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Epitome Energy says permits and offtake contracts secured; city accepts EDA grant to rebuild Seventieth Avenue North
Summary
Epitome Energy told the council it has secured air permits and offtake agreements and is negotiating equity; the council accepted an Economic Development Administration grant to reconstruct Seventieth Avenue North and will likely amend a financing inducement next week related to Epitome's bonding request.
City and project representatives updated the Grand Forks City Council Jan. 27 on progress for the proposed Epitome Energy soybean crush facility and the city accepted an Economic Development Administration grant to rebuild Seventieth Avenue North.
Dennis Egan of Epitome Energy told the council the project has secured its air permit and off‑take agreements for soybean meal and oil with national buyers, and that the developer has signed six nondisclosure agreements with prospective equity partners now conducting due diligence. Egan said the company’s current priority is securing equity partners and ensuring any investors comply with state and federal regulations; he also said the project team is aware of Committee on Foreign Investment in the United States (CFIUS) filing requirements that could apply depending on the type of equity investors engaged.
City staff said the council previously approved a development agreement and a financing inducement as a pass‑through for tax‑exempt bonds tied to a state program. That inducement previously authorized bonding up to $140,000,000; the Epitome team plans to ask the state to increase the bonding to $170,000,000 and city staff said they expect to bring an amendment to the inducement agreement to the council next week to reflect the higher amount. City staff clarified the city’s role is a pass‑through for state bonding and not direct municipal liability.
Separately, the council unanimously approved acceptance of an Economic Development Administration grant to reconstruct Seventieth Avenue North from Highway 81 to roughly a half‑mile west of North 50th Street. Staff reported the EDA award covers 80 percent of an estimated $4,000,000 project (EDA portion approximately $3,200,000) and the city’s estimated local share is about $800,000. Staff said the project has regional value because of rail and interstate access and recommended moving forward “with or without” Epitome Energy given the available grant funding.
Council members asked Epitome about land purchase timing, CFIUS filings and financing. Egan said the company remains under a nondisclosure agreement with the current landowner and is “in the process of raising the money” to close financing; on the timeline question he characterized the schedule as “the $500,000,000 question.” Egan confirmed the team has discussed CFIUS requirements and will follow applicable filing rules depending on investor types.
No formal amendment to the inducement agreement was voted on Jan. 27; council staff said the inducement amendment to move from $140,000,000 to $170,000,000 will likely appear on the council consent agenda next week.
