Summary of the Fergus Falls Work Session (March 12th)

Summary of the Fergus Falls Work Session (March 12th)

The Fergus Falls work session focused on the future of economic development in the city, with discussions centered around the challenges faced by Greater Fergus Falls (GFF), the city's economic development organization, and strategies to enhance economic growth. The session included presentations from Casey Sanders Berglund, Economic Development Director for West Fargo, and Ian Carlstrom, Regional Director for the West Central Small Business Development Center (SBDC). The council aimed to establish a vision, explore funding options, and define roles for economic development moving forward.

Key Discussion Points:

1. Greater Fergus Falls (GFF) Challenges:

   • GFF, a 501c3 organization, has struggled with leadership instability, having five directors in six years. The current lack of a permanent director and limited funding (city contributes $50,000 annually, about 12-17% of GFF’s estimated $200,000-$295,000 budget) has hindered its effectiveness.

   • The city has historically supported GFF with seed money, but a recent request for additional funding ($48,000 plus land sale commissions) was denied by the previous council. GFF has not dissolved but is on a hiatus, awaiting direction from the city council.

   • The county does not contribute to GFF, though it has board representation. The council expressed a desire for GFF to remain active, potentially focusing on small business support and incubation, but emphasized the need for a clear vision and sustainable funding.

2. Economic Development Vision and Strategy:

   • The council stressed the importance of a unified community vision for economic development, involving stakeholders like the city, county, chamber, schools, colleges, and local businesses. Past efforts lacked clear direction, contributing to limited progress.

   • Discussions highlighted the need to attract new businesses, revise zoning regulations, and offer incentives. The reuse of the old Sunmart building was cited as a success, but substantial new developments have been slow.

   • The council aims to develop a comprehensive strategy and business plan by the next session (March 26th), incorporating input from multiple sources.

3. Casey Sanders Berglund’s Presentation (West Fargo Economic Development):

   • Casey outlined her role as a solo economic development director, reporting to a senior director of Community Development and working with a nine-member Economic Development Advisory Board.

   • She described five pillars guiding her work: Economic Development, Community Development, Economic Activity, Long-Range Planning, and Departmental Activities.

   • West Fargo benefits from a dedicated economic development sales tax, generating about $4 million annually, which funds her department and provides a “war chest” for incentives (e.g., forgivable loans, infrastructure support). This contrasts with Fergus Falls’ reliance on limited city funds.

   • Casey emphasized relationship-building, handling cold calls, and targeting 96-100 business retention/expansion conversations annually. She also collaborates with regional EDCs, sharing leads that don’t fit West Fargo.

   • On Tax Increment Financing (TIF), West Fargo uses it primarily for infrastructure in industrial developments, avoiding its use for residential projects except in specific cases like workforce housing.

4. Ian Carlstrom’s Presentation (West Central SBDC):

   • The SBDC provides free, confidential consulting to startups and existing small businesses, focusing on business planning, market research, financial benchmarks, and loan preparation.

   • Over the past two years, the SBDC served 720 clients region-wide, including 55 in Fergus Falls, helping start 75 businesses and access $26 million in capital. In Fergus Falls, it supported five new businesses and $2 million in capital.

   • Programs like FastTrack (intensive 30-hour training) and Rural Edge (a seven-week leadership program) were highlighted, along with women-focused initiatives and AI training for entrepreneurs.

   • The SBDC collaborates with GFF, taking on 16 clients during GFF’s transition. It seeks to “play nice in the sandbox” with other regional economic development entities, engaging through an informal advisory board and matching local investments with federal funds.

5. Funding Concerns:

   • Funding emerged as a critical issue. The council discussed the need for sustainable funding for both an economic development position and a reserve for incentives to attract businesses.

   • West Fargo’s sales tax model was noted as a potential approach, but the council requested research on legal funding options in Minnesota (e.g., sales tax, lodging tax). The city’s current lodging tax generates about $160,000 annually, and general sales tax collected $1.63 million in 2024.

   • Concerns were raised about the inefficiencies of economic development directors spending significant time fundraising (as GFF directors did), which detracts from development work.

6. Next Steps:

   • The council plans to refine its vision and strategy at the March 26th session, with Casey returning to discuss land acquisition and availability.

   • The chamber will present a business survey update at the next meeting.

   • Council members were encouraged to submit specific topics or questions for Casey to ensure a focused discussion.

   • Suggestions included ongoing engagement with the SBDC (e.g., quarterly updates) and exploring partnerships with local banks and the Fergus Falls Loan Program.

Time Allocation:

The session spent the most time on Casey Sanders Berglund’s presentation and Q&A (approximately 36 minutes, from 21:35 to 1:01:27), reflecting the council’s interest in learning from West Fargo’s successful economic development model, particularly its funding structure and operational framework. Key questions focused on TIF usage, funding sources, and the advantages of being a city employee versus an independent EDC.

The Ian Carlstrom SBDC presentation and Q&A took about 25 minutes (1:02:29 to 1:30:29), emphasizing the SBDC’s role in supporting small businesses and its potential to complement broader economic development efforts. Questions centered on client transitions from GFF, regional comparisons, and funding arrangements.

The initial discussion on GFF and economic development vision (0:11 to 21:35, about 21 minutes) set the stage, with significant focus on GFF’s history, funding challenges, and the need for a community-driven vision. The closing discussion (1:30:29 to 1:38:09, about 8 minutes) focused on funding strategies and next steps, reinforcing funding as a critical concern.

Primary Focus:

The council devoted the most time and attention to exploring external models (West Fargo’s approach) and understanding local resources (SBDC’s capabilities) to inform Fergus Falls’ economic development strategy. Funding was the most recurring and pressing theme, with discussions emphasizing the need for sustainable revenue streams to support both staffing and incentives, inspired by West Fargo’s sales tax model and the limitations of GFF’s current funding structure.

Disclaimer: This summary was generated by an AI system without added opinions. No claims of accuracy are made, though timestamps are included for reference. For the full context, please view the meeting video on YouTube: [YouTube Video Link Here]. This content is provided by Growth Forge Studio (formerly 4t Creative), dedicated to helping businesses grow.