On Monday, Oct. 26, the Fargo City Commission approved a 10‑year, 100% tax exemption for the COVE Living apartment complex. The development will replace the former West 45th Business Center at 200 45th St. S., creating 229 new apartments that include one‑, two‑ and three‑bedroom units.
Incentive details and expected revenue
The commission’s decision means the project will not pay property taxes for a decade. After that period, the city anticipates the property will generate about $839,550 in total tax revenue each year, with $166,068 flowing directly to Fargo. The exemption’s total value is projected at roughly $8.4 million if the city, West Fargo Public Schools, and Cass County all participate for the full ten years. A shorter five‑year participation by the school district and county would reduce the benefit to about $5.6 million.
Policy change to enable the exemption
Before the vote, commissioners adopted a new policy allowing the city’s Payment in Lieu of Taxes (PILOT) program to be used for redeveloping obsolete or high‑vacancy commercial properties. Nicole Crutchfield, director of planning and development, explained that the policy’s intent is to spur redevelopment of underutilized sites. The Fargo Economic Development Incentives Committee unanimously recommended the policy, and it passed after amendments from Mayor Josh Boschee.
Mayor Boschee asked the commission to set geographic boundaries for the incentive program, require any qualifying project to double the housing units in the affected area, and reserve at least 5% of the total units for households earning at or below 80% of the area median income. Fargo’s median income is in the mid‑ to high‑$60,000 range.
Support from commissioners
Commissioner John Strand highlighted the income‑restricted component as a “game changer” that secured his support for both the policy and the COVE Living exemption. Commissioner Chad Peterson also voiced approval of the 5% affordable‑housing requirement.
Commissioner Michelle Turnberg was the sole dissenting vote, opposing the exemption. The remaining four commissioners voted in favor.
Additional safeguards
During the meeting, commissioners discussed whether a tenant’s income should be monitored after move‑in. They agreed that residents who meet the income threshold at lease signing will not be evicted if their household income later rises.
Shannon Roers Jones, legal counsel for the Roers firm that requested the incentive, confirmed the company can meet the added requirements.
Project cost and timeline
The COVE Living development is estimated to cost $61.6 million. The tax exemption is intended to make the project financially viable while delivering new housing options for Fargo families.
City administration update
At the same meeting, commissioners appointed Erika Anderson as assistant city administrator, with a start date of Nov. 30.
The approval reflects Fargo’s broader strategy to revitalize vacant commercial corridors, increase affordable housing, and stimulate local economic growth while safeguarding tax revenue for the long term.
Original reporting: InForum (Fargo section) — read the source article.
