Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Tax Incentives topic
No spam. Unsubscribe anytime.
Cass County withholds participation in Fargo TIF for Lennon Lofts, asks city to continue negotiations
Summary
The commission declined to approve county participation in a proposed additional five-year tax exemption for Lennon Lofts in downtown Fargo and directed staff to negotiate further with the developer, citing financial prudence amid potential property-tax cap changes and concerns about whether the project would occur without incentives.
The Cass County Commission voted not to participate in the second five-year tax exemption portion of the Fargo Lennon Lofts proposal and directed staff to negotiate with the property owner on terms. County staff explained North Dakota rules allow the county and school district to opt out of exemptions that extend beyond five years; the city approved its participation and the county has 30 days under state statute to act.
County planner/administrator Jim Gilmore (identified in the meeting transcript as presenting the item) described the proposed project as replacing two vacant, deteriorated structures near downtown Fargo with a 22-unit apartment building (mostly one- and two-bedroom units) and first-floor enclosed parking. He said the property currently pays roughly $2,300 in total property taxes in 2025, with the county's share about $341; post-construction market value would generate an estimated $42,000 in total property taxes with about $6,400 going to the county.
Gilmore said the county's financial-advisor analysis showed a "but-for" result: without assistance, the developer's return on the project would be about 6.49%; with assistance it would be about 10.9%. He also reported coverage ratios that lenders consider marginal without assistance (about 1.01 without help vs. 1.25 with assistance).
Developer Andrew Hanson, identifying himself as the managing member for Lendl Lofts, said the properties have been vacant about five years and described rising costs (insurance, utilities, tariffs) that have increased project headwinds. "This project won't happen without your guys' support," Hanson told the commission.
Commissioners debated competing priorities. Several commissioners said they were sympathetic to downtown redevelopment and removing blight but expressed concern about long-term revenue foregone under multi-year exemptions — an issue made more urgent by the prospect of a 3% property-tax growth cap discussed during the legislative session. Commissioner Breitling moved that the county not approve participation as requested but instead negotiate with the property owner; the motion was seconded and carried on a roll call vote with all commissioners voting in favor.
Ending: County staff said they will pursue negotiations with the developer and return to the commission if a negotiated participation level is proposed for formal approval.
