Grand Forks Council Cancels $3.8M Deal, Prioritizes Local Businesses

The Grand Forks City Council has cancelled a significant agreement for the Alerus Center, a city-owned venue, to procure video display boards from Daktronics, a vendor based in South Dakota. This decision, made public on March 2, 2024, arose when Josh Goldade, president of LucentHD, highlighted during a City Council meeting that no request for proposals had been issued, effectively excluding local businesses from the bidding process.

The proposed contract with Daktronics amounted to approximately $3.8 million. Goldade noted that a similar project completed at the Alerus Center 12 years ago cost less than $2 million, emphasizing a trend in the industry where technology prices have generally decreased. He argued that while Daktronics should be considered for the project, local companies must also be given a fair opportunity to compete.

The Alerus Center, funded entirely through public dollars, was constructed following a citywide vote in 1995 that approved a 0.75% sales tax to finance the project. Since its opening in 2001, this tax has generated nearly $200 million to not only build the events center but also to maintain it.

Although the city owns the Alerus Center, it is managed by the Oak View Group, a company based in Philadelphia. The center aims to enhance the quality of life in Grand Forks and positively impact local businesses. This economic influence, however, extends beyond merely attracting visitors; it encompasses providing local entities the chance to supply the goods and services essential for the center’s operations.

Local economic impact is critical, covering everything from food and beverage provisions to maintenance supplies and major equipment like video boards. The importance of supporting local businesses was further highlighted in January 2025, when Aaron Hall, CFO of Bifrost Manufacturing, expressed concerns about the bidding process for a turf protection project at the Alerus Center. Hall claimed Bifrost was discriminated against despite offering the lowest bid, with Alerus Center leadership stating that the company could not meet the required timeline. Bifrost maintained that the timeline was arbitrarily set, creating an environment that disadvantaged local small businesses.

Following these discussions, the City Council rightfully chose to void the agreement with Daktronics. Council President Dana Sande introduced a motion to terminate the contract, advocating for a reevaluation of the project that would allow for a competitive bidding process based on a clear scope of work. Sande articulated that the council should utilize available resources to ensure fair competition, stating, “We reevaluate the project using the resources that we have, we utilize the known scope of work and we put that scope of work out for competitive bid.”

This decision reflects the necessity for taxpayer-funded entities to remain accountable to the community that supports them. The economic impact of the Alerus Center should encompass more than just hotel bookings and dining expenditures; it should also support local businesses by providing them with opportunities to contribute to projects funded by public money.

While it is essential that local companies are considered, it is equally important to recognize that the lowest bid may not always represent the best choice. Various factors, including experience, quality, and timeliness, must be part of the decision-making process. The community’s call to “shop at home” must align with the responsible allocation of public funds, ensuring that local businesses receive fair consideration in contracts that affect the local economy.