Fargo sets October special election on ward system, approves $15M biotech tax incentive

FARGO, N.D. — Fargo voters will decide this fall whether to completely overhaul the structure of their local government following a unanimous vote by the Fargo City Commission on Monday to schedule a special election for October 6, 2026.

The special election comes in response to a certified citizen petition seeking to change Fargo’s government from its current five-member, at-large commission system to a ward-based city council. If passed, the city would be divided into six wards, each represented by a council member, alongside a mayor elected at-large.

City Auditor staff validated 4,491 signatures on the petition—exceeding the 4,159 required by state law. Under North Dakota statute, the city is legally required to hold the special election within 60 to 90 days of certification.

“State law mandates that a special election be held within 60 to 90 days from the date of the certificate of sufficiency,” City Attorney Ian McLean told commissioners. “The resolution seeks the election date of October 6th, 2026, which is also the last possible date we could have.”

McLean noted that recent changes in state law eliminated the city’s home-rule powers regarding election timing, forcing the city to run a standalone, paper-ballot special election just weeks before the November general election.

Tax exemption approved for $15M biotech expansion

In other major business Monday, commissioners approved a five-year property tax exemption for Valley Process Technologies, LLC, for a proposed $15 million research and manufacturing project located at 342 42nd Street South.

The company plans to renovate a vacant facility—previously used for pharmaceutical packaging—to process value-added ag products, bioethanol, and beet sugar chemistries. The expansion is projected to create 70 to 80 jobs over five years, many of which will not require a four-year degree.

“With many of the products that were being produced, we’re actually integrating that into the local supply chain,” said Mike Thummel, co-founder and CEO of Valley Process Technologies. “So many of the raw materials and feedstocks actually come from the beet sugar facilities, so we’ll actually be buying products from the beet sugar facilities that are used as co-products and actually using them to produce a new product in the future that those facilities could actually use themselves.”

The incentive passed 4-1, with Commissioner Turnberg casting the lone dissenting vote, citing concerns over tax breaks given to private businesses while residential property taxes increase.

Emergency relocations needed for Transit and Municipal Court

Commissioners also authorized city administration to initiate immediate, temporary relocations for both the Ground Transportation Center (GTC) and Municipal Court due to worsening structural integrity issues with the facility’s underground parking garage.

Engineers from KLJ and Kimley-Horn advised city leaders that further structural repairs are no longer feasible.

“As we’ve been told by our structural engineer, we really, really should be moving and get out of that facility that we’re in right now,” City Administrator Michael Redlinger told the board.

Under the approved transition plan:

  • Ground Transportation Center operations will temporarily move to the former Fargo Police Department headquarters at 222 4th Street North, targeting an operational start date of August 17.
  • Municipal Court operations will temporarily move to the Fargo Civic Center, targeting an operational start date of August 31.

Both moves are temporary, as the city plans to explore long-term permanent facilities or potential joint arrangements with Cass County.

Preliminary 2027 budget approved

Earlier in the meeting, finance officials presented the city’s proposed 2027 preliminary general fund budget of $147.5 million, an increase of roughly 5% from 2026. The Commission approved the preliminary budget and established September 14, 2026, as the official public hearing date for taxpayers to provide input.

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