North Dakota Department of Commerce

The North Dakota Development Fund (NDDF) has invested more than $650,000 in four northeast North Dakota businesses: Tarnel USA of Walhalla has received a $250,000 line of credit; the Dakota Valley Growers of Bathgate, a $120,000 loan; Forestwood Inn of Walhalla, a $100,000 loan; and Kringstad Ironworks of Park River, a $186,000 construction line of credit. The NDDF, a financing program within the North Dakota Commerce Department, provides financing for primary sector businesses.

Tarnel USA used its $250,000 line of credit to keep its manufacturing line up and running all winter. Tarnel, in operation since March 2004, manufactures gooseneck and deck-over trailers built for the northern climates.

“We usually work mid-spring to early fall and get behind in production,” said Tarnel’s Kevin Peters. “By keeping production open throughout the year, 30 employees have steady employment and we keep up the pace necessary to complete all of our orders.”

In Bathgate, the Dakota Valley Growers, L.L.L.P. (DVG) is using its $120,000 loan to build a feedlot that will raise Holstein replacement heifers. Located on 60 acres of land and anticipated to hold a maximum of 3,000 head of cattle, DVG construction is about three-quarters of the way completed, and already holds some cattle.

According to Russell Edgar of DVG, the new feedlot will employ six people. It will also benefit local farmers. “We’re going to feed our cattle hay and other by-products like grains, providing local farmers with a good alternative for their products that don’t have a local market.”

Walhalla’s Forestwood Inn was built more than 60 years ago. According to owner Stephanie Solberg, the hotel needed some renovations and is vital to the area’s tourism industry. The $100,000 loan was used to improve the hotel, adding new televisions, bedding, paintings and a continental breakfast.

“We are an on-the-way stop for tourists going to the ski lodge and the gorge,” Solberg said.

Kringstad Ironworks, a machine shop and iron fabricator with locations in Park River and Hoople, received an $186,000 construction line of credit to help renovate Kringstad’s new building in Park River. Kringstad is the inventor of the Safe-T-Pull.

Kringstad Ironworks needed more space after securing several new contracts, including continual work for the American Crystal Sugar Company. For Crystal Sugar, Kringstad refurnishes culverts used in the deep freeze piling stations throughout the Valley and is also constructing beet piling systems.

“After expanding into the vacant mushroom plant in Park River, we had a lot of building improvements to do,” Kringstad Ironworks founder Bernie Kringstad said. “With the line of credit from the Development Fund, we’ve improved the lighting, the electric and the insulation. We’ve rebuilt the south wall, put in an overhead bi-fold door and refurbished a paint booth.”

Kringstad said Park River and its neighbors Hoople, Cavalier and St. Thomas, have been positively impacted by the new facility. “We now have 47 employees working in our Park River location,” Kringstad said. “We have new students in the local schools. Four or five houses have been sold in the area, more apartments have been rented, and we have contributed to at least 200 nights of room rental at the local hotel.”

The North Dakota Development Fund makes investments in primary sector North Dakota businesses – like Tarnel, the Dakota Valley Growers, Kringstad Ironworks and the Forestwood Inn – through direct loans, participation loans, subordinated debt and equity investments. A governor-appointed, eight-member board of directors oversees the fund; each represents a different business sector from the state. In fiscal year 2006, the Fund invested $6.6 million in 27 primary sector businesses, ranging from intellectual properties to energy- related business and tourism. The investments are projected to help create nearly 500 new jobs.

About the North Dakota Commerce Department

The North Dakota Department of Commerce works to improve the quality of life for North Dakota citizens by leading efforts to attract, retain and expand wealth. Commerce serves businesses and communities statewide through committed people and partners who offer valuable programs and dynamic services.

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ND Development Fund Invests $1.4 Million in Two Fargo Businesses

BISMARCK -- The North Dakota Development Fund has invested $1.45 million in two Fargo-area businesses. Integrity Window and Doors and Infinity Replacement Windows, part of the Marvin Windows and Doors family, obtained a $1 million loan. Upstream LLC received a $450,000 loan. The North Dakota Development Fund, a program within the North Dakota Commerce Department, provides financing for primary sector businesses.

Marvin is one of the largest made-to-order wood window and door manufacturers in the world.

Integrity Windows and Doors has a new 205,000 square-foot facility in West Fargo in addition to its 404,000 square-foot Fargo facility. Marvin’s Infinity Replacement Windows operates a 50,000 square-foot manufacturing facility in Fargo.

Marvin Company’s Elliott Larson said the $1 million loan was divided between its Fargo-area shops. At the Infinity manufacturing shop, a portion of the loan was used for new equipment purchases and at the West Fargo Integrity location the company used the money for working capital.

“With a lower-than-market rate loan, we were able to reduce our costs – a move that enables us to keep our selling price more competitive,” Larson said. “This, in turn, helps us to grow our business and employ more people from the local community.” The company currently employs approximately 560 people in the Fargo-area.

Upstream LLC provides outsourced customer care, customer acquisition and business process solutions for leading companies in the travel industry. Fargo is home to one of Upstream’s five contact centers in the U.S. and abroad. More than 350 associates are employed there.

With the loan it received from the North Dakota Development Fund, Upstream has invested in computer equipment to enhance its network infrastructure.

“We are moving to an at-home agent model,” said Dan Swinehart, CFO of Upstream. “The new infrastructure enables us to recruit more agents in Fargo and from other places around North Dakota.”

The North Dakota Development Fund makes investments in North Dakota businesses like Marvin’s Integrity and Infinity and Upstream through direct loans, participation loans, subordinated debt and equity investments. A governor-appointed, eight-member board of directors oversees the fund; each represents a different business sector from the state. In fiscal year 2006, the Development Fund invested $6.6 million in 27 primary sector businesses, ranging from intellectual properties to energy-related business. The investments are projected to help create nearly 500 new jobs.

About the North Dakota Commerce Department

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SEO Precision Receives $50,000 Loan from North Dakota Development Fund

The North Dakota Development Fund has awarded a $50,000 loan to SEO Precision, an electro-optical technology provider located in Crobsy.

SEO Precision has used the loan for operating capitol, working to further develop the business and to market the 2-inch VirtuFSM, the newest model in SEO’s line of fast steering mirrors (FSMs). FSMs are used to manipulate laser beams for defense weapons development, and are being adopted for commercial and agricultural applications.

“Our business is global and that exposure is an indirect benefit for the state,” said SEO CEO Esther Ohelke. “We also outsource some of our work to subcontractors within the state.”

Ohelke added that on a more local level, SEO has added two officers to the organization, and hopes to hire them as full-time employees next year. The company also purchases office supplies locally.

The North Dakota Development Fund makes investments in primary sector North Dakota businesses, like SEO Precision, through direct loans, participation loans, subordinated debt and equity investments. A governor-appointed, eight-member board of directors oversees the fund; each represents a different business sector from the state. In fiscal year 2006, the fund invested $6.6 million in 27 primary sector businesses, ranging from intellectual properties to energy-related business. The investments are projected to help create nearly 500 new jobs.

About the North Dakota Commerce Department