moorhead city council

Nancy Edmonds Hanson

Moorhead’s commercial and industrial development appears to be on a roll, the City Council learned at its meeting Monday, with more lots needed to accommodate demand.

Assistant city engineer Tom Trowbridge attributed the need to expand the MCCARA Industrial Park to that success. “We have a shortage of two-acre lots. That seems to be the sweet spot for businesses looking for sites right now,” he said.

To meet that need, the city council approved development of MCCARA 5th Addition, a division of 21 industrial lots along 34th Avenue South and east of 43rd Street. “We’re starting out by focusing on the first eight,” the engineer told the group.

Plans include installation of underground utilities and street improvements at a cost of more than $4 million. The cost will be defrayed by a $2 million state Business Development Infrastructure Grant received in July. The city’s share of the project, up to $2.5 million, will be assessed to the properties that benefit.

Construction is slated for the remainder of 2022 and the 2023 construction seasons.

Economic development consultant Derrick La Point introduced another change affecting some expanding and relocating businesses – an adjustment of the Commercial-Industrial Property Tax Exemption Policy. The Economic Development Authority board recommended increasing the minimum new-building value thresholds at which three- and five-year property tax exemptions are awarded, and the council concurred.

LaPoint cited changes in the cost of building materials and labor in the current market as the reason for raising the minimums. The temporary tax exemption applies to new construction or substantial expansion or rehabilitation of an existing buildings, along with minimum requirements for creating jobs. The minimum new building value qualifying for the three-year tax break has been raised from $150,000-999,999 to $250,000-1,249,999. The five-year term applies to projects of more than $1,250,000.