News + Announcements

Article by: Chris Giesen

Halcon Furniture recently broke ground on a 15,000 square foot, $3.3 million expansion at its Stewartville, Minnesota headquarters.  The expansion will create at least 10 new jobs at a wage of at least $14 per hour over the next two years and will likely create an additional 40 jobs within that same time frame.  The project will create a “working showroom” that will bring Halcon’s nationally-based clients to Stewartville to view Halcon’s products in action, freeing up existing space for additional manufacturing capacity.

In order to facilitate this expansion, Stewartville’s CEDA team members were able to secure a $175,000 Minnesota Job Creation Fund grant as well as work with the Stewartville EDA and City Council to approve a $400,000 tax increment finance (TIF) district.  “Halcon has been a great community partner and we look forward to their continued success in Stewartville” said CEDA Vice President Chris Giesen, who is assigned to Stewartville.  He continued, “This is the second Job Creation Fund award that CEDA has helped secure for a business expansion in southeast Minnesota.  The program is less than one year old, and to my knowledge CEDA is the first and only organization in Minnesota that has successfully authored two such applications; this one in Stewartville and another in Harmony earlier this year.”

Article by: Cathy Enerson

City Council and EDA board members and Preston’s city staff met at the new NW Industrial Park to recognize the City of Preston’s second, 2014 business public infrastructure grant project and the ground breaking for Bluff Country Manufacturing. Department of Employment and Economic Development (DEED)’s business development infrastructure grant program (BDPI), was used in conjunction with tax increment financing, and annexation to expand, and or develop three businesses in Preston. The City received a $350,000 grant for the Industrial park, and another $137,000 BDPI grant to assist with Preston Dairy and Farm’s 4.5 million dollar expansion. Preston Dairy and Farm is currently constructing phase three of their 2014, three phase expansion project. Their project is located just north of the new industrial park along highways 52 and 16. The Preston Dairy and Farm project retains 16 area jobs, the firm plans to add two more positions. Each BDPI grant provides 50% of the public infrastructure cost.

Six acres of hay ground along highway 52 in Preston, formally owned by Robert Doherty, was purchased by the EDA to create three industrial lots at the park. Two of the lots were spoken for, one by Rockny Moger of Bluff Country Manufacturing, who recently completed their 11,000 square foot facility in December 2014. Bluff Country Manufacturing’s project adds a significant tax base, retains 7 jobs and creates 2 new jobs. JMS Agronomics is the second business going into the park. Jason and his wife Mary are planning to build in 2015. Jason has been in business locally for 15 years. His business is new to the City of Preston and will add two full time jobs, one part-time job, along with adding to the local tax base. The EDA is currently entering into an option agreement for the third lot. “The expansions, new construction and annexation will substantially aid the city’s growth and sustain the city utilities, regional tax base and area employment. Expanding infrastructure provides opportunities for future manufacturing and commercial businesses to continue to grow to the north and west of Preston. There has been a lot of economic activity within a two mile stretch in Preston including, B & B’s renovation and the veteran’s cemetery being built,” said Chuck Aug EDA’s President. Casey’s and Family Dollar have also recently located on highway 52.

Article by: Joya Stetson

Fillmore County held an informational summit on Wednesday, November 19, 2014 for economic development professionals throughout the county.

The event, which was held at the Fillmore County Office Building in Preston, Minnesota, delivered valuable information on project Destination Medical Center as well as regional labor market information.

Speaker John Murphy, representing Mayo Clinic and Destination Medical Center (DMC), shared that over the next 20 years, 6 billion dollars will be invested in the generation of 35,000-40,000 jobs.  According to Murphy, DMC is planning to focus on ensuring Rochester and surrounding areas have affordable and desirable housing for the diverse workforce; increasing the number of hotels, hospitality, retail, arts and culture options in the area; putting an emphasis on sports, recreation, health and wellness; establishing learning opportunities; and retaining organizations with new research and technology in the region.  Murphy also noted the importance of cross-community collaboration during the implementation of DMC.

The Minnesota Department of Employment and Economic Development (DEED) presenters, Mark Schultz and Kevin Kelleher, discussed the low unemployment rates in Minnesota.  Schultz emphasized the importance of wages and their role in the retention of labor. Schultz conveyed that methods of acquiring and retaining labor may include the following ideas: ensuring competitive wages, looking at offering flexible scheduling, more consistently and appropriately motivating employees, and holding hiring events for face to face interaction with employers. Kelleher also reviewed information on available incentive programs through the State of Minnesota.

“The summit was a really successful means of communicating important information to the county and getting economic development professionals together for meaningful discussions.  Fillmore County plans on facilitating more of these types of events in the future,” said Cris Gastner, CEDA Senior Vice President and EDA Director for Fillmore County.

Article by: Cris Gastner

The City of St. Charles Economic Development Authority reported that over $660,000 of private investment was made as a result of the Commercial Rehabilitation Program that provided a small capital investment through a 5 year fixed loan program.

“I think the response exceeded all of our expectations,” stated Cris Gastner, CEDA Senior Vice President and St. Charles Economic Development Director. The program’s design allowed St. Charles commercial businesses to access up to $10,000 or 50 percent of the total project cost on a 5-year forgivable loan basis. The program which was designed and first started the middle of 2013 was made possible through the dollars received as part of the Rochester Sales Tax dollars. The EDA initially invested $100,000 into the program and while it was slow to start, it was eventually increased to $150,000 total funds available.

“Over 15 different businesses within St. Charles requested the funds and has resulted in many of the improvements that residents are seeing not only within our downtown mainstreet corridor, but also along Hwy 14 and Hwy 74 north,” Gastner stated. The goal of the EDA, City Council and staff was to help promote the investment into those areas because it is a critical part of the infrastructure of our community, Gastner relayed.

In addition, it was reported that 14 new home building permits have been issued because of the EDA and City Council’s decision to utilize Rochester Sales Tax revenues to reimburse home buyers for their 2014-2015 new home building permit fees. This program has helped to increase the number of building permits and resulted in an average construction home price of $221,000.