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Committee approves preliminary MOU with Agristo for proposed $450 million potato processing plant
Summary
The Grand Forks Committee of the Whole approved a preliminary memorandum of understanding with Agristo to pursue a proposed $450 million potato-processing facility. Council members pressed for early federal review and detailed infrastructure terms as the project advances toward a formal development agreement.
The Grand Forks Committee of the Whole on Monday approved a preliminary memorandum of understanding with Agristo that would begin negotiations for a proposed $450 million potato processing plant and related regional investments.
The MOU, approved unanimously, authorizes city staff to continue negotiations toward a development agreement and to pursue the package of local tax incentives that Agristo has requested. City staff and regional growers told the committee the project promises local farm demand, regional storage and large construction and operating impacts.
City staff described the project as a $450 million processing investment, with an additional $100 million to $150 million in storage investment on and off farm. The city said the package under discussion includes a proposed 20-year, 90% property tax exemption from the City of Grand Forks and that many other incentives being discussed would come from state programs, including a proposed $30 million forgivable infrastructure loan that requires state legislation. City staff estimated the plant’s water demand at roughly 700,000 gallons per day and said wastewater needs would be of a similar order of magnitude.
Gary Shields, Executive Director of the Northland Potato Growers Association, told the council the project grew from multi-year grower trials and said the plant would bolster potato acreage in the region and create new markets for growers. “This is not a knee‑jerk project,” Shields said. “It is our soil and our people that got us this contract from the competing states.”
Council members pressed for early, explicit answers on national security and regulatory review because Agristo is a foreign‑owned company. Council Member Osowski asked that Agristo proactively file with the Committee on Foreign Investment in the United States (CFIUS) rather than wait for an inquiry. Council Member Lisowski said she wanted assurances and public transparency given past controversies around foreign investment; she said she hoped Agristo would file with CFIUS in advance.
City staff and the city attorney’s office told the council the MOU is a preliminary step. It establishes a framework for good‑faith negotiations and identifies topics the eventual development agreement will address, including tax incentives, infrastructure responsibilities, and environmental and utility requirements. Staff said the MOU does not commit the city to incentives or financing; any final tax exemptions would proceed through the local government advisory process and require consideration by the county commission and school board.
The motion to approve the MOU was made by Council Member Terveen, seconded by Council Member Lunsky, and carried unanimously.
Next steps identified by staff include completing the negotiated development agreement, pursuing state legislative requests for infrastructure funding, presenting incentives to the local advisory committee, and bringing final agreements back to the council for approval.
