Minnesota Business Developments

by Rhonda Mix - rhonda.mix@state.mn.us
February 2009

Northern

Four cities in northern Minnesota received infrastructure grants from the Minnesota Department of Employment and Economic Development (DEED) under the Greater Minnesota Business Development Public Infrastructure Grant Program:

Virginia - $200,000 for developing an old mine dump site for P&H MinePro Services, a company that refurbishes mining equipment and sells its products worldwide. The company cannot expand at its current sites in Mountain Iron, Buhl, and Hibbing. P&H anticipates creating at least 16 full-time positions, with wages between $16 and $45 an hour.
Detroit Lakes - $250,000 for a 39-acre expansion of an existing industrial park. The $1 million expansion is expected to result in 120 new jobs and increase the city’s tax base by $4.3 million.
Perham - $250,000 for infrastructure at the site of the new Perham Memorial Hospital. The total cost of the street/utilities project is $3.1 million. The hospital plans to add 25 jobs with an average wage of $19.50 per hour.
Isle - $250,000 to extend utilities to a new 75-acre industrial park. Initially, 19 jobs are expected to be created. The new park will also help retain Merit Enterprises, a 27-employee firm whose building was destroyed by a fire in November 2008. The total cost for developing the industrial park is $2 million. The DEED award is contingent on financing being awarded by the Federal Economic Development Administration by March 31, 2009.

The Mille Lacs Band of Ojibwe plans to open a small manufacturing plant in the former Galaxy Skate Center building on state Route 65. The factory will manufacture generators for the Mariah Power Windspire, a 30-foot tower that uses wind to generate power. The Band will initially employ seven to nine employees at a wage of about $12 an hour. In late 2009 the number of employees is expected to double. The plant is slated to begin operations this spring.

Central

As part of the Spirit River Crossing, a major retail development in Cambridge, Lowe’s Building Center plans to start construction this spring and open in fall 2009. Kohl’s Department Store will also anchor this development. Kohl’s plans to begin building their new store in fall 2009 and anticipates opening in the spring 2010.

Twin Cities Metro

A grant of nearly $300,000 from the Department of Employment and Economic Development’s Minnesota Job Skills Partnership (MJSP) will help fund leadership and fire safety engineering training for Uponor employees in Apple Valley. The custom training project is a partnership between the MJSP, the company, and Dakota County Technical College. The grant will help the company compete globally, respond to the needs of a diverse workforce and prepare for the growth of a new fire suppression product line. Uponor will contribute about $517,000 to fund the two-year training project. Dakota County Technical College will provide entry-level and advanced training and retraining to 425 employees at its Apple Valley location. Seven courses include Uponor integrated management systems, train the trainer, critical thinking and problem solving skills, multicultural leadership skills, ISO/quality systems training, maintenance theory and skills, and fire safety engineering. Uponor employees will use a new virtual classroom for Web-based and video training accessed through the company’s intranet. The grant will also be used to develop a nine-credit fire safety engineering certificate program for 12 employees.

Winnipeg, Manitoba-based DiaMedica Inc. plans to establish a presence in the Twin Cities and hire four to 10 employees over the next year. DiaMedica is developing drugs to treat type-2 diabetes. It has completed second-phase clinical trials for two of its three products.

The University of St. Thomas plans to build a $52 million athletic and recreation complex on its St. Paul campus. Construction on the 180,000-square-foot complex is expected to begin in May. Minnetonka-based Opus Northwest is the general contractor for the project, which was designed by Opus Architects and Engineers.

Southern

DEED awarded the city of Albert Lea a $250,000 infrastructure grant for building an 80-acre industrial park at a cost of $1.5 million. Pro Trucking Inc. has committed to move to the site, bringing an existing workforce of 80 employees and hiring another 15 to 17 employees once the relocation is complete.

DEED awarded a $1.2 million grant to the city of Pine Island to help pay for the second phase of infrastructure installation at the BioBusiness Park at Elk Run. The funding was awarded under the agency’s Bioscience Business Development Public Infrastructure Grant Program. In an earlier phase of the project last year, DEED awarded the city $600,000 to help pay for extending sewer and water services to the site. The 200-acre biobusiness park will be a part of the larger Elk Run development, a 2,300-acre mixed-use project that will include housing and commercial buildings along U.S. Highway 52, about 15 miles north of Rochester. The biobusiness portion of the development will include a 40,000-square-foot research, development, and manufacturing facility.