minnesota 2016 business expansion projects · pdf file$2.4 billion 3.9 million note: ... cnbc...

M I N N E S O T A

651-259-7432 [email protected]

mn.gov/deed/business

2016BUSINESS EXPANSION PROJECTS

mailto:Economic.Development%40state.mn.us%20?subject=

http://mn.gov/deed/business

BY THE NUMBERS

PROJECTS:

NEW JOBS: RETAINED JOBS:

NEW INVESTMENT:

NEW SQUARE FEET:

business expansion projects2016 Minnesota

104

7,057 381

$2.4Billion

3.9 Million

Note: Some projects did not have publicly available data on new jobs, square footage or investment.

Minnesota Department of Employment and Economic Development 1

MINNESOTA PROGRAMS ENCOURAGE BUSINESS GROWTHWhen it comes to business-friendly, it’s hard to beat Minnesota.

CNBC last year ranked Minnesota fourth overall in its 2016 list of America’s Top States for Businesses, citing the state’s quality of life (second), education (second), infrastructure (fifth) and technology and innovation (ninth).

The state’s wealth of programs also is driving job and business growth. One of the most successful initiatives is the Job Creation Fund, which was first proposed by Gov. Mark Dayton in 2013. The program provides grants to businesses in exchange for job creation and investment commitments.

Since the program was launched more than three years ago, the state has awarded $33.3 million for 75 business expansion projects in Minnesota. Companies, in turn, have committed to creating nearly 4,600 full-time jobs and investing more than $1 billion.

Job Creation Fund projects in recent years include the following:

� Smiths Medical, a medical device manufacturer that committed to investing $7.54 million and creating 162 jobs at a new headquarters in Plymouth.

� Capital Safety, a maker of fall protection equipment that announced an $11.75 million expansion that will create 100 jobs at its operations in Red Wing.

� Andersen Corp., a window and door maker that invested $56 million and created 300 high-paying jobs in an expansion of its manufacturing operations in Bayport and Cottage Grove.

Another popular program is the Minnesota Investment Fund, which provides loans – many of them forgivable – that businesses can use for improving their operations and hiring additional workers. The program awarded 19 loans last year that resulted in more than 1,500 new jobs in Minnesota.

One of the state’s newest and most promising initiatives is the Minnesota Emerging Entrepreneur Program, which was launched in 2016 to provide loans to new and existing businesses owned by communities of color, low-income people, women, veterans and people with disabilities.

“These funds are designed to unlock the creative energy of entrepreneurs across our great state. For people who dare to dream, the program makes the impossible possible regardless of where they live,” said Shawntera Hardy, commissioner of the Minnesota Department of Employment and Economic Development.

With its strong workforce, positive business culture and initiatives that encourage growth, Minnesota is a national model for building an economy that works. Thanks to leadership and foresight, the state is positioned to succeed well into the future.

2016 Minnesota Business Expansion Projects 2

“Minnesota’s clean energy industry supports more than 54,000 jobs and is expected to add 2,300 new jobs this year. Strategic partnerships between state government and innovative companies like Aki show how renewable energy can drive innovation and economic opportunity in every corner of Minnesota.”

— Tina SmithLieutenant Governor of Minnesota

AkiC A S S L A K EAki, a tribally-chartered corporation on the Leech Lake Band of Ojibwe Reservation in northern Minnesota, said it will open a facility in Cass Lake that will employ up to nine workers to assemble and test LED streetlights. Aki purchased a 60 percent stake in Saga Solar – a St. Paul-based solar photovoltaic panel manufacturer – and moved the operation to Cass Lake. Aki will be the country’s first solar manufacturer on tribal lands.

Aura Fabricators Inc.F E R G U S FA L L SDalton-based manufacturer Aura Fabricators Inc. invested $3.8 million for a new manufacturing facility in Fergus Falls. The company, which specializes in making ornamental railings, overhead signs, trusses, steel bridge components and other miscellaneous metal products, said it will open the new facility to relieve overcrowding at its Dalton plant and to accommodate additional workers. The company plans to hire 14 new employees at wages averaging $20.50 an hour and to relocate seven to eight current workers to the new site.

BiomericsB R O O K LY N PA R KBiomerics, a contract medical device manufacturer, said it will invest $6.5 million and create 120 high-paying jobs at a new facility in Brooklyn Park. The company, which is based in Salt Lake City, plans to lease 50,221 square feet in a new build-to-suit facility and relocate 45 current workers from an existing operation in Rogers. The new building will contain engineering offices, research and development labs, and cleanroom manufacturing operations. The company said it will hire 120 people within three years at the new plant at hourly wages averaging $32.24.




Corvida MedicalE A G A NMedical device startup Corvida Medical said it will invest $3.1 million and create 17 high-paying jobs in Eagan. The company, headquartered in Coralville, Iowa, will produce closed-system drug transfer products at a manufacturing facility in the St. Paul suburb. Closed-system drug transfer devices protect health care workers when they prepare and administer chemotherapy medications and other hazardous drugs. The 17 new jobs will pay wages and benefits that average $41.23 an hour.

Envirolastech Inc.S T. C H A R L E SRecycled materials manufacturer Envirolastech Inc. will invest $3 million and create 26 jobs at its first production facility in St. Charles. The Rochester-based startup, which recycles plastics and glass into building materials, said it will invest $2 million for machinery and equipment and $1 million for building an 18,000-square-foot manufacturing facility in the Chattanooga Innovation Park in St. Charles. The new jobs will be created over the next two years and pay wages averaging $15.47 an hour.

ERCW I L L M A RFlorida-based Enhanced Resource Centers (ERC) announced plans to lease the former Kandiyohi Power Cooperative building in Willmar and convert it into a call center. The company said it will create up to 238 new positions at the facility, paying wages that average $14.19 an hour, and invest $2 million in building improvements over the next three years. ERC, based in Jacksonville, Fla., specializes in customer experience management, which includes debt recovery, corporate outsourcing and market research.ERC has 2,000 employees at seven locations worldwide.


project snapshot: u.s. bank2016 Minnesota Business Expansion Projects

“We selected our home market for our new state-of-the-art technology center because the state of Minnesota shares our commitment to customer care and information protection. This new center will employ highly advanced and converged automated infrastructure for our digital and computer needs.”

— Jeff von Gillern, Vice chairman of technology and operations services for U.S. Bank

Company: U.S. BankHeadquarters: MinneapolisIndustry: BankingInvestment: $250 millionJobs: 18 positions paying wages averaging $80,000 a year

Minnesota and data centers go hand in hand. That was underscored when U.S. Bank announced plans last year to build a $250 million data center in Chaska, located about 30 miles southwest of Minneapolis.

The 56,000-square-foot project will be the fourth data center in the Carver County community and 25th new or refurbished data center to be completed in Minnesota since 2012. Those centers represent a total capital investment of $1.8 billion and 2.2 billion square feet of space.

Nearly 90 percent of the facilities are in the Twin Cities, which ranks eighth among the nation’s large metropolitan areas for the size of its data processing workforce.

The decision to build a data center in its home state made perfect sense for Minneapolis-based U.S. Bank, the fifth-largest commercial bank in the country. “This is our home market, so we wanted to be here,” said bank spokesman Dana Ripley.

Other factors were at work as well. Minnesota’s data center tax incentive program has encouraged many data center projects in the state. Qualifying companies can receive 20-year sales tax exemptions on computers and servers, cooling and energy equipment, energy use and software. They also pay no property taxes for the life of the project.

These and other tax exemptions have created an extremely favorable climate for data centers in the state.

Speaking of climate, Minnesota’s weather is another selling point for the industry. Data centers need to be up and running around the clock. Our northern climate allows for more than 300 days of free cooling annually.

It all adds up to a positive atmosphere for data centers and explains why U.S. Bank last year became the latest in a flurry of projects in the state.



Arctic CatS T. C L O U DArctic Cat, which manufactures snowmobiles and all-terrain vehicles, announced plans to invest nearly $7 million in a two-phase expansion of its facilities in St. Cloud. The company said it will create at least 50 new jobs that pay wages averaging about $24 per hour in the second phase of the project, as well as retain 51 existing full-time positions. The company was founded in 1960 by Roseau native Edgar Hetteen, who is considered the grandfather of the snowmobile industry.

Hearth & Home TechnologiesL A K E C I T YHearth & Home Technologies, the largest manufacturer and supplier of fireplaces, stoves and hearth products in the world, said it will add 37 jobs as part of a $1.45 million expansion of its manufacturing facilities in Lake City. The Lakeville-based company plans to convert 20,000 square feet of warehouse space in Lake City into an engineering lab, offices and testing space. The company also plans to increase production with additional work shifts.

Industrial LouversD E L A N ODelano manufacturer Industrial Louvers Inc. is planning a $2 million office expansion that will accommodate future staff growth. The company said it will add 11 employees in the next two years. The company, which produces architectural metal products, said the project involves adding 3,700 square feet of new office space, renovating existing office areas, and upgrading the heating and ventilation system. The new jobs will pay wages averaging $21.15 an hour.


Minnesota Cup

Minnesota Cup: Rewarding Bright Ideas

Nothing says innovation like the Minnesota Cup. The largest startup competition in the country offers more than $400,000 in prize money annually, along with mentoring, training and support to Minnesota entrepreneurs with the latest bright idea. More than 1,500 teams entered the 2016 competition.

Awards are presented in several categories, but the grand prize winner last year was StemoniX, a Minneapolis company that conducts stem cell-based research and drug screening. Medical experts hope it will lead to a new era of drug discovery and personalized medicine. The company is revolutionizing the production, growth and manufacture of human heart and brain cells for drug toxicity and efficacy testing.

For company co-founder Ping Yeh, the mission of StemoniX’s is deeply personal. After he was diagnosed with Hodgkins lymphoma in 2012, he began a treatment that was so cardiotoxic that doctors feared it would kill him.

That inspired him to use his nanotechnology knowledge and problem-solving ability to find ways to test powerful drugs outside the body, making sure they wouldn’t damage the heart and other vital organs.

Yeh said winning the Minnesota Cup was a dream – something that was hard to believe at first. “We have the opportunity for so much good to emerge from my own cancer experience, and look forward to continuing to challenge the status quo in health care to make breakthrough changes in the industry.”

StemoniX won in the Life Science/Health IT category en route to capturing the Minnesota Cup grand prize.

The following were other category winners:

Energy/Clean Tech/Water: Activated Research Co.Food/Ag/Beverage: SelfEco GardenGeneral: Berd SpokesHigh Tech: VugoSocial Entrepreneurship: AsiyaStudent: Minnealloy MagneticsYouth: ExpressionMed



KerryR O C H E S T E RFood ingredients company Kerry announced an $18.1 million expansion of its manufacturing facility in Rochester – the first phase of a larger facility expansion project that will cost $28.6 million. The company, which makes ingredients for the food, beverage and pharmaceutical industries, plans to build a 5,300-square-foot addition that will hold a new spray dryer and two 10,000-gallon dryer feed tanks. Kerry is owned by Kerry Group PLC, an Ireland-based food ingredients company with 23,000 employees and more than 100 manufacturing locations worldwide.

Life FitnessO WATO N N AExercise equipment manufacturer Life Fitness plans to add 110 jobs as part of a $22.9 million expansion of its factory in Owatonna. The Rosemont, Ill., company said it will expand the facility by 150,000 square feet to make room for increased production of Cybex exercise equipment. Company executives said they will hire specialists in welding, fabrication, powder coat painting and assembly. Wages will average $18.37 an hour.

Microbiologics Inc.S T. C L O U DMicrobiologics Inc., a worldwide supplier of microorganisms and lab-testing products, said it will build a 30,000-square-foot addition and create 35 jobs in an expansion and renovation of its headquarters in St. Cloud. The company plans to invest $7.24 million on the project, which will include new research and development laboratories and production facilities. New offices for sales and marketing and for administrative work also are planned. The new jobs will pay wages averaging $21.53 an hour.

Ovative/groupM I N N E A P O L I SOvative/group, a fast-growing digital marketing, analytics and measurement firm, will invest $2.1 million and create 100 jobs when it expands to a new building in Minneapolis. The company, currently located at 701 Washington Ave. N. in Minneapolis, said it will invest in leaseholder improvements when it moves its offices into 30,000 square feet of space at a new multi-tenant building. The new high-paying jobs will be created over the next three years.


Company: Kraft HeinzHeadquarters: Pittsburgh and ChicagoIndustry: Food productsInvestment: $100 millionJobs: 50

Velveeta is coming back to New Ulm. Kraft Heinz, the international food giant that owns the uniquely American cheese brand, announced plans last year to invest $100 million and add 50 jobs in an expansion of its production facilities in the south-central Minnesota city of 13,500.

Company officials said the expansion will enable them to increase production of consumer-sized Velveeta in half-pound, 1-pound and 2-pound blocks at the plant. The iconic brand was manufactured in New Ulm in the past but was moved to another facility in Illinois in 2012.

The expansion was welcome news in New Ulm, a community about 75 miles south of the Twin Cities that has been home to a Kraft manufacturing plant for more than 60 years. Given recent cutbacks at the company, many locals feared the plant might be in danger of closing.

Instead, Kraft Heinz decided to expand the facility, with assistance from DEED’s Minnesota Investment Fund. The agency awarded the company a $450,000 loan that will be forgiven once the company meets its hiring and investment commitments. The city of New Ulm also provided support for the project.

Local officials were quick to credit the quality of the local workforce for the company decision to expand in New Ulm. The plant is the third-largest employer in town (behind a 3M factory and the hospital), employing 400 people.

“The expansion is a tribute to the strong work ethic and dedication of the New Ulm workforce, both past and present,” said Matt Hippe, plant manager in New Ulm.

The expansion is expected to be completed by the end of the year. The new jobs will pay starting salaries averaging $22.16 an hour.

project snapshot: kraft heinz2016 Minnesota Business Expansion Projects

“The Kraft Heinz food manufacturing plant has been an institution in New Ulm for more than 60 years. We’re pleased that the company is making a major jobs and facilities investment that will improve their operation for years to come in the city.”

— Shawntera HardyCommissioner of DEED



Pace IndustriesM A P L E L A K EArkansas-based Pace Industries announced a $6.3 million expansion of its manufacturing facility in Maple Lake. The company, which specializes in die casting, said it will add 60,000 square feet at the operation and make adjustments to an existing structure. The expansion will result in 20 new jobs. Pace, which is based in Fayetteville, Ark., was founded in 1970 as a small die-casting facility. The company today is one of the largest and most diversified die-casting businesses in the world.

Stern Rubber Co.A I T K I NStaples-based Stern Rubber Co. announced plans to add 10 jobs and double the size of a manufacturing facility in Aitkin. The company said it will invest $1.26 million to expand its Aitkin plant from 10,000 square feet to 20,000 square feet. Stern will use the extra space to create additional sizes of gate valves for municipal water systems. The new jobs will pay wages that average $13.50 an hour.

Swan Machine Inc.G R A N D R A P I D SPerham-based Swan Machine Inc. will create 30 jobs and invest $1.9 million in an expansion. The company, which specializes in building customized precision-machined components, will add 13,000 square feet of manufacturing space at its Grand Rapids operation. The new jobs will be created over the next three years and pay wages averaging $16 an hour. Swan Machine manufactures parts for guns, paint spray equipment, electronic housings, semi-trailers and agricultural equipment. Swan and its sister company, Kit Masters, employ more than 150 people in Perham and Grand Rapids.

Wagner SprayTechOT S E G OWagner SprayTech, a Plymouth company that specializes in manufacturing and marketing paint sprayers, applicators and decorating products, announced plans to build a 270,000-square-foot distribution facility in Otsego. The $15 million expansion will result in 12 new jobs.

The company also unveiled plans for an $8.44 million renovation and addition at its Plymouth headquarters. That project, scheduled for completion in fall 2018, was expected to create 66 new jobs within three years.

Economic Development DivisionMinnesota Department of Employment and Economic Development332 Minnesota Street, Suite E200 • St. Paul, MN 55101

mn.gov/deed/business

2016 MINNESOTA BUSINESS EXPANSION PROJECTSAccount Name City Industry Jobs Investment Ability Network Minneapolis Professional Services 75 Aki Development Cass Lake Manufacturing 9

Amazon Shakopee Warehousing/Distribution 1,100 $250,000,000

Anchor Glass Container Corp Shakopee Manufacturing 300*

Anderson Trucking Service Inc St Cloud Transportation 200

Anytime Fitness Hastings Arts/Entertainment/RecArcserve Eden Prairie Information 100 Arctic Cat Inc St Cloud Manufacturing 50 $6,900,000 Aura Fabricators Fergus Falls Manufacturing 14 $3,800,000 Avenue 81 Minneapolis Professional Services 120 $1,000,000 Bell International Laboratories Minneapolis Manufacturing 50 $10,000,000

Biomerics Brooklyn Park Manufacturing 120 $6,500,000 Blu Dot Rogers ManufacturingClimatech Hopkins Manufacturing 30 $6,600,000 CoCo Minneapolis Real Estate & RentalComcast Cable St Paul Information 400 Corvida Medical Eagan Manufacturing 17 $3,100,000 DairiConcepts Dalbo Manufacturing 19 Daugherty Business Solutions Bloomington Professional Services

DealerTeamwork Eden Prairie Information 30 Delaget St Louis Park InformationDero Bike Racks Fridley ManufacturingDesserts Holdings St Paul Professional Services 20 $500,000 Enhanced Resource Centers Willmar Professional Services 238 $2,000,000 Envirolastech St Charles Manufacturing 26 $3,000,000 Everlast Climbing Industries Fridley ManufacturingFair State Brewing Cooperative Minneapolis Manufacturing 5

Faribault Foods Inc Faribault Manufacturing 125 $100,000,000 Federal Premium Ammunition Anoka Manufacturing 50 $33,900,000

Flint Hills Resources Rosemount Manufacturing $750,000,000 FOG Firearems and Cartridge Co Walker Manufacturing 38 $2,700,000

Forsman Farms Howard Lake Agriculture 40 Four51 Inc Eden Prairie Information 200 $5,000,000 Freudenberg Medical Minimally Invasive Solutions

Minnetonka Manufacturing 15

FRSecure Waconia Information 18 $775,000 Gold'N Plump Cold Spring Manufacturing $45,000,000 Greatbatch Medical Brooklyn Park Manufacturing 50 Green Nature Cycle Brainerd Manufacturing 40 Hearth & Home Technologies Lake City Manufacturing 37 $1,450,000

Hennepin Healthcare System Minneapolis Health Care/Social Assist $220,000,000

Hocking International Laboratories Pipestone Manufacturing 36 $5,850,000

Impedimed Bloomington Manufacturing 8 Incubology Oakdale Professional ServicesIndustrial Louvers Delano Manufacturing 11 $2,000,000 Innovative Power Systems Minneapolis Construction 12 Itasca Technology Minnetonka Manufacturing 16 $1,000,000 Itechra Roseville Information 7 Jack Link's Minneapolis Manufacturing 85 $13,900,000

Account Name City Industry Jobs Investment Kerry Bio-Science Rochester Manufacturing 81* $28,600,000 KMDA Inc Bovey Manufacturing $1,560,000 Kraft Heinz Foods New Ulm Manufacturing 50 $100,000,000 Kraus-Anderson Cos Inc Minneapolis Construction 150 Land O'Lakes Inc Arden Hills Manufacturing 200 $80,000,000 Life Fitness Ramsey Manufacturing 110 $22,900,000 Long Prairie Packing Long Prairie Manufacturing 62 Madison Equities St Paul Real Estate & Rental $12,000,000

Mann Lake Brainerd Manufacturing 25

Matisia Minneapolis Professional Services 30 Mayo Clinic Health System Rochester Health Care/Social Assist $92,700,000 Medieval Metalwerx Mayer Manufacturing 8 $2,000,000 Medtronic Inc Plymouth ManufacturingMetro Mold & Design (MMD) Brooklyn Park Manufacturing 40

Microbiologics St Cloud Manufacturing 35 $7,240,000 Minnesota Diversified Industries Cohasset Manufacturing 20 $1,300,000

Monteris Medical Plymouth Manufacturing 20 Nature's Way Products Minneapolis Manufacturing 30 $500,000 Northland Process Piping Mora Manufacturing 60 Nott Co Arden Hills Manufacturing 18 $6,500,000 Novu St Louis Park Information 85 $750,000 Ovative/group Minneapolis Professional Services 100 $2,100,000 Pace Industries Maple Lake Manufacturing 20 $6,300,000 Pioneer Metal Finishing New Hope Manufacturing 20 $10,300,000 PlanSource Golden Valley Information 11 Premier Marine Inc Wyoming Manufacturing 35 Prime Pork Windom Agriculture 300 $25,000,000 Resonetics Plymouth ManufacturingRetraceHealth Minneapolis Health Care/Social Assist $1,000,000 rms Company Coon Rapids Manufacturing 100 $16,900,000 Sil-Pro Industries Delano Manufacturing 104 $11,000,000 Silt Sock Foley ManufacturingStein Industries Inc Brooklyn Park Manufacturing $7,380,000 Stern Rubber Aitkin Manufacturing 10 $1,260,000 Stickney Hill Dairy Kimball Agriculture 10 $2,500,000 Streamworks Arden Hills Professional Services 25 $8,500,000 Surly Brewing Co Brooklyn Center ManufacturingSwan Machine Grand Rapids Manufacturing 30 $1,900,000 Takeda Oncology Brooklyn Park Manufacturing 195 $70,000,000 Talon Innovations Sauk Rapids Manufacturing 50 $1,000,000 Target Corp Minneapolis Retail 1,000 Total Expert Inc Eden Prairie Information 22 Total Quality Logistics Minneapolis Transportation 50 $1,000,000 Treasure Island Resort & Casino Welch Arts/Entertainment/Rec 150 $86,000,000

Tristar Power Solutions Edina Utilities 100 Uponor Corporation Apple Valley Manufacturing 130 US Bank Chaska Finance & Insurance 18 $250,000,000 Valley Natural Meats Northfield Manufacturing $2,000,000 Wagner Spray Tech Corporation Plymouth Manufacturing 78 $23,440,000

Wellington Management St Paul Real Estate & Rental $10,000,000 When I Work St Paul Information 115 Zierke Built Manufacturing Inc Winnebago Manufacturing 30 $500,000

Zipnosis Minneapolis InformationTotal 7,057 $2,369,105,000

*Retained

Note: Some projects did not have publicly available data on new jobs, square footage or investment.

http://mn.gov/deed/business

minnesota 2016 business expansion projects · pdf file$2.4 billion 3.9 million note: ... cnbc...

Documents