The Jamestown/Stutsman Development Corp. tentatively approved a $215,000 loan for the Eagle Flats low- to moderate-income housing project planned for downtown Jamestown. If approved by the Jamestown City Council and the Stutsman County Commission, the loan repayment would begin in 15 years after the initial mortgage of the project is retired.
If constructed, the vacant Eagles building would be demolished and a 33-unit housing complex would be constructed. Maximum rents for the apartments would be based on the median annual income of Stutsman County.
In October 2019, the Jamestown City Council approved a tax incentive for the project where Eagle Flats would pay the city of Jamestown $35,000 per year for 15 years rather than property taxes based on the value of the building. At the time, it was estimated the savings to Commonwealth, the Wisconsin company developing the project, would amount to about $40,000 per year.
The tax incentive is referred to as a payment in lieu of taxes or PILOT program.
The loan from the JSDC is also contingent on actions from the Bank of North Dakota. Commonwealth has applied to the Bank of North Dakota Housing Flex Pace program. That program would grant Commonwealth $550,000 to reduce interest costs on the initial mortgage. The bank requires local participation in the form of a grant or loan to approve the project.
Corry Shevlin, business development director for the JSDC, said the Bank of North Dakota was considering allowing the tax incentive deal granted by the city last October to serve as the local participation.
"If the Bank of North Dakota accepts the PILOT, there would be no money from the JSDC for the project," he said.
Jamestown Mayor Dwaine Heinrich said the City Council could explore whether it could modify the PILOT agreement if the Bank of North Dakota does not accept it as local participation.
In other business, the JSDC Board of Directors reviewed and approved the independent audit of the organization.
Mindi Piatz, an auditor with Bradey Martz and Associates, said the JSDC had net assets of $7.3 million which was an increase of about $30,000 from the previous year.