Project to redevelop south Fargo block to get up to $4.6M in property tax breaks – InForum
FARGO — The BLOC project, a $30 million residential, park and commercial building that would redevelop the South Plaza mall on the 1600 block of South University Drive, was awarded by the city’s Economic Development Incentive Committee (EDIC). a nod for a big property tax break. on Tuesday 24 January.
Craig Development and client Jesse Craig had applied for $5 million in Tax Boost Funding (TIF) for the project. City officials determined that the project would be eligible for up to $4.6 million in tax credits over 15 years.
The land rezoning has yet to be approved by the City Commission before TIF can give final approval, said Jim Gilmour, the city’s director of strategic planning and research.
Matt Schnackenberg, managing director of PFM Financial Advisors, told EDIC members that his company’s “but-for” study of the project points to the need to provide a tax incentive to make the project a reality.
“PFM concludes that the project would not be feasible without public support,” the company’s written report reads.
BLOC Partners LLC’s project calls for the removal of all tenements and commercial buildings on the block, including the two-story mall.
These structures would be replaced by a five-story building that would have approximately 13,000 square feet of commercial/retail space on the ground floor and approximately 127 apartments on the upper floors. There will also be a heated underground car park, a heated underground car park on the ground floor and parking spaces around the building.
Construction is scheduled to begin in 2023 and be completed in summer 2024.
Post / BLOC Partners LLC
Once the houses are removed or destroyed, BLOC is built on the west side of the block. This will allow the mall’s businesses to continue operating, most notably Duane’s House of Pizza, the Great Wall Chinese restaurant and The Medicine Shoppe Pharmacy, all of which will remain at this location.
When BLOC is complete, these companies will move into the building and the mall will be demolished and an above-ground parking lot built off South University Drive.
Gilmour said the properties in South University’s 1600 block now bring in $37,000 a year in taxes. When the TIF district ends in 15 years, the taxes collected will increase to $452,000 per year.
EDIC Chairman and City Commissioner Dave Piepkorn said “these tax incentives will pay off many times over after expiry” thanks to much higher property tax levies from the improved properties.
“The amount we spend is tiny” compared to the revenue that is collected, Piepkorn said.
