Grand Forks County Commission approves Brookstone apartment pilot over community opposition

The Grand Forks County Commission on a 3-2 vote approved a pilot tax-increment incentive for the Brookstone Apartments, a proposed multifamily development the county says would add workforce housing as Grand Forks grows.

Supporters — including city and regional economic-development representatives and a Brookstone presenter — said the city and county face a tight housing market, citing an independent market study the presenter said showed a 3.5% vacancy rate among surveyed local managers and that 44% of renters are cost-burdened. "Brookstone will offer working people an opportunity to live within their means," the presenter said, adding that the development’s financing gap can be addressed in part through a pilot that reduces operating expenses.

Opponents during public comment, including landlord Bob Krauger, urged the commission to reject the pilot, arguing the program was not meant for multifamily housing and that incentives create an unlevel playing field for existing landlords. Krauger cited vacancy-rate data from a local association showing higher vacancy (7.45% in 2021; 3.91% in third-quarter 2025) and said he was unsure the project met requirements of the North Dakota Century Code. "We're strictly opposed to giving any funds of any exemption of any kind to private developers," Krauger said.

Dawn Mant, executive director of the Red River Regional Council, told commissioners the local housing market has become increasingly unaffordable and emphasized the role of higher interest rates and falling purchasing power for younger adults in tightening housing options. A mayoral representative (who identified as the city’s mayor during remarks) said the parcel currently pays about $165 annually in taxes and that, if developed, would generate substantially more tax revenue over time — the presenter and county staff cited estimates of about $62,057 in property taxes in year one under the pilot and rising to full taxable value later.

Commissioner Peach moved to approve the Brookstone Apartment LLC pilot incentive application; the motion was seconded and carried 3-2, with Commissioners Rested and Bierke recorded as dissenting. The board did not adopt any amendment altering the pilot’s term or financial percentages during the vote. The commission also discussed forming a joint committee or coordinating review meetings with the city and school board to consider housing projects together in the future.

Votes at a glance: - Brookstone Apartment LLC pilot incentive application — Motion passed 3–2 (Rested, Bierke dissenting). (Motion introduced SEG 1204; roll call concluded SEG 1229.) - County federal-aid roads maintenance certification — Approved unanimously. (SEG 1280–1298.) - Parking ramp phase 1 final change order ($2,614,507) — Approved unanimously. (SEG 1341–1356.) - 4G farms lease — Approved unanimously. (SEG 1523–1597.)

Why it matters: Local officials framed the Brookstone decision as an attempt to address a shortage of workforce and middle-market rental housing as Grand Forks grows because of Grand Forks Air Force Base missions and high UND enrollment. Supporters argue the pilot is a tool to close a financing gap that otherwise discourages private investment in workforce apartments; opponents warned the pilot diverts public subsidy to private developers and can undercut existing landlords.

Next steps: With the pilot approved, the county will proceed with the incentive terms as presented. Commissioners discussed coordinating future deliberations with the city and the school board; any implementation steps tied to the pilot (tax schedules, reporting or periodic reviews) were not detailed on the record and would be captured in follow-up staff work.