By Brian L. Gray

The old Furniture First lot, left vacant after the building’s demolition years ago, will soon have a new building constructed in its place.

Located at the corner of Main Street and First Avenue N.W., the property will soon become the home of a $3 million building of businesses and residences.

The Mandan City Commission approved a 15-year tax exemption for CRT Investments, LLC, of Grand Forks, who is the investor in the large scale project.

The building will consist of a mix of commercial and residential property, with a potential for a drive-through in the business portion. There will be 6,000 square feet of commercial space on the main level, with approximately 30 one and two-bedroom apartments above the main level. The building will be a four-level facility.

A total of $2.5 million will be spent on the residential portion, with the remaining committed to commercial space. Construction is anticipated to begin in August.

“This is a project of great significance,” said Business Development Director Ellen Huber. “It puts more people living downtown, which is more folks that will shop here and eat here, and help to bring about the businesses that our community so desires in downtown Mandan.”

She said downtown Mandan previously stood at an estimated $5 million in investments with the renaissance zone project, and this new addition now puts the city at $8 million mark.

The commission gave the project a five-year tax exemption for the commercial property, which is a value of $375,000. It then approved an additional preliminary tax increment financing application for the next 10 years for the residential portion of the property, giving the investors a total tax break of $531,250.

The Furniture First building was torn down because its rock foundation had been destroyed by petroleum.

Commissioner Jerry Serhienko said to the developers, “I really am pleased to see that this project is ready to go and you’re ready to turn dirt. It’s been a long time coming.”

Serhienko added that the new building being constructed on what is currently being used as a parking lot will now confirm the need to address downtown’s parking issues.

Mayor Tim Helbling said this issue was addressed with the completion of the downtown parking study.

The commission also approved a five-year property tax break for the owners of Ohm’s Café, Cathy and Tony Leier, who have decided to redevelop their business.

The tax break for Ohm’s Café, located at 808 W. Main St., totals $4,781 in property taxes and $3,000 in income taxes.

The Leiers have begun investing more than $35,000 into the building, including re-facing every side of the building, adding a new roof and canopy, sandblasting brick columns and adding an automatic door, in compliance with the new city ordinance.

Commissioner Thomas Jackson said he hopes these incentives will decrease in the future, but said he was in favor of approving the two tax exemptions. “I think at some point the city is going to hit a point where we’re going to not have to encourage economic development through offering such incentives, but we’re not at that yet, I feel,” he said.

Huber said these incentives are essential to help with the redevelopment of downtown Mandan, in the midst in a recession coupled with the lengthy remediation process.

“I’m hopeful this commission will continue the use of the renaissance zone tool for the full 15 years that are allowed by the state, under the program for applicants that meet the criteria,” she said.