A commentary by Robert Hale of Minot, N.D. (Forum, Nov. 14) needs a response because of its misleading and inaccurate statements regarding WebSmart and Gov. John Hoeven. I am a lifelong resident of the Minot area.
Hale has made no
secret of his fanatical dislike of public funding for economic development. He has used inaccurate and misleading statements and personal attacks on those involved in efforts to bring business and jobs to Minot through the Magic Fund.
Hale attacks Hoeven even when Hoeven has done everything he can do to provide a full accounting of the WebSmart funding and has been accurate and truthful in his response. Hoeven did not participate in approving the public funding received by WebSmart. In fact, First Western Bank, in which his family has an ownership interest, stands to lose more than $400,000 in loans to the WebSmart owners.
We are all concerned for the people who lost their jobs at WebSmart, but none more so than Hoeven. He showed that concern with both action and words. Hoeven immediately had Job Service work with the former WebSmart employees to find new jobs. The North Dakota Labor Department was also directed to take legal action to help the employees who were not paid. Within just a few months, the North Dakota Commerce Department helped to successfully recruit a new company to relocate in the WebSmart building and many former WebSmart employees now work there.
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Despite what Hale wants you to believe, much of the public funding provided to WebSmart may be recovered. Most of the funding WebSmart received had real estate and personal guarantees from the owners. In fact, the Bank of North Dakota loan is secured by the building and the North Dakota Development Fund and the Grand Forks economic development loans had personal guarantees. Also, the real estate tax exemption and workforce training funds were to be received by WebSmart over several years. Yes, North Dakota taxpayers will lose some money, but not to the extent Hale likes you to believe.
Hale would like to have you believe that the WebSmart owners have no liability in this matter. I know that the WebSmart owners put in at least $600,000 of their own money and lost it. They are also legally responsible to repay what they owe the Bank of North Dakota, the North Dakota Development Fund and the city of Grand Forks from their personal assets.
I believe, based on my experience in Minot, that Hale is not concerned with accountability. He ignores the facts and information provided by the citizens and public officials working to provide jobs. He is using an unfortunate business failure to further his own political agenda. Even some former WebSmart employees are complaining that they are being used in the WebSmart matter. Next time you read some outlandish claim or statement about WebSmart, consider the source.
Backes, a Democrat, is former mayor of Minot, N.D. He is on the board of directors of First Western Bank and Trust of Minot.
