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Commission approves Renaissance Zone benefits for Dakota Center rehab after debate on design and tax impact
Summary
The City Commission approved a $5.37 million interior rehab proposal for the Dakota Center at 51 Broadway N under Fargo's Renaissance Zone program despite public criticism about exterior design and questions over tax‑abatement math. Commissioners split on timing but a majority voted to approve the application.
The City Commission on July 13 approved a Renaissance Zone rehabilitation application for the Dakota Center at 51 Broadway N, a downtown building the applicant says is more than 50% vacant.
Planning staff told commissioners the proposed investment of about $5.37 million exceeds program thresholds and could raise annual property taxes on the building from approximately $160,000 to $240,000 after the five‑year abatement expires. Nicole Crutchfield of the planning department described the project as meeting the Renaissance Zone criteria and said staff and the Renaissance Zone Authority had unanimously recommended approval.
Paul Gallai, a downtown resident, urged the commission to send the project back for more work on its exterior, arguing the proposal made “no commitment to improve that walkable, pedestrian scale” and that promised coffee shops or open space were not specific enough. "This building sits in the heart of the city...the current proposal makes no commitment to improve that," Gallai said.
Jacob Strand, speaking for the applicant, said the owner purchased the building in January for a little over $5 million and that the planned investment is intended to revitalize the landmark and attract tenants. "We truly believe it will be worth $15 million or more by the time we're done," Strand said, adding the owner would work with the city and downtown stakeholders on exterior details.
Commissioners debated the financial mechanics and policy implications of the incentive. Commissioner Strand (commissioner speaking) said the application met state and local requirements and was consistent with the city's Renaissance Zone plan, asserting the commission should not reverse the plan at the last minute. Other commissioners asked for additional detail on baseline assessments and the estimated timeline for public‑benefit recovery. Commissioner Peterson said he was "not for this or against this at this stage" and asked for more information about valuation assumptions.
After discussion, the commission approved the application by roll call. Staff said further design coordination and any required ordinance steps will follow as part of the established process; the commission also noted a broader fall review of incentive policy is planned.
The decision authorizes the Renaissance Zone benefits as recommended; the project will return with implementation details and any final approvals required under city process.
