FARGO - The Kilbourne Group has told city officials it plans to spend $2.4 million to renovate parts of two downtown buildings starting this fall, according to documents submitted to the Renaissance Zone Authority.

The renovations include 24 market-rate apartment units and five alley-facing storefronts in addition to three existing storefronts at 115 Broadway and 117-119 Broadway. The 24 apartments will replace 54 existing apartment units in the buildings.

Kilbourne bought these buildings more than a year ago as part of a larger deal to buy 17 of Lee Swanson's buildings, 11 of them downtown.

At the time, Kilbourne expected that the deal would bring its downtown portfolio to 80 apartment units, or 5 percent of all units downtown, and 606,000 square feet, or 6.9 percent of downtown total.

The development company founded by North Dakota Gov. Doug Burgum said its investment is significantly larger than the $1.4 million assessed value of the buildings and exceeds the 50-percent threshold established by the Renaissance Zone Authority. The group is asking for a five-year property tax exemption on the buildings but not the land, a savings of $20,600 a year, but expects to pay more than double that amount in taxes after the exemptions expire.

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The authority will discuss the matter at its next meeting at 8 a.m. Sept. 27, though city commissioners will have the final say.

$50 million in investments

Since 2015, Kilbourne has committed to investing millions into downtown, based on applications to the Renaissance Zone Authority. Investments in the two Broadway buildings would bring the total committed to renovations and construction to more than $50 million.

Not included are the purchase price of these and other buildings, which Kilbourne has not disclosed, and the $117 million the firm and its partners plan to spend building the Block 9 highrise downtown. That project is still in the pre-construction phase while the others mentioned have started or are complete.

In August, Kilbourne told the Renaissance Zone Authority it will spend $13.5 million to build a new mixed-use building at 223-229 Roberts St. N. on land bought from the Dillard family. In February, it said it would spend $1.8 million renovating the Dakotah Block, formerly home to Metro Drug. In January, it said it will spend $250,000 renovating the old stables at 6 12th St. N.

In 2016, it said it would spend $9.5 million building the Roberts Commons mixed-use building around the parking ramp at Roberts and Second Avenue North, $1.2 million renovating the old Mathison's building at 1213 NP Ave. N, and $7.7 million renovating the iconic Black Building at 110 and 114 Broadway.

In July 2015, it said it would spend $14 million renovating the old Woodrow Wilson High School into apartments.

Most of these buildings are historic properties Kilbourne has said it wants to preserve and enhance and the two for which it's now seeking Renaissance Zone exemptions are no different.

Broadway buildings

Historically known as the Broadway Hotel, the building at 115 is now home to a Subway restaurant on the ground floor. There are 30 apartment units in two upper floors but they were cleared out in July for asbestos and lead removal.

The other building, historically known as Bristol & Sweet, a maker of harnesses and overalls, is now home to Teaberry on the ground floor and the vacant space Sweeto Burrito occupied. There are 24 apartment units in the two upper floors but they too were cleared out in July.

Kilbourne said the poorly maintained apartments had "many life safety issues" such as lack of sprinklers and outdated wiring. They also lacked a cooling system and natural light. Some units had no bathrooms, kitchens or windows.

The renovated units would be a mix of alcove, a type of studio apartment, one-bedroom units and two-bedroom units.

Kilbourne also plans to have two 1,000-square-foot retail units facing the alley, three at ground level and two in the basement, following a similar strategy to retail spaces it has on properties facing Roberts Alley. The alley here is mostly a place to store dumpsters, but Kilbourne expects that new tenants in the Dakotah Block immediately north will stimulate business in the alley.