Commission adopts policy requiring projects to begin construction or operations within three years of property tax exemption approval

The Fargo City Commission voted Aug. 4 to adopt a policy requiring that when the commission grants a property tax exemption or payment in lieu of taxes (PILOT), construction must commence or business operations begin within three years of approval. Economic development staff described cases in which previously approved exemptions sat dormant for five years or longer, creating uncertainty for the assessor and city about whether projects remained viable. Jim Gilmore told commissioners that three years strikes a balance — it gives projects, including affordable housing developments that rely on complex financing, reasonable time to secure funds while preventing indefinite delays that could block site reuse or new offers. Why it matters: The policy creates a firm timeline for recipients of tax exemptions to start work and clarifies that applicants may reapply if they do not meet the deadline. Staff said the change will make it easier for the assessor's office to track exemptions and reduce uncertainty about whether older approvals remain active. Discussion: Commissioner Strand expressed concern about lost opportunities if a project lapses and the property owner or developer does not pursue development; staff replied that vacant sites typically return to market and owners can sell to new developers. The policy was approved by roll call vote, with Strand voting no on a related earlier PILOT item but this policy passed. Implementation: Staff said the policy allows reapplication but will require applications older than three years to reapply and clear the but‑for test (demonstrating need for incentive). The assessor and economic development staff recommended the change.