Development Fund a valuable tool for ND businesses

BY DEAN REESE

The North Dakota Development Fund is a valuable financing tool for North Dakota businesses, providing a strong return on investment for taxpayers and contributing significantly to job creation. As we continue to grow our economy in the state and create economic opportunities for our citizens, it is important that financing support is available for startup or expansion projects in North Dakota.

The North Dakota Development Fund was created through legislation in 1991 as an economic development tool. It provides flexible gap financing through debt and equity investments for new or expanding North Dakota primary sector businesses.

The Development Fund makes investments of up to $300,000 in primary sector businesses. The North Dakota Development Fund Board may adjust the limit when deemed appropriate.

In general, the following criteria apply to Development Fund investments:

• The entrepreneur must have a realistic financial commitment at stake. Usually principals are required to have a minimum of 15 percent equity in the project.

• Refinancing of debt is not eligible.

• Principal shareholders with 20 percent or greater ownership are generally required to guarantee the debt. Other shareholders may also be required to guarantee.

• The Development Fund will not participate in more than 50 percent of a project’s capitalization needs.

• Financing is available to any primary sector business project with the exception of production agriculture.

• Primary sector includes individuals and businesses which, through the employment of knowledge or labor, add value to a product, process or service which results in the creation of new wealth. Primary sector includes tourism and specific types of investorowned agriculture, and is typically businesses such as manufacturers, food processors or export service companies. Investor-owned agriculture includes livestock feeding or milking operations, or other value-added agriculture located apart from an individual farm operation that is professionally managed and has employees.

Since the launch of the Development Fund, it has invested $97 million in 519 companies with over $30.8 million invested in rural communities. The investments made by the Development Fund have contributed to the projected creation of 10,389 primary sector jobs.

Economic activity continues to be strong in North Dakota. In providing flexible financing, the Development Fund will continue to assist primary sector businesses start-up or expand, which will help to create additional jobs and new revenues for the state of North Dakota.

Loan and equity programs managed by the North Dakota Development Fund include:

• North Dakota Development Fund

• Regional Rural Revolving Loan Fund

• Rural Incentive Growth Loan Program

• Small Business Technology Program

• Child Care Loan Program

• New Venture Capital Program

• Entrepreneur Loan Program

• Entrepreneurial Center Loan Program

For some additional information visit: www.NDDevelopmentFund.com PB

Dean Reese Director, North Dakota Development Fund dreese@nd.gov

Silicon Plains acquires Acoustic Visions Multimedia

Silicon Plains LLC, a Bismarck, N.D.-based business computer support services firm, has agreed to acquire Acoustic Visions Multimedia, a web hosting and business computer support company based in Mandan, N.D.

AVM customers will be transitioned to Silicon Plains over the next several months. “Moving this large of a customer base over to our company is a process we take very seriously,” Dan Polk, Silicon Plains president, said in a news release. “Our goal is to ensure no service interruptions occur.”

Steve Barreth, owner of AVM, will remain as a consultant for Silicon Plains for an extended period of time and will continue providing service to former AVM customers, according to the company.

Wells Fargo to relocate Dickinson branch

Wells Fargo has announced plans to move its Dickinson, N.D., banking store from the Prairie Hills Mall to the West Ridge Center development sometime this fall. Dickinson-based Tooz Construction Inc. will build the new store, which will offer safe deposit boxes and a multi-lane drive-up with two car-accessible ATMs. While the new location will open this fall, Wells Fargo also plans to maintain its existing drive-up and ATM at the Prairie Hills Mall through fall 2014.

Cooperstown manufacturer receives SBA award

Posi Lock Puller Inc., a manufacturer of gear and bearing pullers based in Cooperstown, N.D., recently received the 2013 North Dakota Small Business Exporter of the Year award from the U.S. Small Business Administration. The company was selected following a statewide competition and received the award in honor of its successful export program. Posi Lock’s pullers are shipped to every country in the world, according to the SBA, but all of its products are made in the U.S., with most of the outsourcing needs handled within a 200-mile radius of Cooperstown.

The family-run company was founded 35 years ago with the introduction of a patented gear and bearing puller invented by Dean Somerville for use in industrial, agriculture and automotive markets.

“We’re excited to have the opportunity to move into a brand new store in an up-and-coming development,” says Travis Hande, market president and ag industry specialist for Wells Fargo in Dickinson. “The new location will be more inviting to customers and will better fit our needs.”

Metro Plains acquires SD company

Metro Plains Management recently acquired South Dakota-based PRO/Rental Management, the company announced this week. PRO/Rental Management has 45 apartment communities with 850 units and 40 employees.

The deal increases MetroPlains’ holdings to 160 apartment communities with 5,000 units and 230 employees, according to the company.

Founded in 1983 and headquartered in Devils Lake, N.D., Metro Plains Management has rental properties and commercial space in North Dakota, Minnesota, South Dakota, Kansas and Oklahoma.

CoBank commits $250K to NDSU

CoBank, a cooperative bank serving agribusiness, rural infrastructure and Farm Credit System associations throughout the U.S., will contribute $250,000 to North Dakota State University in Fargo over the next five years. Half of the funds will be used to support the Quentin Burdick Center for

Cooperatives. The remaining funds will support the NDSU Department of Agribusiness and Applied Economics commodity trading room laboratory.

Aberdeen retail study examines consumers, opportunities

A coalition of Aberdeen, S.D., groups recently teamed up to back a study conducted by the Buxton Co. to identify the city’s core consumers and better understand its retail sector in terms of areas of surplus and under-served markets. The city will use the research to assist local businesses in making strategic merchandising and location decisions.

“The information from this study will offer new data on our customers, such as where they shop and what they buy,” says Gail Ochs, president of the Aberdeen Area Chamber of Commerce. “It also indicates where there are unmet needs for products and services, which is an opportunity to capture dollars currently leaving our community.”

Walmart to hire 300 for Mandan store

Walmart recently announced plans to hire approximately 300 people to work at the Walmart Supercenter scheduled to open in Mandan, N.D., this fall. In June, the retail giant said it expected most of the new hires to begin work that month in order to help prepare the store for its grand opening.

Kraus-Anderson to manage $12 million BSU project

Kraus-Anderson Construction Co. has been selected as construction manager at risk for a $12 million addition and renovation project at Bemidji State University in Bemidji, Minn. Construction is scheduled to start in July 2014 and will include the renovation of Memorial and Decker Halls, including an addition which will accommodate the relocation of the College of Business from Decker Hall to Memorial Hall.

Grand Forks site selected for $1.5 billion fertilizer project

Northern Plains Nitrogen has announced plans to build and operate a $1.5 billion nitrogen fertilizer plant facility near Grand Forks, N.D. The group’s plans call for a 2,200 ton-per-day ammonia plant plus urea and urea-ammonium-nitrate (UAN) production facilities to be located on land adjacent to the Grand Forks wastewater treatment plant. The company plans to use natural gas piped from the Bakken region of western North Dakota as a feedstock and could also use wastewater effluent from the water treatment plant as its water supply.

The plant is expected to be complete and ready to provide fertilizer to area farmers for the 2017 growing season. Approximately 2,000 workers will be employed during the peak construction period of the project. Upon completion, the facility is expected to provide 135 full-time jobs.

Bobcat breaks ground on $20 million Bismarck facility

Bobcat Co. has begun work on a $20 million renovation and expansion project to create the Acceleration Center in Bismarck, N.D. The project includes the expansion of an existing building as well as the development of a new test track and indoor testing facility at the Northern Plains Commerce Centre. Construction is expected to be complete in 2014. Wahpeton, N.D.-based Comstock Construction Inc. is serving as the contractor for the project.

The Acceleration Center will initially house 135 employees, focusing on innovating and advancing designs, testing, prototype engineering and the computer simulation of ideas and concepts. The center will also serve as an educational facility and will be used to provide training and hands-on experience for Bobcat dealers and customers.

Community foundations launch joint effort to promote philanthropy

North Dakota’s five community foundations have launched a cooperative effort known as NDGives to promote philanthropy in the state. Participants include the Fargo Moorhead Area Foundation, Minot Area Community Foundation, North Dakota Community Foundation, Community Foundation of Grand Forks East Grand Forks and Region and Devils Lake Area Foundation.

Made possible by a $100,000 grant from the Bush Foundation, the goal of the campaign is to increase residents’ understanding of endowment funds and to raise awareness of the North Dakota Charitable Income Tax Credit.

According to the foundations, North Dakota currently ranks 17th in the country for average adjusted gross income per tax return, but is 48th in the nation for average charitable contribution per return.

Medical providers implement health IT at rapid pace

The U.S. Department of Health & Human Services announced in May it has already exceeded its goal for 50 percent of doctor offices and 80 percent of eligible hospitals to implement elec- tronic health records (EHRs) by the end of the year. According to the agency, use of EHRs by doctors has increased more than 30 percent since 2008 while the use of EHRs in hospitals has skyrocketed from just 9 percent in 2008 to more than 80 percent currently.

The Obama administration has encouraged the use of EHRs in order to improve the efficiency and quality of health care. Doctors, hospitals and other providers that demonstrate meaningful use of EHRs receive federal incentives.

RealTruck.com recognized for record-breaking sales

Truck accessory e-commerce site

Grand Forks plans drone business park

Officials from Grand Forks, N.D., state leaders and representatives of the unmanned aircraft systems (UAS) industry came together during the 2013 UAS Action Summit in Grand Forks on May 30 to unveil plans to establish a UAS-specific business and technology park near Grand Forks. The park, dubbed Grand Sky, will be located west of Grand Forks on the Air Force base. The project is a collaborative effort among the state, the county, the city, the Grand Forks Base Realignment Committee, the Grand Forks Region Economic Development Corp., the University of North Dakota and Northland Community and Technical College.

Construction is expected to begin in 2014, with space becoming available for tenants in early 2015. Northrop Grumman, maker of the Global Hawk drone, has announced its intent to become an anchor tenant of the park.

The Grand Sky announcement correlates with the state and city’s desire to be selected by the Federal Aviation Administration as one of six UAS test sites. At least 50 applicants are vying to become one of the half-dozen sites. The FAA is expected to choose site locations by the end of this year.

RealTruck.com recently received the Growing Jamestown (N.D.) award from the Jamestown/Stutsman Development Corp. in recognition of the company’s strong sales growth in 2012 and positive influence on the local economy. RealTruck.com finished 2012 with a recordbreaking $17.5 million in sales and has continued upward trajectory in 2013.

The company was founded in Spokane, Wash., in 1998 and relocated to Jamestown in 2000. Other than utilizing JSDC’s New Jobs Training Fund to grow its staff after initially opening the Jamestown location, RealTruck.com has financed its growth exclusively with its own profits. The company currently employs more than 40 people at its offices in Jamestown and Fargo.

Summit Midstream starts up Bakken oil, water gathering system

Summit Midstream Partners LLC, announced in May that it has commenced operations of the Polar Crude Oil and Water Gathering System in Williams County, N.D. The system is designed to gather 50,000 barrels of Bakken crude per day and 25,000 barrels of water per day from the Bakken and Three Forks formations. The system is comprised of approximately 50 miles of crude oil gathering pipeline and 35 miles of water gathering pipeline. Oil will be delivered to the anchor customer on the system.

West Fargo manufacturer wins export award

Roll-a-Ramp, a West Fargo-based manufacturer of portable aluminum wheelchair ramps, recently received the “E” award for exports from the U.S. Acting Secretary of Commerce during a ceremony in Washington, D.C. The award is the highest recognition given to U.S. exporters by the commerce department.

Kvalheim named BSE northwest region utility sales manager

Brad Kvalheim has been named northwest region utility sales manager for Border States Electric.

Kvalheim joined BSE in 1989 as an electronic service technician in the company’s Fargo location. In 1992, he became utility customer service representative for the upper Midwest including Minnesota, North Dakota and South Dakota. In 1995, Kvalheim moved to Sioux Falls, S.D., and became an account manager. In this role he was integral in coordinating five utility alliance agreements with multi-year commitments. Most recently he was the branch manager in Sioux Falls. In his new position, Kvalheim will be located in the company’s Bismarck, N.D., location and cover Montana, North Dakota, South Dakota and Wyoming.

Eide Bailly announces management change

David Stende, who has served as chief operating officer for Fargo, N.D.-based accounting firm Eide Bailly for the past seven years, has assumed the role of managing partner/CEO of the firm. He is taking the place of Jerry Topp, who served in that role for the past decade and plans to continue working for the next few years, focusing his efforts on growing Practicewise, an association of noncompeting CPA firms, and on ensuring a smooth transition for the firm.

Mike Astrup, partner-in-charge of the Fargo office, is the firm’s new chief administrative officer and will be responsible for the internal functions of the firm, including human resources, training, finance, communications and information technology.

James Lyons, partner-in-charge of the firm’s Colorado offices, has been named strategic growth officer and will be responsible for the firm’s specialty services.

Barb Aasen, partner-in-charge of the Bismarck and Williston, N.D., offices, and Andrew Spillum, partner-in-charge of the Phoenix, Ariz., office, have been named chief practice officers. They will be responsible for overseeing the growth and profitability of the firm’s 21 operating offices in addition to leading their respective offices.

The change in management structure is part of the firm’s overall goal to continue an aggressive growth pattern over the next five years.

Lignite Energy Council chooses new CEO

Jason Bohrer, a Congressional chief of staff, has been named president and CEO of the Lignite Energy Council. He succeeds John Dwyer, who announced his retirement after serving as the group’s CEO for 32 years.

Bohrer has 15 years of experience in public policy and stakeholder relations, serving most recently as chief of staff to Rep. Raul Labrador, RIdaho, and as a legislative counsel to Sen. James Risch, R-Idaho, on energy policy, transmission, cyber security and regulated utilities.

Bohrer is a graduate of North Dakota State University in Fargo and George Mason University School of Law in northern Virginia. Bohrer will begin serving as CEO of the council in mid-July and will be based in Bismarck, N.D.

Ackerman-Estvold hires senior water resources engineer

Minot, N.D.-based Ackerman-Estvold Engineering and Management Consulting Inc. has hired Thomas Johnson as a senior water resources engineer.

Johnson previously worked for URS Corp. in New Mexico as a senior engineer specializing in water resources. He holds a bachelor’s degree in civil engineering from North Dakota State University in Fargo and a master’s degree in civil engineering from the University of Minnesota. He is also classified as a certified floodplain manager and is a Leadership in Energy and Environmental Design accredited professional (LEED AP).

Basin Electric names new VP of human resources

Ellen Holt recently joined Basin Electric Power Cooperative as vice president of human resources. In this role, Holt will provide strategic leadership and oversee the tactical implementation of cooperative-wide employee-focused programs and policies.

Holt served most recently as manager of human resources at Logistics Health Incorporated/United Health Group in La Crosse, Wis., where she led the implementation and development of the human resources function in areas including recruitment, employee relations, and training and development. Prior to that, she served as the human resources director for Gunderson Lutheran Medical Center in La Crosse.

Westra named COO at Hegg Companies

Steven Westra has been named chief operating officer of Hegg Companies Inc., a Sioux Falls, S.D.-based real estate investment and development company. Westra has served as CEO of Esprit Memory Care LLC, a business affiliated with Hegg Companies, since 2010 and will continue in that role while taking on additional leadership responsibilities to help manage HCI’s multi-faceted growth. As COO, he will be active in the daily management of HCI’s development management and commercial real estate ventures, which will allow Paul Hegg, president and CEO of HCI, to focus on investor relations.

Steven Westra

In a statement, Hegg said he expects the company to experience rapid growth over the next two to three years. The company is developing apartments, offices and other businesses in the Bakken region of North Dakota and is developing a series of Esprit Memory Care centers. It also operates three hotels in Sioux Falls and is developing a fourth — a Hilton Garden Inn that is currently under construction.

Schlittenhard elected to HIBCC board

DuWayne (Dewey)

DuWayne

Schlittenhard

Schlittenhard, vice president of heart/vascular and professional services at St. Alexius Medical Center in Bismarck, N.D., was recently elected chair of the board of directors of the Health Industry Business Communications Council. HIBCC is an industry-sponsored, nonprofit standards development organization that maintains labeling standards for hospital and their suppliers.

Prior to his role at St. Alexius, Schlittenhard was the chief operating officer at PRACS Institute Ltd. in Fargo, as well as director of pharmacy at MeritCare Health System in Fargo. He graduated with a bachelor’s degree from North Dakota State University in Fargo and earned his master's degree from Chadwick University inBirmingham, Ala.