Grand Forks, County Officials Outline Property‑swap, MOU and Records‑system Plans as Part of Closer Cooperation

City and county officials told the Grand Forks City Council they are working on a set of coordinated agreements this summer to reduce duplicated costs and improve shared services.

In an informational report, Todd Phelan said county commissioners want to eliminate piecemeal cost‑sharing between taxing entities and favor more seamless arrangements, including swapping property in place of ongoing rent or utility payments. “What he’d like to work on beyond that is … we would grant them or swap that lot for them,” Phelan said, referring to a downtown Kitson lot that the county values at about $180,000.

The issue matters because the county occupies several city‑used spaces — municipal court and public health offices — and wants a long‑term understanding rather than annual rent or utility charges. Phelan said a draft of a broader agreement, including multiple parcel transfers and title‑restriction releases, is being prepared and could move forward around July.

City Attorney Dan Gostad told the council his office has reviewed a proposed memorandum of understanding covering building inspections and septic reviews; the agreement would have the city perform inspections in the county in exchange for receiving permit fees and mileage and would have the county perform septic system reviews. Gostad said the office found the MOU acceptable and the paperwork can be presented to the council soon.

Council members also heard that the city has paused plans to implement a new records management system until the state updates its own system so the two can integrate. Phelan described the pause as an administrative decision reached to avoid compatibility problems and to explore whether the state might fund a shared upgrade.

Phelan said the county commission unanimously (4‑0‑1) approved a tax incentive for an aircraft project the week before and indicated general support for closer coordination with the city. He also reported that the mayor has authorized a study of the joint city‑county airport authority to examine alternative governance or operational strategies; any changes would require concurrence from both the city and county.

Council members asked for additional details and timelines. A council member asked when the MOU would be presented; Gostad said the memorandum is ready and the agreement can be brought forward for council action. Phelan and other staff forecast follow‑up briefings and more detailed budget presentations in June and July.

Less technical items surfaced as well: the Division Avenue lot near St. Paul’s Church is subject to a prior grant restriction requiring it remain a surface parking lot; the draft agreements include proposals to lift or relax that restriction so future councils could consider other uses. The city also discussed a possible long‑term swap intended to secure public health a stable, multi‑decade occupancy rather than a short annual arrangement.

Next steps include presentation of the inspection/septic MOU to the council, release language for restricted parcels, and further budget work this summer. Officials said they will return with specifics they expect council members to review before final approval.