# Fargo adopts affordable housing pilot and tax incentive > Fargo City Commission approves inclusionary housing mandate and 10-year tax exemption for $61.6m mixed-use project. - Title: Fargo adopts affordable housing pilot and tax incentive - Summary: Fargo City Commission approves inclusionary housing mandate and 10-year tax exemption for $61.6m mixed-use project. Fargo City Commission adopted a… - Keywords: fargo city commission, inclusionary housing, affordable housing, property tax exemption, cove living, municipal policy, economic development, land development code, red river, interstate 94, 32nd avenue north, seahawks - Source: Valleynewslive — https://valleynewslive.com/2026/10/27/fargo-city-commission-adopts-landmark-inclusionary-housing-pilot-advances-major-infill-tax-incentive-2 - Published: 2026-10-27T17:51:47.008+00:00 - Read time: 1 min - Topics: fargo city commission, inclusionary housing, affordable housing, property tax exemption, cove living, municipal policy, economic development, land development code, red river, interstate 94, 32nd avenue north, seahawks ## Commission adopts housing pilot policy Fargo City Commission approved a commercial redevelopment pilot with 5% affordable housing requirement for projects in designated areas. > There’s a lot of conversation out there in the public about, they see these incentives as giveaways to developers. What does the public get out of that? ## Mayor sets geographic boundaries Mayor Josh Boschee established boundaries between 32nd Avenue North and Interstate 94 west to the Red River for the pilot policy. > And this is, I think, our opportunity to start having that conversation that we want to incentivize growth in key areas within fill ## Affordable housing threshold defined Projects must reserve 5% of units for households earning at or below 80% of area median income ($64,000 to $69,000 annually). > for folks to understand, for our community, is $64,000 to $69,000 a year ## Density requirement implemented Projects must double the density of any previously existing housing on the site. > The amendments also require projects to double the density of any previously existing housing on the site ## Cove Living secures tax exemption Cove Living LLC received 10-year property tax exemption for $61.6 million mixed-use project at 45th Street South. > The portion on the top that’s more kind of buff-colored and brick-colored, that’s the footprint of the new apartment building ## Project details revealed Project includes 229 apartment units and 15,000 square feet of commercial space replacing 14-acre parking lot. > That’s the request that we’re making here, and that is the project that cannot go forward until we know whether or not we’re able to obtain the pilot ## Affordable units calculated Project will provide 11 affordable workforce units meeting the 5% threshold. > The inclusionary housing component has tipped me to supporting this absolutely ## Commission approves exemption Commission approved 10-year tax exemption 4-1 with Commissioner Michelle Turnberg dissenting. > Yes, there’s reservations about incentives and proposals that reduce maybe the revenues the city might make ## Tax exemption faces review Exemption requires separate public hearings and approval from Cass County and West Fargo School District. > The exemption still faces separate public hearings and action by cass county and the west fargo school district ## Capital improvement plans approved City approved 2027 Engineering Capital Improvement Plan with traffic calming on 64th Avenue and federal contracts. > If we chose to eliminate special assessments, that’s a funding shortfall that we’d have ## Assistant city administrator appointed Erika Anderson appointed as Assistant City Administrator with start date November 30, 2026. > If I’m approved tonight, I really look forward to potentially joining the team of Fargo ## Procedural tensions emerge Commissioner Chad Peterson pulled fire department staffing item from consent agenda causing debate. > I’m just uncomfortable pulling things when we show up at a meeting off of consent ## Key takeaway Fargo City Commission adopted a commercial redevelopment pilot with 5% affordable housing requirement and approved a 10-year tax exemption for a $61.6 million mixed-use project.