City moves NPCC plan ahead on split vote. Check it out:
(Bismarck Tribune, The (ND) (KRT) Via Thomson Dialog NewsEdge) Sep. 27--Despite protests by Commissioner Steve Schwab, the Bismarck City Commission adopted an urban renewal plan and created a tax increment renewal district for the Northern Plains Commerce Centre.
Commissioner Sandi Tabor's motion to approve the plan and district creation passed on a 3-2 vote at Tuesday's meeting, but not until after a long debate.
City Administrator Bill Wocken said that the tax increment renewal district is allowed by the state's Century Code and provides a method for the city to recoup its investment in the development of the infrastructure for the NPCC. The district will freeze taxes to the governmental jurisdictions -- city, county, school district and park district -- at current rates. But as development continues and property values increase, tax revenue from those increased rates will be diverted to the NPCC urban renewal district.
City Attorney Charlie Whitman said that the tax increment district will be transparent to property tax- payers within the district and their tax bill will increase as property values increase. He also said that unless the city made the original investment in the property, the economic development associated with the NPCC wouldn't be recognized.
Schwab questioned the reasons for adopting the plan and creating the district. He said he feels it will take money from the various governmental jurisdictions, which will have to be made up by taxpayers. He also said he feels that the city has an unfair advantage in further developing the NPCC by being able to use such actions as eminent domain, should the city desire to expand the NPCC.
"The industrial site will be like a sales tax that never goes away. Have you ever had one of these districts (referring to the tax increment renewal district) go away?" Schwab asked.
Wocken said that once the renewal plan is complete, the district is to fold up.
Commissioner Connie Sprynczynatyk attempted to reply to Schwab's assertion that the district will be taking tax money from the other jurisdictions, such as park and school districts.
"All the political subdivisions are getting tax revenues from that property as if it were a pasture. All taxing entities will get in the future what they are getting now. If the city hadn't made the investment, there would be nothing there," Sprynczynatyk said. "How can you lose what you never had?"
Schwab continued to question the city's investment in the NPCC.
"A ton of money is going into this place, and this (the district) is designed to help pay for it," Schwab said. "Maybe we should deep-six the whole thing until we get renters and users."
Currently, the city only has one lease agreement, with Bobcat. But a recent announcement was made by United Pulse Trading that it is planning an agricultural facility at the NPCC.
Mayor John Warford told Schwab that the NPCC was developed as a transportation solution for Bobcat, which was considering moving its plants and 1,100 jobs out of Bismarck and perhaps out of the state. By saving those jobs, the NPCC has already reaped benefits for the community, Warford said. And though the city doesn't yet have a lease with United Pulse, Warford said he is confident the company is coming.
The NPCC is not without precedent, Sprynczynatyk said, noting that the Bismarck Municipal Airport is another example of private enterprise at work on public property.
Commissioner Dave Jensen began to argue the viability of the airport, but backed off because it was a different issue. He said he believes the tax increment district should be capped on what it can bring in.
"I find it interesting that other government entities do not seem to share these concerns," Tabor said. "They understand its importance and that it will generate economic prosperity. If they had concerns they would be here. What they understand is this is part of how a city grows."
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Copyright (c) 2006, The Bismarck Tribune, N.D.
Distributed by McClatchy-Tribune Business News.
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