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JSDC Board approves PACE interest buydown for Shocker Hitch

Jamestown/Stutsman Development Corp. Board of Directors met Monday, July 11.

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JAMESTOWN – The Jamestown/Stutsman Development Corp. Board of Directors unanimously approved a PACE interest buydown up to $217,000 for Shocker Hitch LLC on Monday, July 11, to establish a production facility in Jamestown.

If approved by the Jamestown City Council and Stutsman County Commission, the city’s share will be more than $173,000 with the county’s share being over $43,000.

Corry Shevlin, business development director with JSDC, said Shocker Hitch is a primary-sector business that qualifies for the full tier five of the PACE program, which is up to $500,000 in funds from the Bank of North Dakota.

“The program operates almost the exact same way as the Flex PACE program does in terms of interest buydown and how it functions,” he said. “How it functions for us in the back end … is very, very similar except with that primary sector designation and qualifying with jobs or capital expenditure, they are entitled to the higher level of incentives from the Bank of North Dakota.”

Shocker Hitch manufactures cushion and airbag-towing hitches for pickups and bumper-pull and gooseneck trailers. The business plans to employ 20 people within the first two years of production.

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Shocker Hitch has been under new ownership since the end of December, said Neil Fuchs, chief operating officer with the company.

He said the business plans to move into the existing Infinity Building Services building. He said Shocker Hitch has a purchase agreement to buy the Infinity building that has been signed with a tentative closing date of Oct. 1.

Fuchs said the funding will help with the purchase of the building, budgeting for initial equipment that will be installed and other building updates.

Shocker Hitch is currently located in Arthur, North Dakota. Fuchs said the majority of the business will move to the Jamestown location and Shocker Hitch currently has a lease to stay in the building in Arthur for a couple of years.

“Long term, it will all leave Arthur, and our goal would be to have it all in one location if all possible,” he said.

The JSDC Board also unanimously approved North Dakota New Jobs Training Program funding for Shocker Hitch.

If approved by the Jamestown City Council and Stutsman County Commission, the city’s share will be more than $56,000 with the county’s share being over $14,000.

The North Dakota New Jobs Training Program provides incentives to businesses that create new employment in primary-sector industries in the state. It provides a means for businesses to obtain no-cost funding to offset workforce-related costs associated with new employees.

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The program matches the North Dakota state income tax withholding generated from individuals filling new job positions, identified in a New Jobs Training Agreement, for up to a 10-year period from the effective date of the agreement, according to a workforce training proposal document from Job Service North Dakota.

Funding for the New Jobs Training Program can be accessed in two ways, according to the workforce training proposal document:

  • The business can obtain a loan or repayable grant to cover the workforce-related expansion and training costs. All of the allowable state income tax withholding credit reported each quarter is applied toward repayment of the principal and interest on the loan or repayable grant. 
  • The business can elect to receive reimbursements of the North Dakota state income tax that is paid in on the newly-created positions using the self-finance option or by using a local grantor. Under the self-finance option, 60% of the allowable state income tax withholding reported each quarter is paid to the employer by the North Dakota State Treasury Department. Under the local grantor option, the business can receive at least 

Shevlin also announced the hiring of Holly Miller, who will serve as the vice president of operations and public relations for JSDC.

Masaki Ova joined The Jamestown Sun in August 2021 as a reporter. He grew up on a farm near Pingree, N.D. He majored in communications at the University of Jamestown, N.D.
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