Passing the Torch: Russ’s Auto & Scrap Transitions to New Ownership
At a recent special meeting of the Walsh County JDA board of directors, the board approved community share participation in a Bank of North Dakota (BND) Flex PACE program loan to support the acquisition of a long-standing Grafton business.
Willy’s Recycle, LLC, doing business as Nordic Metals, recently purchased the business and assets of Russ’s Auto & Scrap in Grafton. Pat and Ashlea Brons purchased the business from Russ and Sheila Holtan. The Holtans are looking forward to retirement and plan to stay in the area.
The request to approve an interest buy-down of $20,000 was unanimously approved by the JDA board. The total buy-down amount of $50,000 was split with the City of Grafton. Other partners in the project were BND and Border Bank of Middle River, MN.
Pat Brons has owned and operated a similar business which focused on clean-up, disaster relief, and recycling following major storms in southeast parts of the U.S. He is looking forward to continuing the vital service Russ’s has provided while also being able to be close to home with his family.
About Flex PACE
The BND Flex PACE program partners with a community stakeholder(s) to buy down the interest rate on eligible business loans made through local lenders. The program is intended to help business start-ups or expansion projects by deferring that portion of the debt to assist businesses making investments in their communities. The program lowers the borrower’s interest rate, making financing more affordable and accessible for businesses investing in real estate, equipment, and working capital.
The JDA’s portion of the interest buy-down is a deferred loan, that serves as a local match as required by the Flex PACE program; BND’s portion of the interest buy-down becomes a grant once the borrower pays the principal of the loan. How the interest buy-down is split between BND and the Community Share partner differs depending on where the project is located.
