Kilbourne Investment Group gets tax breaks for riverside apartments in downtown Fargo – InForum

FARGO — A six-story apartment building along the river in the northeast corner of downtown Fargo could be under construction this fall.

An investment group organized by the Kilbourne Group called Great Plains Block 3 received tax relief for the project in a 4-1 vote by the Fargo City Commission on Monday June 13.

Commissioners approved a five-year property tax relief in the Renaissance area, followed by a nine-year tax increment funding district agreement.

Commissioner Tony Gehrig voted the only “no”.

The $23.4 million project will provide 114 market-priced apartments with indoor parking on the first floor for approximately 190 residents.

Facilities will include a rooftop terrace with views of the Red River Corridor, a green space on the southeast corner of the project near the intersection of Fourth Avenue North and Second Street North, a club room and bicycle parking.

The company said the structure will help grow downtown Fargo’s population and create a better connection between downtown and the riverfront.

The town’s strategic planner, Jim Gilmour, said Kilbourne, the developer of the scheme and the force behind several residential and mixed-use buildings in the town centre, will pay around $162,000 for the land. They also own another lot to the south that will be part of the project.

The property tax relief will be $1.6 million for the five years of the Renaissance area, and then the city’s TIF district will reimburse the company $1.4 million over the next nine years to reimbursing them for the demolition of buildings on the site, resolving any environmental issues and replacing public infrastructure near the site.

The company was eligible for TIF funding of up to $3.7 million, a statewide program designed to help developers upgrade dilapidated areas of the city.

This TIF neighborhood was established on a wide swath of the downtown east side in the waterfront area to continue its revitalization with several public lots having been sold to developers. The TIF area also includes the vacant former Mid America Steel site just along the river which is slated for development down the road with no lots sold at this time.

The estimated assessed value of the new waterfront property will increase from $1.6 million to nearly $20 million, with taxes paid increasing significantly as the breaks expire.

Gilmour said the company hopes to begin work in the underutilized area in the northeast corner of downtown this fall, but may have to wait until next spring to complete architectural work.

David H. Henry