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Grand Forks City Council Approves Tax Incentive for Luxury Apartment Development

Strategic Insights

— 2 min read

The Grand Forks City Council has voted to move forward with an updated proposal for a tax incentive for The Reserve, a $37 million apartment development that will bring approximately 155 market-rate apartments to the city. The council voted 6-1 to advance the Payment In Lieu of Taxes (PILOT) agreement, which will allow Northridge Construction to not pay property taxes for the first five years. Developers had originally requested a 20-year, 100% PILOT, but have since agreed to take on more risk and found additional investors.

The updated proposal addresses concerns from the School Board and County Commission, including the need for the project to generate more revenue to justify the incentive. According to City Administrator Todd Feland, the development will generate $25,000 in property tax revenue per year in its first five years and $2.4 million in revenue in the following five years.

Key Takeaways:

  • The Grand Forks City Council has approved an updated proposal for a tax incentive for The Reserve, a $37 million apartment development.
  • The 6-1 vote advances the Payment In Lieu of Taxes (PILOT) agreement, which will allow Northridge Construction to not pay property taxes for the first five years.
  • The updated proposal addresses concerns from the School Board and County Commission, including the need for the project to generate more revenue to justify the incentive.
  • Developers had originally requested a 20-year, 100% PILOT, but have since agreed to take on more risk and found additional investors.
  • The project will generate $25,000 in property tax revenue per year in its first five years and $2.4 million in revenue in the following five years.
  • Council member Rebecca Osowski was the only dissenting vote, citing concerns about incentivizing luxury apartments with amenities.
  • City leaders have characterized the housing situation in Grand Forks as a historic shortage, making it difficult to attract and retain young professionals.
  • Council members suggested that the city may need to incentivize more affordable housing options in the future.
  • City staff warned that affordable housing projects may need 20-year, 90% tax incentives.

Statistics:

  • The Reserve apartment development will cost $37 million.
  • The project will bring approximately 155 market-rate apartments to Grand Forks.
  • The updated PILOT agreement will not require property taxes for five years.
  • The project will generate $25,000 in property tax revenue per year in its first five years.
  • The project will generate $2.4 million in revenue in the following five years.
  • Northridge Construction is the developer of the project.
  • Todd Feland is the City Administrator.

Sources:

  • The Grand Forks Herald, "Grand Forks City Council votes to move forward with tax incentive for The Reserve", September 2025.
  • The Grand Forks Herald, "Grand Forks City Council discusses tax incentives for housing projects", September 2025.

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