Forks Growth Fund JDA approves multiple PACE and Accelerate loan requests and modifications

The Forks Growth Fund Joint Development Authority on June 2 approved a series of financing actions, voting unanimously on most items to back equipment purchases and cash‑flow modifications for several area companies.

The authority approved PACE (Property Assessed Clean Energy) or similar flex loans for Johnstown Bean Company, Northern Plains Railroad and Cirrus Industries; approved Accelerate program modifications for Thread and Safety Spec to extend and spread repayment; authorized collection efforts on a defaulted Accelerate borrower identified as Taylor E; and approved a modification for an EDA RLF loan to Integrity Fundraisers.

The loans and modifications were introduced by staff member John Conlon. “The loan is gonna be funded in part by a, a Larris loan of $500,000… The interest would be deferred for the standard 5 years, and then repaid over 12 months at 2 and a half percent and then secured by a subordinate blanket UCC and some corporate and personal guarantees,” Conlon said when presenting the Johnstown Bean request. Conlon gave similar funding and security details for the Northern Plains Railroad and Cirrus Industries requests, and described the Thread and Safety Spec modifications as measures to assist companies during fundraising or to provide cash‑flow flexibility.

Board members moved each item to public hearing, heard no public speakers, and then voted. For the Johnstown Bean request the authority moved to approve ‘‘by Sandy, by Berg’’ and recorded a unanimous aye. The Northern Plains Railroad PACE request and the Cirrus Industries PACE request each carried after motions to approve; the Cirrus vote was recorded with 1 dissent (Osofsky) on the JDA roll. The Thread Accelerate modification included a separate procedural motion to allow Council President Sandy to participate after an initial recusal was raised; that motion (to allow Sandy to vote) passed, and the authority then approved the extension with Sandy recorded as not voting on the final motion to modify the loan maturity.

Conlon told the authority that the Accelerate Loan Program is no longer active and that staff had coordinated recommendations with the Bank of North Dakota on these legacy loans. On Taylor E, Conlon said the borrower “is ceasing operations, no longer have any financial assets and… unable to repay,” and the authority voted to authorize staff and the city attorney to pursue collection and, if appropriate, declare the loan in default.

Actions on the agenda were conveyed as staff recommendations; most motions were moved and seconded from the dais and passed without extended debate. No members of the public spoke during the related public hearings.

The authority’s approvals authorize staff to execute the financing documents and adjustments described in staff reports; the loans and modifications remain subject to the specific loan terms and security filings described at the meeting.