Industrial building coming to Mandan
By Brian L. Gray
The Mandan City Commission approved a tax exemption for an industrial building for Novaspect Holdings Inc., which will be located at 2813 37th St. N.W.
The building will be 20,000 square feet, and will include office space and shop service space. The building’s value will be at $1.6 million.
The commission approved a two-year 100 percent tax exemption, with a 75 percent exemption for year three, 50 percent in the fourth year and 25 percent during its fifth year. The amount of tax exemptions is expected to be $32,270 each year for the first two years, and $48,455 the following three years. The land, which is valued at $160,000, will still be taxed during those five years.
Novaspect Holdings, a family business that has been operating for 76 years, sells and repairs instruments and computer systems for several area oil and manufacturing companies. The business plans to have 20 employees by its second year, and 35 employees by year five.
Mike Franz, with Novaspect, said the business has been looking to expand its presence in North Dakota, and has been operating out of an office in Minneapolis, Minn. “We knew we needed to put a building in North Dakota, in order to expand and grow with the economy,” he said.
The approval received a 4-1 vote, with Commissioner Sandy Tibke voting no. She said that having an industrial business like this would be beneficial to the city, and preferred to see a bigger tax break. “I think attracting primary sector growth, especially with the quality and number of jobs that are being offered here, is important to Mandan,” she said.
The Mandan Growth Fund Committee previously recommended approval of four new or expanding business property tax exemptions, which included Novaspect Holdings.
Other projects the committee approved that will come to the city commission for final consideration is Diversity Homes, Inc. for a project at 2101 46th Ave. S.E., Edgewood Management Group, LLC for a project at 40th Street and McKenzie Drive, and BOS Solutions, Inc. for a project at 2916 34th St. N.W.