00:00:00,000	month or half a year ago. Yeah But I’ll make sure I have the All right, I guess we’ll call this meeting to order of the Vision Fund Committee, um, August 28th, 2025, um, need a roll call. So if please call a roll J Chair Member Peterson here. Mayor Schmitz Chair Fraley, here. All right.

00:00:33,170	With that, um, we do have a quorum. So, um, first I, I’m on the agenda will be any public comment that we have on the agenda. um, seeing no comments, um, I guess we’ll move to item number 2, approval of the meeting minutes, and I’m assuming everybody got those in

00:00:54,470	the email. was approved meeting to approve it’s presented We have approval in a second. How many discussion on that? Seeing none, um, I would ask for a, a vote. do we have to do singly or can we just do a um You’ve done all in. Yeah.

00:01:19,600	So, all in favor say aye. Aye. I opposed um, motion passes. Um, next item on the agenda, receive vision Fund financial statements. and I think we all have these in front of this. I don’t know if you have the mayor or not.

00:01:43,700	Well, I have I have the original draft, but I think there was probably a change after Tuesday. related to some funding for superior. Precast, correct, Eric? Uh, yes uh, and I can talk on that.

00:02:09,900	So, and I, I do have Eric, I can’t hear you Yes, there’s a chain for in the dollar mall for superior Precast, um, and I can talk on that and then I can send updated financials to Whitney, and she can get it all out to you guys with the changes that we’re showing. Sounds great for that Good. Yep, you’re good. OK. Jason, how do I get the my computer up there Oh, there we go OK.

00:02:37,000	Um, so, again, with the, the change, um, from Tuesday night, First Superior Precast. Prior to that, um, there is $1,297 2244 dollars, um, with $439,002 committed to previously approved loan that have not been drawn. Superior precast is a part of that 439,000. um looking at our notes receivable, again with the, the change that’s going on right now with Superior Precast, the, the notes receivable amount.

00:03:10,100	um that are approved and not drawn, that number will reduce, and then the notes receivable amount will go up roughly $25 million to get us to about 1,070,000. Um, with the cash balance that we currently have on hand for the vision fund, um with the average about $134,000 per loan draw.

00:03:34,630	You have roughly 6, loans that we can make with the existing cash balance that we have. Um, looking at the income statement for a year to date information, um, these things are, are pretty static, uh, interest income is 20,000 so far for as of middle of August.

00:03:57,270	Um, it’s a slight decrease from, from what you’re seeing in 2024 just based on the cash balance that is held in the Vision Fund, if you remember, in 2024, we handed out um 5 or 6 loans in the, the later part of the year that totaled um about 3/4 of $800,000. So the cash balance is decreasing.

00:04:18,470	That’s inherently why the interest income is a little bit lower as a part of the pooled cash for the city. Um, as far as expenditures go, um, it’s the chamber EDC in the Downtowners, um, looking at, uh, an annualized basis where about 3/4 of the way through the year and so we would expect to see what another $72,500 in the

00:04:41,370	fourth quarter coming from the vision fund to help support those two groups that are promoting economic development for the city. um and then looking at our notes receivable that we have here on the list, um, so, the changes that uh that we have, and I do have an updated sheet on here too that

00:05:05,370	I know in the, the April commit uh vision committee meeting. Mayor, you had asked about, uh, these dates here in yellow and orange, and I do have those two dates, um. populated after I was kind of watching a meeting and trying to prepare myself, um.

00:05:32,170	that venture, um, building for Epic Homes that uh repayment date starts is August 19, 2035, which is this yellow box that is blank. and then the, the two dates for CM K and Great Plains, um, those are good dates. Those are, are when we expect to start to see repayment from those notes receivable for that.

00:05:56,270	Um the piece that the mayor alluded to this superior precast. Um, it was originally funded and approved by Vision Fund for the $239,580.99 due to changes in the market and so increase in interest rates and the the lender loan increases, um, they are in need of 250,000 17958 cents. So it’s a change of $10,598.

00:06:26,100	42 that we’re going to be paying on their behalf for the interest rate buydown. and the city Comm approved that on Tuesday, correct? OK. And get it going now? or it’ll be delayed anymore No, they’ll, they’ll mm on that one. next week.

00:06:50,270	Yep, um, the, the finance department’s working through the paperwork, um, for the review process and we’ll get the check paid out next week. Um, so that, that loan can close. Then we’ll be moving that one up to the top. Yep. And then that one will be moved up to the top, um.

00:07:06,100	and, and I can send out the updated stuff so you guys have all that as that change is taking place, so. Sounds great. Why is venture building companies repayment startate so much longer or out farther out there than the rest 2035 I would move to accept the financial statements. I think you’re done, right, Eric? Yep, I’m done.

00:07:26,000	Um Andrea had a question. I’m not sure I have the answer that may be you. I, I, I couldn’t hear her, so. to speak into the mic. Yeah, I realized that. Um, I was just wondering why venture building companies repayment start date was 2035. Everybody else’s is quite a bit sooner.

00:07:47,370	Well, it, it actually Nathan can probably answer, but it will match closer to CKM K and they both funded recently Yeah, Mr. Chair, members of the committee, so the depending upon the principle of the of the lead lenders note and the interest rate will depend upon how the buydown gets allocated, right? So it’s, it’s different with different projects.

00:08:18,870	So the bigger the, the bigger the lead lender note. and the higher the interest rate that the lead lender is charging, the faster the buydown gets paid out and so I’m without having the paperwork in front of me, I’m not sure what the terms were for, for the venture billing companies lead lenders’ note.

00:08:37,900	um. but I would imagine the reasoning behind it is because the, the, the terms of the note are structured different than what CM K properties is. CMK properties also we, we are the city division fund advanced on CM K properties.

00:09:10,100	um, by Dawn before um the epic Home one or the venture building company one as well. According to this sheet, it hasn’t received final approval yet or on the last column there hasn’t seen, received final, it’s cut off on my sheet, so. Yep. So part of those things, um, I checked with my staff before I came down here.

00:09:30,730	The, those three notes that you see at the right hand side for the final promissory note. and the two notes were based on a preliminary promissory note. Those are no longer accurate, um. we’ve gotten all of the final promissory notes and updated the information accordingly. OK.

00:09:58,630	Any other questions Uh, do we have a motion then to approve the minutes? Yeah Second, Amu, go ahead. We’ve got a, we’ve got a, a motion in a second to approve the financial statements, all in favor say aye. Aye I opposed seeing none, uh, we’ll move on to, thank you, Eric. Appreciate that.

00:10:22,530	Um, move on to the last item on the agenda discussion regarding offering prize money for business boot camp, business pitch challenge. Thank you, Mr. Chair So, um this is more a really a discussion item. I don’t, I guess I don’t expect unless the vision fund wants to move forward.

00:10:42,370	I don’t expect there to be any action, um, happy if there is, but, um, just kind of wanted to get the, the temperature, the vision fun committee on something. give you a little bit of background on, on some things that the Chamber EDC has worked on and is working on, so there’s kind of two items here. There’s the business bootcamp and then there’s the business pitch challenge.

00:10:58,370	something that the, that has not happened yet, but is in the currently in the works that the Chamber EDC is working on is something that we’re, we’re terming the business bootcamp. It’s just the name placeholder at this point. We’re working on, uh, a fancier name.

00:11:13,800	Um, but essentially what this is is uh so in, in 2022, the, the Chamber EDC engaged with an outside consultant to provide us with an economic development strategic plan and something that came out of that strategic plan. was a strategy, um, to, uh, launch a local um uh Goldman Sachs 10,000 small business programs.

00:11:36,730	So if you’re, if you, if you’re not familiar with the program, it’s a national program, um, administered by Goldman Sachs, um, to help small businesses essentially double their revenue, um, through a series of sessions that help them work on their business, not in their business, um.

00:12:01,370	the consultant at the time had had gone through the program, spoke very, very highly of the program and thought that a local program uh could really help, um, kind of that startup, uh, small business, uh, community. As we started to engage with Goldman Sachs, they, they rolled out essentially statewide in rural states. They, they rolled out statewide programs and so.

00:12:25,270	we checked the box on that strategy, but it was a very faded check, um, it felt like while we did count it as a win, it really wasn’t a local win. It was more of a, a, a statewide win.

00:12:45,730	There have been two sessions of the Goldman Sachs, the statewide program, the Goldman Sachs 10,000 small business, uh, program. I would, um, say I don’t have the, the, the exact numbers in front of me, but um just knowing who the participants have been in the program.

00:13:03,870	A majority of the participants in the program have been Bismarck Mann and Burle and Martin County businesses. This year was, uh, I, I’m a graduate of this year’s program, and we had, I think, 5 or 6 from Bismarck, Mandan, 5 from Mayna, Williston had 2 or 3, West Fargo um, Jamestown, um, so we had like about a quarter and yeah, 19 women and 2 guys, so, and I think in the first cohort, I

00:13:27,270	think there was um like 17 or 18 participants and I think 8 or 9 of them were either from Bismarck, Burleigh or Manda Martin.

00:13:44,370	And so, um again, while we, we count it as a win, it really is, it’s more of a statewide program than it is a localized program and so we engaged what, so what we did is at the Chamber DC is we, we took a look at, um, kind of where the where we felt there were gaps in terms of assistance to small business and entrepreneur in the entrepreneurial community.

00:14:02,530	Um, we engaged with a, a small focus group, um, that included uh folks from the entre the entrepreneurial community themselves, as well as some of our partner resources that provide assistance to that community, to that entrepreneurial and small business community places like the North Dakota Small Business or the uh North Dakota Women’s Business, um, uh, centers, um,

00:14:23,500	the SBDC, the Small Business Development Centers, um uh, the University of Mary, the Gary Tlson Tlson School of Business. And so through that, through that focus group, um, what we, what we found was where we, where that group and where we felt that the gap was in terms of assistance needed for um

00:14:44,730	Bismarck businesses, Bismarck Man and Businesses was kind of in that, that infancy stage that that startup stage to, let’s call it a 2 year, 2 year old business. Um, there’s a, there’s assistance programs for kind of that startup stage.

00:15:04,070	There’s assistance for when you get a little bit further along in, in, in programs like the Goldman Sachs 10,000 Small Business Program and others, um, but where they’re, where we felt like there was a gap was kind of in that infancy stage. And so our solution to that uh to fill that need or fill that gap was to create what we’re calling um a business bootcamp.

00:15:23,100	This business bootcamp would be structured similar to the Goldman Sachs 10,000 small business, um, program. um, in that it would offer sessions in, in specific topics to try to help these businesses that are started to 2 years old.

00:15:47,330	kind of take a step back out of their business and focus on their business rather than being in their business on a day to day basis. We’ve, we’ve kind of, we’re already down the, the path with putting that together.

00:16:08,000	This is something that um unless something major happens, um, we’ll be, will be a program that we, we launch, um, in the fall of 2025 with a start date sometime in early 2026. Um. with cohort from Bismarckt Man. So let’s set that aside. There’s that program. And then there’s um the business pitch challenge and so in 2018 the, it was the Bismart Man and Development Association at the time, engaged with the city of Mannan’s business development and communications department.

00:16:35,700	to launch a business pitch challenge and so this, this and it is, and is strictly for man and it’s strictly for uh um it’s called the Man and Business pitch challenge. It’s strictly for man and The business pitch challenge is a program. where um businesses apply.

00:16:54,470	They have to be um less than 2 years old and can’t have a cumulative revenue of more than 250,000 They apply for the program A selection committee narrows it down to 4 finalists, the 4 finalists then pitch on a pitch night, um, to a, a panel of judges that ultimate ultimately elects a winner.

00:17:18,600	There is a prize package associated with winning the Man and Business pitch challenge, um, that includes a $10,000 forgivable loan from the Man and Growth Fund, which is essentially the equivalent to the to the Bismarck Vision Fund, but on the Mandan side. this year in addition to the $10,000 prize forgivable loan prize from the growth fund.

00:17:40,330	We also asked for and were granted a $3000 forgivable loan to be awarded to the 2nd place winner and a $2000 forgivable loan. to be awarded to the 3rd place winner.

00:18:08,070	So what we’re looking for is kind of um the temperature of the vision fun committee to offer to we have, we haven’t done a Bismarck business pitchunge. We’ve only done a man and business pitch challenge. We at this point don’t have plans to do a Bismarck pitch pitch challenge. um, we’re essentially just sticking with the Mandan business pitch challenge for different reasons and we can get into those if you’re, if you want.

00:18:25,100	Um, but what we’re looking for is what the temperature is for the for the vision fund to offer a prize to either participants of that boot camp that we’re that we’re talking about.

00:18:44,500	I think the conversations that we’ve had at that focus group level and that we’ve had internally with the Chamber EDC is we’d like to offer some sort of carrot at the end of the stick, helps participation, um, you know, helps, um, kind of people to stay in the program, um, and so, do, how do we offer a carrot at the end of the stick for participants or graduates of

00:19:00,000	the of the boot camp. and or if there’s, if there is a desire to do a Bismarck business pitch challenge. What would the temperature be of the vision fund to offer a prize to a winner and our 2nd and 3rd place similar to what we do at the man and Business pitch challenge.

00:19:22,730	In our minds, this is not a large ask. um you know, like I mentioned with the Manan Business Pitch challenge. It’s a $10,000 forgivable loan to the winner. It’s $15,000 total if you include 2nd and 3rd Um, we would look if, if we look at the boot camp, um, uh scenario, we would look at something similar to those ranges.

00:19:46,900	Um, the plan for us, um, internally is to not have a large cohort within that business bootcamp. Um, ultimately for for me or ideally for me, um, I would look at, you know. 5 with a max of maybe 7 or 8 participants in that business bootcamp.

00:20:09,370	I think the smaller the bootcamp, the better. It’s an, it’s more of an opportunity for, um, folks to develop those, you know, um, intricate relationships with each other within that cohort, which I think is important, um. and, and Mr.

00:20:28,900	Chair, you can speak to that from a cohort perspective with the Goldman Sachs, um, 10,000 small business program. It’s, you know, when you, when you get into a program like that and you’re working it together as a group, um, there’s a lot of just opportunity for relationships to be built within that program, and that’s what we would look for within our program as well.

00:20:44,600	And so I don’t see this being an extremely large ask. you know, even if we did a, a $5000. forgivable loan for each participant that participates in the boot camp with the max of, you know, 35,000, that would be 7 participants at at 5000.

00:21:10,600	That’s not an extremely large ***, but I’m just looking for at this point, a discussion, um, to see and questions, poke holes in this thing. Tell me that I’m crazy, like um, well, I think, I mean, just from speaking from the Goldman Sachs program, networking with your peers and especially in a setting where you’re in a business environment and they, they know exactly what you’re

00:21:28,800	going through because you’re going through it too and just being able to talk some of those things out, having some expertise in those things or whatever and being able to talk to other people is invaluable. I, I learned so much from that program over 12 weeks.

00:21:47,170	Um, so, yeah, I’m more confident leader in a business owner and everything like that. And so I think it’s a great idea. I don’t know. I mean, we don’t seem to have a lot of, we kind of ebb and flow with projects, so just having this money sitting in the bank, not doing anything for 34 months at a time.

00:22:02,630	I’d love to see how we cultivate business, to be honest with you, so I don’t know, I mean, we did the program I did was just a completely free program. There was no incentives other than you get to work on your business and basically a crash course and an MBA in 12 weeks.

00:22:18,170	Um, and so at that point, I don’t know that it needs to have financial incentive to do it, but I could see the idea of it, so. Um-hum. I love to. How, how long is this one going to be? Is it? Is it going to be, how long is this one gonna be? What’s your planning Yeah, Mr.

00:22:34,170	Chair, members of the committee, so right now, um, we’re planning something similar to what the Goldman Sachs, um, um, program looks like, um, we’re still kind of working through the details on the structure, the structure of the program itself, but I don’t see this lasting, uh, it would be similar to what that is in like a twelve-week program or, you

00:22:54,900	know, Max, we’re looking at 4 months potentially like you would meet every other week for 10 sessions or something like that. Right now it’s going to depend upon, we’re working through the content and the topic is, um, and as we get that narrowed down, that will kind of define um how long and

00:23:13,470	what this looks like. But yeah, I don’t see it lasting much longer than 12 weeks. potentially 16. So I guess my initial thought is similar to yours of like think that the concept of business bootcamp is really, really valuable, and I think of the amount of

00:23:28,900	businesses that fail in the 1st 5 years and how if they are able to get ahead and work on the business, that’s key. So love that, um, I feel like for me having more detail maybe on like what the forgivable loan, like what are the stipulations for them around that because again I’m like do they need the

00:23:47,630	carrot there? I don’t know. So more compelling kind of information around that would be really helpful, but love the concept like high level just kind of the what is it being used for is where my brain’s at a little bit, but I think that having business bootcamp in itself is going to be really,

00:24:05,870	really helpful for those businesses. I guess I would just look at if we’re doing it year after year to sustainability of funding for it um through because there’s no payback on this one, so, um, you know, how do we, how do we make sure we have funding for it, and maybe the mayor can

00:24:22,330	talk to that a little bit more too, so. Mhm. Well, I will speak to it, so I, I knew part of this was coming. Honestly, did not know the request for giving forgivable loans for Bismarckism business bootcamp was gonna be part of the request because I was more along the line of the business

00:24:39,630	pitch. I think that’s more rewarding. Um, I actually have a hard time saying we’re gonna give a forgivable loan to every participant and the bootca I just don’t think that’s what it should be about I mean award a winner, if we’re gonna award a winner.

00:25:02,600	then maybe they have to pitch to a committee and we could award. I have no problem with an award. I like the business. pitch award concept or. um, cause that, that really will incent true brand new spirited. uh individuals to try and become a your own entrepreneur. more so than the business bootcamp.

00:25:26,000	business bootcamp is a lot of times when people are already in business and they just need to make it better. and they’re getting it for free I meaning in a a lot. And that’s, that’s a reward enough Yeah, that’s kind of my thought on that would be like a 12 week or 16 week program is a pretty invaluable resource that you’re getting for free, and,

00:25:47,230	you know, um, so it does take your time, but, um and I know the program does cost money with meals and things like that, so I don’t know if there’s a plan that funds that or if that’s part of this ask too or not or. Yep, Mr.

00:26:02,370	Chair, members of the committee, I think you know, for us, you just saw on the financials, um that Eric laid out there that the, the city of Bismarck provides funding to the Chamber EDC to provide economic development services, at least in my mind, this is part of those economic development services, right?

00:26:22,100	This is part of what we do for the city of Bismarck. I don’t see there being any operating um or program expenses being requested from the Vision fund.

00:26:39,630	To me this is already is already requested from the Vision Fund in that in that funding that we get that’s provided to us, um, from the city of Bismarck. So to that question, Noel, I don’t, there’s not, there won’t be any program expenses that we look for to be reimbursed through the Vision fund, um, and maybe to, to the, to the mayor’s point, maybe there’s maybe instead of looking at this separately, maybe we look at it.

00:26:58,370	combined and maybe part of the boot camp is a pitch. at the end of it that we’re award winners are awarded. I’m, yeah, I’m open to the idea, so I’m open to discussion on it as well, so, um.

00:27:17,370	Yeah, I think it’s a great idea and but like I agree, if they’re already getting 12 to 16 weeks of. valuable, um, lessons and um interactions with other businesses, so I don’t know that other funding is needed, and I worry about what if they take it and they. close right away or, you know. then there goes our $5000. Um.

00:27:37,370	so I just have some concerns with that, and I feel like they’re already getting a lot for nothing. Yeah Um, sorry, Mr. Chair, 11 point I wanted to clarify. that at least in the city of Mandans, um, situation with the business pitch challenge over there.

00:27:59,700	That’s why it’s structured as a forgivable loan and so the award is provided given that you stay in business for 5 years and the forgivable loan is then prorated over that 5 years.

00:28:16,700	So if, if to your um point, um, committee member Peterson, if the if the business would go out out of business in the, say the first year, they would be required to pay back 80% of the forgivable loan. and then, and then prorated as such. I’m gonna be a realist on that. If they go out of business, they’re not gonna have the ability to pay back the loan. So I, I, I’m purely look, I’m very purely looking at this.

00:28:35,900	I like the idea of the concept of a business pitch type program, maybe I have to call it something different. because I don’t wanna necessarily compete directly with Man in, but we are Bismarck Mandan and Mandan Bismarck. We all want one community. um. I want to send our local people to be entrepreneurs.

00:28:52,470	I’m OK if it’s $15,000 a year that we end up committing to do that as long as the city commission agrees with it, which I can’t imagine they won’t. It’s money that’ll be gone. uh Tomm callingman. Now, we may put some strings on it and say it’s forgivable over a five-year period, but reality is it’s, it’s probably gone.

00:29:11,170	If they got a great idea. I want to promote that but I’m not, I’m not thrilled with doing it through the bootcamp. mechanism. Maybe they’re one of the participants and that or all of them might be. but that, that’s all I do.

00:29:34,630	I don’t want to be on the hook for $5000 or $1000 for participating in that bootcamp because that, that actually puts the city in a more difficult position for funding standpoint So is it possible then to like buy, are you planning to have this program set up by next meeting, like if we did this next month, could you come with a proposal for a pitch, like a formal proposal

00:29:54,600	for a funding mechanism or for like a funding dollar amount and a pitch thing, so I think sounds like we have a. a pretty, um, I think everybody’s on board with that part of the idea anyway, so yeah, Mr.

00:30:12,100	Chair, members of the committee, that’s, that’s literally what I was looking for is just if, if I came up here and you stared at me like I was some kind of crazy fool, um, then I, then I would know, right? But if, if the temperature was, hey, support this, just let us give us some details, give us a pitch on it, then, then we can

00:30:28,500	definitely come back with what the details are and what that looks like for sure. Yeah. OK. Yeah, I mean, I think it could be a forgivable loan, like the mayor says it’s probably gone if it, if they do go out of business, yeah, we’re not getting that back.

00:30:40,330	So, um, um good look at it that way as the funding, but I do like that maybe we put some terms on it so that it’s not just a. so. Any other discussion on that? Thank you very much, Nathan. OK, Mr.

00:30:58,630	Chair, they my takeaways will be, we’ll plan for next month and for the September meeting to come back. um, with a more formal proposal and and see where we can go from there. Sounds great. All right, thank you guys. Thank you. Um, any other business? Mr. Mayor Nope, I’m good. Kate. I and that’s Will Wheeler, we will Adjourn. Have a great holiday weekend everybody.

00:31:26,730	Yeah, happy Labor Day weekend. Thank you for all your work, people all around