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Council approves Enclave LLC pre-application review and raises application fees after debate over Baker Tilly reports
Summary
After public comments alleging lack of transparency and concerns about fairness, the Grand Forks City Council voted to require higher fees for tax-incentive pilot applications and approved Enclave LLC's pre-application to proceed to full review; the council also confirmed a Baker Tilly financial review will be part of the full application process.
The Grand Forks City Council on Dec. 15 approved a pre-application from Enclave LLC to move forward in the city's tax-incentive pilot process and voted to increase the application fee structure after heated discussion about consultant costs and data transparency.
At the start of public comment, Andrew (Andy) Krausnick, a local business owner, urged the council not to “waste our money on Baker Tilly,” said he had filed a public-records request for Baker Tilly invoices that remained outstanding, and called the current five-year pilot length and exemption approach unfair to existing businesses. “These apartment and retail pilots unfairly compete with my indoor golf business, other small businesses, and existing rental property owners,” Krausnick said.
Council members debated whether developers should bear the full cost of third-party financial reviews. City staff and other council members defended using a third party: staff noted Baker Tilly’s national profile and said an independent financial review would be required as part of the full application. The council voted to add application-fee consideration to the agenda, set an initial fee of $5,000 and a $5,000 look-back after year one (a $10,000 effective total in the amendment), then approved the Enclave LLC pre-application to move to fuller review.
City Administrator Phelan said the pre-application approval authorizes a fuller application and that Baker Tilly would be engaged to review the full financial package once submitted. “Those will be reviewed by Baker Tilly, and a recommendation will come back as part of that full application review,” Phelan said.
The action does not represent final approval of tax incentives; staff said developers must still submit a full application with financial details for Baker Tilly’s review and that other taxing entities will be notified and provided information. Council debate noted the need for greater intergovernmental communication with the school and county on long-term incentives and recommended continued public engagement as the process proceeds.
Next steps: the applicant may submit a full application; staff will engage Baker Tilly and bring a recommendation back to the council after independent review.
