The Grand Forks City Council Committee of the Whole on Aug. 11 reviewed and approved a draft development agreement framework between the city and Agristo (the developer) for the Bristow site, including conditions for utilities, special assessments and a $250,000 letter of credit tied to project completion and contingencies.
City staff said Agristo aims to close on the property by the end of the month and filed a notice with the Committee on Foreign Investment in the United States (CFIUS) in mid-July. City attorneys and department staff described the draft as a working document with several redline items still under negotiation but no insurmountable obstacles.
The framework matters because it sets the city’s conditions for connecting the development to existing infrastructure and spells out how previously installed infrastructure and special assessments will be treated. City staff said roughly $5.7 million in special assessments have been imposed, anticipated, or estimated for the project across existing, near-complete, and future infrastructure work.
City staff emphasized three main infrastructure components: the paving and sanitary sewer along 20 Seventh Avenue North; potable-water work (largely complete); and stormwater improvements, including a collection-system expansion projected in 2026–27. Staff noted potential Lift Station 49 upgrades may be required depending on Agristo’s wastewater discharge volumes; a rough estimate of that work is $450,000, and cost recovery could be handled by special assessment or utility fees.
The agreement calls for a utility service contract that will set wastewater-treatment standards, fee structures and monitoring obligations. Exhibits attached to the draft describe the completed and planned infrastructure, the special-assessment tables, and a pilot tax-incentive arrangement already approved and attached as an exhibit.
One central financial assurance is a $250,000 letter of credit from a U.S. bank with specified ratings and terms that would remain effective until the plant reaches substantial completion. Staff explained that the $250,000 amount reflects anticipated consultant and review costs (wastewater review, building inspection, assessment classification, airport odor and safety studies, and legal/engineering work), with approximately $100,000 estimated for airport studies and $50,000 for legal/engineering and related costs.
The agreement includes default and termination provisions allowing the city to draw on the letter of credit if contractual conditions are unmet, if the developer does not secure required government approvals, or upon a non-renewal event by the issuing bank; the draft also provides an escrow option if a letter-of-credit issuer declines to renew. The draft requires the developer to provide the city with any CFIUS notices, determinations or other pronouncements showing the project is not prohibited by federal law.
Vice President Weigel moved approval of the draft framework; Osowski seconded. The motion passed in a unanimous vote in committee.
City staff identified next steps: finalize outstanding redline items with the developer, confirm CFIUS documentation when available, and complete the utility service contract and fee schedule before final execution of the development agreement.