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

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

The five-year pilot is contingent on approval from Jeff Romsdal, owner and general manager of Central Sales.

Under the five-year pilot, there would be zero payments in the first two years, a payment of more than $50,000 for year three and annual payments of over $100,000 for years four and five.

Romsdal requested a property tax incentive under North Dakota Century Code Section 40-57.1 for a period of five years 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 need final approval from the City Council.

Romsdal plans to construct a commercial implement dealership east of the new Anne Carlsen Center campus.

Romsdal said the project cost has doubled and increased to $13.5 million since he began working on it seven years ago. He said with the project’s cost combined with interest rates over a period of 25 years, he will be investing more than $25 million into the project.

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

Central Sales is located outside city limits south of Jamestown along U.S. Highway 281.

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

“It will be converted over to commercial land once the project is complete,” he said.

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

“That would be setting a precedent,” he said.” … I’m willing to negotiate to come up with some type of agreement that will work between both parties, make sure that everybody is in agreement.”

If Romsdal does not agree with the terms of the agreement, Mayor Dwaine Heinrich said a negotiating committee will need to be established. He said the negotiating committee would meet in executive session and make recommendations to the City Council.

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

Councilman Brian Kamlitz and Schloegel were both reelected during the primary election in June with 1,183 and 1,196 votes, respectively. Bob Toso also was elected to serve his first term on the City Council with 1,217 votes.

Kamlitz and Toso were present later to take the oath of office and the new City Council convened later for its organizational meeting.

Mark Ukestad was reelected 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 that passed with 1,667 yes votes to 175 no votes. With voter approval, the minutes of the governing body will be published in its official newspaper, The Jamestown Sun.

In other business, the City Council unanimously approved the appointment of Jessica Alonge, Stutsman County auditor/chief operating officer, and Mary Katherine Eagleson to serve as members of the James River Valley Library System Board of Directors.

The terms expire in July 2027.

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