City Commission to vote on Downtown Engagement Center relocation and key funding agreements

FARGO, ND — The future of Fargo’s Resources & Recovery Center, commonly known as the Downtown Engagement Center (DEC), is on the table as the Board of City Commissioners prepares to consider a comprehensive relocation plan at its meeting tonight.

The plan, outlined in a letter from Assistant City Attorney Erik R. Johnson, proposes moving the center to a new site at 2001 1st Avenue North.

The proposal is set to be presented by Assistant City Administrator Brenda Derrig. In addition to approving the new lease for the 1st Avenue North location, the Commission will also vote on two vital agreements with the FM Area Foundation: a fiscal sponsor agreement and a related fee agreement.

Charitable Donations to Offset Taxpayer Costs

A core component of the relocation strategy is securing external funding to reduce the burden on local taxpayers. The fiscal sponsor agreement is designed to enable the City to accept charitable donations from supportive community members by “loaning” the FM Area Foundation’s 501(c)(3) non-profit status.

These charitable funds are expected to substantially cover expenses related to the move, including fit-up costs necessary to tailor the new building for the Center’s programs, lease payments, and potentially operational expenses. The Center’s continued success is said to rely on both dedicated City staff and the generous efforts of its non-profit partners who provide essential supportive services.

Executive Session Precedes Public Vote

Prior to the customary 5 p.m. start of the regular City Commission meeting, an executive session is scheduled for 4 p.m. Assistant City Attorney Johnson noted that this confidential session is necessary to discuss the negotiation terms of the proposed lease and the related financing agreements. According to the letter, discussing these terms in a public setting would likely have a negative impact on the City’s negotiating position.

However, many of the proposed lease terms and the project’s financing will be discussed during the public “regular agenda” portion of the meeting.

If the Commission approves the motion, it would authorize the Mayor to complete any open or unsettled terms in the agreements, based on direction received in the executive session, and to execute the agreements on the City’s behalf. The fully-executed agreements will then be presented to the City Commission at a later date for receipt and filing.

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