Growth Fund committee approves PACE loan for YMI Industries, authorizes Hive management RFQ; staff reports three past-due loans

At a Growth Fund Committee meeting on March 17 the committee voted to approve a local PACE-style flex loan to Huntsville Properties to support YMI Industries’ purchase and remodel of the former Home of Economy building in Grand Forks. Kevin Hatcher, business development manager for the Grand Forks EDC, presented the request and explained the local flex component would reduce the interest rate on a $784,000 note and leverage a Bank of North Dakota participation; the local loan request was $106,184 (note: transcript contains several overlapping numerals; staff report lists the local request as $106,184). The loan is secured by a corporate guarantee, a personal guarantee from owner Daniel Altapeter, and a subordinate mortgage; staff reported a loan-to-value of 90.84% as shown in the staff report. YMI representatives Andrew (Andrew/Andy) Altapeter and Rick Driggs (CFO) answered committee questions about local ownership and business history; the loan motion passed (mover: Mr. Wolf; second: Tricia Burke).

The committee also considered an RFQ to select a private manager for the Hive tech accelerator, presented by Haley Rosassen (city HR manager, assisting operations). Staff said the Hive currently houses about 30 companies, mixing scale-up tenants and membership seats; the original EDA grant that fit-up the facility includes grant restrictions on portions of the space for roughly 15 years, though city-funded fit-up areas have more flexibility. Council and committee members asked about selection criteria, staff composition and whether the selected manager would handle day-to-day staffing; staff responded the RFQ will be refined to add review-committee criteria and anticipated that a private operator would likely assume staffing responsibilities. The committee voted to approve the RFQ (mover: Ms. Zowski; second: Tricia) and directed staff to include suggested selection criteria.

Staff also briefed the committee on three past-due Growth Fund loans — Chino Latino, Integrity Fundraisers and Dog Mahal. Committee members were told all three borrowers have been connected to the Small Business Development Center (SBDC) and staff are working to secure repayment plans; two are longer-term past due while the third has more recent arrears. Committee members asked about policy for delinquent loans; staff said a procedures update is in development and noted steps typically include 30/60/90-day notices, SBDC engagement and, where needed, default processes with the city attorney.

A committee member raised concern about meeting frequency and attendance; the committee agreed to monitor scheduling to improve regular monthly meetings.