Fargo City Commission Regular Meeting - June 26, 2023

The Fargo City Commission held a regular meeting on Monday, June 26, 2023, convening at 5:07 p.m. after an executive session at 4:30 p.m. to discuss attorney consultation regarding 501 Main Avenue. The meeting included approvals of numerous consent agenda items, public hearings, and several contested votes on development proposals, tax incentives, and board appointments.

Consent Calendar

• Approved the order of the agenda and the minutes of the June 12, 2023 regular meeting.
• Approved Consent Agenda items 1–31, including:
  • First reading of an ordinance amending the Forestry Department code.
  • Second reading and final adoption of an ordinance on noise control.
  • Direction to the City Attorney to prepare amendments to the alcoholic beverage code regarding food sales for license renewal.
  • Site authorizations for games of chance (Metro Sports Foundation, West Fargo Hockey Association).
  • Seven applications for games of chance (various organizations).
  • Renewal of alcoholic beverage and live entertainment licenses through June 30, 2024.
  • Agreement with project manager Nicolette Plante.
  • Pipeline easement with Cass Rural Water Users District.
  • Task Order No. 1 with Houston Engineering ($199,501).
  • Bid advertisement for Project FM-15-F.
  • Bid awards: Ryan Contracting ($872,126), Border States Paving ($1,499,056.13), SJ Louis Construction ($358,724), Osgood Cleaning Services ($198,000 three-year contract), Peterson Mechanical ($78,000).
  • Change Order No. 6 ($5,793.55).
  • Permanent easement with Huynh KHA Property LLC.
  • Bid award and contract with JLG Architects for a Police Department Master Facility Plan.
  • Piggyback purchase for FARGODOME Building Automation System upgrade ($137,960).
  • Resolution establishing a forestry licensing requirement.
  • Fargo Cass Public Health 2023 budget adjustments.
  • Five notices of grant awards from ND Department of Health and Human Services.
  • Request from Downtown Community Partnership to use 501 Main Avenue for parking during the 2023 Street Fair.
  • Resolution approving plat of Golden Valley Seventh Addition.
  • Sole source procurement for ultra-filtration membranes ($128,420.40).
  • Bills totaling $13,894,619.95.

Public Comments & Testimony

• Noah Sperling expressed concerns about downtown street food vendors, alleging harassment, non-compliance with code (e.g., cart height, unauthorized setups), and misuse of permits by vendors like Top Dog. He stated that these issues have persisted for five to six years and affect safety and business climate.
• Wess Philome spoke about the City's Diversity, Equity, and Inclusion (DEI) department. He questioned whether the department was leveraged in the community growth plan and a specialized task force to combat street racing, expressing concern about potential over-policing of BIPOC communities. He noted that he spoke with Dr. Terry about an annual report from the Police Department and expected a report in July. He emphasized the need to demonstrate the effectiveness of the $200,000 taxpayer investment in the DEI department.

Discussion Items

Public Hearings

• Item 33 – Class GH Alcoholic Beverage License for Five Star African Cuisine: Continued to August 21, 2023, by unanimous vote.
• Item 34 – Class A-Club Alcoholic Beverage License for Fargo Air Museum: Approved unanimously. The museum has over 400 members and has been in existence for more than 20 years. The license allows in-house alcohol service for events, replacing previous contracts with third parties.
• Item 35 – Class W Alcoholic Beverage License for Fargo Brewing Company: Approved unanimously. The brewery previously held a beer-only license; the new license permits wine service on premises.
• Item 36 – Dangerous Building at 421 15th Avenue North: Continued to July 10, 2023, by unanimous vote.
• Item 37 – Tax Increment Financing District No. 2023-03 Renewal Plan and Developer Agreement with HN 8th Street, LLC: Approved 4–1 (Commissioner Strand dissenting). The TIF supports redevelopment of a vacant six-unit apartment building at 502 8th Street North into five townhome-style apartments. Total TIF amount: $286,500, with an additional $14,000 in fee reimbursement. The project is expected to take 15 years. Developer Dave Noah stated the existing building is in poor condition and the TIF is necessary due to high site work costs. Commissioner Strand questioned the city's role in subsidizing market-rate rentals (projected at $2,800/month for a three-bedroom unit) and argued that blight alone does not justify public investment. Staff noted that without assistance, rental rates would increase by 8%.
• Item 38 – Proposed Changes to 501 Main Avenue Development Plan: The developer (501 Main Ave DevCorp, LLC) presented a revised plan reducing the project from a six-story mixed-use building (with office and housing) to a four-story office-only building with a smaller footprint and different exterior. The developer stated they have three committed tenants, financing in place, and have invested over $360,000 in design and site work. The commission voted 4–1 (Commissioner Kolpack dissenting) to reject the new proposal, finding it inconsistent with the original 2020 agreement due to reduced square footage, removal of housing units, and substantially different design. Commissioner Piepkorn emphasized fairness to other bidders. Commissioner Kolpack expressed understanding of the developer's position but noted lessons learned.

Other Regular Agenda Items

• Item 39 – Informational Overview of 2024 Primary Election Changes: Commissioner Kolpack presented changes approved by Cass County, including extended early voting hours, six ballot-on-demand printers, and 21 vote centers on election day. Commissioner Strand raised concerns about perceived discrimination at the polls regarding proof of citizenship, which he said had not been fully addressed. The Human Rights Commission had requested a presentation from Cass County elections but had not received one.
• Item 40 – Cost Share Assistance for Burying Overhead Power Line in Graver Alley: Approved unanimously. The city will provide $105,000 in cost share following the framework of the Robert Street Alley pilot project. Engineering Director Kevin Gorder provided a detailed history of the alley projects, noting that the Robert Street Alley project is 95% complete with pole removal targeted for August 1, 2023. The total investment in that alley over eight years was approximately $3.7 million. Commissioner Strand urged adding safety features like cameras and lighting, which staff indicated are under development.
• Item 41 – Estimated Population Declared 131,444: Approved unanimously. The estimate, from the U.S. Census Bureau, triggers the availability of two additional liquor licenses for the city. City Attorney Steve Sprague explained that licenses would be advertised and awarded by drawing if multiple applications are received, with consideration of location and other factors. Commissioner Strand requested a list of criteria used in awarding licenses, including impacts on crime and neighborhood character.
• Item 42 – Receive and File Ordinances on Commercial Pedal Car Vehicles: Approved unanimously. The ordinances establish regulations for pedal cars (e.g., party bikes) allowing alcohol consumption on board. Requirements include $2 million insurance, annual inspection, server-trained operator, seat belts, lights, and designated routes. No amplified sound is allowed. The ordinances were developed after input from two interested parties.
• Item 43 – Property Tax Exemptions for Improvements: Approved unanimously for DCBA Holdings, LLC (1348 6th Street South, 5 years) and Adam Zavalney and Emma Gruber (1401 12th Street North, 5 years).
• Item 44 – Liaison Commissioner Assignment: Approved unanimously, appointing Commissioner Arlette Preston as liaison to the Community Development Committee, replacing Commissioner Strand.
• Item 45 – Appointments to Boards and Commissions:
  • Liquor Control Board: Approved 3–2 (Commissioners Preston and Strand dissenting). Concerns were raised about the lack of diversity (all four men) and the replacement of an incumbent downtown resident with a candidate from the liquor industry, which some felt created a conflict of interest. Commissioner Piepkorn defended the appointment, citing the candidate's experience and passion.
  • Library Board and Arts and Culture Commission: Approved unanimously.
• Item 46 – Construction Update: Assistant City Administrator Brenda Derrig reported on safety incidents, completed projects, and ongoing work. Key updates: one resident injury on Sixth Avenue North; numerous projects underway including NP Avenue reconstruction, 32nd Avenue South paving, and Woodcrest levee flood protection. She noted that utility coordination includes opportunities for electric vehicle infrastructure.
• Item 47 – Liaison Commissioner Updates: Commissioners reported on board activities, including the airport authority's terminal expansion (estimated $118 million), police picnic, and employee recognition event. Commissioner Kolpack provided updates on the water quality report, solid waste safety event, fire station #8 groundbreaking, and fireworks reminder.

Key Outcomes

• Consent Agenda: Approved unanimously.
• Public Hearings:
  • Five Star African Cuisine license continued to August 21, 2023.
  • Fargo Air Museum and Fargo Brewing Company licenses approved.
  • Dangerous building hearing continued to July 10, 2023.
  • TIF District No. 2023-03 approved 4–1 (Strand nay).
  • 501 Main Avenue revised proposal rejected 4–1 (Kolpack nay).
• Graver Alley Cost Share: Approved unanimously.
• Population Estimate: Approved unanimously.
• Pedal Car Ordinances: Received and filed unanimously.
• Property Tax Exemptions: Approved unanimously.
• Liaison Assignment: Approved unanimously.
• Board Appointments: Liquor Control Board approved 3–2; Library Board and Arts and Culture Commission approved unanimously.
• Construction Update: Received as information.
• Adjournment: At 7:00 p.m., next regular meeting set for July 10, 2023, at 5:00 p.m.

Note: The meeting was preceded by an executive session from 4:30 to 5:04 p.m. regarding 501 Main Avenue litigation.