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Published May 17, 2013, 03:07 PM

Moorhead City Councilman upset over North Dakota billboards

ARGO, N.D. (AP) — North Dakota is promoting its business climate at Minnesota's expense, and some politicians east of the Red River are not happy about it.

By: DAVE KOLPACK,Associated Press, Associated Press

ARGO, N.D. (AP) — North Dakota is promoting its business climate at Minnesota's expense, and some politicians east of the Red River are not happy about it.

The Greater North Dakota Chamber has started a campaign that mocks proposals in the Minnesota Legislature, including bills that would raise certain taxes. A chamber release said Minnesota politicians are "making a strong case for business to come across the border to North Dakota."

The first billboard went up Thursday along Interstate 94 in Moorhead, Minn., which borders Fargo. It reads "North Dakota" on the top line and "Open for Business" on the bottom.

Moorhead City Council member Mark Hintermeyer said Friday he considers the message unproductive and confrontational, and wants the sign taken down immediately. He said it could make local and state officials less interested in backing a proposed Red River diversion project that would move water around Fargo and Moorhead in times of serious flooding.

"It's very unfortunate that the city of Fargo, which needs our cooperation for a diversion project, would want to poke us in the eye," Hintermeyer said. "I have had a conversation with two other council members and they are just as upset as I am."

North Dakota Chamber President Andy Peterson said in an interview that in addition to promoting the state's booming economy, one of the campaign's objectives is to help Minnesota improve its business environment.

Peterson noted that a competitive states' index lists North Dakota 15th for a favorable business climate and Minnesota is 40th.

"That doesn't play well for our regional economy," Peterson said. "We're hoping that Minnesotans take notice of this that the government in Minnesota is taking more of their money and they will probably have less to spend."

Hintermeyer is not buying that approach.

"There are policy considerations at the state level in St. Paul. This is not that way to get that message across," Hintermeyer said. "I don't see how this advances any goal here. I don't know why they would want to pick a fight."

A member of Minnesota Gov. Mark Dayton's staff would not comment specifically on the North Dakota campaign, but said a chamber release jumped the gun on some Minnesota tax proposals.

"There are no gas or alcohol tax increases in our final tax bill, nor were they ever a part of the governor's tax proposal," Dayton spokeswoman Katharine Tinucci said in an email to The Associated Press. "The budget we expect the legislature to pass and the governor to sign in the next several days makes significant investments in education and job creation, that we know will help Minnesotan businesses grow, and the economy to continue to grow."

North Dakota has been bolstered in recent years by an oil boom that shows no signs of slowing down. A recent North Dakota State University study found that the economic impact of the state's oil industry has increased nearly sevenfold between 2005 and 2011, from $4.4 billion to $30.4 billion.

Charley Johnson, president and CEO of the combined Fargo-Moorhead Convention and Visitor's Bureau, said his group tries to promote both states and doesn't take a stand on which state is better for business. However, he said he understands why North Dakota would want to tout its prosperity.

"I'm a Moorhead resident and I'm not offended by it," Johnson said. "I recognize it as the kind of back and forth that happens between states and other entities as they try to bolster their own economies."

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