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Rhavon LLC is a North Dakota medical services company that intends to build an urgent care/occupational health clinic in Williston, ND, the "epicenter" of the Bakken oil fields.  Rhavon is seeking investors in this project.  Please  contact kenwill@btinet.net (701-258-7127) for more information.

An Urgent Care / Occupational Health Clinic in Williston, ND

Williston, ND, (http://www.cityofwilliston.comand http://www.city-data.com/city/Williston-North-Dakota.html) and the Bakken-Lodgepole oil fields (http://bakkenoilfield.net) that surround it, is the new “gold rush” (http://money.cnn.com/2011/03/04/news/economy/oil_shale_bakken/index.htmand http://dailyreckoning.com/is-bakken-shale-the-new-american-gold-rush) on the North American.

Tens of thousands of oil field and ancillary service workers have poured (and continue to pour) into Western ND/Eastern MT creating huge infrastructure issues for counties, cities and the State of ND.  Each new well drilled (an estimated 20,000 wells will be drilled in the next several years) creates, according to the ND Job Service, 200 permanent jobs (pipeline, refinery, gas production, salt water hauling, crude hauling, railroad, and indirect jobs such as food service, hospitality, medical, etc.). 

Roads and highways are being built and remodeled to accommodate tens of thousands of vehicles. Pipelines are being built to move both crude oil and natural gas to “tank farms” and major pipeline access points.  Three new railroad terminals, capable of loading 110 tank cars every three hours are being built. Two new gas refineries and the nation’s first new oil refinery (being “fast tracked” and built on the nearby Three Affiliate Tribes reservation http://www.mhanation.com/main/news/petroleum_refinery.html) and under construction.  “Man camps” have and are springing up everywhere.  A temporary moratorium, by the Williams County Commissioners, has only resulted in “man camps” moving to other counties and other small towns within the Bakken “oil play” (http://www.willistonherald.com/articles/2011/09/13/news/doc4e6f7cfc8705e541269296.txt).

North Dakota’s economy, already first in the nation, is, according to ND Tax Commissioner Cory Fong, up again.  His key economic report, released Sept. 29^th, reflects a 14.6 percent growth in North Dakota’s taxable sales and purchases during the second quarter and an overall increase of 31.5% for the first two quarter of 2001. (http://www.coryfong.com/121/121).  Comparing the second quarter 2011 to second quarter 2010, the growth was fueled by the mining and oil extraction sector, which grew 98 percent.  The rest of 2011 is on track for even greater economic increases.

Medical services, historically provided by Mercy Medical Center (http://www.mercy-williston.org), and more recently by Trinity Health (http://www.trinityhealth.org) based in Minot, ND, are wholly inadequate for the medical needs of this “bulging” population.  Antidotal stories relate waiting times of over three months to see general practitioners and the occupational health services are hospital/clinic based with poor location and accessibility. 

Mercy Medical offers some occupational health services in and via its traditional legacy clinic, but does not individually market it.  It currently provides some “extended hours” for its clinic, but no urgent care.  Trinity Community Clinic – Western Dakota (http://www.trinityhealth.org/index.php?section=medical-services&page=location_show&location=19) currently offers neither occupational health nor urgent care at its Williston facility.

Although commercial property is very scarce in Williston, the best property available for this type of facility is currently available from Dakota Parkway Investments.  Rhavon LLC has a purchase agreement with them for 12.77 acres.

It is located directly across the main intersection of US Highway 2/US Highway 82 and 11^th St West, and in the immediate proximity of Mercy Medical Center and Trinity Health.  The ND DOT says there is a vehicle count of as high as 7,200 vehicles per hour, during certain hours of the day, on the highway directly in front of this property.  They have designed an intersection reconstruction (to be completed in 2013) to accommodate the intersection (“medical hub” area of Williston) traffic .

A proposed “city center” shopping/living development, named Sandcreek Center and developed by Granite Peak Development (http://www.granitepeakdev.com/res-williston.html), is platted (with “big box” stores, like Best Buy, already committed) directly West of this property and access to it will be via the same intersection (see attachment #2).  

The anticipated structure for the clinic and property development will be two separate entities.  A North Dakota Limited Liability Partnership, usually referred to as an “LLP”,    (http://www.nd.gov/sos/businessserv/registrations/types/partnership/limitedliability/index.html) for the business and building development/ownership/operation and a ND Limited Liability Company, referred to as LLC, (http://www.nd.gov/sos/businessserv/registrations/types/companies/limitedliability/index.html) for the property ownership/development.  This format seems to allow the best tax advantage and also allows separate investors for each entity (certainly an investor can be “vested” in both if they chose to).

The business plan, including pro-forma is available from AdMed Consulting Inc.