Commission approves second amendment to Grove Enclave developer agreement, reducing front retail requirement to one building

The Fargo City Commission on Aug. 4 approved a second amendment to the Grove Enclave development agreement covering the redevelopment of the former Kmart site on South University Avenue, allowing the developer to meet the agreement requirement with a single front commercial building instead of two. Economic development staff explained the change follows slower-than-expected retail leasing and that the developer has exceeded the project's original total required square footage: the agreement required 20,000 square feet and the developer has built about 30,000. The Economic Development Incentive Committee recommended the amendment so the city can close the project and begin the related 15-year term (TIF) rather than extend the compliance deadline another year. Why it matters: Staff said the adjustment helps finalize the project's tax-increment financing timeline and reflects market conditions that delayed the second small storefront. Commissioners questioned whether the amendment created openings for future developers to change commitments and whether the city lost opportunity costs by extending timelines for projects. Discussion and vote: Commissioner Strand asked whether the committee identified any cons; Jim Gilmore (economic development) replied he did not see major cons and noted the developer had been candid about delays. The commission approved the amendment by roll call; Strand recorded a “No” vote while other commissioners voted yes. Implementation notes: Staff said one tenant, Randy's, has leased about 9,000 square feet of the redeveloped property and another tenant is under negotiation. The amendment reduces the required front-building count from two to one and allows the city to start the 15-year TIF term earlier.