After apology, Grand Forks, group to loan money to Cirrus Aircraft: Loan still needs to be approved by the Grand Forks Jobs Development Authority on March 18 (With Video)

Grand Forks Growth Fund, a Job Development Authority: Staff Report 
Growth Fund Committee March 5, 2013
Growth Fund Committee March 11, 2013
JDA March 18, 2013
http://www.grandforksgov.com/CouncilPackets/20130311-gf-2.pdf

City leaders have agreed to grant approval for a nearly $1-million loan at request from Cirrus Aircraft. Officials met with city leaders again, after last week the company felt it was the target of a councilman's scrutiny and judgement.

The atmosphere at Monday's meeting was a complete turnaround from the March 5th meeting. The Growth Fund committee moved that the company receive the $950,000 loan, but only after chairman and council Vice President Doug Christensen gave an apology.

Christensen: "I can honestly say that I trust that Cirrus will repay the City of Grand Forks...there's absolutely no doubt in my mind the future of Cirrus in the city of Grand Forks is extremely bright."

The nearly $1-million loan is going towards an autoclave aimed at producing high quality products which will save the company money in the process.

Bill King, Business Administration VP, Cirrus Aircraft: "The future of this industry in this small measure goes with this expensive equipment that we're now investing heavily into."

Cirrus officials received affirmation from councilmen.

Hal Gershman, Council President: "We've got your back, we love you in our community you've got wonderful employees and we wish you a tremendous future with us."

Dana Sande, Councilman: "I think we're very fortunate that we have you here and I as well want to see a long term relationship with Cirrus and hopefully it can continue to expand in the future."

Bill King, the company's Vice President says without question it'll be able to pay back the city.

King: "The simple math if you will is that the savings alone off of the components that we are now manufacturing far exceed the $11,000 a month."

Construction for the autoclave will begin shortly and King says he expects it to be fully functioning by end of summer or early fall. The expansion will also add jobs.

Story and Video:  http://www.wdaz.com

A Grand Forks economic development group has agreed to loan Cirrus Aircraft nearly $1 million following an apology by the group's chairman for questioning the financial stability of the Duluth, Minn.-based company. 

 Grand Forks' Growth Fund Committee last week delayed action on the request by Cirrus for a $950,000 loan as part of a $1.5 million plan to buy equipment and expand its production facility in the city so that it can do work it currently outsources to other companies. Committee Chairman Doug Christensen said he was worried about the company adding more debt and increasing its monthly loan payment to the city for rent and previous borrowing from $70,000 to about $90,000.

Cirrus vice president William King said that amounted to an attack on Cirrus' integrity, and he also accused the committee of divulging confidential financial information.

Christensen apologized during a Monday meeting, saying he had failed to trust a company that was a valuable member of the city's corporate community.

"I can honestly say Cirrus will repay the city of Grand Forks," he said.

Christensen and other committee members last week cited Cirrus financial statements they said showed millions in losses. King said the numbers reflected Cirrus' obligations to its parent company, China-based CAIGA. He said much of the issue with the Growth Fund Committee was clarifying matters.

"I'm not going to lie, they've been very stressed," King said of company executives.

The loan still needs to be approved by the Grand Forks Jobs Development Authority on March 18.

"We've got your back," City Council President Hal Gershman told Cirrus officials Monday. "We love you in our community. You've got wonderful employees and we wish you a tremendous future with us."

Source:  http://www.crookstontimes.com

Grand Forks Growth Fund, a Job Development Authority: Staff Report 
Growth Fund Committee March 5, 2013
Growth Fund Committee March 11, 2013
JDA March 18, 2013
http://www.grandforksgov.com/CouncilPackets/20130311-gf-2.pdf