
GRAND FORKS – The Grand Forks City Council on Tuesday approved a memorandum of understanding with Agristo for the company’s proposed Grand Forks facility.
Earlier this month, the Belgian potato processor announced
its plans to build its first American processing facility in Grand Forks
. This preliminary memorandum of understanding sets the groundwork for the future of the partnership between Agristo and the city for items ranging from sewer work to tax incentives. The memorandum was approved unanimously by the council.
“The reason why they’re looking to North Dakota and Grand Forks versus Wisconsin is because of our soil, because of the potatoes that we can grow here,” City Administrator Todd Feland said. “The other portions of this really are the incentive part to make us more competitive.”
Many of the incentives discussed and offered to Agristo are from the state. Those include $34.49 million in loans and grants, a sales tax exemption for construction materials for the project, and a potential temporary exception from state corporate income tax. Locally, the city is proposing a 20-year, 90% tax incentive; if approved by Grand Forks’ other taxing entities, it will reduce Agristo’s property tax bill. Many projects around the city have or had some form of tax incentives, but specifics vary.
Responding to some of the City Council’s concerns on the national security implications of this project, Gary Shields, of the Northland Potato Growers Association, shared that conversations are ongoing but that information is still in flux as Agristo has not officially declared with the Committee on Foreign Investment in the United States, also known as CFIUS.
“I know a lot of the council members are waiting anxiously for Agristo to make their presence …” Shields said.
A number of local potato growers visited Agristo’s facilities in Belgium recently. Brad Nilson, a farmer from Hoople, North Dakota, shared his experience with the council about the tours and what local farmers learned.
“I would encourage you all to look at Agristo’s website and go through there,” Nilson said. “Their philosophy is employees are number one, our growers are number two, and our customers number three. (Agristo) said ‘we don’t waiver from that.’”
Agristo has said it expects to break ground sometime this year and be operational in 2028. While a formal site decision has not been made, land on the city’s northern edge — previously considered for a corn mill by the Fufeng company — is high on the list.
In other news, the council:
Voigt covers government in Grand Forks and East Grand Forks.