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A company whose mission is to "keep trains moving" won approval from the MAGIC Fund Screening Committee Friday for $215,385 in interest buydown as local match for a state PACE loan.
The request from Hot Switch Heating Systems now goes to the Minot City Council.
Hot Switch Heating Systems, founded in 2015 in Florida, is a pioneer in using induction heating to keep railroad tracks clear of snow and ice. It merged with Fiberglass Specialties of Minot in 2023 with the goal of scaling up production and marrying it with the fiberglass switch cover system. This project seeks to relocate and centralize production in Minot.
The company looks to hire two full-time employees for production and system build outs. It plans to add roles in sales, production and research within the next five years.
Backed with patents and a unique product, the company already is working with rail associations and is targeting major hubs to market its product.
Hot Switch is proposing a $3.5 million project, funded with a bank loan and personal investment. The Bank of North Dakota would provide $400,000 as its share of the buydown on the PACE loan through United Community Bank of ND/Bravera.
If approved by the council, the MAGIC Fund assistance would be structured as a forgivable loan. It would not need to be repaid if total employment increases from two employees the first year to three employees in years two and three.