A series of proposed tax incentives to bring a China-based agribusiness company to Grand Forks passed an initial test during last night’s Local Government Advisory Committee.
The Fufeng group is looking to establish a corn milling plant on the city’s north side. Keith Lund of the Region Economic Development Corporation says when up and running the plant will employ 233 direct and 525 indirect workers. “TRhey have companies and customers that you would recognize such as Nestle…Heinze…Cargill…and Haliburton.”
The incentives include a 90% exemption on property taxes for the first ten years followed by a 75% exemption for years 11 through 20. The committee agreed to forward the matter on to the other taxing entities for approval – including the park…county…and school district. City Attorney Dan Gaustad says each group has 30 days to respond. “If by chance one of the political subdivisions wouldn’t participate it doesn’t mean the PILOT wouldn’t go forward. It would mean that portion of the property would be subject to taxation.”
According to city documents the estimated value of the improvements to the site is pegged at $352 million dollars.
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In other action the L-G-A-C also agreed to push a tax incentive package on the proposed downtown Olive Ann project. Developers are eyeing the Edgewood Corporate Plaza for an 89 unit boutique hotel. The total investment is pegged at $27.3 million dollars.
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