Updates
February 17, 2012: no evidence that Menard's is coming to Williston any time soon. Very interesting. My hunch is they couldn't get the employees they would need.
Original Post
Link here. The Williston City Commission voted to approve a Tax Increment Financing District for a new retail center west of town Tuesday.Data points:
A TIF District would be created for the 200-acre Sand Creek Town Center site planned by Granite Peak Development.
City Auditor John Kautzman said the value of land and improvements for Phase I of the district was $5.7 million. A total of $1.45 million would be assessed through the TIF District.
- Original story earlier this year, click here
- Menards announced April 5 intent to build a 200,000 square-foot facility on a 16.5 parcel of land on this 200-acre development
- The development area to be called Sand Creek Town Center
- Development site north of US Highway 2 along 35th Avenue West (to me this sounds like it is just west of the bypass that swings around Williston on the west side)
- In addition to $5.7 million up front for Phase 1, the city would also commit $2.5 million of sales tax revenue created from new retail stores; right now Menards is the only occupant
- In addition to $5.7 million up front for Phase 1, the city would also commit $250,000/year for nine years in STAR Fund dollars
- The TIF District would be paid off over 15 years
- Sand Creek was where I spent many days of my boyhood tramping around exploring and catching fresh water life, mostly frogs with legs to small to eat. I learned to start a campfire using flint and steel in this area as a boy scout. But that was about all. I wasn't very good at the outdoors stuff. I did learn that it's cold to camp out in January in North Dakota
I don't know if this is how you do it, but: $1.45 million TIF assessment + (9 x $250,000) + $2.5 million = $6.2 million vs the $5.7 million appraised land value and improvements
I cannot deny that as a commissioner I also wouldn't have some anxiety. The oil industry is well known for boom and bust cycles. What I would most be interested in is how much will the improvements for Phase 1 cost. If I understand the story correctly, the $5.7 million for the first phase is the value of the land as well as improvements. If nothing is built there, the value of the land is fairly low. If the improvements are nominal, one could argue that Menards, the other retail stores that might come in, and Granite Peak Development could share in the costs.
I have never been in private business, no little to nothing how commercial real estate works, so take my 2 cents worth for what it is: 2 cents worth.
It would be nice to see Menards in Williston, but would Menards come if asked to share a bit of the risk in improvements? Of course, Menards will argue they are committing to huge risk by just buying / leasing the land and building the facility.
