GF School Board approves “PILOT” for Olive Ann

After weeks of debate and negotiations the Grand Forks School Board endorsed a series of revised tax incentives for the downtown Olive Ann boutique hotel project.

Under the original funding formula improvements to the Edgewood building would qualify for a five year Ren-Zone tax credit.  The city was asking other taxing entities to support an additional ten-year tax break – with the final five at 80%.  Under the revised formula developers would be subject to a 10% tax during those middle five years.

Board member Doug Carpenter says the school district has been on record since 1994 expressing concerns over the use of tax breaks for large development projects.  “I think it’s a good project – but to me it should be financed by the private sector.  They should pay the obligations of being a property owner in Grand Forks and that means paying property taxes.”

Board member Amber Flynn says she changed her mind on the “PILOT” in a good faith effort to compromise.

Board President Eric Lunn says he has supported the project since the beginning.  “We can’t lose money on this project…we can only make money.  If Olive Ann goes belly up in ten years we’re not out money…in fact we will gain money because that building will still be worth something.”

The board approved the tax breaks on a six to one vote.

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In other action members approved the hiring of Mike Biermaier to be the district’s new activities director.