SCHMID: LOOKING BACK FROM THE LEFT COAST - FEBRUARY 1, 2021
THOMASSON’S FINGERPRINTS In early November 2019, nothing seemed unusual when Lutheran Social Services CEO Jessica Thomasson announced she was stepping down to take a position in the ND Dept. of Human Services. There were the predictable blandishments: Thomasson expressed pride in her 12-year record at LSS and Board Chair Murray Sagsveen commended her work. Little did outsiders know this may have been a facade — LSS was probably close to insolvency at the time and the troubled agency took a year to find a new CEO. That person was Bob Otterson who promptly discerned the facts and announced this month that LSS was closing and releasing its employees. The agency was brought to its knees by a misguided real estate venture formed by Thomasson when she joined LSS in 2008. The Fargo Forum said she declined to be interviewed for an article this week by Patrick Springer.
HOUSE OF CARDS Recent annual reports for LSS contained little or no discussion of financial condition. A small table of illogical, unaudited financial information can be found near the end of each annual report. The table indicates that expenses of LSS Real Estate exceeded rental revenues by an average of about $3 million a year. First International Bank in Watford City late last year foreclosed on a large LSS apartment complex there. The bank said it had not received full payments for over a year, had received no financial statements for three years and the apartment’s 124 units were only 30% occupied, compared to a Watford City average of 65%. Bank president Steve Stenehjem summed it up: “Very poor management.”
UNCERTAINTY AT LSS “Every day, I was able to get up and go to work at a place that mattered and a place that I love to be . . . this isn't how any of us saw things ending.” — Janell Regimbal, vice president of children’s services at LSS and an employee for 34 years, one of 283 employees shocked by its sudden bankruptcy. LSS owned or managed 36 apartment properties. One example is the Legacy Center in Jamestown which has 52 apartment units and houses the James River Senior Center. The property will be liquidated, so it’s “wait and see” for the elderly tenants.
REFUGEES The most visible and controversial program at LSS was refugee resettlement. The agency has resettled over 5,000 refugees in the area. At least temporarily, the ND Dept. of Human Services will take over the resettlement program. The DHS would like to find a nonprofit successor to administer the program. There is a feature of U.S. refugee policy which allows refugees to sponsor family members to join them. This is sometimes referred to as chain-link immigration. It’s this feature that greatly concerns the refugees who are here — an interruption of LSS services could prevent them from bringing their families.
OUTCRY “This moratorium deals a crushing blow to our country’s economy at a critical time, will drive up the price at the pump for working Americans, and sacrifices millions of dollars for schools, hospitals and other key services supported by state and federal budgets.” — ND Gov. Doug Burgum’s response to President Biden’s executive order pausing oil leasing on federal land. U.S. Sen. John Hoeven said the order “undermines the economy and national security.” State Mineral Resources Director Lynn Helms said, that if the moratorium becomes permanent, ND will lose 14% of future well slots. It is believed ND is less affected than states such as Wyoming, which has a greater proportion of wells on federal land.
WORKERS IN THE OIL PATCH are alarmed at Biden’s climate platform and some are thinking about leaving the state. So far Biden has canceled the Keystone XL pipeline and placed limitations on drilling on federal lands; there are fears that the Dakota Access Pipeline and even fracking could be next. Lynn Helms, director of the state Department of Mineral Resources, said, "I would say the anxiety is way overblown. This is all going to take time. We shouldn't be so anxious that we're packing our bags."
ND MAY BE ONE OF THE FIRST STATES TO RECOVER In ND, 12.5% of the population has tested positive for the coronavirus. Columbia University researchers’ estimate of the number of people who actually have been infected is more like 62.5%. The researchers said ND case numbers are the highest of any state in the country, with South Dakota lagging slightly behind. They added, “Because the infected population in North Dakota is so large, it should be one of the first areas in the country to emerge from the pandemic.”
JUICES ARE FLOWING Prices for the most important crops grown in ND are at the highest levels in well over six years. Corn, soybean and wheat prices have soared and stockpiles are coming down. Sugar prices, which are important in the Red River Valley, are also at recent highs. This translates into improved prospects for businesses in rural ND. With high grain prices, pickups, tractors and combines are rolling out dealership doors.
INSURERS DON’T LIKE COAL ND has seven coal-fired plants and the mines that supply them in three counties west of Bismarck-Mandan. These plants are under severe financial pressure as they must compete with less expensive power from solar, wind and natural gas. To add to their woes, the premiums they pay for property and casualty insurance have risen sharply, for some as much as 100%. This is the result of reduced competition among insurers and pressure from the “environmental, social and governance” movement which disapproves of coal.
DAKTOIDS: At 83%, ND leads the nation in administering available vaccines; it’s followed by W. Virginia (73%) and New Mexico (69%). The national average is 49% . . . Iris Westman (115) of Northwood, ND, the nation's second oldest citizen, died this month.
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