Grand Forks Growth Fund approves FlexPace loan to Associated Potato Growers; approves short loan deferral for Safety Spec
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Summary
Growth Fund committee approved a $29,049 FlexPace buy‑down to support Associated Potato Growers’ equipment purchase and unanimously approved a 90‑day deferral of a loan payment for Safety Spec pending federal grant drawdown.
At its Sept. 15 meeting the Grand Forks Growth Fund approved a FlexPace loan request for Associated Potato Growers Inc. and separately approved a short loan modification request from Safety Spec.
Associated Potato Growers (APGI) requested a FlexPace buy‑down of $29,049 to reduce the commercial bank loan on a $425,000 equipment purchase to install a new automated sorting system in the Grand Forks facility. Staff said the equipment is intended to improve automation and quality control; the city loan would be repaid over 12 months at 2.5% with repayment deferred for seven years and secured by a subordinate blanket UCC on the equipment. Committee staff reported the overall loan‑to‑value is about 71% and that APGI expects the project to help retain nine full‑time employees; staff noted seasonal employment increases to roughly 22 workers at peak season. The Growth Fund committee voted to approve the FlexPace request unanimously.
On a separate agenda item the committee considered a loan modification for Safety Spec, which previously was placed on a restructured payment schedule because of a delayed federal award. Staff said Safety Spec recently received final approval for its federal ARPA‑related grant but continued delays in accessing funds created a short cash‑flow gap. Safety Spec asked for a 90‑day payment deferral; staff proposed the company would continue to accrue interest at 6% during the deferral and would add three months to the end of the amortization schedule. The Growth Fund committee approved the 90‑day deferral with interest continuing to accrue; one member recused on the vote and the item passed with committee approval (vote recorded as six in favor, one dissent and one recusal on the roll-call present in the meeting minutes).
Why it matters: The Associated Potato Growers loan is an example of local economic development support for equipment purchases that aim to retain regional food-processing jobs. The Safety Spec deferral illustrates the Growth Fund’s use of short-term flexibility when federal grants that underpin projects are delayed.