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Council approves four-year tax exemption and employee credit for Beehive Homes memory-care expansion
Summary
The Moorhead City Council approved a four‑year property tax exemption and a four‑year employee credit for a Beehive Homes memory‑care expansion at 1001 Katie Avenue, citing local demand for memory‑care beds; council discussion clarified the exemption amount and credit cap before approval by voice vote.
The Moorhead City Council on March 9 approved a resolution granting a four‑year property tax exemption and a four‑year employee tax credit to support an expansion of Beehive Homes, a memory‑care facility planned at 1001 Katie Avenue.
The council opened a public hearing on the application and heard a presentation from Matt Lyseth, executive director of Downtown Moorhead, who said the project will add a 22‑unit all‑memory‑care building with community spaces, private bathrooms for each unit and expanded parking. "This is a very needed service in our Moorhead community," Lyseth said, noting the building is the second of four planned facilities and that the project has a waitlist.
Council members asked for financial clarifications before the vote. Staff confirmed the total property tax exemption over four years would amount to $35,200 and that the employee credit would be $1,500 per employee per year for four years, subject to a maximum within the four‑year period. Council Member Matson framed the numbers: "That is the property tax exemption, which is our standard for apartments and living quarters within there...and yes, that would be $35,200," the council packet and staff memo show.
After questions, a council member moved to approve resolution 9B and the council approved the measure by voice vote. The resolution, as approved, authorizes the exemption and the employee credit tied to the project and sets the start of the exemption to follow the project's assessment timeline (staff noted assessment would occur after construction; the exemption is expected to begin in 2028 if construction and assessment timelines proceed as described).
The project timeline presented to council foresees construction beginning in April 2026 and, if on schedule, completing by December 2026, with assessment and the exemption schedule following the city's tax rules. Council members and the project representative said the operator hopes to pursue additional homes in Moorhead approximately every two years, contingent on market and staffing conditions.
Next steps: the resolution will be implemented according to the city's permitting and assessment processes; details about building permits and final plan approvals were described as pending and subject to standard review.
