Payments in lieu of taxes approved for commercial development in Jamestown

July 1 — JAMESTOWN — The Jamestown City Council has approved a five-year trial of payments in lieu of taxes for the development of a commercial building by a 3-0 vote.

Councilman David Schloegel was not present at the meeting on Monday, July 1. Councilman Dan Buchanan passed away in June.

The five-year trial period is subject to the approval of Jeff Romsdal, owner and general manager of Central Sales.

Under the five-year pilot, there would be no payments in the first two years, a payment of more than $50,000 in the third year, and annual payments of more than $100,000 in the fourth and fifth years.

Romsdal has applied for a five-year property tax abatement under Section 40-57.1 of the North Dakota Century Code for the development of a commercial building.

The city attorney was also authorized to draft the agreement between the city of Jamestown and Romsdal. The final agreement, if approved by Romsdal, will require final approval by the city council.

Romsdal plans to build a commercial tool shop east of the new Anne Carlsen Center campus.

Romsdal said the project cost has doubled, rising to $13.5 million since he began working on it seven years ago. He said that with the project cost combined with interest rates over a 25-year period, he will invest more than $25 million in the project.

Romsdal told the Jamestown Finance and Legal Committee in June that the projected property taxes for the new dealership would be more than $200,000. At the time, he said Central Sales’ current property taxes are about $8,800 a year at its current location.

Central Sales is located outside the city limits, south of Jamestown, along US Highway 281.

Romsdal said he will still pay an estimated $30,000 a year in taxes for the land.

“Once the project is completed, the site will be converted into commercial land,” he said.

Councilman David Steele said he is not aware of the City Council ever approving a five-year, 100% property tax exemption.

“That would set a precedent,” he said. “… I’m willing to negotiate to come to some kind of agreement that works for both sides, and make sure everyone agrees.”

If Romsdal does not agree to the terms of the agreement, Mayor Dwaine Heinrich said a negotiating committee should be established. He said the negotiating committee would meet in closed session and make recommendations to the city council.

The City Council unanimously approved the elected officials for the Jamestown City Council and the Jamestown Parks and Recreation Commission.

Councilman Brian Kamlitz and Schloegel were both re-elected in the June primary with 1,183 and 1,196 votes respectively. Bob Toso was also elected to serve his first term on the city council with 1,217 votes.

Kamlitz and Toso were later present to take the oath and the new city council later met for its founding meeting.

Mark Ukestad was re-elected to the Jamestown Parks and Recreation Commission with 1,193 votes. Ryan Harty was elected to serve his first term on the commission with 1,282 votes.

The City Council also certified City Measure No. 1, which passed with 1,667 yes votes and 175 no votes. With the approval of the voters, the minutes of the governing body are published in the official newspaper, The Jamestown Sun.

In other business, the City Council unanimously approved the appointment of Stutsman County Auditor/Director of Operations Jessica Alonge and Mary Katherine Eagleson to the James River Valley Library System Board of Directors.

The terms expire in July 2027.

Alonge’s appointment is contingent upon the Stutsman County Commission appointing City Manager Sarah Hellekson to the library board. The county commission meets Tuesday, July 2, and library board appointments are on the agenda.