A wind blade producer plans to expand its Grand Forks facility with a $2 million project.
On Monday, the Grand Forks Jobs Development Authority unanimously approved an LM Wind Power project that would allow the manufacturer to make larger blades at its location in the industrial park. The plans include expanding its 124,800-square-foot building by 3,400 square feet while adding 10,000 square feet of paving to accommodate blade transportation between buildings, according to a JDA staff summary of the proposal.
The proposal comes less than a month after a three-year lease was approved for the industrial park building at 1550 S. 48th St. The JDA approved the lease in late July with the provision allowing LM Wind to move out of the building if it relocated in Grand Forks.
The original lease was for about $1.8 million, or $50,960 per month. The new agreement would bring the monthly payments to $91,040 per month.
The agreement has a 54-month amortization schedule with 2 percent interest. It allows LM Wind to classify the costs as an operating lease rather than a capital lease. The opt-out clause would remain, and LM Wind would be required to pay any unreimbursed costs associated with the expansion, according to the JDA report.
“This would be done via a lump sum payment from LM to the JDA,” the report said.
Keith Lund, president and CEO of the Grand Forks Region Economic Development Corp., said he is confident LM Wind will stay in Grand Forks.
The JDA plans to award a bid for construction in October with the project expected to begin in April, Lund said.