BMDA Highlights – 5/7/10
Mamtek International: post mortem of an economic development project – Last week, local news organizations reported on a new value added food processing project which the BMDA had been working on for approximately two months. This company was essentially a Hong Kong start-up company which was organizing their efforts to locate a sucralose production facility somewhere in the Midwest. The company has a new worldwide patent to produce sucralose and had been operating with a start-up plant in China since December 2009. Working with the Midwest US-China Association, they were looking at possible sites in the 12 state region that makes up the Association. Although North Dakota is a member of the Association, the State had not been considered in the initial efforts to identify possible production sites. When the BMDA became aware of this possible opportunity, we scrambled to gather as much information as we could about the company and to develop a possible response. Working with a team of partners including the ND Department of Commerce, the Bank of North Dakota, local banks and financial agencies, the Governor and Lt. Governor’s office, State Tax Commissioner, Job Service, city officials and many others, we put together a round of meetings to discuss with the project principles who flew into Bismarck at 10:29 a.m. on April 29th for a series of meetings that ran through dinner that evening. The project principles then flew out of Bismarck at approximately 5:30 a.m. April 30th.
Yesterday, May 6th, we were advised that the project principles had selected a town in Missouri that had “guaranteed” the project debt package of $25 million. Locally, we had proposed a $25 million debt package which involved the BND Match Program, a key lead commercial bank and several other appropriate state and federal funding organizations. This was all proposed assuming the project principles would provide the appropriate financial records to support their claims of financial viability as up to that point our efforts were basically “good faith” efforts. We had also managed to gather limited due diligence about the key project principles that, because of the international nature of the project, was a bit sketchy. The bottom line at that point was the BMDA felt until the project principles came back to us with verifiable financial information and a solid business plan, we were at the limit of our capacity to expose any of our project partners to any more risk.
Generally, when the BMDA gets involved in projects like this we work our way deeper into the project before we make any of the information public. We do this for a number of reasons including the fact we don’t want to create any false hopes, we want to be sure the project is a match for our community and we want to ensure that we can be competitive in the project. Another major concern with releasing any information before we feel the project really has a potential is that once it has been made public, we’ve now exposed the project to every other community that happens to follow our local media. And given how competitive the economic development process is that could open the door for other communities who have no qualms about trying to undermine your efforts. However, it should be noted that before any project is extended public financing or is granted any type of incentive, it must be approved by the appropriate governing bodies thus ensuring the public will have an opportunity to learn about and offer thoughts on the project.
With that, we want to extend our sincere thanks to all those in the community who pitched in and helped on this project.
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North Dakota least economically stressed state – According to the Associated Press’ monthly analysis of conditions around the country, economic stress dipped or was unchanged in 38 of the 50 states from February to March. The Economic Stress Index shows the least stressed states as North Dakota (5.61), South Dakota (5.97), Nebraska (6.5), Louisiana (7.7) and Vermont (7.76). In the AP’s index, the order of the most economically stressed states was unchanged from February: Nevada, a center of the nation’s housing boom and bust, again had the highest Stress score, 21.3. It was followed by Michigan (18.15), hit by the battered auto industry. Next were California (17.21), Florida (16.14) and Illinois (15.13). Read the full CBS News story HERE.
The Stress Index also lists the 20 most and least economically stressed counties with populations of at least 25,000 and their March 2010 Stress scores. Three North Dakota counties made the list: #8 – Ward County (5.22); #9 – Grand Forks County (5.30); and, #11 – Burleigh County (5.36). See the full list HERE.
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Cross Country Ownership Change – Earlier this week, it was announced that local business CrossCountry Courier would be changing hands. Company founder Duane “Dewey” Tietz plans to sell the company and affiliated real estate properties to Janeanne Bischke, who has been the president and chief operating manager since 2004. Established in 1980, the Bismarck-based company has grown from a one-man delivery service to a multi-million dollar, less-than-truckload transportation company with 300 employees and 200 company-owned vehicles. To learn more about CrossCountry Courier, please visit their website at www.crosscountrycourier.com/.
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Williston Basin Petroluem Conference & Expo – This week, the BMDA exhibited at the Williston Basin Petroluem Conference & Expo at the Bismarck Civic Center. Brian, along with Northern Plains Commerce Centre General Manager Cathy Spencer, worked the three-day show that attracted an estimated 3,000 people. While many of the oil-related companies are located near the oil patch in northwestern North Dakota, much of the feedback we received this week indicated oil activity was slowly moving towards Bismarck-Mandan and consequently the related business opportunities here will increase.
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Bobcat Hockey Week – From May 4 – 9, the Bismarck Bobcats will be playing in the North American Hockey League’s (NAHL) Robertson Cup Championship Tournament in Wenatchee, Washington. And to show the community’s support for the team, Mayor John Warford has declared this week as Bobcat Hockey Week in Bismarck. We want to join the Mayor in wishing the Bobcats good luck as they look to bring the Roberston Cup to Bismarck-Mandan.
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Innovate ND – Last year, it was Mandan start-ups CiNcity Designs and Light Check taking top honors in the Innovate ND competition. This year, the Bismarck-based design and prototyping firm Innovative Solutions is looking to do the same with an invention called the “Grabber.” The Grabber is a device for law enforcement use that mounts to the front of a patrol car and literally grabs a fleeing vehicle when contact is made with it. Please help us in supporting them by voting for the Grabber at http://www.commerce.nd.gov/innovate/innovatend/ as they compete for the Innovate ND People’s Choice Award. You are able to vote once every day now until May 17th.
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Solid Waste Management Study Committee – The Solid Waste Management Study Committee met on May 4th to continue the discussion that will lead to developing a plan for the future of Bismarck’s Solid Waste handling system. With Bismarck being the largest city in the southwest corner of the state, there are a long list of details which must be considered in developing a plan that will assure the City has the capacity to deal with its solid waste disposal for the next 50 years and beyond. With all of the things changing in the economy of the City of Bismarck and anticipated growth of the community to take into account, there is an almost endless list of variables which must be taken into account in designing the system which will take care of the needs of the community in a time period well beyond when most of us will no longer be around. Issues like: what can we do to reduce the amount of solid waste we will need to deal with, or how can we develop a recycling program in an environment where most recycling is simply not cost effective. Should the City purchase land now to handle the waste management needs of the City 50, 75 or 100 years from now. Should todays taxpayers be responsible for that cost? If not, who should be? Or do we just take a chance and pass that problem on to the future generations who will live in Bismarck and most likely have to pay substantially more for the needed land. These are just some of the questions the Waste Management Study Committee will struggle with over the next 9 to 12 months.
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Jobs available in the oil patch – If you are interested in the jobs in the oil patch, whether just out of curiosity or because you might know someone who might be looking for a job, this week’s list of openings can be viewed HERE. For these and other employment opportunities in Bismarck-Mandan and throughout the state, go to www.jobsnd.com.
This week the number of active oil rigs in North Dakota is 110. The Wall Street Journal crude oil price for today is $77.11.
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