Jul. 23—GRAND FORKS — Two Epic Companies-owned buildings in downtown Grand Forks are transitioning to being managed by Peak Property Management of Grand Forks.
The change in management comes as Epic moves through the process of Chapter 11 bankruptcy. The reorganization bankruptcy was
filed on July 8,
but the financial position of Epic's various entities was unclear in the initial filing. Another Epic property in Grand Forks, the Beacon project,
has transitioned to Dakota Commercial management.
The two properties now being managed by Peak Property Management are 301 North Third St. and 22 South Third St. According to Grand Forks' property records, the properties are owned by subsidiary holding companies of Epic, with mailing addresses in Minot. Epic bought both properties in 2019.
Cole Johnson, of Peak Property Management, said his company has "mostly taken over" management of both buildings, but is in the process of gathering additional information.
Scott Franz of Ely's Ivy Restaurant and Bar, located at the 22 South Third St. property, told the Herald that his company has been notified of management changes, but that formalities are still in flux. That's not dissimilar to when Dakota Commercial took over the Beacon development and asked residents to fill out a short survey so it could gather information about leases, security, and the number of tenants in the buildings.
It is not known what Epic will eventually do with its Grand Forks properties. The city has not received updates from Epic about the public plaza at the Beacon development since spring, City Administrator Todd Feland told the Herald on July 22. The last update the city received directly from Epic representatives was in
May, to ask for amendments to the Beacon project development agreement
.
The development agreement between the city and Epic governs the funds and taxing for the project. To date, the city has not given funding to Epic, as the company has never met the requirements for the disbursement of beautification funds that would fund parts of the plaza. According to the development agreement and amendments passed in May
and December,
Epic has to provide proof that there are enough funds to cover the project, which it has not.
The additional revenue bonds being paid for by the building's property taxes also have not been disbursed. The revenue bonds act as a reimbursement, and Epic needs to shoulder the construction costs on the front end before receiving the funds when the project is complete.
The change in management has occurred in other Epic properties throughout North Dakota as well.