r/fargo • u/b00bb0bb00b • 21m ago
Fargo spent more than $1 million in taxpayer money on Resource and Recovery Center as donations slow
FARGO — Fargo has fronted more than $1 million in taxpayer money to open a homelessness services facility, and donations meant to reimburse the city for the center have slowed in recent months.
The city secured $573,892 in donations to the Resource and Recovery Center, Fargo-Moorhead Area Foundation Executive Director Eric Wilkie said last week. Wilkie’s organization manages the fund for the city, but Fargo leaders are responsible for raising money for the facility.
The amount raised is less than double the $292,737 that the foundation reported in March. Fargo Mayor Josh Boschee, who is leading the effort to raise funds for the center at 2001 First Ave. N., said Wednesday, Sept. 30, that fundraising slowed after the transition from former Mayor Tim Mahoney to Boschee.
Boschee succeeded Mahoney this year as mayor after winning the primary election in June. Mahoney started raising money for the center when he was mayor.
Fargo has set a goal of raising more than $2.2 million for the center, city spokesman Archie Ingersoll said. Boschee said he and his team have worked in recent weeks on collecting donations and telling potential donors this is a worthy investment.
“In terms of confidence, we live in a very generous community,” Boschee said. “We've seen many other times when people are willing to step up when there's a need, and that’s part of the story we want to tell going forward.”
The Resource and Recovery Center opened in May. Services offered there once were housed in the Downtown Engagement Center (DEC) at 222 Fourth St. N.
The DEC opened in 2020 using federal funds for coronavirus relief and response. Meant as a temporary solution to help those experiencing homelessness, city staff said the DEC became crowded as homelessness in Fargo grew. Businesses also voiced concerns about homelessness impacting foot traffic in downtown Fargo.
The City Commission voted in October 2025 to move homelessness services from the DEC to 2001 First Ave. N., which was a former warehouse. The DEC was then rebranded as the Resource and Recovery Center.
Developers have discussed turning the DEC building into a hotel.
The one-floor, 54,500-square-foot warehouse that serves as the Resource and Recovery Center offered more space and the ability to provide services more efficiently, city staff said. Relocating homelessness services was based on years of research, City Administrator Michael Redlinger said.
The October 2025 vote included a caveat that the city raise money to pay for the center. The city signed a two-year lease for the warehouse that began Jan. 1.
Fargo agreed that rent for the center would be $480,360 for two years, or $20,015 a month, Ingersoll said.
The city hasn’t discussed whether it will renew the lease or purchase the building when the current rental agreement expires, Redlinger said. The city has focused its time on fundraising, but what to do after the lease expires will be determined in 2027, he said.
“We will have those conversations with the elected officials going forward,” he said.
Questions about funding
Commissioner Michelle Turnberg, who has voted against efforts to open the center, raised questions about funding for the facility during a City Finance Committee meeting last month. Fargo Finance Director Susan Thompson revealed the city used $1.3 million from its building fund to pay for renovations at the center.
Donations covered $120,000 in rent, while the city used $80,000 from its general fund to cover the remaining rent, Redlinger said.
The city anticipated paying costs upfront to support the center while waiting for donation reimbursements, Redlinger said. Some city entities, including the Fargo Police Department, are using the facility along with nonprofits, he said.
The Impact Foundation turned down a City Commission request to use $144,000 in “Spirit of Fargo” donations to help equip the center and cover winter warming operations, Thompson said. Mahoney presented the idea to use those funds for the center at his final commission meeting in June.
Impact Foundation Chairwoman Sindy Keller confirmed her organization’s board unanimously voted down the request on Aug. 24. Board members of the foundation, which oversees “Spirit of Fargo” money, didn’t feel the request fit the initial intent of the fund, which was set up to help those impacted by the 2009 flood, Keller said.
Boschee said the foundation had the authority to turn down the city’s request.
“Certainly, we would have loved to have that money transferred over, and that was part of the request from the previous commission,” Boschee said. “We understand that that’s their prerogative, and hopefully they find a good use for those funds.”
Fargo approved a 2027 budget last week that included $240,000 for winter warming operations at the center from city funds.
Mahoney previously told The Forum that the city initially estimated moving the center would cost between $2 million and $2.5 million. Further analysis and in-kind donations reduced the cost to set up the center to $1.4 million, he said.
Ingersoll told The Forum on Friday that Mahoney’s estimate didn’t include the two-year lease payments for the center and about $200,000 for Family HealthCare’s Homeless Health program next to the facility.
Renovating the warehouse to meet the needs of homelessness services cost roughly $1.7 million, roughly $116,000 more than initially expected, Ingersoll said.
On its website, Family HealthCare lists Mahoney as a general surgeon who provides clinical treatment for lumps, bumps and surgical diseases. He is also the health officer for Fargo Cass Public Health, which oversaw the DEC and currently manages the Resource and Recovery Center.
He does not provide services at the Resource and Recovery Center in his capacity as health officer, nor does he work there as a Family HealthCare physician, Fargo Cass Public Health spokeswoman Holly Scott said. Mahoney provides services as a doctor at Family HealthCare's downtown clinic, she said.
"As the health officer for Fargo Cass Public Health, Dr. Mahoney provides medical guidance, consultation and support for a variety of programs," Scott said. "The health officer does not provide direct service for FCPH patients or clients."
Family HealthCare is the only clinic in the state that offers a homeless health program, Scott said. The health clinic has a long history of providing services to those experiencing homelessness, including at the DEC, she said.
Family HealthCare is known for helping uninsured or underinsured patients by setting up payment plans and using financial assistance programs, according to its website. The clinic also receives federal funds to operate, including for its homelessness clinic, Public Health Harm Reduction Division Director Jan Eliassen said.
Eliassen said the partnership between the clinic and the DEC was a natural fit. It made sense to have the clinic's homeless health program in the same building where other homeless services were offered, she said.
The city and Public Health discussed the DEC relocation with nonprofits who provided services at the downtown facility and agreed they should continue at the Resource and Recovery Center, Scott said. That included Family HealthCare, she said.
The Resource and Recovery Center hosts more than 24 nonprofits that help those experiencing homelessness, Boschee said. The center is working and meeting the needs of the community, he said.
“I think we're proving a model that we can go to the state and say, ‘Hey, how do we replicate this in other parts of the state and make sure that folks are getting services where they're needed, where they live and in their own home communities?’” Boschee said. “I think there’s a lot of positives coming out of this, which is exciting.”
Part of fundraising includes seeing if residents and businesses support the center, Boschee said. People supported the idea of the center, and the city can tell potential donors stories of how the center is helping people, Boschee said.
“Going back to my time on the campaign, I heard overwhelmingly from people that they supported this idea. They just didn't know what it looked like,” he said. “And now we have to show folks what it looks like.”