Moorhead City Council

Nancy Edmonds Hanson

Governmental affairs director Lisa Bode updated the Moorhead City Council on progress on four local legislative priorities – only one that has so far made it to formal introduction in the Minnesota Legislature.
“We have four bills in the cooker,” she told the group. A measure to exempt sales tax on materials purchased for the $20 million City Hall renovation is the first. Three others are under development, including extension of the period of tax increment financing for downtown from five to ten years; a joint request with Clay County for $60.4 million for flood mitigation projects; and adding more flexibility to the Border City Enterprise Zone.
The sales tax exemption, she told the council, would save a substantial amount on the cost of the City Hall project. More than half of its estimated cost is for building materials. “The exemption would save about $800,000,” she said.
Projects planned for the downtown redevelopment district are included in tax increment financing district established in May 2024. The term available to developers is currently five years. The city seeks to have that extended to 10 years, given the size and number of projects to be involved in the project, extending from Third to Seventh Streets North and from First Avenue North to Center Avenue. TIF rebates property taxes to developers on the difference between the taxable value of the original site and the completed project.
The joint Moorhead-Clay County flood mitigation request includes two elements: $16 million for upgrades to seven lift stations in the city, bringing them up to FEMA standards, and $44.4 million for the Fargo-Moorhead Area Diversion Project, their share of the cost of improvements on the Minnesota side of the Red River.
The city is asking for adjustment to the Border City Enterprise Zone legislation to give more options for development of restaurants and other amenities. Enterprise Zone credits are used to offset the difference between Minnesota and North Dakota’s tax structure.
She noted that she and Mayor Shelly Carlson testified last week in support of the Moorhead Cultural Mall. Planned for the corner of Eighth Street and Center Avenue, project leader Fowzia Adde and her board are seeking support from the Minnesota Legacy Fund for the multicultural business and events center.