Report: Fargo tax incentives bring higher wages, fewer jobs than promised

David Samson / Forum file photo By April Baumgarten Today at 8:00 PM Listen Comments Share Share this article News Reporting News Reporting Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. The Trust Project What is this? FARGO — Some companies that received Fargo tax incentives are underperforming in job creation, but wage and property value increases have exceeded expectations, according to recently compiled data. Twenty companies that benefited from the city’s payment in lieu of taxes (PILOT) program since 2017 have created 540 jobs as of Nov. 2, Ryan Aasheim, chief business development officer for Fargo Moorhead Economic Development, told the Fargo City Commission on Monday, Nov. 9. ADVERTISEMENT In total, the companies that received PILOTs had 2,036 employees, which is 277 jobs less than those businesses committed when applying for the tax break, but Aasheim attributed that to headwinds in market conditions, including hiring, gaps in skill sets and the changing climate of work. The average wage for companies who received PILOTs was $82,677, Aasheim said. That’s $16,829 more than those businesses promised, he said. The total payroll for those companies was $173 million, about $19.8 million more than anticipated, Aasheim said. The property value for businesses that received PILOTs increased from $96.6 million in 2017 to $203.6 million in 2025, a 193% jump, he said. That’s compared to 52%, or $6.1 billion to $9.3 billion, for all commercial properties in Fargo during the same time period, he said. nov9regularagenda.pdf by April Baumgarten The numbers presented as part of an incentive tracking report show the companies are creating wealth in the city, which should carry more weight than total jobs created, Economic Development President and CEO Joe Raso said. Fargo issues PILOTs to “primary sector” companies that create jobs, provide better pay to employees and increase property values. North Dakota defines primary as "adds value to a product, process or service that produces new wealth." Cities can give companies that apply for PILOTs a full tax exemption on new buildings or facility expansions for up to 20 years, though the businesses have to pay taxes on the original value during that time. Fargo also can issue PILOTS to certain housing projects, including for low-income residents and families. ADVERTISEMENT READ MORE LOCAL NEWS Moorhead City Council signs off on plan to sell River View Heights 31m ago MSUM signs tuition partnership with National Guard 1h ago West Fargo racer says Bonneville crash ‘changed everything’ 2h ago City commissioners questioned whether companies that receive the tax break are creating the number of jobs promised, and if Fargo can claw back incentives if those goals are not met. State law allows the city to cancel incentives for those companies in the future, but clawing back past incentives would require legal work, City Assessor Michael Splonskowski said. This is the second time Raso and Aasheim have presented an incentive tracking report. Last year, 20 of 23 active PILOT companies had 2,056 employees, 110 less than expected. By the numbers Appereo, DigiKey and FedEx did not report numbers to the city in 2025. City leaders questioned why those businesses didn’t face consequences for not reporting their employment figures. The city is working on updating its policy to address how the claw backs can happen. It also will include a provision that cancels incentives if companies don’t report their data to the city, Mayor Josh Boschee said. Appereo and DigiKey’s PILOTs expired last year and were not on the 2026 list. FedEx reported its numbers, showing it was nine jobs ahead of what it promised. All PILOT recipients reported their numbers this year. Eight companies did not meet their job creation targets. Border States Electric reported 310 jobs, 180 jobs less than the promised 490 positions, according to the tracking report. PRx fell short by 96 jobs, CoSchedule by 41, Standard Industries by 22, John Deere Electronic Solutions by 18, Financial Bus Systems by nine, Corvent by three and Anvil Design by one, according to the report. ADVERTISEMENT Raso said he is unaware of any Midwest community that is putting together this kind of report. That puts Fargo ahead of the curve when using data to make decisions, Commissioner Chad Peterson said. The information will help the city coach and investigate companies when they don’t meet goals, he said. “Now we are going to be able to tell the story as to all of the successes and/or hopefully minimal failures going forward,” he said. About the Fargo City Commission The Fargo City Commission holds meetings every other Monday at 5 p.m. at City Hall, 225 Fourth St. N. Their meetings are also livestreamed and recorded for later viewing on the city of Fargo's YouTube page. Agendas and minutes are available on the city's website. Mayor Josh Boschee David Samson / The Forum Term expires: June 2030 Contact: 701-241-1310, [email protected] Commissioner John Strand David Samson / The Forum Term expires: June 2028 Contact: 701-715-3269, [email protected] Commissioner Michelle Turnberg David Samson / The Forum Term expires: June 2028 Contact: 701-831-5915, [email protected] Commissioner Nikkie Gullickson David Samson / The Forum Term expires: June 2030 Contact: 701-241-1310, [email protected] Commissioner Chad Peterson David Samson / The Forum Term expires: June 2030 Contact: 701-241-1310, [email protected] Comments Share Share this article News Reporting News Reporting Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. The Trust Project What is this? Tags Tags GOVERNMENT AND POLITICS FARGO FARGO CITY COMMISSION By April Baumgarten April Baumgarten is the Fargo city government reporter. 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