The unanimous support among the various government entities for tax incentives to help lure downtown Grand Forks development may hit a bump in the road.
The Finance Committee of the Grand Forks School District has voted against tax breaks for the proposed Olive Ann Boutique Hotel project.
Developers are looking to invest over $27 million dollars to renovate the existing Edgewood Corporate Center as well as a new build for the hotel.
Finance members voted unanimously last week against incentives for the project – beyond a five year Ren-Zone program. According to meeting minutes the committee cited that lack of new primary sector jobs…limited benefit to district constituents…and the small subset of population that the project will serve.
The Payment In Lieu of Taxes (PILOT) calls for a 100% exemption for years 6-10 and 80% for years 11-15 for the hotel-only portion of the project.
At a recent council meeting City Attorney Dan Gaustad says such action doesn’t necessary kill the plan. “It doesn’t mean the PILOT can’t go forward. It would mean that portion of the property (school) would be subject to taxation.”
Gaustad says the school district could also opt not to take any action. “Or if they are willing to negotiate.”
The full school board will consider the so-called PILOT request tonight as well as tax breaks to support the proposed Fufeng Group corn milling facility.
The city council has scheduled a public hearing for the tax plan on February 22nd.
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