Grand Forks County Commission rejects 20-year Brookstone tax pilot after public opposition

Grand Forks County commissioners voted unanimously to decline participation in a proposed 20-year, up-to-90% property-tax pilot for the Brookstone apartment project after public opposition and a developer presentation.

The Brookstone proposal was presented to taxing entities by Todd Phelan of the City of Grand Forks and developer representative Curtis Regan. Phelan described the plan as a low- and moderate-income housing project that would rely on federal low-income housing tax credits and state HIF funding, with the pilot period tied to the tax-credit affordability period. Phelan said the project’s estimated incremental taxable value was about $26 million and that the city sought participation from the county (about 24% of the tax bill), the school district and other taxing entities.

Regan described the project as 160 units restricted at roughly 40–60% of area median income, explained financing and compliance requirements and said the tax credit equity and the pilot combined were needed to meet a roughly 1.15 debt-coverage target for the financing. Regan said about 20% of units could use HUD vouchers and that utilities and streets at the East-of-Furniture-Row site were in place.

Speakers at the public-comment period urged rejection. ‘‘The idea of giving private developers Grand Forks County taxpayer funds is very disappointing,’’ said Bob Cowger, who disputed city vacancy-rate statements and presented apartment-vacancy figures compiled from the Grand Forks Apartment Association. Mary Caponin said she opposed ‘‘a 20-year free tax’’ for Brookstone and characterized the cumulative tax relief being offered to apartment developers in the community as excessive. Another public speaker, identified as Mona, said Brookstone was also pursuing federal and state funding and questioned whether units were being misrepresented as low income.

An unidentified commissioner moved to not approve the pilot; the motion was seconded and passed unanimously. Commissioners discussed the length of the proposed incentive and reiterated that the pilot was tied to the low-income tax-credit period: if the tax credits expired at 15 years the pilot would terminate as well.

The vote means Brookstone may proceed with other approvals, but the county will not participate in the requested PILOT. Phelan said the project will continue through city and school-board reviews; the city council is scheduled for a final public hearing on Dec. 1 and the school board was to take up the proposal the week following the commission’s meeting.