Summary of Fergus Falls TIF Policy Work Session – August 4, 2025
- Ryan Tungseth
- Aug 10
- 2 min read
Time: 4:30 PM, City Hall Attendees: Mayor Anthony Hicks, council members (Mark Leighton, Al Kremeier, Mike Mortenson, Scott Rachels, Laurel Kilde, Jim Fish, Scott Kvamme, Laura Job), city staff (Klara Beck, Bill Sonmor).
Key Items
TIF Policy Development Discussion (0:08–53:54)
Action: Discussed drafting a TIF policy to guide future approvals; no formal action taken, edits to be prepared for future review.
Discussion (53 min):
Hicks provided background: 45 TIF projects authorized (6 open, 2 not certified, 37 decertified), with 19 issued by the Port Authority and 26 by the city. Projects include 39 industrial/commercial, 4 hotel/senior living, 6 apartments (0:08–2:22).
Key policy questions: maximum TIF duration, funding criteria (e.g., investment, jobs, housing units), inclusion of interest, and administrative fees ($2,000 application, $15,000 escrow proposed) (2:35–5:56).
Kilde sought clarification on economic development TIF (8-year max, e.g., manufacturing, warehousing, workforce housing outside metro) vs. redevelopment TIF (25-year max, addressing blight, e.g., Mill Hotel, Checkers site) (6:42–9:38).
Consensus reached on 8-year max for economic development TIF, seen as job-creating (12:53–17:23).
Housing TIF debate: Mortenson opposed housing TIF, prioritizing job creation, sales tax, and community benefit; suggested 5–15 years max. Kilde proposed 12 years for ≤50 units, 15 years for >50 units. Rachels suggested 12 years for all housing, non-transferable upon sale, with financial review (17:23–50:00).
Beck noted frequent housing developer inquiries, emphasizing TIF’s role in covering project cost gaps (20:47–23:29).
Sonmor clarified TIF duration starts from first increment receipt, and projects can decertify early if increment goals are met (e.g., Ora Fabricators) (14:16–42:26).
Fish emphasized clear guidelines for the future economic development director to avoid overpromising (42:59–44:37).
Administrative fees discussed: proposed increasing to $3,000 application and $20,000 escrow to cover rising costs (51:13–53:21).
Proposed requiring 20% developer equity for all TIF projects (53:28–53:39).
Outcome: Directed staff to revise draft policy with 8-year max for economic development, 12-year max for housing (non-transferable, financial review required), 20% developer equity, and updated fees ($3,000 application, $20,000 escrow).
Significance: Establishes clear TIF guidelines, balances economic and housing priorities.
Next Steps
TIF Policy: Staff to revise draft policy with discussed parameters (8-year economic development, 12-year housing max, non-transferable housing TIF, 20% developer equity, $3,000 application/$20,000 escrow fees) for future council review.
Economic Development: Ensure policy supports future director’s negotiations without overpromising.
Housing TIF: Clarify non-transferability language and financial review process in draft policy.
Disclaimer: This summary was generated by an AI system without added opinions. No claims of accuracy are made, though timestamps are included for reference. For the full context, please view the meeting video on YouTube: [YouTube Video Link Here]. This content is provided by Growth Forge Studio (formerly 4t Creative), dedicated to helping businesses grow.
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