$30M incentive for large North Dakota ag facilities receives 'do-pass' recommendation from Senate committee
It was the first hearing for the bill following legislative crossover, when both houses of the Legislature began considering the others' session bills. The bill was designed with the proposed Agristo potato processing facility in Grand Forks in mind. The Belgian potato processor announced its $450 million plan for its first American facility earlier this year
and this incentive being considered is just one of several planned.
"This really is an important project for us," Grand Forks City Administrator Todd Feland said. "We don't want to let all the regional growers down since they've done so much work. ... (And) we couldn't do these projects without the state of North Dakota."
The proposal being considered by the Legislature would allow Agristo to apply for an up to $30 million state grant, paid in two parts. The first half would be given when a certificate of occupancy is issued and the rest when the facility has reached 50% of production capacity. The grant works on a reimbursement model and can be used for capital expenditures, infrastructure and site acquisition.
To fund the grant, the Bank of North Dakota will be able to extend a line of credit to the agriculture commissioner for grant awards from the Agricultural Diversification and Development Fund. The appropriation measure would
only be valid for the biennium that ends in June 2029.
The city of Grand Forks also is providing a tax incentive, allowing the company to have a reduction to its property tax bill for
20 years, if approved by the other taxing entities in Grand Forks
.
During the Thursday hearing, Sen. Janne Myrdal, R-Edinburg, asked Grand Forks Region Economic Development President and CEO Keith Lund about potential workforce shortages the Agristo development may cause. Lund said the development would attract job-seekers.
"(Agristo's) report shows that it is very doable in North Dakota," Lund said.
He said the state's business and tax climate is an attractant.
While boosters feel the facility, if built, would be an economic asset for the region, some also said that it will bring back an agricultural crop that has lost market share in the last few decades. The project could be a great thing for all aspects of the potato industry, according to North Dakota Seed Commissioner Ken Bertsch.
"The announcement of the Agristo project means that our seed potato industry will potentially benefit in the same manner as the commercial production sector," Bertsch said. "North Dakota's seed potato industry could grow 20% to 30% from today in acres produced."
Bertsch estimates that the Agristo project would be a $10 million to $20 million boon for seed potato growers and even more to the state's agriculture industry and communities.
"This is the most positive development in the seed potato sector in years," Bertsch said.
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