Letter: Fargo must strengthen oversight of tax incentives

I have the privilege of representing the Roosevelt Neighborhood in the state Senate. The recent article exposing the sale of apartments that received $950,000 in tax incentives only to later become tax-exempt raises important questions about how our city structures and oversees public subsidies. The reverse course is another slap in the face to the neighborhood associations that have worked for over two decades to address development within Fargo’s core neighborhoods.

As a candidate for mayor, I strongly believe that tax incentives offered by the city must be tools that are carefully evaluated before approval and then monitored after the fact to ensure they deliver the public benefits we intend. Incentives are meant to spur development, remove blight, expand housing options, and ultimately grow our tax base. But when projects are structured or transferred in ways that negate those outcomes, our community loses out on revenue that could have supported neighborhood improvements, public safety, infrastructure, and essential city services.

The Fargo City Commission has a duty to ask tougher questions before approving incentives, to understand long-term implications, and to ensure agreements reflect the public interest, not just short-term development goals. Approving incentives and hoping for the best is not a strategy.

Future incentive agreements should include clear performance benchmarks, transparency requirements, and strong safeguards, including clawback provisions that are executed if promised outcomes are not met.

Fargo is growing, and economic development will continue to be important. Tax incentives should be a tool to encourage development when it benefits the public. Past incentives have not necessarily met that goal. As mayor, I will see that the entire program of incentives is scrutinized, clear goals for those incentives are identified, agreements are clearly laid out and fair and transparent systems to evaluate the meeting of those goals are put in place. Annual evaluations of the overall use of incentives will be performed to ensure the public is well served and long-term goals for the city's growth are achieved.

As mayor, I will provide a fresh, accountable direction for Fargo and work collaboratively with residents, developers, city staff, and the city commission to strengthen Fargo’s incentive framework to ensure economic development tools work as intended. Taxpayers bear the risk of city incentives. They deserve a clear return on their investment.

Sen. Joshua Boschee, D-Fargo, is running to be mayor of Fargo.