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JDA approves development of new Hive membership agreement while preserving three-year cap
Summary
The Grand Forks Growth Fund JDA voted to move forward with operational changes and to develop a new Hive membership agreement; managers requested easing a $1,000,000 liability-insurance requirement to help students and very small startups access membership.
The Grand Forks Growth Fund JDA on Feb. 2 approved a motion to develop a revised membership agreement for the Hive, the city-operated tech accelerator, while reaffirming a three-year occupancy limit tied to the facility’s EDA grant. The motion passed unanimously.
Mister Conlon told members the proposed changes are intended to clarify governance and operational structure and that the JDA has been acting as the Hive’s advisory governance body since the original accelerator advisory board became defunct. "We plan to bring forward a code change to city council in the near future to remove references to ... defunct, tech accelerator advisory board," he said.
A Hive manager who requested the change said six companies are prepared to sign membership agreements under a new, more-flexible model and asked the JDA to revise insurance requirements that currently require a $1,000,000 general liability policy. He argued that the coverage requirement prevents students and the smallest startups from joining. "That's gonna keep any student from ever becoming a member of the Hive," he said, and urged the board to allow membership structures—rather than leases—that make eviction and midterm changes easier to manage.
City counsel and JDA members discussed legal protections. Counsel cautioned that an operator’s indemnity or a waiver of subrogation may not cover third-party conduct by members and that the city could still face liability as owner of the premises. "I don't know if their insurance would necessarily cover it," counsel said.
The JDA’s motion asked staff to proceed with the stated operational changes, to draft a membership agreement that reflects them, and to return with an update and the final agreement; staff said city-attorney review remains a contingency. The JDA will receive another update in March.
What’s next: staff will draft the membership agreement and coordinate city-attorney review before the JDA or city council sees a final document.
