County Residents Oppose Northridge Project Tax Incentives for Luxury Apartments

The Grand Forks County Board of Commissioners convened on July 15, 2025, to discuss several pressing issues, with a significant focus on the controversial Northridge project. The meeting featured public comments and expert testimonies regarding the proposed financial incentives for the development.

The session began with a resident expressing concerns about the use of taxpayer money to fund private development. The speaker criticized the proposal to allocate $6.7 million to Northbridge Construction for luxury apartment units, arguing that the county should not subsidize developers, especially when the vacancy rate for apartments is reportedly higher than the city’s stated 2%. The resident called for transparency in the vacancy statistics, suggesting that the actual rate is closer to 5-6%, which contradicts the city’s claims.

Another speaker echoed these sentiments, emphasizing the financial burden on taxpayers who would be responsible for funding essential services for new residents without receiving adequate tax contributions from the developers. They highlighted the potential long-term implications of granting tax incentives, referencing past experiences in Georgia where similar projects failed to deliver promised economic benefits.

Mikaela Hewitt from Baker Tilly Advisory Firm provided a detailed analysis of the Northridge project, clarifying that the proposed management fees and operating expenses were calculated based on the total revenues and included the anticipated property tax exemption. She explained that the project, estimated at $37 million, relies on a mix of debt and equity financing, with the tax incentive being crucial for meeting financial viability and attracting investors.

Hewitt noted that without the proposed property tax exemption, the project would likely not proceed, as the financial structure depends heavily on maintaining certain debt coverage ratios. The original request for a 20-year full property tax exemption was recommended to be reduced to a 15-year term with a blended rate of 77% to balance the needs of the developer and the county's fiscal responsibilities.

The meeting concluded with a call for further discussion on the implications of the Northridge project, particularly regarding its impact on local services and the overall tax burden on residents. The board is expected to continue evaluating the project and its financial ramifications in future sessions.