Board approves 10‑year PILOT for Cirrus Aircraft expansion; district foregoes portion of future incremental property tax revenue
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Summary
The school board voted 7‑1 to recommend a payment‑in‑lieu‑of‑taxes (PILOT) agreement to support Cirrus Aircraft’s two‑phase Grand Forks expansion; the district will forgo an estimated share of incremental property taxes over a 10‑year term.
The Grand Forks Public Schools Board on May 12 voted 7‑1 to approve an administrative recommendation supporting a payment‑in‑lieu‑of‑taxes (PILOT) application from Dakota Aircraft Corporation (doing business as Cirrus Aircraft) for a proposed two‑phase expansion at the company’s Grand Forks facility.
Keith Lund of the Economic Development Corporation introduced Cirrus representatives and noted Cirrus has been in Grand Forks for about 30 years and is a major local employer. Steve Thomas, Cirrus’s executive director of operations in Grand Forks, said phase 1 would add about 30,000 square feet for tooling and equipment to maintain production capacity; phase 2 would add further capacity and is expected to create more jobs later.
Nut graf: The proposed PILOT would freeze taxation on future added value for the project and replace incremental property tax with a negotiated payment; the board’s approval forwards the application to city public hearings and reflects a decision to support Cirrus’s expansion as an economic development priority.
Brandon (city/administration) and city economic development staff discussed mechanics: the current tax receipts from the property are roughly $214,000; after the project the property could generate about $344,000 annually, a roughly $130,000 increase. Under the PILOT the incremental value would be subject to the negotiated payment schedule over 10 years. Board member Todd Manley voted no during the roll call; the motion carried 7 yes, 1 no, 1 absent.
Action details: The board motion (moved by Dr. Lund; seconded by Anderson) carried after roll call (Hodak yes; Cleven yes; Manley no; Larson yes; Lund yes; Anderson yes; Palmasino yes; Berger yes; Flynn absent). The administration’s cover memo projects a $130,000 added value and that most of the longer‑term increase would flow to the district after the PILOT term.
Ending: Administration noted the application will proceed to the city public hearing on June 2. Board members thanked Cirrus and city staff for the presentation. The board did not set PILOT terms on May 12; those will be finalized in subsequent intergovernmental steps and public hearings.
