New details are emerging about a special tax incentive the city of Fargo could provide a developer working on a proposed project at the site of the old Kmart building on University Drive. 

"We want to see more infill development in the city rather than just keep growing on the edge.  So we worked with the developer owner. Actually we've been in discussion with them probably over five years on what's the future of this site," said Jim Gilmore, Fargo's Director of Planning and Strategic and Research. 

Gilmore said on January 25th, the city commission will consider approving a tax increment financing package, or TIF, worth $1.4 million for developer Grove Enclave to cover the cost of demolishing the old Kmart building and cleaning up the site.  

The money would come from property taxes the developer would pay over 15 years, with those funds going back to Grove Enclave.  The plan calls for building low-income housing for seniors on the western side of the lot.  Commercial development is planned for the eastern side.  

Plans for the commercial side include a coffee shop, a fast food restaurant and a carwash.

Work at the site could begin as early as this winter, with construction of the senior housing units beginning in the fall.