Incentive Program Sets the Table for New Restaurants

Applications are no longer being accepted after March 31, 2019

Concurring with a recommendation from the Mandan Growth Fund Committee, the Mandan City Commission voted March 5, 2019, to allow its incentive program for new and expanding restaurants to sunset on March 31, 2019.

Under the Restaurant Rewards Program, Mandan rebates a 1% local sales tax for five years for approved applicants. Mandan also set aside $162,000 in 2016 for interest buy-downs to help increase restaurant options in the city. All of the funding is now committed.

Since Mandan established the incentive program in the spring of 2016, the City Commission approved applications from Taylor Made BBQ, Dickey’s Barbecue Pit, Mandan Depot Bier Hall, Arby's, Bennigan's, Grand Junction Grilled Subs, Culver's, Old Ten Bar & Grill, Balancing Goat Coffee Company and Copper Dog Cafe.

Taylor Made opened its independent concept at 316 W Main Street in December 2016. In 2017, Dickey's Barbecue Pit opened in the Memorial Square Shopping Center at 4524 Memorial Highway SE and Arby's opened at 2640 Overlook Lane NW. Openings in 2018 included the Mandan Depot Bier Hall at 401 W Main in the historic depot building, Grand Junction Grilled Subs at 4524 Memorial Highway, Bennigan's at 1516 27th St NW, and Culver's at 1704 E Main Street. Restaurants that opened in 2019 were Old Ten Bar and Grill at 417 E Main Street, Balancing Goat Coffee Company at 2705 Sunset Drive, and Copper Dog Cafe at 218 W Main Street.

All types of restaurants were eligible for the incentives. A program goal was to attract at least three sit-down, full-service casual dining establishments. There was also a desire to see restaurant growth in each of the city's three major business districts: Main Street/downtown, north Mandan/I-94 corridor, and Memorial Highway/east Mandan.

The interest buydowns came from the Growth Fund. The program leveraged funding available through the Bank of North Dakota Flex PACE program, which helps reduce the interest rate for financing of community development projects to as little as 1%. Funding for the interest buy-downs was encumbered on a first-come, first-served basis. Restaurants seeking a local match beyond the amount that was available from the Growth Fund could apply through revolving loan pools established with the Lewis and Clark Development Group.

Property taxes and other local sales taxes were still required for restaurants receiving assistance. This includes the 0.75% sales tax for a voter-approved sports complex, 0.5% for Morton County for a joint jail with Burleigh County, and a 1% restaurant and lodging tax for capital construction projects to attract visitors to the community.

For more information, contact the City of Mandan Business Development Office, phone 701-667-3485.