Cash for lettuce: No action on Endless Harvest funds
US (ND): Planned lettuce operation looking for loan
Endless Harvest plans to construct a greenhouse operation near Jamestown that would grow lettuce for distribution to markets all around the upper Midwest. The first phase of construction would include a 2.7-acre greenhouse along with an administrative area and classrooms for teaching seminars or classes in greenhouse operations. The first phase’s total cost is estimated to cost about $11 million. Some funds have been raised through a loan and a private investor. Possible future phases would be funded from profits of the operation.
Part of the funds would come from a tentative $500,000 loan from the South Central Dakota Regional Council, which has the item on its agenda for today. Other funding could possibly include a $290,000 loan from the Governor’s Fund.
The JSDC participation would include $100,000 as its share of a pace interest buy down, $54,000 as its share of a flex pace interest buy down, $150,000 from the JSDC in new job training grant and up to $507,000 from the Job Incentive Grant to be determined by North Dakota Job Service.
The new job training grant is repaid from the North Dakota income tax withheld from the employees. The pace and the flex pace interest buy downs are programs operated by the Bank of North Dakota that reduce interest on loans held by the company. In the past, JSDC has required these funds be repaid after the original loan is retired.
“All funding is contingent on the project being fully funded by equity and loans,” said Connie Ova, CEO of the JSDC. “There should be a sunset clause that says funds have to be used in one year.”
Jamestown Mayor Katie Andersen said the programs are all standard economic development tools.
“All the things you are asking for we have set a precedent of providing,” she said. “Although that doesn’t mean we must provide them now.”
Andersen also asked why Endless Harvest was not applying for a property tax exemption. No reply was made in the open meeting.
The board then went into executive session to discuss particulars of the financial application. During the executive session several members left the meeting, which was running about one hour later than its planned agenda. This left the executive board without a quorum and it was unable to act on the proposal.
“We’ll probably look at a special meeting for this and some other issues,” Ova said.
In other business, the executive board heard a tentative schedule for construction of the Spiritwood Energy Park Association project at Spiritwood. The estimated $7.5 million rail loop would circle around the planned Dakota Spirit Ag Energy plant as well as the proposed CHS Spiritwood Nitrogen Project and any other possible industrial projects that build in the industrial park.
Rich Garman, senior project manager for Great River Energy, said earthwork could start this fall while track-laying work would likely get under way during spring 2014.
GRE is a partner with the JSDC on the SEPA industrial park.
Source: Keith Norman - jamestownsun.com