MAGIC FUND SCREENING COMMITTEE

 

FRIDAY, JULY 23, 2010

 

CITY COUNCIL CHAMBERS - SECOND FLOOR - CITY HALL

 

515 2nd AVE. SW

 

7:30 AM

 

A   G   E   N   D   A

 

 

 

 

1.  Approval of Minutes – May 21, 2010

 

2.  Child Care Resources & Referral (CCRR) - $135,000 Grant for Workforce Development

 

3.  Ward Williston Oil Company – $250,000 Forgivable Loan

 

4.  MADC repayment presentation  

 

5.  Financial Report

 

6.  Other Business

 

7.  Adjourn

 

 

 

1.  APPROVAL OF MINUTES

 

Minutes from the May 21, 2010 meeting are enclosed for you review and/or correction and approval.

 

2.  Child Care Resource & Referral (CCRR) - $135,000 Grant for Workforce    Development

 

Child Care Resource and Referral (CCRR), a program of Lutheran Social Services of ND, requests $135,000 from the MAGIC Fund to expand and strengthen the child care work force in Minot.  CCRR reports that because of the strong demand for child care in the Minot area, competition for this work force development project is not an issue.

They indicate that a strong child care work force and economic development are inextricably linked.  Without a reliable child care infrastructure, our community cannot adequately attract and retain community businesses and employees. Without reliable child care, employee productivity and the ability to be at work, on time becomes an issue.

CCRR reports that to accommodate a community’s child care needs, industry standards suggest that licensed child care meets 50% of the demand.  Ward County falls short of this standard, with licensed child care meeting only 28% of the potential demand.

·         305 child care workers in Ward County, only 16 hold an early childhood credential or degree

·         36% turnover rate of child care work force in centers

·         In Ward County, 8,333 children ages 0-12 potentially need child care

·         130 licensed child care programs serve 2,345 children

·         To reach 50% capacity, Ward County must increase licensed child care capacity by 4,167 spaces.  This will require a multi-year effort.

 

A rapid influx of workers with young children is putting a tremendous demand on Minot’s child care work force.  CCRR states that if Minot cannot respond, these workers will move elsewhere in North Dakota or leave the state. 

The U.S. military began to develop a child care recruitment, training and retention plan when they discovered that soldiers, ready to serve, could not deploy due to lack of child care.  CCRR proposes to address Minot’s child care issues by replicating the military model that has been used with great success nationally. 

Outcomes:

·         34 new child care workers recruited

·         32 new/existing child care workers receive credential scholarships

·         55 front line staff receive 40 hours of training

·         14 child care businesses stabilized to better serve 145 families and 276 children

·         13 new child care businesses established to serve 114 families and 216 children

·         Minot child care capacity moves from 28% to 32%

 

Work Force Development Budget

MAGIC Fund

Incentives/Training

LSS/ND

Personnel/Management

Recruit and train 34 new child care workers

 (13 home-based business and one center)

·         Provide training and award incentives based on business plan

·         Award staff credential scholarships and provide 40 training hours

·         Visit facility monthly for 12 months to link training to practice

·         Monitor spending plan

$49,000

($2,000/home and $25,000/center)

$105,000

Train 75 existing front line and management staff

(12 home-based and two centers)

·         Provide training and award incentives based on business plan

·         Award staff credential scholarships and provide 40 training hours

·         Visit facility monthly for 12 months to link training to practice

·         Monitor spending plan

$86,000

($3,000/home and $25,000/center)

105,000

Budget Totals

$135,000

$210,000

 

3.  Ward Williston Oil Company - $250,000 Forgivable Loan

 

We have received an application for a two fifty thousand dollar ($250,000) forgivable loan from Ward Williston Oil Company.  The loan will assist in constructing a building that will allow them to repair and maintain their fleet of equipment including:  Semi tractors, service rigs, roustabouts, hot oil trucks, pickup trucks, etc…  The construction of the buildings will help continue their growth rate and create more jobs as they continue to expand their foot print in North Dakota.

 

Company Background

Ward Williston is an independent oil company with professional expertise in exploration, production and oil field services. Founded in 1952, Ward Williston is a pioneer in North Dakota's oil industry. Dedicated to excellence with over a half century of successful operations, they have a reputation as a premier oil company in North Dakota.  As of December 31, 2006 the company employed and supplied full health and retirement benefits to fifty (50) employees and that number has grown to one hundred fifteen (115) employees as of December 31, 2009.  The installation of the building will help them reach their forecasted goals of adding an additional 14 full-time employees for each constructed building.  Ward Williston Oil Company has been the recipient of numerous awards as a result of their professionalism and growth rate.  These awards include:

 

·         Ernst & Young – Laurie Cunnington, “Entrepreneur of the Year”

·         Inc. 500 and Inc. 5000 – “Fastest Growing Privately Owned Company” 2 years

·         Fortune – Finalist, “Best Company to Work For”

·         ProSolutions, Inc. – Laurie Cunnington, “Woman of the Month”

·         Diversity Business.com – “#1 Small Business in North Dakota”, “Top Small Business in America”, “Top Women Owned Business in America”

 

Proposal

A MAGIC Fund forgivable loan, with participation approval from the Bank of North Dakota will allow them to erect one (1) 100’ x 200’ x 22’ metallic or wood framed building for a total construction cost up to $1,140,200. Ward Williston Oil Company will combine the MAGIC Loan with an investment of 20% of its own capital into the building, therefore, making the project a sixty eight percent (68%) loan to value (LTV).  Together, they indicate our investment will assist in the continued growth of the company and create more jobs in Westhope, Stanley and other surrounding towns located in North Dakota. 

 

 

4.  MADC Repayment presentation

 

Jerry Chavez, President of MADC will be presenting a check to the MAGIC Fund as a result of the sale of Lot 1 of the  former Kemper Land located along Burdick Expressway east of 31st Avenue SE, purchased earlier by MADC with MAGIC Fund assistance.  The repayment amounts to $91,299.37.

 

5.  Financial Report (Attached)

 

6.  Other Business

 

7.  Adjourn