Council approves Cirrus Aircraft expansion memorandum with one dissent over foreign ownership
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Summary
The City Council voted 6–1 to approve a memorandum supporting a Cirrus Aircraft expansion in Grand Forks after staff described the project’s value and company commitments; Council member Ocelskey voted no citing national security and sanctions concerns.
The Grand Forks City Council on Tuesday approved a development memorandum of understanding supporting an expansion by Cirrus Aircraft, a manufacturer with a Grand Forks facility, after staff said the package would keep manufacturing and jobs in the city.
The vote was 6–1. Council President Sandy moved approval; Council member Lunsky seconded. Council member Ocelskey cast the lone dissent.
Why it matters: City staff described a roughly $14,500,000 near‑term redevelopment that includes an estimated $10,500,000 new building (about 30,000 square feet), $1,500,000 renovation of existing space and $2,500,000 of capital equipment, plus a proposed longer‑term expansion of 60,000–90,000 square feet over five years. Staff said the package would not require additional city infrastructure and would grow the tax base and local employment.
City economic development staff member Phelan told the council the existing Cirrus buildings were currently valued at about $12,400,000 and that there were no existing PILOT or tax incentives on the property. Phelan said the city proposed a 10‑year 100% pilot (payment‑in‑lieu‑of‑taxes) to close a competitiveness gap of about $500,000 with other locations under consideration.
Company representatives described their U.S. heavy manufacturing footprint and national security oversight. Dante, described in the meeting as Cirrus’s director of corporate affairs, told the council "100% of our labor is provided in the United States. 96% of our parts and suppliers are all American made." He said the purchase by foreign ownership triggered a national security review and an annual national security agreement with the Committee on Foreign Investment in the United States (CFIUS).
Steve Thomas, Cirrus’s Grand Forks site director, said the expansion will include automation and robotics and an increase in direct labor at the facility.
Council concerns and dissent: Council member Ocelskey asked whether Cirrus’s parent company — identified in the discussion as AVIC — has ties to the Chinese military and questioned whether a tax break was appropriate if the parent company faced U.S. sanctions. Dante responded that Cirrus operates subject to a national security agreement and CFIUS oversight and asserted that operational facilities are in the U.S. and no operational facilities exist in China.
The council’s motion passed 6–1 with Ocelskey dissenting; council staff said no city infrastructure costs are expected and that the project is infill development on land the company already owns.
Actions and next steps: With the memorandum approved, staff said the city will proceed on parallel paths with growth‑fund financing through Bank of North Dakota and local incentives as outlined. Cirrus representatives said they plan the near‑term expansion and potential larger additions over the next five years.
