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West Fargo approves $275,000 forgivable loan to keep Sign Badgers in city
Summary
The commission approved a $275,000 forgivable loan over five years from economic development sales tax to help Sign Badgers fit out a West Fargo facility; the vote was 4–1 after commissioners questioned clawbacks and job‑retention benchmarks.
The West Fargo City Commission voted Sept. 22 to approve a $275,000 forgivable loan to Sign Badgers to subsidize tenant fit‑out at a proposed West Fargo location.
Economic Development Director Casey Sanders Bergman told commissioners the business was founded in West Fargo, employs about 12 people and generates roughly $12,000–$15,000 in annual sales‑tax revenue. The request — funded through the city’s economic development sales tax and structured as a forgivable loan over five years — was pitched as retention of a local employer that could expand production capacity in West Fargo.
Commissioners pressed the applicant and staff on details: the applicant said he has “significant six‑figure” investments in the broader business and expects growth, but acknowledged he had not obtained contractor bids supporting the fit‑out estimate. Staff said a business‑incentive agreement and clawback language could be drafted by the city attorney to include job‑retention benchmarks and prorated forgiveness.
After questions about the size of the incentive relative to the space (approximately 5,000 square feet) and discussion of protections if the business failed or changed ownership, Commissioner Olson moved to approve and Commissioner Zundell seconded. The motion passed 4–1.
The economic development sales‑tax fund will fund the award; staff said details of the forgivable‑loan agreement (including any clawbacks and performance requirements) will be memorialized in a separate agreement drafted by the city attorney.
