City leaders discuss the financial risks and future for convention center

FARGO, N.D. (KVRR) — Discussion for the two convention center sites is nearing a conclusion. The top two developers say how their proposed locations will benefit the city.

“There are 600 different property owners within a half mile of the convention center, the downtown site. There are 200 businesses down here that are all excited to welcome guests to Fargo and provide them with an awesome experience when they come to Fargo for a convention,” said Mike Allmendinger, President of Kilbourne Group.

“We’re very excited to be ranked the top proposal by the committee, and now we’re moving onto the phase with the city commission, where they’re going through some due diligence, going through further details, which is all a very important part of the process,” said Mark Bjornstad, President of Brewhalla.

Funding for the convention center will be taken from the lodging tax, which is set to begin as early as June. While the funding may be partial to construction, city leaders also question where additional funding would come from.

“Between Brewhalla and our development group, we are very well capitalized and in a very great financial position to make the guarantees. So ultimately, we are able to deliver the city the best impact that it wants and protect the city’s general fund from any risks,” said Bjornstad.

“We are proposing to have the city create a convention center reserve fund of $2 million that would be controlled by the city of Fargo for emergency funding,” said Allmendinger.

Developers from Brewhalla also stated they would like to have repair funding from the 1st Avenue TIF district. But both parties shared that the TIF’s would not be necessary for immediate construction.
As discussions wrapped up, city leaders seemed a bit hesitant about making their final decision next Tuesday. Mayor Tim Mahoney suggested potentially holding off for two weeks.