VELVA, ND, Aug 02, 2012 -- USDA Rural Development state director Jasper Schneider announced that Farmers Union Oil Company of Velva received over $3 million in financing to build a new convenience store to address the increased traffic levels due to energy development in western North Dakota.
“The financing announced today will spur further economic activity and support the needs of a booming energy industry,” said Schneider. “The new Cenex store will offer many conveniences to the community and give consumers more options when fueling their vehicles.”
USDA Rural Development partnered with Verendrye Electric Cooperative, Inc. to provide Farmers Union Oil a $1 million loan through the Rural Economic Development Loan program. In addition, the company has been awarded about $2 million through other USDA Rural Development programs to help build the store including: a $1,850,495 Business and Industry loan guarantee through Peoples State Bank of Velva and a $159,739 Rural Energy for America Program (REAP) grant.
“I told the Farmers Union Oil board that to get this project done all my stars needed to line up, and guess what - they just did,” said Cory Schmaltz, general manager of Farmers Union Oil of Velva. “I am awestruck by this whole thing. A big thank you goes out to the board and USDA for bringing this vision to fruition.”
The 7,000 square foot Cenex store will provide 24-hour service to supply petroleum products and farm supplies. The store will offer diesel and gas fueling bays, a dining service, and a large selection of fast food. Additionally, there will be a trucker lounge with showers, wireless internet, and laundry. With the building’s log design, this will not be a typical gas station. The entrance will catch attention as it will have the largest log truss in the United States measuring 80 feet long and weighing over 8 tons.
The project will create 15 new jobs and is estimated to cost $3.2 million with additional funding provided by the North Dakota Corn Growers and Farmers Union Oil Company of Velva. Construction has begun at the site located along Highway 52 on the edge of Velva and should be completed by fall of 2012.