Despite protests by Commissioner Steve Schwab, the Bismarck City Commission adopted an urban renewal plan and created a tax increment renewal district for the Northern Plains Commerce Centre.

Commissioner Sandi Tabor's motion to approve the plan and district creation passed on a 3-2 vote at Tuesday's meeting, but not until after a long debate.

City Administrator Bill Wocken said that the tax increment renewal district is allowed by the state's Century Code and provides a method for the city to recoup its investment in the development of the infrastructure for the NPCC. The district will freeze taxes to the governmental jurisdictions - city, county, school district and park district - at current rates. But as development continues and property values increase, tax revenue from those increased rates will be diverted to the NPCC urban renewal district.

City Attorney Charlie Whitman said that the tax increment district will be transparent to property tax- payers within the district and their tax bill will increase as property values increase. He also said that unless the city made the original investment in the property, the economic development associated with the NPCC wouldn't be recognized.

Schwab questioned the reasons for adopting the plan and creating the district. He said he feels it will take money from the various governmental jurisdictions, which will have to be made up by taxpayers. He also said he feels that the city has an unfair advantage in further developing the NPCC by being able to use such actions as eminent domain, should the city desire to expand the NPCC.

"The industrial site will be like a sales tax that never goes away. Have you ever had one of these districts (referring to the tax increment renewal district) go away?" Schwab asked.

Commissioner Connie Sprynczynatyk attempted to reply to Schwab's assertion that the district will be taking tax money from the other jurisdictions, such as park and school districts.

"All the political subdivisions are getting tax revenues from that property as if it were a pasture. All taxing entities will get in the future what they are getting now. If the city hadn't made the investment, there would be nothing there," Sprynczynatyk said. "How can you lose what you never had?"

"A ton of money is going into this place, and this (the district) is designed to help pay for it,"Schwab said. "Maybe we should deep-six the whole thing until we get renters and users."

Currently, the city only has one lease agreement, with Bobcat. But a recent announcement was made by United Pulse Trading that it is planning an agricultural facility at the NPCC.

Mayor John Warford told Schwab that the NPCC was developed as a transportation solution for Bobcat, which was considering moving its plants and 1,100 jobs out of Bismarck and perhaps out of the state. By saving those jobs, the NPCC has already reaped benefits for the community, Warford said. And though the city doesn't yet have a lease with United Pulse, Warford said he is confident the company is coming.

The NPCC is not without precedent, Sprynczynatyk said, noting that the Bismarck Municipal Airport is another example of private enterprise at work on public property.

Commissioner Dave Jensen began to argue the viability of the airport, but backed off because it was a different issue. He said he believes the tax increment district should be capped on what it can bring in.

"I find it interesting that other government entities do not seem to share these concerns," Tabor said. "They understand its importance and that it will generate economic prosperity. If they had concerns they would be here. What they understand is this is part of how a city grows."

confused wrote on September 27, 2006 11:17 PM:"I can't understand why the city of Bismarck is doing. Is this not the same facility that started out as a foriegn trade zone then that was dropped. Is this not the same facilty that MDU was building a 3 million dollar administration building. Is this not the same place that they are moving dirt like crazy for a company that has announced it is coming but, not yet signed a lease. Is this not the facility that started with a 4 million dollar budget and now has a line item in the city budget for 19 million dollars!!! Plus the tax incremint financing district!! This is a typical example of government gone crazy with tax payer dollars... "

Right on the mark wrote on September 27, 2006 7:15 PM:"Steve Schwab is right on the mark for asking the questions he is asking. Not many of the tax paying public understand that the taxpayer is picking up the balance of the tax burden for our various entities. Connie's quote of "How can you lose what you never had" is quite juvenile. I really doubt that she keeps that in mind when she votes on the City's budget."

RS wrote on September 27, 2006 5:00 PM:"I watched the city commission meeting. Schwab was clueless on it all. He was asking the wrong questions. As they tried to get him to look at the right page even, I became frustrated that he is even on the city commission. I think its fantastic that questions be asked - demand it even - but you should have an inkling of what to ask. It made it seem he was being obstinate for the sake of obstinance. It got no where because he was so clueless. There are legit questions to be asked, but he wasn't clued in to figure out what they are. As a city commissioner he should have done some research. He knows where to find the information. Shamefull really. "

wife of a bobcat worker wrote on September 27, 2006 3:06 PM:"It could very well have been a bluff, but IR Bobcat would do or say anything they can to earn a higher profit for themselves - just ask anyone in the middle of contract negotiating out there right now. Bobcat so far has proposed the following: no pay raise, increased insurance premiums, and STILL NO profit sharing (which they have been promising to give their employees for years). Meanwhile, the company boasts of record profits in its newsletter. Let's hope the union does a great job and gets the workers out there what they deserve!"

Chris wrote on September 27, 2006 2:54 PM:"Groupthink: The act or practice of reasoning or decision-making by a group, especially when characterized by uncritical acceptance or conformity to prevailing points of view.Thank the wisdom of the electorate for Schwab and Jensen!! Someone needs to ask the questions. Also, wasn't the NPCC in the queue before Schwab was elected? If so then he has the right to question the angles. Good work."

Your kidding wrote on September 27, 2006 1:19 PM:"I work at Bobcat and the NPCC will do nothing to keep bobcat here. My job is in jeopardy every day, BELIEVE ME!!! "

At it Again wrote on September 27, 2006 11:28 AM:"Steve does a good job of questioning the actions of the commission after the fact. All of the planning has been done and every angle as been measured. Now he wants to come in and stir the pot? Sounds like a Hawk-o-phile to me."

Blech! wrote on September 27, 2006 10:54 AM:""Commissioner Dave Jensen began to argue the viability of the airport, but backed off because it was a different issue." I wish he would back off more in his debates! He's one of those guys you just wanna reach through your TV and shake, when you watch the meetings... "

Edward wrote on September 27, 2006 9:48 AM:"At least Mr. Schwab questions the actions of other elected officals. Not that they would ever do anything self serving, improper, or just plain dumb. By the way, was it a guarantee that Bobcat would have moved out of Bismarck or did the city officials fall for a $25,000,000 bluff."

At it again wrote on September 27, 2006 8:49 AM:"What a waste of a commission seat Steve Schwab is. Can't wait to get him outta there. What, only another... 4-6 years. Great..."

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