West Fargo approves five-year pilot incentive for Sandy’s Donuts expansion

The West Fargo City Commission on Feb. 2 approved a five-year pilot incentive for Markar LLP, doing business as Sandy's Donuts, to support the conversion of a former Air Mechanical property at 1914 4th Avenue Northwest into a manufacturing and distribution location.

Casey Sanders Bergland, the city's economic development director, said the property is about 11,300 square feet and the ownership plans to expand the building by roughly 3,000 square feet and invest about $406,000 in machinery and equipment. Bergland told the commission the company expects some incidental job impacts and may convert part-time roles into one or two full-time positions; she cautioned that the expansion is not intended to create significant new employment or materially increase municipal sales tax revenue tied directly to West Fargo locations.

Bergland said the Economic Development Advisory Committee reviewed an earlier, different proposal and recommended moving forward with this modified request. She also noted the company had obtained a state automation tax exemption for equipment and that the tax pilot would apply to new growth in property value rather than the existing property tax base (staff used $16,994 as the current property tax and estimated post-expansion tax at about $19,000 on current assessment practices).

After a public hearing with no speakers for or against and no public opposition recorded, Commissioner Jorgensen moved, and Commissioner Olsen seconded, approval of the five-year pilot incentive. The motion passed by voice vote.

The commission did not record a roll-call vote in the transcript. City staff said the applicant (Jeff Auslin/Markar LLP) was not present because of a family emergency but was available by phone or text.

Next steps are for staff to finalize incentive paperwork and monitor the scope of the project in accordance with the pilot agreement.