Council approves special-assessment district for Ultra Sports Complex amid cost and timing concerns

The Grand Forks City Council voted to create Special Assessment District 8933 for the Ultra Sports Complex paving, storm sewer and site work after extended discussion about funding sources and the project schedule.

Council President Sandy said the council should move forward; President Sandy moved approval and Council Member Berg seconded. The motion carried, recorded in the meeting as "Motion carries 7 to 6 to 1 with Osofsky dissenting." The council established a financing plan that relies primarily on special assessments paid via sales-tax sources and a mix of utility cash for non-assessed items.

The decision matters because the special-assessment boundary and funding split determine which parcels and public revenues will pay for roughly $8.7 million in assessment-funded infrastructure. City staff told the council the assessment portion shown on the district map is the combined 4.467 and 4.238 figures that total about $8.7 million; the remainder of the project would be paid from city cash accounts and utility funds. Staff also explained that portions of the assessments that benefit specific properties would be paid from designated city sales-tax revenue streams: the 3/4-percent sales tax would cover the portion tied to the Ultra Sports Complex building and the 2.163-percent economic development sales tax would be used for other areas in the district, including the BMX parcel and the Grand Forks Children’s Museum footprint.

Council Member Dean pressed staff on schedule and cost alignment. Dean said he expected design development (DD) estimates to return to council before the city committed to major bidding, and warned that authorizing bids before receiving DD-level estimates could force scope changes, rebids or budget increases. Project staff responded that DD documents were submitted Feb. 25 and that the administration will present a DD estimate on April 21 and further updates on May 12, with bid-return deadlines in May. Staff said the immediate plan is to authorize an early bid package to preserve construction season scheduling and potential cost savings, and that the council would see interim financing details from finance staff before final contract awards.

Council members debated that trade-off at length: some argued early packages reduce escalation risk by starting construction earlier; others warned the council might receive bids for work it could not afford without confirmed DD estimates. Staff said proceeding with an early package is optional — bids can be rejected — and committed to returning with phased estimates and a recommendation before final award.

Votes at the council meeting also recorded approval of the special-assessment financing formula previously adopted in October; staff noted that the funding formula had been presented to council in prior months and finalized earlier in the project schedule.

The council’s approval sets the special-assessment district in motion and authorizes staff to proceed with pre-bid and financing activities; final contract awards remain contingent on later council approvals and the receipt of more detailed cost estimates.