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West Fargo approves $275,000 forgivable incentive to keep Sign Badgers in city
Summary
The West Fargo City Commission approved a $275,000 forgivable loan from economic development sales tax to help Sign Badgers fit out a West Fargo production and office space, 4–1 after debate over amount and enforceable job or clawback conditions.
The West Fargo City Commission on Monday approved a $275,000 business incentive for Sign Badgers, a production and signage company that is seeking to relocate into a roughly 5,000-square-foot West Fargo space rather than a competing Fargo site.
The incentive, funded from the city’s economic development sales tax and structured as a forgivable loan over five years, passed 4–1. Commissioner Olsen moved to approve and Commissioner Zundell seconded; the clerk recorded the tally as four ayes and one nay.
City Economic Development Director Casey Sanders Bergman said Sign Badgers was founded in West Fargo and has operated here for about 15 years. “The request before you today is $275,000, funded through economic development sales tax and is to be used as a forgivable loan over a period of five years,” Sanders Bergman said in presenting the application and EDAC’s recommendation for approval.
Dawson, representing Sign Badgers, told commissioners he is investing “a significant 6‑figure investment into the business” and said the proposed fit‑out would be roughly 25% office and 75% production space. He also said the Fargo option required no tenant fit‑up contribution from him, which was a driving factor in the company’s request for assistance to remain in West Fargo.
Several commissioners pressed for more detail on the company’s investment and metrics tied to forgiveness. Commissioner Zundell said the forgiveness terms were “very vague” and asked whether job retention or performance targets would be added. Sanders Bergman said the city can require a business incentive agreement drafted with the city attorney to include job‑retention numbers and a forfeiture or clawback provision; he noted commissioners could ask staff to add specific markers before finalizing an agreement.
Opponents of the size of the incentive argued the amount was large relative to the requested tenant fit‑up and the business’s current sales. Commissioner Zundell compared the request to a prior incentive for a much larger warehouse and said he had “a tough time with this.” Dawson said he anticipates growth and described long‑term plans to keep production in West Fargo and expand regionally.
The commission and staff discussed how the fit‑out dollars would remain in West Fargo if Sign Badgers later outgrew the space: Sanders Bergman said the funds would be used for tenant improvements rather than portable equipment, and would therefore stay with the building for a future tenant if the business left.
The motion passed 4–1. The commission directed staff to prepare a written business incentive agreement that can include forgiveness schedule details and clawback language for inclusion in the final contract.
Proper names noted in the staff packet included Sign Badgers and Rusted Properties (the West Fargo location’s representative); staff materials and a company summary were included in the commission packet.
