions.
The TERC aspect of the request was tabled, while a Renaissance Zone exemption was approved.
That project anticipates a six-story, 140,000-square-foot mixed-use project with ground floor commercial and retail space as well as five floors of market-rate residential units totaling 95 units and underground parking.
As with the TERC approved tax exemptions, the Renaissance Zone exemptions will also receive city commission review.