2/7/2024 3:24:41 PM
[ST. PAUL, MN] – Governor Tim Walz and the Minnesota Department of Employment and Economic Development (DEED) today announced more than $7.8 million in funding for seven business expansion projects statewide. The projects are expected to support 719 jobs and leverage more than $169 million in outside investment.
"Minnesota is proud to be a top state to start and grow a business," said Governor Walz. "By supporting business expansion, we're helping businesses create good-paying jobs for Minnesotans. We are committed to supporting our businesses and investing in communities across the state, whether through business expansion, grants for entrepreneurs, or child care."
"Minnesota's economy continues to grow, with six straight months of net job growth and businesses investing and expanding," said DEED Commissioner Matt Varilek. "DEED's Job Creation and Minnesota Investment funds are just two examples of how DEED is delivering for Minnesotans and supporting the growth of the businesses that operate here."
"The Job Creation Fund and Minnesota Investment Fund are important programs that stimulate economic investment across the state," said DEED Deputy Commissioner Kevin McKinnon. "By awarding funding that supports job creation and retention and increases local tax bases, these tools provide necessary support for the economic vitality and prosperity of Minnesota's communities."
The Job Creation Fund provides financial incentives to new and expanding businesses that meet certain job creation and capital investment targets. Eligible companies may receive up to $2 million for creating or retaining high-paying jobs and for constructing or renovating facilities or making other property improvements.
The Minnesota Investment Fund provides financing to help add new workers and retain high-quality jobs – with a focus on industrial, manufacturing, and technology-related industries – increasing the local and state tax base and improving Minnesota's economic vitality. Funds are awarded to local units of government, which provide loans to assist expanding businesses. Some of the loans may be forgiven if specific goals are met.
Details on individual projects below:
George Modular Innovation Solutions, LLC is a volumetric modular manufacturing company that utilizes an advanced design and engineered approach to produce precise-built, steel modular units for on-site assembly of permanent, multi-story buildings. The total project cost is $30.2 million and will cover the expansion and site improvement of its building, as well as additional machinery, equipment, and property acquisition costs. The project is expected to create 166 jobs over three years at an average wage of $33.13 per hour.
L&M Supply, Inc., is a retail company specializing in farm and home products with 12 stores located across northern Minnesota, Wisconsin and Michigan. This project will constitute a new 210,000-square-foot distribution center in Grand Rapids, with the ability to add additional space in years to come. The total project cost is $55.6 million and is expected to create 31 new jobs over the next three years, at an average wage of $21.42 per hour.
Northstar Lime LLC converts spent lime produced by American Crystal Sugar Company (ACSC) into pellets, with the goal to improve the ability to transport and apply the product as a soil amendment to low-PH soils more readily. This process also works to eliminate ACSC's need to build additional landfill space. The proposed project will finance the purchase of a reactor that burns biomass into sequestered carbon called Biochar. The project is expected to cost more than $10 million and will create 21 jobs over the next two years at an average hourly wage of $28.33.
nVent is a global provider of electrical connection and protection solutions. Under the nVent HOFFMAN brand, nVent manufactures, markets, installs, and services a wide range of products, including steel enclosures, air and liquid cooling solutions, server racks, steel enclosures, monitoring and sensors, electronic access control, and more. The proposed project will add 100,000 square feet of manufacturing space to their existing warehouse in Anoka. The estimated project cost is $27 million and is expected to create 141 jobs within three years at an average wage of $34.96.
Rion Inc. reimagined regenerative biotherapies and scaled their production for their flagship innovation called Platelet Exosome Product—a potent and accessible regenerative technology used to heal a variety of hard-to-treat body tissues. The proposed project will lease approximately 10,000 square feet of additional space at a new location, with a total estimated project cost of $7.3 million. The project is expected to create 22 jobs within the first three years at an average cash wage of $48.30 per hour.
SOMIC Packaging, Inc. manufactures compact and versatile end-of-line automated case packaging equipment for various industries with complex packaging demands. The company's newly-constructed 48,000 square foot building allows for assembly, commissioning, and office space. The total project cost is $8.3 million and is expected to create 23 jobs, at an average wage of $33.37 within the first three years.
USG Interiors, LLC produces wall, ceiling, flooring, sheathing, and roofing products. The Cloquet plant is USG's largest production facility for ceiling tiles in North America, manufacturing products for customers—hotels, hospitals, offices, etc.—across the U.S. and internationally. The proposed project will replace an existing dryer with a state-of-the-art dryer that will include a heat recovery system and other design efficiencies that will reduce natural gas consumption at nominal output by approximately 21%. The anticipated total project cost is $38.5 million and is expected to retain the 315 full-time employees in Cloquet.
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