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Committee begins review of economic development

Jill Schramm/MDN Richard Garman, director of Economic Development and Finance with the North Dakota Department of Commerce, speaks to the Economic Development Plan Review Committee in Minot City Hall Friday.

Bringing natural gas service to Minot’s Logistics Park would be a valuable next step in attracting companies to the industrial property on Minot’s east side, a state Commerce Department official told a Minot city committee Friday.

“The next thing that would make that almost a bulletproof site is if you have natural gas,” said Richard Garman, director of Economic Development and Finance with the department. “We’re working on it from a state level.”

The Economic Development Plan Review Committee heard from Garman and others about existing economic development efforts at the state and local level during the first of several meetings scheduled in coming months.

The mayor appointed the Economic Development Plan Review Committee at the city council’s direction after council member Mike Blessum raised questions about the city’s economic development strategies.

Blessum, who chairs the review committee, said he is skeptical when public funds are used to try to drive developments that are best handled by the market.

“I’m looking for a low tax, low regulation environment. I think that is the key driver to everything that we do economically,” Blessum said. “Everything that we layer on top of that should be driven by data telling us that it works, proving to us that it works.”

He noted the 2025 city budget dedicates about $2.1 million to economic development.

“We’ve got a good amount of money that’s flowing through these programs,” he said. “It’s people’s money, and they should see results for those investments.”

City Manager Harold Stewart questioned Garman about the reality of a free market with no need for local or state governments to use taxpayer dollars to provide business incentives.

Without the government’s financial assistance, Garman said, “You would get what found you. And we don’t want that for North Dakota. We want the very best coming to North Dakota. Not just what finds us.

“We want companies with great reputations to come to the state that are going to benefit North Dakota. That takes time, energy, effort and some money to do that,” he added. “We’re spending a few dollars now, for sure – whatever our budget is – in hopes of long-term returns for the state of North Dakota and for the taxpayer by building up our industry, by solidifying all of our industries, by diversifying and by making intelligent projections on what our industries are producing right now, how long they will produce that and how we supplement those industries so we can continue on with the standard of living that we’ve become accustomed to.”

Garman spoke about the potential to use the North Dakota Development Fund’s Advance ND loan program to land new industrial projects in North Dakota. In particular, he cited a project looking to find a potential location along U.S. Highway 83 to process its iron ore.

Garman said the project could bring 300-400 industrial jobs similar to the type of jobs in the power plant industry, with potential for additional production of steel and other products.

Minot Area Chamber EDC also outlined its plans for several hundred acres it owns at the Logistics Park.

“We’re looking at what kind of additional rail do we need to build out there,” said Brekka Kramer, MADC president and CEO. “We want to be strategic in that, though. We don’t want to build something and hope they come. We want to make sure that we’re building something for the needs for that area.”

She also said an environment assessment should be completed by the Federal Rail Administration by the end of the year.

“The one thing we haven’t done aggressively is market the asset,” she said of the nearby intermodal facility, noting most of the marketing has been done by BNSF Railroad. However, she said, awareness is growing.

Mark Lyman, economic developer with MACEDC, said his office responds to an average of 2.5 inquiries a month regarding its land available near the intermodal site. He mentioned a recent conversation with a South Korean delegation proposing a large natural gas processing plant to produce electricity to run data centers.

“Those are opportunities you play the long game with,” Lyman said. “These are billion dollar plus projects that will take many years.”

The committee also heard from Souris Basin Planning Council regarding its revolving loan programs and from Maria Effertz, director of the Commerce Department’s Office of Community Development & Rural Prosperity, about assistance for smaller communities and nonprimary sector businesses.

Blessum said his goal for the committee is to have a report to give to the council next spring. The committee will discuss how the city might measure economic development success when it meets again Friday, Nov. 22, at 1 p.m. in City Hall.

Other committee members are Paul Pitner, city council; Melinda Howe, downtown business owner; Justin Hammer, property management/park board; Tyler Neether, finance; Beth Feldner, MACEDC board; and Jordan Nelson, MAGIC Fund screening committee.

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