Oil boom to continue for another 18 years; workers still needed
Major oil development in western North Dakota will continue for at least another 18 years. That was Bismarck- Mandan Chamber President Kelvin Hullet said in his remarks at the Tues., April 16, annual meeting of the Linton Industrial Development Corporation (LIDC).
The continued development (1,500-1,800 new wells per year) and need for more workers is impacting the rest of the state, and there is a great need for more housing.
Hullet said there were only eight homes in Bismarck on the market recently for under $120,000, and homes are selling within eight hours of being offered for sale.
He said throughout the oil-impact area businesses are building their own apartment buildings to house their employees.
Hullet said Bismarck- Mandan’s population is growing by two percent per year, and he estimated that 2,000 new homes will be built in Bismarck this year.
He noted the Housing Incentive Fund (HIF) created by the 2011 Legislature has implications for all housing-short areas, including Emmons County. HIF is designed to provide incentives for additional affordable units whether through new construction or rehabbing of an uninhabitable existing structure.
During his discussion of energy development, he noted there is more focus on natural gas, including a fertilizer plant that will be powered by natural gas. He said Burlington Northern Santa Fe is planning to power its locomotives with liquid natural gas.
Hullet also discussed other state and national issues, including an update on the 2013 session of the North Dakota Legislature.
LIDC President Ron Kaiser welcomed everyone to the annual meeting and thanked the volunteer board for their efforts in the past year and also thanked LIDC Development Coordinator Sharon Jangula.
He led applause for longtime board members Tim Pearson and Steve Gefroh who are retiring from the board. No election was held at the meeting, so the board will fill the vacancies.
In her report, Jangula said LIDC is focusing on housing development and hopes to find a tract of land that can be developed for homes.
Jangula said there continues to be interest by dairy farmers wanting to move to the area if they can find suitable locations.
She said the LIDC has properties for sale for businesses and noted that the former
J.C. Penney building on Broadway has been inspected for structural soundness and is ready for a new owner.
The LIDC sold a tract of former railroad property to Linton Concrete that had been leased to the company.
She said the LIDC has four outstanding loans to businesses, and all are current.
Jangula said the LIDC can assist new and existing businesses.
The LIDC’s financial report was distributed at the annual meeting. The organization has $669,547 in total assets.
Total income for 2012 was $94,204.54. LIDC received $65,425.51 in City sales tax revenue and $5,388.28 from a City mill levy. Membership dues income totaled $1,900.
Net income for the year was $23,038.17.