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City attorney outlines TIF debt, tax delinquency and possible sale of Big M building
Summary
City staff told the council the Big M development stalled, the city issued roughly $2.3 million in TIF funds (mainly for asbestos abatement), property taxes are two years delinquent, and outside parties have discussed offers; staff said any resolution is complex and no firm proposal has been accepted.
City attorneys and finance staff briefed the Minot City Council on July 6 about the stalled Big M Building project and tax increment financing (TIF) bonds issued in 2024.
The city entered a development agreement with Big M Minot LLC in 2024, the city created a TIF district and issued bonds to reimburse the developer for certain costs, and finance staff said roughly $2,300,000 of TIF funds were used for work including asbestos abatement. City staff said the project did not proceed as planned and that property taxes on the site are two years delinquent.
"We do not own the building," the city attorney told the council, adding the city has been in discussions with remaining LLC members and the mortgage holder about possible next steps, including a sale to a third party. The finance director said the developer had agreed to a minimum assessment of $14,700,000 at the time of the agreement to ensure tax revenues would cover bond payments, but the stalled project and unpaid taxes have left multiple encumbrances including a mortgage and construction liens.
A resident who said he has made multiple inquiries, Dwayne Brecke, told the council he had an offer contingent on receiving free‑and‑clear title and said he would withdraw interest if that condition was not met by the end of July. Council members cautioned that simply vacating or forgiving obligations tied to the TIF bonds would be legally and administratively complex and urged staff to pursue more information and negotiate as appropriate.
The finance director said foreclosure/tax sale processes were roughly a year away, and staff reiterated they have not received any firm purchase proposals or reached agreements. The council and staff discussed possible executive session negotiations if the matter advances, and the mayor asked staff to continue outreach and report back.
No formal action was taken to write off debt or accept an offer at the meeting; council members urged urgency from the property owner and recommended staff pursue the available offers and provide a clear update at the next meeting if progress occurs.
