Fargo City Commission Meeting – August 3, 2026

The Fargo City Commission convened at 5:00 p.m. on Monday, August 3, 2026, after an executive session at 4:00 p.m. The meeting covered a wide range of topics including a tax exemption for a biotech company, four liquor compliance violations, a resolution to call a special election on changing the form of government, approval of the 2027 preliminary budget, and an update on the relocation of the Ground Transportation Center (GTC) and Municipal Court. Mayor O'Shea presided.

Consent Calendar

• Approved items 1–20, 21 (C, D, E, F, H, I, J), and 22–31 by roll call vote (all in favor).
• Items 21B (use of Fire Department capital funds for live-burn training containers and UTV) and 21G (donation from Wrigley Family) were pulled by Commissioner Peterson for discussion but subsequently tabled to the next regular meeting by unanimous vote.

Public Comments & Testimony

• Sherry McMahon (public comment): Raised concerns about restrictions on expression at Broadway Square. She stated that for a concert on August 2, 2026, the word "protest" was removed from the headline. McMahon argued that substantial government involvement with the plaza may subject the space to First Amendment scrutiny, and urged the City Commission to seek a legal opinion on potential legal exposure for the city and park district. She provided a written statement.

Discussion Items

Presentation of Vision Zero Challenge Coins

• Leah Kelm, Regional Outreach Coordinator for Vision Zero, presented challenge coins to the Fargo Police Department's Traffic Safety Team for their high-visibility back-to-school enforcement detail in 2025, which improved roadway safety in school zones.

Public Hearing – Valley Process Technologies, LLC Tax Exemption (Item 32)

• Applicant: Valley Process Technologies, LLC (CEO Mike Thummel) seeks a five-year property/income tax exemption for a project at 342 42nd Street South, involving research, development, and production of value-added ag and food processing biotech products.
• Project details: $15 million total investment, including $2–3 million in construction/upfit, specialized equipment, relocation of senior talent, and creation of 70–80 jobs over five years (many accessible without a four-year degree). The building was previously a pharmaceutical facility; its specialized features (clean rooms, lab space) limit alternative uses.
• Assessor's office: The building's assessed value fell from $4,126,900 (2023) to $3,884,100 (2025), a decrease of nearly $243,000. The incentive committee recommended approval.
• Commissioner Peterson: Expressed strong support, noting the building's specialized nature makes it unattractive to most buyers, and the project preserves valuation, adds good jobs, and has regional impact.
• Commissioner Strand: Supported the five-year term, citing 22 new jobs. He stressed the need for annual accountability and follow-up.
• Commissioner Turnberg: Voted no, stating constituents are "fed up with businesses getting tax breaks while residential fees and taxes continue to go up."
• Commissioner Gullikson: Noted that if the project meets policy requirements, there is no good reason to deny it.
• Vote: Approved 4–1 (Turnberg opposed).

Liquor Compliance Violations (Items 33–36)

• Background: Due to a statutory change, liquor compliance violations now go directly to the City Commission. Four businesses were cited for serving alcohol to a minor (under 21) during compliance checks on July 21, 2026. All were first offenses.
• Front Street Taproom: Server served a minor; server was trained. Auditor recommended $250 fine. Approved unanimously.
• Pounds: Server served two minors; server was trained. $250 fine. Approved unanimously.
• NoBull Smokehouse: Server served one minor but correctly refused another; server trained. $250 fine. Approved unanimously.
• Wurst Bier Hall: Server served one minor; server was not trained. Auditor recommended $500 fine. Approved unanimously.
• Commissioner Strand: Requested that future reports not identify servers by name; also asked about requiring ID scanners. Auditor noted scanners are not required but recommended; the topic may be revisited by the Liquor Control Board.

Resolution on Special Election – Change of Form of Government (Item 37)

• City Attorney Ian McLean: Presented background – a petition with 4,491 valid signatures (requiring 4,159) was certified July 8, 2026. State law mandates a special election within 60–90 days (Sept 6 – Oct 6, 2026). The city cannot combine with the November general election because state law requires a standalone special election. The proposed ballot question: "Shall the City of Fargo change from its organization under the commission system of government and become a city under a ward-based council form of government?"
  • Cost estimate: $30,000–$50,000 hard costs (not including staff time).
  • Polling: County and state cannot provide assistance; the city will run the election with paper ballots. One large polling station may be used.
  • Wards: If the measure passes, an independent body will draw six wards, subject to Commission approval.
• Public speaker Brad Schaefer: Opposed the special election, arguing it will have low turnout and that the city should move June elections to November (requires state law change).
• Commissioner Strand: Thanked the citizen sponsors for giving the public a chance to decide.
• Commissioner Peterson: Criticized the timing, noting that a special election (even on the last possible date, Oct 6) will have lower turnout than a November general election; he suggested the petitioners may have intentionally avoided November.
• Vote: Approved unanimously (all five in favor) to adopt the resolution calling the special election for October 6, 2026.

2027 Preliminary Budget Approval (Item 38)

• Finance Director Susan Redlinger: Presented the preliminary budget – revenues $147.5 million (up 4.9% from 2026), expenses $145.8 million (up 3.64%), with an intentional $1.7 million underspend to maintain fund balance.
  • Property tax: 58.88 mills total (up 1.52 mills from 2026). For a median home value of $367,000, the increase is about $25.
  • Human capital: 3% COLA, estimated 8.5% health insurance increase, plus new positions and reclassifications. Market adjustments not included.
  • Capital: $1.5 million for vehicle replacement; $969,000 for fire facility; sales tax growth of $8.8 million.
  • Utility rate increases: Proposed for street lights, storm sewer, forestry, water, water rec, and the Red River Valley Water Supply Project.
• Commissioner Strand: Wanted more police officers (chief requested 8–9, but only 2 new in budget); noted utility rate increases need deeper discussion.
• Commissioner Turnberg: Moved to approve the preliminary budget with the understanding that additional cuts and changes will be discussed at a brown bag meeting. She identified several items for cuts and emphasized public safety as priority.
• Commissioner Peterson: Supported the motion, calling it a "technical execution" and urging gradual utility rate increases rather than a sharp jump.
• Mayor O'Shea: Stated the budget is now the commission's responsibility; he supported more discussion and a slow walk on utility rate increases.
• Vote: Approved unanimously.

GTC Relocation Status Update (Item 39)

• City Administrator Michael Redlinger: Provided an update – structural engineers (KLJ, Kimley-Horn) have determined that further rehabilitation of the GTC parking structure is not viable. The city will temporarily relocate:
  • GTC: To the former police headquarters (222 4th St N). Operations to cease at GTC on August 15, 2026, and resume at new location on August 17, 2026.
  • Municipal Court: To the Civic Center (Sky Commons and former commission chambers). Operations to cease at current location on August 28, 2026, and resume at Civic Center on August 31, 2026.
  • Both locations are city-owned but temporary due to future convention center development. A permanent site search is underway with a commercial realtor.
• Commissioner Turnberg: Questioned why the former Cass Public Health building wasn't used (it was gutted after 2020). She expressed concern about moving twice and spending money on temporary spaces.
• Commissioner Peterson: Supported the quick timeline but asked about feasibility; he also suggested exploring the former park district building (county-owned) as a permanent or longer-term option for municipal court.
• Motion: Authorize staff to proceed with necessary actions for temporary relocation of GTC and Municipal Court, and to expend funds as needed, with a friendly amendment to include exploration of other facilities within Cass County. Approved unanimously.

Key Outcomes

• Tax exemption for Valley Process Technologies: Approved 4–1 (Turnberg opposed).
• Liquor violations: Four businesses fined $250 or $500; all approved unanimously.
• Special election resolution: Adopted unanimously; special election set for October 6, 2026.
• 2027 Preliminary Budget: Approved unanimously; further discussions scheduled for brown bag and finance committee meetings.
• GTC/Municipal Court relocation: Authorized unanimously; temporary moves to begin in August 2026.
• Commissioner assignments: Commissioners reported on their liaison activities; no formal votes.
• Public comment: Sherry McMahon's concerns about Broadway Square were noted; the city attorney may provide a legal opinion.

Other Highlights

• Mayor O'Shea: Announced his resignation from the North Dakota State Senate, effective August 4, 2026, to focus on city duties.
• Recognition: Brenda Derrick, Assistant City Administrator, retired after 35+ years of service.
• Upcoming events: Police picnic (Aug 12, 5–8 p.m. at Broadway Square) and National Night Out (Aug 4).