Alerus Center planning for future capital needs

The Grand Forks council is ready to diversify the Alerus Center investment portfolio in an effort to gain higher returns for future capital needs.

The current three-quarter city sales tax used to fund debt service will sunset at the end of 2029.  The events center building currently has around $8.5 million dollars invested in federally-backed securities as outlined in North Dakota Century Code.  The return on investment has been as low as 1.5%.

Armed with Home Rule Charter the city is looking to move 25% of the fund into slightly riskier investments with a higher rate of return.  The goal is to grow the portfolio to cover building needs through 2064.

Mayor Brandon Bochenski says the move is the prudent thing to do.  “Looking at inflation and where interest rates are…it’s probably something to look at every year as circumstances change.”

Council member Brett Weber made the motion to approve the plan.  “If we follow the North Dakota Century Code we are limited to those kinds of investments.  We are not interested in taking all the money to the races or the roulette table and putting it on red…but current code restricts what we can do with that.”

The city also plans to invest $2 million dollars annually into the portfolio through 2027.