Bank needs exemption to expand

An independently owned bank based in Winger wants to expand, but first its vice president had to come down to St. Paul to seek an exemption from a 40-year-old state law.

Ultima Bank Minnesota Senior Vice President Bruce Meade told the House Commerce and Regulatory Reform Committee Feb. 2 that the bank would like to expand its loan production office in Northern Township into a full-service bank branch.

However, state law prevents a bank from locating a branch in a township.

Rep. John Persell (DFL-Bemidji) sponsors HF305, which would allow the exemption.

Rep. Tim O'Driscoll (R-Sartell) asked whether the township, which is just outside Bemidji city limits, had considered annexation instead of “having to incur the time and expense of legislation for this.”

Meade said the bank is in an area with an annexation plan that is 10 years away from implementation. The bank holds a lease, so it lacks the ability of a property owner to request annexation.

Citing a distant family relationship with Meade, Rep. Greg Davids (R-Preston) recused himself from the vote to approve the bill. It goes next to the House Government Operations and Elections Committee.

A companion, SF125, sponsored by Sen. John Carlson (R-Bemidji), awaits action on the Senate floor.