Three businesses receive tax breaks
By Brian L. Gray
Three businesses have been given approval for tax breaks by the Mandan City Commission. BOS Solutions, Diversity Homes and Edgewood Management Group have received tax breaks for their new or expanding businesses. The three were given approval during the city commission’s meeting on Oct. 2.
BOS Solutions will receive a five-year tax exemption, which will equal roughly $24,203 a year in savings. The company plans to build an 8,800 square foot complex at 2916 34th St. N.W., which will serve as a warehouse and administrative office. The company, which sells equipment to oil and gas companies, plans to hire 12 full-time people at the new building in Mandan, with annual salaries ranging around the six figure mark. Regionally, the company employs over 110 people. Total payroll is expected to be $15.3 million by 2013, and it anticipates $54 million in annual revenue.
“We’ve been in North Dakota the last 18 months, and decided that Mandan is a great location for a facility to help support our North Dakota operations,” said District Manager Matthew Tremblay.
Diversity Homes, a Mandan-based company that builds upper quality homes that average $300,000 or more in cost, received a tiered tax exemption by the city, at 100 percent exemption the first two years, 75 percent during year three, 50 percent year four and 25 percent during its fifth year. The company’s expected yearly taxes are $11,093.
Diversity Homes will build a 6,000 square foot facility for its offices and shop-storage area at 2101 46th Ave. S.E., across the street from Raging Rivers Waterpark. The company’s staff has been working out of one of its spec homes, which has recently been sold.
The company started out in 2009, and grew as a staff of one to a staff of six in that time. During its first year the company built 15 homes, and this year it plans to have anywhere from 50 to 60 built, with most of them located in Mandan. Greg Meidinger, with Diversity Homes, says the business is continuing to see growth thanks in part to Mandan’s ongoing population increase, and two more staff members are currently needed. He added that by 2017, the business will employ 15 people.
Edgewood Management also received a tiered exemption for a 72-unit assisted living facility, which will be built at 2801 39th Ave. S.E. Exemptions will be roughly $137,149.00 per year, for a total amount of tax relief during its five years at $342,872. The cost of the newly constructed building will be $6.8 million.
The company will plan to double its occupancy and offer 144 units in the coming years. It also intends to hire about 90 employees.
Rex Carlson, CFO of Edgewood Management, said that this will be the first living center in Mandan for the company. It has two facilities in Bismarck, and currently has about 60 people on a waiting list.