Set sale of Grand Forks Corporate Center I furthers reduction of buildings the city leases out

Dec. 5—GRAND FORKS — The scheduled sale of Corporate Center I by the end of the year continues an effort by the city of Grand Forks, which has reduced the number of city-owned buildings that it leases to tenants.

In October, members of the Grand Forks Jobs Development Authority, an economic development panel made up of City Council members and Mayor Brandon Bochenski, voted unanimously to approve the sale of Corporate Center I at a purchase price of approximately $5.7 million.

Last year, Grand Forks officials approved the sale of Corporate Center I's counterpart,

Corporate Center II

, for $2.5 million to Grimsley Consulting LLC.

The two centers, which sit across from each other on DeMers Avenue in downtown Grand Forks, were built in the aftermath of the Flood of 1997, with the purpose of rebuilding downtown.

City Administrator Todd Feland said the sale of both centers has been planned for years as the city reduces the number of city-owned properties that are leased to tenants.

"The intent was to reduce down the scope of what we have ..." Feland said.

During a Grand Forks Growth Fund Committee meeting last year when Corporate Center II was sold, some members of the subcommittee noted that they don't want the city competing with private landlords.

In 2020,

Cirrus Aircraft

purchased its building — located in the industrial park on the city's western edge — from the city.

"We really have reduced significantly our inventory," Feland said.

With Corporate Center I scheduled to be sold by the end of the year, the city will still own two buildings that are leased out. One is the Herald building, soon to become the

Hybrid Innovation Venture Engine (or HIVE)

, which the city bought in 2019 from Forum Communications for $2.75 million. Portions of the building are leased to the Herald, the Grand Forks Region Economic Development Corporation and Thread, formerly Airtonomy.

The second building is Noah's Ark, which is made up of two spaces. The manufacturing area has been rented to LM Wind Power for the past few decades and a smaller office area in the building was recently renovated by the manufacturer for lease. The Engineering Department occupied the space during the recent second phase of ongoing renovations within City Hall.

Feland said lease rates for tenants in the HIVE will be reevaluated once it is completed.

"We're still finishing the building, but when you look at '23 and '24, we will look at new lease rates for that building," he said.

As for Noah's Ark, Feland said an existing lease exists with LM Wind Power.