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Council committee moves to set public hearing for Agristo 90%/20‑year tax incentive; project expected to add hundreds of jobs
Summary
The Committee of the Whole set a July 21 public hearing to consider a proposed 20‑year, 90% payment‑in‑lieu‑of‑tax (PILOT) incentive for Agristo, a proposed $450 million potato processing investment that city staff said could bring 300–350 direct jobs to Grand Forks.
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The Committee of the Whole voted to set a public hearing for July 21 on a proposed 90% payment‑in‑lieu‑of‑tax (PILOT) agreement for Agristo, a proposed potato‑processing investment the city expects would bring significant private investment and jobs to Grand Forks.
Todd Phelan and other city staff summarized recent work with Agristo's representatives, noting a $30 million forgivable line of credit from the state and a proposed 20‑year, 90% tax incentive to help the project compete against an alternative site in Wisconsin. Phelan said the land for the facility is estimated at about $11 million and overall project value could reach roughly $450 million with an estimated taxable value of about $27 million on completion. Staff estimated the remaining tax paid at the 10% share would be about $476,000 per year at the 10% taxable share.
City staff said Agristo expects to employ 300–350 workers directly at the site and that additional indirect jobs would follow from construction and supplier activity. Phelan described ongoing work on a development agreement and said Agristo executives and construction leads would be present to brief council in a subsequent meeting. CFIUS (Committee on Foreign Investment in the United States) concerns were noted as an outstanding legal/external matter to be addressed in parallel with the development agreement.
Council member Osowski said she supports the company but opposed the state incentives and the 20‑year PILOT structure; President Sandy and others thanked staff for work to secure state and local support. The committee moved to set the public hearing; the motion carried with one dissenting vote (Council Member Osofsky withheld support during the final city council vote notation in the minutes). Phelan said staff and Agristo representatives will return the next week for more detailed updates and to continue negotiation on the development agreement.
