{"id":64915,"date":"2015-02-08T18:03:21","date_gmt":"2015-02-09T00:03:21","guid":{"rendered":"http:\/\/csinewsnow.com\/?p=64915"},"modified":"2015-02-09T11:14:05","modified_gmt":"2015-02-09T17:14:05","slug":"jsdc-sepa-discuss-funding-issues","status":"publish","type":"post","link":"http:\/\/csinewsnow.com\/?p=64915","title":{"rendered":"JSDC SEPA discuss funding issues"},"content":{"rendered":"

\"JSDC\"<\/a>Jamestown\u00a0 (CSi)\u00a0 The Jamestown\/Stutsman Development Corporation (JSDC)\u00a0 Board of Directors has approved\u00a0a $785,000 loan to to the Spiritwood Energy Park Association (SEPA)\u00a0to fund an automatic rail switch to connect the SEPA rail loop to the BNSF main line.<\/p>\n

The loan from the JSDC to SEPA is interest free for 12 years with no payments for the first two years. It will be funded from the uncommitted economic development funds of the city of Jamestown and Stutsman County.<\/p>\n

The JSDC loan to SEPA\u00a0still needs\u00a0approval\u00a0\u00a0by the Jamestown City Council and Stutsman County Commission. The payment to BNSF must be made by March 31 for it to provide service to Dakota Spirit AgEnergy in April when it begins operation.<\/p>\n

Previously, BNSF changed its requirements for the switch in November. SEPA had paid about $500,000 to install a manual switch. BNSF is now requiring an additional $785,000 for a heated and automated switch or it will not provide service to the rail loop. The upgraded switch required by BNSF is intended to improve efficiency along the line and speed shipments.<\/p>\n

The meeting\u00a0was after\u00a0a special meeting of the SEPA Board of Directors\u00a0as the Great River Energy representative on the SEPA board, Greg Ridderbusch, explained why the current SEPA business plan did not include payments of return on investment to the JSDC or GRE.<\/p>\n

SEPA is a partnership between the JSDC and Great River Energy. It owns and operates the SEPA industrial park which includes a rail loop providing rail access for Dakota Spirit AgEnergy, an ethanol plant that will begin operations this spring, and possible future tenants in the park. The ethanol plant is also owned by GRE.<\/p>\n

Dakota Spirit AgEnergy so far is the only tenant in the SEPA industrial park.<\/p>\n

A \u00a0term sheet was approved that established the economics of what the lease agreement with Dakota Spirit AgEnergy would be. Those economics showed a 5 percent return after there were two tenants at the SEPA industrial park.<\/p>\n

Business Developer for GRE, Sandra Broekema, said SEPA\u2019s finances were reviewed with the JSDC Executive Committee during a May 2013\u00a0Executive Session\u00a0and notes of the meeting\u00a0showed the committee was informed no dividends or return on investment would be made until a second tenant occupied the SEPA industrial park.<\/p>\n

Jamestown Mayor Katie Andersen said\u00a0by JSDC loaning the money to SEPA, it guaranteed the funds would be repaid, adding that the removal of the 5 percent return on investment was not\u00a0 approved and it appears\u00a0the removal is different of what taxpayers were told.<\/p>\n

Ridderbusch said,\u00a0DSA has\u00a0two years to plan for a doable number and possibly get a second tenant along the way.<\/p>\n","protected":false},"excerpt":{"rendered":"

Jamestown\u00a0 (CSi)\u00a0 The Jamestown\/Stutsman Development Corporation (JSDC)\u00a0 Board of Directors has approved\u00a0a $785,000 loan to to the Spiritwood Energy Park Association (SEPA)\u00a0to fund an automatic rail switch to connect the SEPA rail loop to the BNSF main line. The loan from the JSDC to SEPA is interest free for 12 […]<\/p>\n","protected":false},"author":3,"featured_media":57827,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[25,14],"tags":[],"class_list":["post-64915","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-jamestown"],"_links":{"self":[{"href":"http:\/\/csinewsnow.com\/index.php?rest_route=\/wp\/v2\/posts\/64915","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/csinewsnow.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/csinewsnow.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/csinewsnow.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"http:\/\/csinewsnow.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=64915"}],"version-history":[{"count":3,"href":"http:\/\/csinewsnow.com\/index.php?rest_route=\/wp\/v2\/posts\/64915\/revisions"}],"predecessor-version":[{"id":64918,"href":"http:\/\/csinewsnow.com\/index.php?rest_route=\/wp\/v2\/posts\/64915\/revisions\/64918"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/csinewsnow.com\/index.php?rest_route=\/wp\/v2\/media\/57827"}],"wp:attachment":[{"href":"http:\/\/csinewsnow.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=64915"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/csinewsnow.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=64915"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/csinewsnow.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=64915"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}