04-19-2021 - Laserfiche WebLink

Commission Minutes—April 19, 2021 5370 Mr. Steen moved and Mr. Breitling seconded to adopt Resolution #2021-5, Approving the Issuance of Bonds by the City of Harwood on Behalf of Elim Homes under the Municipal Industrial Development Act and Authorizing the Execution of an Agreement. Discussion: Mr. Peterson asked about the liability to the county. Micheal Montplaisir, Finance Director, said there is no liability to the county the bonds are named under the City of Harwood. On roll call vote, the motion carried unanimously. 9. WEST FARGO TAX INCENTIVE PROJECT FOR HEALTHCARE GROUP AND OP MEDICAL GROUP, County to participate in PILOT The West Fargo Economic Development Director forwarded information to the Cass County Commission regarding two applications received from two separate entities; Healthcare Group and OP Medical Group, for payment in lieu of taxes (PILOT) project located at 350 23rd Avenue East in West Fargo to construct a medical campus. The applications were considered at the last Commission meeting on April 5th and representatives of the applicants and project are back today with more information and consideration. Lauren Orchard, West Fargo Economic Development Director said the identities of the two groups is now available, Healthcare Group is Center for Specialty Surgery and OP Medical Group is Vance Thompson Vision. She said the applicants ran out of space to expand at their current facility in Fargo. Ms. Orchard said there are 57 existing employees between the two groups and the medical campus would grow their staff to about 203 employees over the next ten years. Mr. Steen said he is concerned with the need for County support when the income to the owners is 37% and 25% of expected revenues. Ms. Orchard said this project would be the second largest private investment in West Fargo and the PILOT is an incentive to leverage the entities to expand in West Fargo. Mr. Steen said he wanted to know how the rental units on the first and third floors of the facility will factor into the number of jobs and revenue of the facility, and who the tenants in the units will be. Ms. Orchard said there is a line in the agreement that states the requirements for the number of jobs and salaries of those jobs, and if the requirements are not met, the incentive will be retracted proportionally. She said the tenants of the rental units are unknown at this time. Mr. Peterson asked what the process is for retracting the incentive between the County and the City. Mr. Montplaisir said the City of West Fargo would contact the County when they certify their values each year, and then the Finance Office would make the appropriate changes. Mr. Steen asked for more information regarding the second building of the project. Ms. Orchard said the phasing of the project is to construct the large main building first and the following year construct the second building. She said the design process of the second building has not yet begun. Mr. Steen asked how the actual value of the second building affects the PILOT. Ms. Orchard said the incentive agreement sets the minimum development amount and if the development amount is exceeded, it is a greater incentive for the applicant. Mr. Breitling asked if the incentive agreement is finished. Ms. Orchard said the agreement is not finalized as the applications are still being voted on by related governing bodies. Austin Morris from Enclave Development, was present and said this project is a rare opportunity for the City of West Fargo, and the private practice owners will provide increased healthcare access at 40%-50% of the costs to patients. He said the recruitment strategy of the owners is to pursue out of area physicians.