West Fargo economic development director outlines incentives, metrics and staffing to Fergus Falls council

Casey Sanders, director of economic development for the City of West Fargo, told the Fergus Falls City Council at a March 26 work session that West Fargo relies on voter-approved local sales tax revenues and a mix of incentives, planning and local control to attract and retain businesses.

Sanders described specific tools West Fargo uses, recommended a defined strategic plan and sustainable funding for any in-house economic-development function, and outlined staffing and performance practices the council could consider.

Her briefing is notable because Fergus Falls councilors are weighing whether to rebuild sustained local economic-development capacity after Greater Fergus Falls reduced operations; Sanders’ remarks focused on funding sources, incentive mechanics and operational metrics.

Funding and incentives

Sanders said West Fargo’s primary source for larger economic development efforts is a voter-approved local economic-development sales tax that, in her presentation, yields roughly $4 million a year for the city. "The sales tax dollars were voted in in 2014 by the residents of West Fargo," she said, explaining the local parameters for use.

She described incentives West Fargo uses or has used: renaissance-zone benefits that include state-level tax exemptions, tax-increment financing (TIF), payment-in-lieu-of-tax (PILOT) arrangements, façade-improvement grants, and targeted incentives such as a childcare facility improvement program and asbestos-abatement assistance. Casey said a renaissance zone in North Dakota must include a housing component under state statute; that requirement shapes how West Fargo applies that tool.

Land and site strategy

Sanders recommended that municipalities consider acquiring strategic parcels of greenfield land to create "site-ready" locations. "If we purchase this land now versus 5 years from now or 6 years from now, we'll be in the driver's seat," she said, arguing that local ownership can reduce barriers when big employers consider locating in a community. She added that the city commonly leases interim uses — for example, laydown yards — to generate revenue while holding a site for longer-term development.

Organizational practices and metrics

Sanders described West Fargo’s internal structure: her department currently is a single-person operation reporting to a senior director of community and development, with regular coordination among planning, engineering and public works. She said her goals include spending 40–50% of working days meeting businesses and conducting 96–120 business retention and expansion (BRE) visits per year; she also targets three to five prospective leads per month.

She recommended the council set explicit local priorities and metrics before committing to an in-house economic-development hire, saying: define what "success" looks like — for instance, target job counts, wage levels and a balance between commercial and residential tax bases — and align funding accordingly.

Tools and data

Sanders demonstrated use of a commercial analytics tool to examine visits to the Bigwood Event Center and said such tools can help market available properties and quantify event trade areas. She also described an incentive-approval process that typically involves a local advisory committee and, where required, county or school-district review.

Council reaction and next steps

Council members asked about funding, staffing, relationships with neighboring entities and how to avoid creating local competition for existing businesses. Sanders said the city should set council-level priorities and be prepared for a multi-month incentive review process in many cases. Several councilors said the presentation would inform a future discussion about vision, funding and whether economic development should be in-house or contracted.

Ending

Sanders summarized a proposed near-term work list — policy review, incentive creation, business retention and targeted site strategies — and recommended that Fergus Falls develop a written strategic plan and stable funding mechanism before moving to a staffed economic-development program.