Coming into its own

West Fargo expects to continue rapid growth for foreseeable future

BY KRIS BEVILL

West Fargo, N.D., is growing so quickly that the city’s economic developer wonders how long its developable land will last. In March, the city had about 50 acres of land available in its office park; between 135 and 175 acres of land was available for general commercial use and another 535 acres of property was available for light/general industrial projects. It may sound like a lot, but it’s going fast, says Matt Marshall, economic development and community services director for West Fargo.

“I think 2014 will be a very busy year, just like 2013 was,” he says. “Our only constraint is buildable land at this point.”

For years, West Fargo was overshadowed by its larger neighbor, Fargo, but it has been coming into its own for the past decade or so. The city experienced a growth rate of nearly 73 percent between 2000 and 2010, bringing the total population up to around 30,000. And it’s still going strong.

Last year, the North Dakota League of Cities named West Fargo its city of the year in recognition of the rapid growth of the city’s school system, industrial park and subdivisions. Mark Housh, West Fargo’s building inspector, says the city issued 883 building permits last year, valued at nearly $183 million. With about 700 residential lots available, a half-dozen apartment building projects in the works and commercial space in high demand, he says he expects this year’s building permit activity to be even busier. “I’m preparing myself for it,” he says, adding that the city’s building department now has three full-time inspectors and may add another in order to handle the workload.

Marshall says some of West Fargo’s growth is a reflection of the recent trendiness of the greater Fargo area, which has attracted young workers and families and translated into a low median age that businesses desire. “There’s demand to come to the region in general, [but] businesses come to West Fargo mainly because of the business-friendly climate,” he adds. “They get a warm welcome.”

The manufacturing industry is a major player in West Fargo’s business sector. Two of the region’s largest manufacturers, Bobcat Co. and Titan Machinery, are headquartered there. Caterpillar completed a $50 million expansion in West Fargo last summer, increasing its capacity for new and remanufactured components and enabling the company to bring its 300 West Fargo employees under one roof. Weisgram Metal Fabrication Inc., once a twoperson welding shop, employs more than 200 workers.

Midland Garage Door Manufacturing Co. currently employs about 90 people at its West Fargo location. The company has been doing business in West Fargo since 1986 and Doug Geslin, chief financial officer, says the city has always encouraged growth and company expansions. Last year, the company completed a 72,000-square-foot expansion at its West

Fargo production plant and will soon begin aggressively hiring to fill seasonal positions. Workforce availability is a concern, but Geslin says he is optimistic about the company’s growth and West Fargo’s growth in general.

Flood protection is another perk to doing business in West Fargo as opposed to Fargo, Marshall says. West Fargo is protected from Sheyenne River flooding by the Horace-West Fargo Diversion. The F-M Diversion, which focuses on protecting the Fargo-Moorhead metro from Red River flooding, could provide further benefits to the city by making it possible to annex more land into city limits, but it is currently unknown when or if that might happen.

Marshall says there is also growing interest in redevelopment, although he expects available land will continue to be a hotter commodity for businesses because it can be developed more quickly. There are some early takers, however. Energy cooperative Petro Serve USA was not dissuaded by the longer timeline for redevelopment and is relocating its headquarters from Moorhead, Minn., to a building in West Fargo that once housed Smokey’s Steakhouse. Petro Serve CEO Kent Satrang says the company had outgrown its space in Moorhead and was attracted to North Dakota’s more friendly tax climate as well as the opportunity to revitalize a vacant building. “We’re really excited about the new offices we’re remodeling,” he says. “We like to take old buildings and make them into something classic and revitalized.”

The renovation should be complete by early June and will allow the company to condense four metro offices into one space. About 40 employees will be based at the new location. PB

Kris Bevill Editor, Prairie Business 701-306-8561, kbevill@prairiebizmag.com