00:00:05,200	Call to order the August 27th, 2026 Vision Fund Committee meeting. Uh, can I get a roll call? Members. Petersen here. Schmitz here. Stugelmeyer here. Chair Frohlich here. Um, first item for business is public comment. Anything on this agenda or last agenda? If there’s anybody here that would like to comment.

00:00:31,470	Now is the time. Seeing no one here to do so, we’ll move on to the approval of the meeting minutes. Everybody had a chance to review the minutes. Is there any discussion on the minutes? I move to approve the minutes. I’ll second.

00:01:02,270	We have a motion and a second to approve the minutes. Um, all in favor, say aye. Aye aye aye aye. Opposed? None. Motion passes. Move on to receiving, the Vision Fund. Financial statements. I believe Eric’s here. Afternoon, chair. Mayor Froelich. Mayor. Committee members. Um, in your packets are the financials, um, dated August 20th of this year.

00:01:28,470	Looking at the balance sheet, the things to have, um, of note is looking at our cash, um, from last month’s meeting. Um, we’re up about $23,466. Um, this is primarily due to the decrease in our notes receivable that you’ll see about midway through the the page.

00:01:59,930	Those decreased 22,479, with the remainder being about $908,990, which is reflective of interest allocation. Um, on the cash balance with the city’s pooled funds. Looking at the notes receivable, um, the thing of note here is we got the regular, we got a regular payment on the repayment from Cloverdale Foods through Lewis and Clark Development.

00:02:20,800	Um, but the largest chunk of that is 20,249. Um, in relation to Great Plains Restorative Services. Um, you may know that I don’t believe they’re in business anymore. Um, we had a $86,000 or so Vision Fund loaned out there. Um, in the closure of their business, they closed the loan with their primary lender.

00:02:43,200	Um, so BND returned the unused portion of our commitment of flex pace dollars, and that’s that, um, total amount that 20,000 to 49. Um, talking with the banker at BND. Um, Andrew Tweed, he is the one that alluded that the bank, the primary bank loan was closed. Thus the return of the money.

00:03:06,200	Um, I talked to our loan services servicers over at Lewis and Clark Development. Um, shortly thereafter. And just trying to find out what happens now, you know.

00:03:28,600	Um, and then talking with them, they have talked with the primary lender and anticipation we will be paid back in full when the sale, in the closing of that building. Um, that they were occupying happens. And they didn’t give me a date, but it seemed like it was on the short horizon of that. So it appears that, uh, our loan will be made whole. Um, once that sale is executed. Okay, I don’t remember, but you can help me remember.

00:03:49,930	Maybe the loan wasn’t to the building owner. The loan was to the entity. The entity leases the building, and the building is held by a out of town REIT. If I’m not mistaken.

00:04:11,430	So how are we going to get money out of that sale if it ever does sell? Because I know the building well, it’s been on the market for a while. So I guess I will I will have to follow. Up with Brent. Um, over at Lewis and Clark. Yeah. Because so initially when I, when we. Got the there were any personal guarantees on this. Okay.

00:04:31,130	Well, I will follow up with Brent over at Lewis and Clark. Um, on the specifics of that, because initially, when I had first called them, they weren’t even aware the business had gone out of business. Well, it was June 30th when they closed the sale transaction. So, yeah, I.

00:04:48,670	I just know I drive past it every day and there wasn’t any car, so I brought yeah, I brought the press release asking that’s going to ask that same question today as like what do we do now? If. Yeah. Well the loan would have had a been to the operating entity, not to any real estate involved. So yeah. So yeah, I have some homework to do.

00:05:06,400	Um, talking with Brent because initially my call was to Lewis and Clark to find out what do we do, because I don’t know. Um. This is our. First time this has happened, I assume. Right? Um, to my knowledge, yes. Well, in a long time, for sure. Okay.

00:05:23,370	When do we approve that one? Um, I believe that was approved in. 24th December of 24. What was that one? Remind me of it. Um. Great pains. We did, like, a half. We didn’t do the full amount. We did a partial amount for. Um, they’re they’re great. They’re they still come back a couple times. Like, things are changing.

00:05:43,630	Um, no, I think that was just a one time deal. Yeah. Yeah, well, I actually stepped away because I had to. I had conflicts of interest. But they it was on their operating line of credit, I believe. Yeah. We were. Yeah, it was an operating line of credit.

00:06:02,370	Then we had the question about do we fund operating, operating cash. So maybe like took over and old or something.. They bought, they bought Great Plains equipment or whatever it was called before that from Saint Alexius C.H. or CHC, Saint Alexius. We’re operating prior to that. Yeah. And then they came in with additional loan request.

00:06:25,900	And that’s when they asked for the interest bite on. So I mean, Bank of North Dakota supported it too. So yeah. Yeah. So I mean, I have a pretty good idea on how to how to handle the accounting aspect for, for the city and the Vision Fund. I just quite frankly, don’t know. Um, the specifics with how this works.

00:06:45,600	I would recommend that we reserve provide a reserve for this as a bad possible reserve for bad debts. Yep. And that’s that’s essentially what will happen. And then we’ll see if it’s written off. Then at least we we’ve already recognized it. Yep. They’re out of business. Right. And so.

00:07:08,500	So we would reserve the 66,000 is what we’d do. Okay. Yep. So essentially what ends up happening is if they do default on it, that the loan would then go away and we would just never see the the investment income coming back or the cash proceeds.

00:07:31,130	Um, to be reinvested into another Vision Fund project in the future. Um, for those dollars, they would not be able to be recycled. Um, but with that being said, with the 20,000 that, uh, we did get, um, you’ll notice on the balance sheet too that, ah, we did break the about rough estimate of four projects available to just over 4.

00:07:50,130	2 projects. Um, based on our unallocated cash balance. I would make a motion that we on the for the Vision Fund. We provide a reserve for loan loss. Uh, of, uh, I’m going to make 70,000. I’ll just round it up and. We’ve got a motion. Do we have a second? I’ll second. Motion and a second..

00:08:25,970	From a discussion standpoint, I would like someone other than you who is either servicing alone or the bank that was involved in it, to come and talk to us about what the status is of that entity so that there can be a true, informed decision made or bring someone, give us some

00:08:45,900	information, because if it’s Lewis and Clark who should be there, the servicing entity, they actually should be providing us some kind of information related. Honestly to all of these loans, including how they’re while the chamber will be doing that, because that was a big discussion on Tuesday on how these entities are doing with

00:09:05,930	their job creation and other factors for for funding. So, so. In terms of the bank, are you talking about the primary lender, mayor or. Probably the primary letter is the one who would have the information. Okay. Okay. I can certainly. Joel can speak to the process of how loans are analyzed.

00:09:32,130	And we’re. I mean, I think this is that’s part of our job here. We have to manage this loan portfolio. Sure. Yeah. And I mean, we trust their process, right? That that lead lender. So I think it would be fair for them to come give us an update on it. So okay.

00:09:48,330	I will who is the lead lender. Do we know. I think it’s first Western Bank. Yeah I think. One of the first. Yep. Yeah. Because I through this exploration process trying to find answers I, I had asked Andrew with BND if First Western Bank would talk to me at all and his general consensus that they probably wouldn’t, since the city of

00:10:11,300	Bismarck is not a party to that initial loan or loan with the. The borrower is a subsequent, um, loan. So I can I will ask the questions. If nothing else, I will try to get um, Brent or one of the commercial lenders from Lewis and Clark to to come to next month’s meeting. Thank you, thank you. Yep.

00:10:33,030	We’ve got a motion and a second to reserve $70,000 of that fund as set aside in case we have a bad loan. Um, any more discussion on that? Then I guess we’ll take a roll call. Vote. Member Schmitz. Yes. Stugelmeyer. Yes. Sure. Yes. Peterson. Yes. Chair Frohlich. Yes. Motion passes.

00:11:05,630	Then I would move to accept the financial statements as presented with the pending adjustment. Okay. We have a motion to accept financials. With that adjustment. Second. Have a second. Any further discussion? Then I’m all in favor. Let’s just go with, uh, just an eye vote. So all in favor, say aye. Aye aye aye.

00:11:33,370	Motion passes. Next item up on the agenda is the Bismarck Target industries update. I do have to apologize. I did miss that meeting on a last minute meeting that I had to attend. So I apologize, Noah, for not being there on the Friday. That is okay.

00:11:54,130	Chair Mayor Froelich, members of the committee. Um, we moved it around a couple times. Um, on that week. Um, I think we were missing three groups, and then we changed it. We were missing two different parties, and then we changed it to the Friday, and we were. Unfortunately, we’re only missing. Okay, Chair Frohlich.

00:12:10,170	So we did have that meeting last Friday. Um, on the 21st, we. It was a good discussion. Um, we came away with a few action items, um, that will be resolved before the September revision fund meeting.

00:12:25,670	We’re planning to bring, uh, Lewis and Clark and ND with some statistics on what we have funded in the past. Um, when it comes to flex pay deals, just to know what we have done. And then Bend’s going to pull information for, um, like, communities. Um, in North Dakota on what their process is and what they’ve funded.

00:12:44,500	Um, and hopefully with those two, we can infer and work from there. Um, what we should target. Um, we’re also going to look at talking with the city of Mandan to see what their process was. Um, seven or so years ago. And they did, um, some focus groups and some polling in their community to target new industries.

00:13:05,200	Um, for their economic development dollars. Um, we’re going to talk to some of the people that were involved in that process and get some actual data. Um, that we can act on. Um, I don’t know if Mayor Schmitz wants to add he was there. I would say it was a it was a very good discussion, I think.

00:13:21,730	Um. We didn’t come up with a targeted. Okay. Industries yet, but probably defined what will be eliminated. Um, and or eliminated or eliminated. Not to be encouraged. Right. That could be just as important, I think.

00:13:50,530	As so I think we need to give that group a bit more time because there was some fresh questions probably posed during the process, specifically to the Bank of North Dakota representatives and Lewis and Clark. Um, to to try to get arms around what other communities are doing.

00:14:12,170	Not that we want to be exactly the same, but how do how do they get to what industries to look for, knowing that this is going to be an annual review, right. Um, and also probably trying to make sure that what we’re looking at is got a chance of being sustainable. Mhm. Yep. Going along with that, we have been talking about um, Alex and I are vice president of economic development. Have started up some re meetings.

00:14:33,800	So business retention and expansion. Um with three of our businesses so far. And then we have another one kind of half booked whenever they can find the time. And then we will start and continue that program.

00:14:57,270	Um with our membership and the greater business environment in Bismarck, and we’re going to look at including our current vision fund businesses annually meeting with them. Um, and identifying if they’re meeting those unmet needs that they talk about in their application and if they’re adding those jobs that they say they’re going to add. Um, and then also just getting like a, a temperature check on those businesses annually, and then we can present that to this committee.

00:15:15,970	That would be great. I mean, we don’t really get an update from any of these things over the last ten years. So it’s in the agreement that they are that we can ask at any time.

00:15:34,670	And I think that a The Vision Fund didn’t meet regularly for a number of years until like three years ago, four years ago. And uh, and there wasn’t a lot of new activity. Plus, I don’t think we asked because we they were performing like Cloverdale has been performing. There was enough news in the market, but.

00:15:55,930	Yeah, our business and retention and expansion program will be a good vehicle to make sure that we contact those businesses, um, see where they’re at every year. So that’ll be something we start up, uh, this fall with those 11 or so that we have on the financials right now.

00:16:12,600	Now, I guess other than that, um, we were looking so, yeah, we were looking at bringing that all together to the September Vision Fund and then to the October City Commission. First one. So that’s kind of the the general timeline right now. Um, along with possibly relooking at the letter of support process. I know we talked a bit about doing, um, some sort of guidelines or, um, scoring sheet like we do for the Vision Fund for that as well.

00:16:33,370	For the Opportunity Fund. Yep. Gotcha. Slightly larger bucket than what the Vision Fund would be targeting, but also not infinite. But we would send a letter of support to the Community Commission from this saying it doesn’t fit the Vision Fund, but we think it fits the Opportunity Fund. Yeah. Gotcha.

00:16:50,970	That’d be one of the vehicles we’d use it for. Yeah. Okay. Any other questions? You want to move on to the question six update? Sure. So this time I made sure to get the right, um, vision Fund document attached.

00:17:18,200	Um, so question six, uh, is now split into two, one for existing businesses, one for new businesses. And I think we had talked about raising that income amount on the right, um, to what? I don’t think we’ve really ironed that out yet.

00:17:42,730	But if the committee feels like there needs to be an adjustment, or if you all would like us at the chamber to try and pull some data from somewhere, um, we definitely could do that. I think that’s what we voted on last time. Right? Is these this breakdown here? I believe that was what the committee voted on. So I would assume that we’re good with that. But I would leave that up to members of the committee to voice any opinions on that.

00:18:01,370	Well, reviewing the minutes just at the moment, that is what the minutes say. So, yeah, I think, you know, it’s it’s an evergreen document and can be looked at. Absolutely. As we go forward to see if it’s still fitting appropriately.

00:18:21,430	I think, you know, to be realistic that a business is only going to make going to have gross revenue of $100,000 is that’s pretty. You know, it’s a pretty small business. Pretty small business. And so that being at a zero is fine, probably. And then.

00:18:38,900	And I think maybe if we have a better targeted industry, we might know what our targeted income or revenue things might be after that as well. We could change this document. Yep, yep. Going along with that target industry discussion, one of those, we will add a question with whatever parameters are going to be set on whether it is like geolocation, like if it’s in a certain area, if it’s new development or if it’s

00:18:55,200	infill, if it’s a specific industry. We’ll add a question, um, that makes it that a good business of that target industry will get approved. And then a great application that’s not in that target industry would still get approved, but we wouldn’t really be looking at good applications that were not in that target field anymore.

00:19:13,600	That’s great. Any further questions for Noah? I don’t know that we need to take any action on that. Question six as we did last meeting, it’s here in front of us. So, um. We can update it in our files. Okay. We’ll use that from now on. Thank you very much. Perfect.

00:19:35,930	Um, last item on the agenda is other business. So I have one item just for consideration at this point in time, and it’s it’s what is it that this Vision Committee feels its role should be as it administers the program? Right now, everything that’s done here goes as a recommendation

00:19:56,730	to the city of Bismarck. Um, I think one of the things that while it’s not, I not only think I know it is, is one of the things that the chamber, EDC and Nolan Alex are doing is they’re pulling other or reviewing other communities to find out exactly how those job development or those loan fund

00:20:13,930	committees are working. Um, for example, I’m quite certain in Stutsman County it is the Stutsman County Development Corporation that makes the decision. It does not go to the government body. They get their funding from the government body.

00:20:30,070	And so, um, since we are the vetting and the vetting committee, is that the role we want to have specifically or do we want to is we want to separate it? Maybe the loans still go through the commission letters of support. And here, um, I’m not here to say make a recommendation or a request to the city commission.

00:20:49,600	At this point, I want to have more facts, um, from other communities, because if we’re one of two, then it’s a different like the conversation probably doesn’t occur if we’re if we’re like the only one who’s not doing it that way, then it’s a conversation that maybe needs to be pursued.

00:21:06,730	At which time then I would ask that this committee think about that and be the ones presented to the city commission. And Jason, you and I have had this conversation a couple of times, and he was he was part of the meeting on last Friday, too. So just as an FYI, um.

00:21:25,330	And I’m sure there’s people watching who are going to question my comments today, so. Well, I know we Bank of North Dakota did mention that we were one of the fewer ones that does a two step process, and maybe that extra time was a little. I don’t think it was a detriment necessarily. At 30, 30 or 30 days, but it maybe could be a little bit.

00:21:42,970	So the the other thing I would encourage this committee to do is if you have not viewed the commission meeting from Tuesday, uh, Brenda Nagel put on a very good presentation on what economic development is, and we’re part of that. And so you might want to listen in because there are some good questions asked. Very good.

00:22:00,600	Some of what is now going to happen as a result of are they are these loan applications that have been funded, the recipients, are they actually following through with their their plan? Not that we claw back, but at least we have a sense as to sure.

00:22:20,900	Is this something worthwhile? Continuing? Absolutely. Any discussion more discussion on that or. Okay then do we have any other business? All right. Do we need to we don’t need to take any action on that. So not yet I think I want to make sure we are have the actual census data. Okay. All right. With that then, um, this meeting is