City Council prioritizes economic development over traditional funding practices

The Economic Development Plan Review Committee meeting held on May 16, 2025, at 1:00 p.m. by the City Council of Minot, North Dakota, focused on the city's approach to economic development funding and strategies. The discussions highlighted the importance of balancing investments in various economic initiatives while addressing concerns about the allocation of funds.

One of the key points raised during the meeting was the effectiveness of the city's economic development activities. A council member expressed skepticism about the so-called "magic fund," which is designed to support economic initiatives but has faced criticism for its lack of transparency and accessibility. The member emphasized that funds should not be viewed as simply being funneled into an inaccessible reserve but rather as investments in tangible projects that can benefit the community.

The council member pointed out that a portion of the city's budget, specifically 15% of a designated penny tax, is allocated to economic development activities. This funding has supported various initiatives, including the facade improvement program, wayfinding signage, and retail recruitment efforts. The member argued that these programs have made visible improvements in the downtown area and have contributed to the overall beautification of the community.

Additionally, the meeting addressed the Flex PACE program, which was highlighted as a crucial tool for economic development. The council member noted that the city previously struggled to access this program due to a lack of dedicated funds. The introduction of the tourism recovery and resiliency fund (TRRF) was also discussed as a response to the economic challenges posed by the pandemic, aimed at revitalizing the local economy and increasing sales tax revenue.

While acknowledging the progress made in shifting the city's economic development strategy, the council member cautioned against completely abandoning the magic fund. They stressed the importance of maintaining a reserve for future opportunities, warning that undercapitalizing could lead to missed chances for significant economic growth.

The meeting concluded with a call for continued dialogue on the city's economic development strategies. The council member suggested that consolidating efforts and involving the right stakeholders could help identify gaps and enhance the effectiveness of the city's economic initiatives. Overall, the discussions underscored a commitment to a more proactive and strategic approach to economic development in Minot.