GF County Commission OKs Olive Ann tax incentives

The Grand Forks County Commission today (Tue) unanimously approved the revised tax incentives for the downtown Olive Ann boutique hotel project.

In the original funding formula, improvements to the Edgewood building would qualify for a five year Ren-Zone tax credit.  The city was asking other taxing entities to support an additional ten-year tax break – with the final five at 80%.

Under the revised formula, developers would be subject to a 10% tax during those middle five years.

Board member Diane Knauf said she was concerned about how smaller hotels would be affected. But Board Chair Tom Falck said the Olive Ann appears to be a special case.

“The room rates are fairly substantial,” said Falck, “so they (Olive Ann) aren’t going to compete with smaller hotels. This is a high-end hotel with high-end services.”

City administrator Todd Feland said the project would not likely move forward without the incentives.

The Grand Forks School Board endorsed the incentives Monday night.

The City Council will have a public hearing on the matter on March 7.