GRAND FORKS — The developers for the proposed Ray Richards Golf Course redevelopment believe that even with recent changes to the agreement with the city of Grand Forks, the project will still continue as planned.
Steve Burian, president and CEO of Burian and Associates, the engineering consultant for the project, said new requirements for the project’s internal rate of return have added a new aspect to its preparation, but he still thinks the project is “in pretty good shape” to move forward.
“We’ve kind of crunched both ends, and it’s not ideal, but I think we can live with it,” he said.
The County Commission on Aug. 18
voted 3-2 to approve the application for the 20-year, 90% PILOT,
or payment in lieu of taxes, incentive application. Part of that approval was a request for an amendment to the developer’s agreement to add a five-year lookback and lower the rate-of-return percentage required to change the taxing percentage.
The lookbacks held every five years of the PILOT would analyze the project’s finances to see if it is reaching the specified rate of return. If it is, then the county, city and school district could collect more tax revenue from the project, lowering the 90% incentive. The initial suggested rate of return was 9.75%, but with the county’s suggested amendment, it would be 7.75%.
The City Council is now set to hold the final vote on the PILOT application and the developer’s agreement during its next meeting, at 5:30 p.m. on Tuesday, Sept. 8. If approved, it will be the last vote the project needs from local taxing entities, having already gotten approval from the County Commission and School Board.
City Administrator Todd Feland said there were some initial concerns about the lower rate of return because of how it could affect getting investors for the redevelopment, which would include a 169-unit apartment building and Toptracer driving range facility.
“We’re incorporating those motions from both the School Board and county into the development agreement, but in the meantime (Burian and Associates) is working with their team and potential investors about whether they can move the project forward,” he said.
The School Board also included provisions about amending the development agreement
when it approved the PILOT in a 5-4 vote on Aug. 10,
adding requirements for a 10-year and 15-year lookback at the project’s financials and requesting provisions for community use for the facility.
Burian said there will still be more to do if the incentive application and developer’s agreement are approved by the City Council.
Next steps for the project would include securing banking and investors, completing design of the project and getting the right permits to begin work on the redevelopment.
Burian also expressed his appreciation for the support from the local taxing entities and from UND President Andrew Armacost and his team.
“Without their help, we would not be able to do this,” he said.
Jordan Rusche is the government reporter for the Grand Forks Herald.