Entertainment Mixed Use District
The City of West Fargo created a mixed-use zoning district here to provide predictable development regulations that support entertainment and encourages 24/7 entertainment. The development in the district adds to the energy, vitality, and density in the City with a prime piece of property.
This development project was a partnership between the City, EPIC Companies, EagleRidge Companies. The City contributed TIF dollars to construct the Essentia Health Plaza and parking garage. The developers invested a combined $88 million in new property value.
The residential development provides a unique tenant experience with courtyards, health and fitness centers, game rooms, pet washing stations, and electric car charging stations.
TIF Bond Details
Term: 25 years
- Created July 2017
- Taxes levied 2018-2043
- Ends December 2043
Total TIF Bond Proceeds: $18,645,000
- Essentia Health Plaza ($6,750,000)
- The Lights Parking Garage ($7,500,000)
- The Northern Lights Parking Ramp ($3,000,000); and
- Bonding Costs ($395,000)
Future Valuation and TIF Revenues
EPIC Companies committed to:
- Build $55 million in new value
- Generate $11.25 million in TIF revenue over 25 years
- Increase property value by 29 times the original value of $1.9 million
- Status: Current value is $13.2 million for two buildings already constructed
Northern Lights committed to:
- Build $33 million in new value
- Generate $6 million in TIF revenue over 25 years
- Increase property value by 24 times the original value of $1.3 million
- Status: Current partial value is $7.7 million (construction completed 2021)
The Lights on Sheyenne (EPIC Companies)
- In 2017, EPIC Companies and the City of West Fargo partnered to develop three mixed-use buildings with the option to construct a fourth building, served by a public plaza and public parking garage to create this development, called The Lights on Sheyenne.
- This partnership also facilitated the construction of a plaza, parking garage, and issuance of a tax increment financing, or TIF bond.
- 87 residential units
- ECHO building: 36 units
- EPIC building: 51 UNITS, 30K sf commercial (13.9K still available on second floor)
- 54,000 square feet of commercial space
- 24,000 square feet in ECHO (full)
- 30,000 square feet in EPIC (13,900 square feet available)
- The average cost is $20/square feet, not including fit-up costs.
- Businesses include Bell Bank, Bar Down, Moxie Java and Jade and Jasper
- EagleRidge Companies joined the partnership and TIF district.
- With increment produced by the project, the Northern Lights contributed $3 million to the construction of the parking garage and plaza, $3 million for a parking ramp on their property. This equals $6 million in tax increment produced to build public amenities.
- 197 rental units
- 2 and 3 bedroom units (65% full)
- 12,000 square feet of commercial space (commercial space still available)
- The average cost is $20 per square foot, not including fit-up costs.
The City has contracted with West Fargo Events to activate Essentia Health Plaza with free and ticketed events. By partnering with other providers, West Fargo Events has successfully drawn in thousands of visitors through major concerts, with acts like Old Crow Medicine Show, Blackhawk, Kip Moore, Dwight Yoakam, Sawyer Brown, Jimmy Allen, Sara Evans and Joan Jett. These events bring about 75,000 attendees per year, including visitors from 39 states, and countries such as Portugal and Brazil.
West Fargo Events also hosts free family-focused events in the plaza, like Family Fun Night, Movie Nights, Kidchella, and Community Art exhibitions. In the summer, the splash zone is open to the public. In the winter, the plaza turns into an NHL-sized ice rink, which brought in 30,000 visitors in its first year. When the plaza isn't hosting an event, it is open for all members of the public to enjoy
Public Amenity Maintenance
The City of West Fargo collects Common Area Maintenance (CAM) Fees of $1 per square foot in all buildings to maintain the plaza and parking garage. EPIC Companies and EagleRidge Companies also pay an annual fee to the City to maintain the amenities.
The City also contracts West Fargo Events to maintain the plaza and parking garage.
- Maintenance for the parking garage currently costs about $145,000 per year.
- The Essentia Health Plaza maintenance and management costs about $148,000 per year.
- Funds for public programming costs about $50,000 per year.