As you might have heard, Kilbourne Group issued a press release yesterday announcing that we have reached a real estate purchase option agreement with U.S. Bank for property located between Second Avenue and Third Avenue North and along Broadway in downtown Fargo, North Dakota. The property is currently occupied by the U.S. Bank surface parking lot and plaza. It is owned and controlled by U.S. Bank.
I want to take this opportunity to address some of the outstanding questions that have arisen:
1. We have been in discussions with U.S. Bank for the last two years regarding this property.
2. We have not yet purchased this property. Rather, we have an option to buy the property within the next three years. It is the first step in the economic and design feasibility studies needed to establish possible development plans for the property.
3. We do not yet know what we will do with this property if we do indeed purchase it. This will take time to determine, and decisions will be based upon diligent economic and feasibility studies as well as input from the downtown community. Kilbourne Group will work closely with U.S Bank and the City of Fargo during the studies to determine how best to enhance downtown Fargo through the property’s potential development.
4. The property that Kilbourne Group has an option to buy does not include the parking ramp that the City of Fargo owns. The ramp is currently owned by the City of Fargo, and the City is looking at ways to build a new ramp.