(KNOX) – The Grand Forks City Council approved two tax incentives for buildings at the Beacon development project at Monday’s City Council meeting. One incentive is a five year, 100 percent PILOT agreement, which will be applied to the Spirit Building and the 1923 Building. Those buildings were filed by Beacon East Real Estate Holdings LLC and Beacon NW Real Estate Holdings LLC, respectively. The second incentive is an eight year, 100 percent Renaissance Zone incentive for a third planned building, and it was filed by CDJTB4 LLC.
Council members approved the applications for the incentives, and agreed to terminate the previous 25 year, 80% Tax Increment Financing agreement the city had with Epic Companies.
City Administrator Todd Feland said the tax money that had been going toward the TIF district will be redistributed back to the applicable taxing entities. The Grand Forks School District is estimated to receive $320,000, while Grand Forks County will receive $207,000 and the city of Grand Forks will get $227,000. The Park District and the Garrison Diversion will receive some of the funds.
Mayor Brandon Bochenski mentioned that there were unpaid taxes on the Spirit Building from 2024 and 2025. He says those taxes still need to be paid in full within three years.
Feland also said the first floors of the two buildings will be used for commercial space and the second floors will become housing units.
The vote to approve the PILOT application passed 5-2, with Rebecca Osowski and Angela Salentiny voting against it. The vote to approve the Renaissance Zone incentive passed 6-1, and Salentiny was the only one who did not approve the measure.
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