LADG 2022 Annual Report

1 | LAKE AGASSIZ DEVELOPMENT GROUP ANNUAL REPORT

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ANNUAL REPORT

2 | LAKE AGASSIZ DEVELOPMENT GROUP ANNUAL REPORT

TABLE OF CONTENTS

Page 4.......................................................................................................Our History Page 5..................................................The Regional Workforce Impact Program Page 6.................................................................................................Loan Spotlight: Black Paws Brewing Company Page 9..............................................................................Tenant Spotlight: Prevent Child Abuse North Dakota Page 10..........................................................Small Business Lending Update and

Loan Portfolio Summary Page 11..................................................................................Financial Review 2022

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Welcome to the Lake Agassiz Development Group’s annual newsletter. In these pages, you’ll find the stories of a few ambitious, hard-working North Dakotans who have received support from LADG, a bit of information about our history, and–of course–a review of our 2022 financials. So sit back, maybe crack open a local brew, and let’s review 2022.

LAKEAGASSIZ AGASSIZDEVELOPMENT DEVELOPMENTGROUP GROUPANNUAL ANNUALREPORT REPORT 44||LAKE

A LEGACY OF EMPOWERING COMMUNITIES

LAKE AGASSIZ DEVELOPMENT GROUP’S FOUR-DECADE JOURNEY In the heart of North Dakota, where ambition meets opportunity, the Lake Agassiz Development Group (LADG) has been quietly shaping the destiny of communities for nearly 50 years. From the entrepreneurs who start cutting-edge businesses in their garages to the communities who come together to lift one another up, North Dakota has become a place where resilience and innovation thrive–and LADG is the steadfast partner that has been there every step of the way.

Lake Agassiz Regional Council (LARC): In the mid-1970s, North Dakota was on the cusp of revolutionary change. Six counties— Cass, Ransom, Richland, Sargent, Steele, and Traill—came together to establish LARC, a regional economic development resource.

The U.S. Department of Commerce designated these counties as an Economic Development District in 1975, bringing together the public, private, and non-profit sectors to craft a strategic roadmap for sustainable economic growth. Federal funding for planning and

public works projects flowed in, igniting hope for community growth. Today, LARC continues to augment the work of regional cities and counties and bring federal dollars to area projects.

Lake Agassiz Regional Development Corporation (LARDC): Dreams come to life in the heart of downtown Fargo. LARDC, born from LARC in 1987, is a birthplace of innovation. Step into our Regional Small Business Center and you’ll find entrepreneurs sculpting their futures.

Office space, financial support, and a network of dream-chasers converge here. The SBA Microloan Program, a lifeline for small businesses, finds its home here too, alongside the USDA Rural Microentrepreneur Assistance Program and the USDA Intermediary Relending Program. But LARDC’s impact doesn’t stop at businesses. It extends to homes—senior housing in Wahpeton, Lisbon, Hope, and Page.

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MEET THE

TEAM AMBER METZ

CASSANDRA CAMPBELL

CODY INGEMAN

DEB NELSON

Executive Director

Administrative Assistant

Lake Agassiz Certified Development Company (LACDC): A new chapter began in 2005 when LACDC was born to administer the SBA 504 Program. It’s the story of financing dreams, of real estate purchases and equipment acquisitions that fuel business expansion. 9 leaders, pillars of the community, form the board that oversees this transformative program.

The history of LADG is more than a story of economic development.

It’s a story of resilience, hope, and the unshakable spirit of North Dakota.

As LADG continues our journey, our commitment to North Dakota remains unwavering. Whether it’s a housing corporation for our senior populations, a SBA 504 loan to eager new entrepreneurs, or assisting vital North Dakota organizations to access grants, we want to be here for all North Dakotans.

The next chapter is unfolding, and together, we’ll write a story of even greater impact.

Commercial Loan Officer

DON LITCH CFO

RYAN SALVATORE

Commercial Loan Officer

Loan Program Specialist

MITCH CALKINS

Program Administrator

SARA ISAAK

Commercial Loan Officer

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BLACK PAWS BREWING CO.

LOAN SPOTLIGHT BLACK PAWS BREWING COMPANY HONORS LIFESAVING DOGS WHILE SLINGING LOCALLY BREWED DRINKS. You won’t often find Jeb Oehlke enjoying a cold one on a Friday night. Instead, he’s working hard to ensure Black Paws Brewing Company operates smoothly, pouring brews for his patrons rather than for himself.

Jeb’s formal education is in law–not exactly the background you’d expect for a brewmaster.

But before he trained as a lawyer, Jeb found himself in the food industry. Whether working in a lodge kitchen in Montana during a gap year or working kitchens and bars to pay for school, Jeb was always pulled back to serving food and serving people.

A Local Microbrewery Brewing started as a hobby for Jeb. Back in 2011, Jeb found himself experimenting with beer at home and took to it like a hipster to an IPA. “It was a good hobby for a while,” Jeb said.

It wasn’t until 2016 that Jeb had some friends reach out, asking him to start a brewery in Bismarck with them. While that project fell through, Jeb was intrigued by their offer, and the idea of opening a place of his own continued to ferment in the back of his mind.

Then, in 2022, Jeb’s preparations and conditioning finally came to fruition

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as he secured financing to start his small business. With help from his local bank and from Lake Agassiz Development Group’s Intermediary Relending Program, Jeb closed his law firm and opened Black Paws Brewing Company in Devils Lake, ND.

With six-foot swells in the summer pushing cars off roads or folks overestimating ice thickness in winter, water rescue is a sad necessity in the area. Jeb’s father decided it was time to take action and founded the local search and rescue team.

Black Paws Brewing Company has quickly become the top spot in Devils Lake to grab a local microbrew.

Jeb assists with water search and rescue throughout the year in the Devils Lake area.

His dog Riggley assists him. In fact, Riggley is part of a long line of Newfoundland dogs owned and trained by the Oehlke family.

Now, a majestic black Newfoundland graces the Black Paws Brewing Company logo. The Newfoundland dogs’ midnight-black fur and large paws are honored in the name, too.

Since opening, Black Paws Brewing Company has quickly become the top spot in Devils Lake to grab a local microbrew or sit and enjoy a panini inside their restaurant. Patrons can even buy for off-site consumption by filling a growler full of their newest favorite beer to drink at home (or by the lake).

I wanted to build a place where people loved to be - Jeb Oehlke

Lifesaving Dogs While microbrews are the main draw to Black Paws Brewing Company, the company is more than just a source of locally-brewed drinks and fabulous paninis. The name “Black Paws” is an homage to the dogs Jeb and his family have trained and worked with over the past 30-plus years.

Jeb serves his community in more ways than just whetting whistles. Living in lake territory, Jeb and his family were no strangers to the mercurial nature of lakes in North Dakota. Whether it’s ice fishing in the winter or following a highway flanked by bodies of water, the lakes in the Devils Lake area are more than just a part of the landscape–they are a dangerous part of life.

Jeb is here to serve the community and make everyone feel welcome.

Ultimately, Jeb is here to serve the community and make everyone feel welcome, whether saving folks from the water or serving them a tall, frosty glass of locally-brewed coffee stout.

“I wanted to build a place where people loved to be,” Jeb said. “And I guess I succeeded.”

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GRANT NARRATIVE: REGIONAL WORKFORCE IMPACT PROGRAM (RWIP) Workforce development was a significant focus in 2022, as evidenced by LARC acting as the lead applicant for the Regional Workforce Impact Program (RWIP). The ND Department of Commerce allocated $4 million to Region 5.

The RWIP awarded eleven projects from ten organizations funds to carry out a range of activities, including new resident attraction and retention, a provision of wraparound services for those in a CNA certification program, expanding childcare capacity through new or growing facilities, and housing for individuals who cannot afford to buy/rent at market rate but do not qualify for low-income housing. At the last legislative session, the legislature appropriated additional funding for a new round of RWIP. LARC plan to assist from outreach to administration.

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PREVENT CHILD ABUSE NORTH DAKOTA Prevent Child Abuse North Dakota (PCAND) moved into Regional Small Business Center (RSBC) in 2019. Founded in 1978, PCAND is a statewide organization whose mission is to empower families to thrive by providing communitydriven resources that foster safe, nurturing environments for children.

Lindsey Burkhardt, Samantha Hillier, Veronica Wiesz, and Jacob Davis head up the Fargo office, while PCAND also has staff at their headquarters in Bismarck. Burkhardt serves

as the ND Child Sexual Abuse Prevention Task Force Director. Hillier is the Public Educator and Community Engagement Coordinator. Wiesz and Davis round out the staff as the Prevention Program Director and Tribal Programming Director, respectively.

RSBC has helped find PCAND office space so their team can continue growing and serving more families throughout ND. Being at RSBC has allowed them to host meetings and be in a central location that is easy for everyone to find and get to.

As a non-profit, PCAND has also seen benefits in utilizing RSBC’s services like copying, printing, and mailing.

10 | LAKE AGASSIZ DEVELOPMENT GROUP ANNUAL REPORT

SMALL BUSINESS LENDING 2022

LOAN PROGRAM

# OF LOANS FUNDED

$ AMOUNT FUNDED

SBA 504 Program**

20

$14,192,075.70

EDA Revolving Loan Fund*

2

$ 317,754.00

USDA IRP Program*

1

$90,000.00

LADGrow

1

$250,000.00

SBA Microloan Program**

12

$307.397.00

Richland County JDA***

8

$265,310.27

TOTAL

44

$15,422,536.97

*Loan programs limited to specific region(s) of North Dakota **Statewide Programs ***Loan program limited to small businesses in Richland County and managed by LADG Portfolio Summary Update: As of Dec. 31, 2022 the loan portfolio being services by LADG totaled:

PORTFOLIO SUMMARY

As of December 31, 2022 the loan portfolio being serviced by LADG totaled:

LOAN PROGRAM

ACTIVE LOANS

LOAN RECEIVABLE

SBA 504 Program

82

$50,840,350.21

SBA Mircoloan Program

34

$598,659.70

EDA Revolving Loan Fund

9

$1,374,950.50

USDA IRP Program

18

$1,488,848.79

USDA RMAP Program

5

$124,614.86

LADGrow

7

$805,696.47

CDLF Loan Fund

6

$596,644.89

Richland County JDA

37

$1,113,996.36

TOTAL

198

$56,943,761.78

As part of its mission to foster economic development and entrepreneurship, LADG administers seven different loan programs sponsored by four different federal agencies and one county. Three of the loan programs are available statewide in North Dakota; four are available on a local or regional basis; two have been extended to cover western Minnesota. With this suite of programs, LADG can fund loan requests from $500 to $5.5 million.

For all of the programs, applicants must be unable to obtain financing, in full or in part, from a bank or credit union. Often, the LADG’s loans are used as a gap financing tool in cooperation with a financial institution.

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FINANCIAL REVIEW 2022 INCOME

$87,473

$187,514 $13,814

$953,779 $738,566

Program Rental Interest Grants In Other

Total: $1,981,145

EXPENSES

$21,850

$203,007

$131,373

$758,854

$804,344

Payroll Operating Interest Depreciation Grants Out

Total: $1,919,497

Net Income:

$61,648

Lake Agassiz Development Group through all companies ended 2022 with a net income of $61,648 Revenue as reflected in the chart is generated from program administration, interest earned in loan portfolios, rental income at the Regional Small Business Center and seniorhousing properties and grant income to support program activities. Expenses are centered around payroll and expenses tomanage and operate programs and facilities.

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A: 417 Main Ave, Fargo, ND 58103 P: (701) 235-1197

LADG BOARD MEMBERS LAKE AGASSIZ REGIONAL DEVELOPMENT CORPORATION

LAKE AGASSIZ REGIONAL COUNCIL Thomas E. Jefferson Chairman Minority Representative

Michael Haverland Richland County Soil Conservation District

Rick Mairs, President Ransom County

Duayne Baldwin Vice Chairman Sargent County Soil Conservation District

Jason Arth Sargent County

Lisa Rotvold, Treasurer Traill County

Terry Hoffman Cass County Soil Conservation District

Robert Wurl, Secretary Richland County

Shelley Luebke City of Mantador

Neil Olerud Ransom County

Carol Siegert City of Hunter

Kurt Elliot Traill County

Jeff Dick Ransom County Soil Conservation District

Duane Breitling Cass County

Larry Jacobsen, Vice President Steele County

LAKE AGASSIZ CERTIFIED DEVELOPMENT COMPANY

Mike Bannach, President Fargo Dan Delahoyde, Secretary Cogswell Leroy Adams, Treasurer West Fargo

Brian Tuite City of Finley Bill Bohnsack City of Mayville

Kevin Bunn City of Enderlin Nathan Berseth Richland County Carey Fry Job Service North Dakota Mark Osland Traill County Soil Conservation District James Law Steele County Soil Conservation District Perry Brown Steel County

Michael Gust Fargo

Kelsey Smith Fargo

Rick Steckler Wahpeton

Jake Klobuchar Fargo

Scott Schultz Grand Forks Justin Neppl Wahpeton