Council approves tax incentive for Agristo factory; CFIUS review, production timeline remain

The Grand Forks City Council on June 16 approved a tax‑incentive application for Agristo’s proposed potato‑processing plant after a presentation by company representatives and city staff.

The council’s approval followed a staff briefing and a presentation by Ward Clarabaugh for Agristo. Clarabaugh said Agristo selected Grand Forks after multi‑state site work and potato trials and that the company is “very close” to signing an option agreement for the proposed site. He told the council the company aims for commercial production in September 2028 and that the construction timeline will be “very, very tight.”

Why it matters: Agristo proposed a major manufacturing investment that company speakers described as hundreds of millions of dollars and that city staff said would require several state and local approvals. Council approval of a local tax incentive is a key step in the project timeline but not the last: Agristo also plans to file a voluntary declaration with the Committee on Foreign Investment in the United States (CFIUS) and told council members the project cannot proceed if CFIUS review is not favorable.

City staff said the Local Government Advisory Committee already recommended moving the incentive forward and that the city planned follow‑up briefings for the school board and county commission before returning to council with a development agreement. Agristo representatives described ongoing engineering, environmental and permitting work and said they will engage local contractors and engineers as the design phase advances. Gert Vandebeli, introduced by staff as part of Agristo’s construction team, said he has U.S. experience building comparable facilities and will support on‑site construction.

Council discussion centered on process, oversight and next steps. Council members asked to receive the outcome of the company’s CFIUS filing if disclosure is permitted by the federal process; Agristo representatives said they would share that outcome if allowed. Several council members thanked the company for choosing Grand Forks.

Action and conditions: Council members moved and seconded approval of the incentive; the motion carried with Council Member Osovsky recorded as dissenting. City staff said the development agreement, pilot payment in lieu of taxes (PILOT) documents and environmental deliverables will be negotiated and returned for council approval; staff also said the city will request the CFIUS outcome and continue coordination with state and federal reviewers.

Next steps and timeline: City staff said the council, county commission and school board will be asked to act on associated approvals in July; Agristo said it expects to finalize land option paperwork in the coming weeks, to continue engineering this summer, and to begin construction that the company estimates will take roughly two years. Agristo also announced a community event planned for Aug. 25 and invited residents to meet the team.

Quotes: "We chose Grand Forks, North Dakota as the best place where we can grow potatoes," Ward Clarabaugh said. "For us the deadline is very important. We need to go to commercial production in September 2028." Agristo construction representative Gert Vandebeli said the company will work with local contractors and engineers.

The council’s approval authorizes staff to continue negotiating project documents; final development agreements and PILOT terms will return to council for formal adoption. The company and city emphasized that a favorable CFIUS outcome is required before the project can proceed.