Vision Fund committee accepts financials; staff reports $10,598 adjustment to Superior Precast loan

BISMARCK — The Vision Fund Committee voted Aug. 28 to accept the fund’s financial statements after staff described an updated loan adjustment for Superior Precast and reviewed the fund’s lending capacity.

Eric, finance staff, told the committee the Superior Precast loan amount changed because of market shifts and rising interest rates. "They are in need of $250,001.79 and 58¢. So it's a change of $10,598.42 that we're gonna be paying on their behalf for the interest rate buy down," he said. Staff said the city commission approved the adjustment earlier in the week and that the finance department was finalizing paperwork so the check can be paid and the loan can close next week.

Eric also reviewed the Vision Fund’s broader position: year‑to‑date interest income is about $20,000 through August, the cash balance has declined after several late‑2024 loans, and notes receivable will increase roughly $250,000 as the Superior Precast change is reflected. Using an average draw of about $134,000 per loan, Eric estimated the fund currently has capacity to support roughly six similar‑sized loans with existing cash on hand.

A committee member asked why the Venture Building Company’s repayment start date is listed as Aug. 19, 2035. Staff explained repayment timing depends on the structure and size of the lead lender’s note and how the buy‑down is allocated; staff said final promissory notes have been obtained for items that previously showed preliminary dates.

Member Peterson moved to accept the financial statements and the committee recorded aye votes; the motion carried. Staff said updated financials will be distributed to committee members once paperwork is complete.

Next steps: staff will send the revised financial statements to the committee and execute the Superior Precast disbursement after completing internal processing.