FARGODOME Enhanced

A remodel of the existing 30-year old building to include improved accessible seating, enhancements to better meet patron expectations of a modern entertainment facility, and modifications to address operational efficiencies. Cost is roughly $90 million.

The Fargo Dome Authority’s proposal addresses current and long-term needs of the venue, patrons, and market in one comprehensive plan.

Remodel of the existing 30-year old building is intended for preservation of one of the City’s largest physical assets by keeping the venue relevant far into the future:

1. Improve and enhance accessible seating:
   • Add more accessible and companion seating, including horizontal and vertical distribution of accessible seating.
   • Add additional wheelchair accessibility to the east Press Box.
2. Enhancements to address patron expectations and modern venue requirements:
   • Add additional restrooms, primarily female, and new family restrooms convenient to the arena bowl.
   • Ease congestion with more circulation space.
   • Add more food and beverage stands to hasten access to the stands, and also allow for more variety of products offered.
   • Add additional seating options, including club seating areas.
3. Operational Efficiencies:
   • Add elevators and align freight elevator locations with storage.
   • Reconfigure entrances to allow space and shelter for security lines.
   • Cosmetic updates to existing meeting rooms.
   • Relocate and expand the Administrative Offices.

FARGODOME celebrated a milestone, 30 years since its grand opening in December 1992. While anniversaries are a time to reflect on the past and plan for the future, FARGODOME management and Board members are constantly evaluating opportunities for improvement. The project planning and financing studies have been ongoing for nearly ten years. After a delay due to COVID, the Fargo Dome Authority is ready to move ahead with their comprehensive proposal to posture the venue for success for the next 30 years and beyond.

FARGODOME was truly a grass-roots effort and pretty revolutionary for its time. In the late 1980s, Fargo’s Park Director Bob “Goose” Johnson had an idea for Fargo. He and a very dedicated steering committee got NDSU on board as a main tenant and rallied the community behind a “Dome in Fargo” project. They were able to garner approval of 60% of a public vote held in December 1988 to authorize a twenty-year, one-half of one percent sales tax for the construction, maintenance, and operations of FARGODOME. At the time of construction, FARGODOME was the largest northern plains venue from Minneapolis to Seattle.

FARGODOME’s mission statement is to successfully operate a facility that provides a diversity of events, enhancing the quality of life and prosperity of the region.

Any way you look at it, FARGODOME is very successful:

Events/Attendance
Since 1992, FARGODOME has hosted 3,000+ events of all genres with total attendance of nearly 14 million people. Overall, approximately one-half of FARGODOME attendees are non-local; percentages vary by specific event type, with concerts and amateur sports attracting the most non-local attendees.

Economic Impact
Depending upon the annual event mix, FARGODOME’s annual inflation-adjusted direct economic impact (in 2019 $) ranges from $24 million to $42 million per year. Sectors that derive the greatest economic impact are retail, food & beverage, and lodging.

In addition to 27 full-time staff, FARGODOME employs roughly 500 PT staff and contracts with various 3rd party labor companies. Additionally, area non-profit groups earn money for their organizations by staffing food and beverage stands. In 2022, FARGODOME paid out over one-quarter of a million dollars to these non-profit groups.

Operational
Other than COVID-impacted 2020 and 2021 which received Federal Grant Funding to cover deficits, FARGODOME’s annual operating revenues have always exceeded annual operating expenses. FARGODOME has never drawn on the City of Fargo General Fund.

Permanent Fund
During the first 20 years, sales tax revenue in excess of debt obligations, along with annual operating surpluses, were saved to a permanent fund. Through stewardship and careful management the permanent fund balance is currently at $41 million, even after funding the 2000 lobby addition, three new football turfs, two video board upgrades, paving of parking lot G and all other annual capital improvements since 1992.

Additional fun FARGODOME financial facts:

• FARGODOME hires approximately 500 part-time employees to staff events, in addition to contracting with local staffing agencies for specific staff needs.
• FARGODOME hires non-profit organizations to staff their concession stands with payments made toward the organization’s fundraising mission. In 2022, FARGODOME paid over $275,000 to 32 different area non-profits for their efforts.

FARGODOME is a well-built city asset with a lot of life left in it.  Like most things, age has taken a toll: changes to building code, patron expectations, and operational “we should have done it this ways.”  But, with a nod to sustainability, the proposed comprehensive project plan addresses these issues within the substantial existing footprint, building skeleton, and HVAC infrastructure.  A structurally solid building will be given a modern re-fresh.  Additionally, the project is intended to be phased in to ensure no gaps in event scheduling, like that which would result from a demolition and rebuild (think Metrodome & US Bank Stadium).

Over the course of several years, FARGODOME staff worked with the City’s financial advisor to model various financing scenarios. In the end, the most feasible option was to look to FARGODOME’s roots. The Fargo Dome Authority is proposing a twenty-year, one-quarter of one percent (1/4%) sales tax. And, FARGODOME will draw around 70% of their permanent fund balance for up to $30+ million in project costs.

The logic of using sales tax for a public venue is that it allows financial participation by out-of-area users of the venue, rather than the cost burden being borne by City residents alone.   Economic studies show that approximately 55% of FARGODOME users are out-of-town guests.  A review of an average year receipts shows that locals would only contribute 42% of the source of funds.

For local residents, an additional ¼% sales tax means an extra quarter on a $100 sales tax applicable invoice.  Or, if you purchase a total of $10,000 of sales tax applicable items in a year, you will pay $25 more in sales tax for that year.  Remember that certain items like groceries are not subject to sales tax.  And, like existing City of Fargo sales taxes, this sales tax will cap at a $2,500 single transaction, so a maximum of $6.25 additional taxes per single transaction.   With the additional tax, Fargo’s sales tax rate of 7.75% will remain lower than our neighbors, Moorhead and West Fargo.

In case you wondered, following is a breakdown of Fargo’s current 7.5% sales tax:

                5.0% - State

                0.5% - County Flood Control (1/1/17-12/31/84)

                1.0% - City of Fargo Infrastructure (1/1/2009-12/31/2028)

                0.5% - City of Fargo Flood Control (1/1/2010-12/31/84)

                0.5% - City of Fargo Flood Control (1/1/2013-12/31/84)

The financial assumptions of tax collection growth, bond costs, return on escrow, and expected annual operational revenues are intentionally conservative to ensure a sound plan.  A definitive twenty- year sales tax is proposed because the tax revenue collections match up against the twenty-year bond repayment, with adequate cash flow under the conservative financial model assumptions to retire debt, pay ongoing capital expenditures, and rebuild the escrow account.

If tax collection growth exceeds projections and generates cash collections in excess of needs of FARGODOME, political leaders and citizens at that time shall determine the most urgent needs for the City of Fargo at that time. This situation occurred with the initial FARGODOME sales tax.  Via a city-wide election, a fraction of the sales tax was reallocated to Fargo City Street repair for six years. 

Architects estimate the construction will take about three to four years.  Because FARGODOME has such a busy event schedule, construction will be done in phases so the building can remain operational throughout the construction period.

Parking capacity at FARGODOME lots is expected to remain net neutral at approximately 3,900 parking spots. West parking lots E, F, and G will be reconfigured for replacement parking spots.  Alternatives such as city-wide circulating busses for convention attendee ease will also be explored.

Through budgeting and ongoing planning, City Commission and City staff keep their focus on future needs of Fargo and available funding mechanisms for those needs.  The city has various funding options, and seeks to best match the funding source with the project.  FARGODOME is a substantial City asset, with immediate needs to upgrade the venue to comply with laws and standards and comfortably accommodate venue guests with adequate restrooms, concessions, and circulation, while retaining capacity expectations of venue promoters.  Sales tax as a funding source allows FARGODOME’s greater than 50% out-of-town patrons to participate in the remodel and expansion costs.   

Future City needs will continue be assessed and matched with appropriate funding sources.  In addition to a myriad of other alternatives, sales tax remains an option as even with the proposed increase, Fargo’s sales tax rate is in line with, or lower, than neighboring communities.