Fargo, North Dakota: Commission Approves $61 Million Apartment Project With a 10 Year Tax Break and New Affordable Housing Rules

The Fargo City Commission voted 4 to 1 on Monday, October 26, to give a $61 million apartment building a full property tax exemption for 10 years, and it tied the deal to a new city policy that requires affordable homes in projects that receive this kind of help.

The building is planned for the Cove development on 45th Street South and holds 229 apartments. Commissioner Turnberg cast the only vote against the exemption. The Fargo Standard reported that planning official Nicole Crutchfield told commissioners the city's share of the taxes forgone over the decade would be $1.6 million, and that the total across all taxing entities would reach $8 million if Cass County and the school district also grant exemptions.

The deal, and why it passed

Developer Shannon Roers told the commission the project would not move forward without the pilot approval, according to the Fargo Standard. The swing argument in the room was housing cost. Under the policy the commission adopted earlier in the same meeting, the Cove building must reserve 5 percent of its units, roughly 11 apartments, as affordable housing.

"The inclusionary housing component has tipped me to supporting this," Commissioner Strand said. Commissioner Peterson argued that infill development saves the city money compared with building on greenfield land at the edge of town, and called the package a win.

New rules adopted the same night

Before it took up the Cove application, the commission adopted a commercial redevelopment pilot incentive policy forwarded by the city's economic development incentive committee. Commissioners then approved amendments proposed by the mayor that set the terms future applicants will face: at least 5 percent of units reserved for households at or below 80 percent of area median income, geographic boundaries between 32nd Avenue North and Interstate 94, and a density doubling requirement.

In plain terms, the policy is aimed at vacant and underused commercial buildings inside the city, and it trades tax relief for denser projects that include some lower cost homes. The Cove building is the first test of how those rules work, and its 10 year clock will run alongside the county and school decisions.

A new assistant city administrator

The commission also voted to appoint Erika Anderson as assistant city administrator, with a start date of November 30, 2026. Anderson is currently chief of staff in the Office of the President at Boise State University. The City of Fargo said she previously held senior roles at the U.S. Food and Drug Administration, including Deputy Director of the Office of Policy, Legislation and International Affairs, and holds a law degree from American University, a Master of Public Administration from the University of North Texas and a bachelor's degree in psychology from the University of North Dakota.

The city launched the national search on June 19, 2026, ahead of Brenda Derrig's retirement on July 30, and the selection committee interviewed candidates in August and September. The Fargo Standard reported that City Administrator Michael Redlinger said the search drew 38 applications.

Other business

Commissioners approved transfers of alcoholic beverage licenses for a hotel bar formerly known as Roma Ramada and for Red Lobster number 309, and approved the 2027 engineering capital improvement plan along with 2028 core neighborhood reconstruction and federal aid projects. During reports, Commissioner Strand told colleagues that inspectors had found conditions at an apartment complex called the Arbors that he called "absolutely untenable and unacceptable."