City of Grand Forks

Staff Repoft
City Council - October L9,2O2O

Agenda ltem: Memorial Village Tax Incentive Pre-Application

Submitted by: Todd Feland, City Administrator

Staff Recommended Action: Invite applicant to submit full tax incentive application

October 28, 2019 - Committee Recommended Action: N/A

November 4, 2019 - Council Action:

BACKGROUND:
The proposed Memorial Village redevelopment project was submitted by Mr. Steve Burian of Burian &
Associates, LLC and is proposed as a significant mixed use redevelopment investment of a five (5) story
building, underground parking, and walkway connection to replace the existing Memorial Stadium. The
Memorial Village redevelopment project is proposed as a Public (LT{D, City/Park District, School
District, and County) Private Partnership (P3). The concept and idea is to preserve the historic character
of the Memorial Stadium and enhance the Columbia Road entrance to [,]ND, increase the attractiveness
and student enrollment ofUND, support the academic, athletic, and business goals of LND Athletics, and
strengthen the Grand Forks and LIJD partrership. The first floor will serve as the new home of UND
Athletics with a Hawkway connection to the existing and future expanded LIND High Performance
Center. The remaining four floors (floors two through five) are market rent apartments. The private
development parbrers include Mike Kuntz of ICON Architectural Group, Steve Burian of Bwian &
Associates, LLC, and Craig Tweten of Community Contractors. The proposed plan calls for the
demolition of the Memorial Stadium with construction to start in the spring of 2021 md a construction
completion date of August 2021.

The property is currently not taxable as it is UND property. With the P3 and Memorial Village
redevelopment project concept, the development will be taxable to a degree still to be determined. The
Memorial Village is an estimated $25 million investment. The developer is requesting the consideration
of a tax incentive exemption for a greater than five (5) year period of time. The Memorial Village is a
strategic parhership opportunity that will redevelop a needed structure, provide a more competitive
strategy for IJND Athletics, and provide for a more attractive and competitive Lr].{D campus which will
help drive emollment growth.

With City Council concunence, the next step in the process is to invite the applicant to submit a full tax
incentive application, which includes a $2,500 fee. The tax incentive request is proposed to exceed five
(5) years. The complete application will be provided to Baker Tilly (formerly Springsted) for third party
financial review and analysis. This review will then be presented to the Local Govemment Advisory
Committee (LGAC), which consists of representatives of the four local taxing entities. City Council
President Dana Sande and City Council Vice President Jeannie Moch serve as the City's LGAC
representatives. The recommendation from LGAC will then be forwarded to City Council for preliminary
action at which point a public hearing date (approximately 45 days later) will be set. During that time
period, the tax incentive request will be heard by the Grand Forks County Commission and Grand Fork
School Board, per North Dakota Century Code requirements.
ANALYSN AND FINDINGS OF FACT:
o The pre-application is the first step to allow further financial review of a tax incentive request to
proceed.
o The third-parfy review takes into consideration appropriate industry standards and expected rates of
retum, which helps to depoliticize the decision-making process and "right-size" the tax incentive
structures. Baker Tilly performs this service for other regional communities and has assisted the City
in this process. The $2,500 application fee offsets the cost ofthe review.
o The timeline ofthe tax incentive process is approximately two to three months from beginning to end
and includes City Council Pre Application tax incentive approval; third party financial analysis;
LGAC review and recomrnendation; City Council preliminary recommendation and public hearing
date sefting; Grand Forks county Commission, Grand Fork Public School Board, and City council
final actions.

SUPPORT MATERIALS:
o City of Grand Forks Tax Incentive Pre-Application fiom Memorial Village, LLC
o Memorial Village, LLC Power Point Presentation
 City of Grand Forks
E0BSS Tax tncrement Financing Pre-Application
Applicant Name:

Primary Contact: StaYt Buri.n, P.E- Burirn a A..oci.t.., LLC

Address:
rO00 Glrd.n VI.r D.lv!, Gr.nd Fodc, ND 58201

Phone: 701・7404881
Email:

Legal Entity Type: Lhnlr.d Lt.bflry Co$orlrtorl

Address of proposed project: 26ia3 2nd Ayo N, cr.nd N● 582● 2

Proposed project timeline/milestones: Sai t demolhion .nd con.truclion ln sp.irE 2021. compl.trd Aueult 2022.

Proj.(t inctrd.. r.mov.l of X.ftori.l St dium, $,hich i. . cantury old, ha.

u● :口 EXon● Iv● h“ torn!轟 38m“ and“ 活:面 耐 :稲ニ Uqrorlal
“
Illg-91. F '*og;trc rhr hrdodcet rig;6il;i;ffiiil;i;;;;L.
Current tax roll value of property: S_ve,aa.."".a
Estimated value of property upon completion of proposed project: 0,m (curnnr)
S (land)

sry' (lmprovements)
Attach brief description of proposGd projecq include any renderings
or preliminary plans that are available.

_ TtF Bond
X nr eremption (s. ot\",- crgg\c-ttr ヽ
、こ
諄wめ
_Slum/BlithtTtF _Undeveloped/UnderdevelopedTtF

Will requested TtF exceed 5 years? x yES _ NO

Yar, . 25 y... tr.I .b.tarn .rt l. brlng rouglrt ior
tfi. fnltrn vleblltty rn., ,rdayalopitant coatr.

rhe unde'igned ceftifies thot qll informotion provided

in this pre-opplicotion is-true ond coffect to the best ol
knowledge' ond thot the undeRigned ts o duly the unde*igned,s
outhorized iprirr*t": ol the opplicont. The opplicsnt ogrees to provide
odditionot infotmotion os moy be rcquested by
the City ofter thi liiig i'tii, opptirotior.

Signature of Applicant's Representative

Date
 City of Grand Forks
Tax lncrement Financing Pre-Application

PRoJEcr DEscRlPTloN: Memorial stadium Redevelopment - ln response to

a solicitation from the University of North Dakota (uND), Memorial Village, LLC
plans to construct a prominent S-story mixed use building with under ground
parking to replace the existing Memorial stadium. rhe p=roject endeaiors
to
capture the historical character of Memorial stadium, comflement the
architectural character of UND, enhance the columbia Road entrance to UND,
enhance undergraduate enrollment at UND, and support tre acadtmic,
athletic,
and business goals of the UND Athletic Departmeni.' Grand Forks and
UND are
one community and what is good for UND is good for the city of Grand Forks.

Proposed project renderings and other support documents are attached.

The first
floor wiil serve as the new home of the utio R*rutic Department
possibly coaches offices and meeting rooms for Football,
,, *Lrr ,.
Men,s and wor"n',
cross country/Track & Field, Men's ind women's Tennis, ano womenL
softball,
A. HAWKw_ay is arso proposed to save the existing
historicar nortn wait ot
Memorial stadium around the football field and trick, connect tvtemoriai
village to
the existing and expanded High performance center (Hpc),
ano snowcase the
history of UND Athtetics.

lf the coaches' offices and meeting rooms are moved from

the pranned Hpc
expansion to Memoriar Viilage, UND will be able to reduce
te lcope orthe Hpc
Expansion, creating a more iealistic private fund raise and acceleratinq
the
timeline for the criticaily needed_Hpc Expansion. rh"
HdC;;;'lir"-"0'y'pror", to
be a major pubric asset for the city of Grand rorrs wi$r
b"th prbri;;iLti" ,.".
and public good uses, such as recent COVID 19 testing.

Building prans wifl be compreted this winter by rcoN Architecturar

Group.
construction will be compreted by community contractors and
various sub-
contractors. Based on recent discussions wiih the city rnaulro,
,nld]usted
qroject proforma will be available in the next couple oiweeks tor reriew'witn
City.
tne

The appropriate structure and city incentives are being

sought in order to
accommodate the demorition of Memoriar stadium, inirporlte
irre requireo uruo
elements, and address the high costs of re{everopment.
Memoriar viirage
representatives look fonvard to a collaborative process *ith
we move through this process.
til
city
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% ク UNIVFRSITY OF NORTH DAKOTA

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I rueeoED PARTNERSHIe UNIVERSITY OF NORTH DAKOTA

. lmportant redevelopment of the failing Ttt

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Memorial Stadium brownfield
redevelopment

. Support and advance UND Athletics

through athletic campus strategy.

. Strategic Partnership with City to

support growth projects of State & UND

. Complimentary lmprovements to UND's

Housing strategy to attract the best
athletes, provide graduate level type
housing option, etc.

. Motivated local Alumnigroup

BuRtANSi ICON ARCHITECTURAL GRoUP