Job Creation Fund award will assist company expansion, create 12 jobs
North Star Mutual Insurance Company, headquartered in Cottonwood, Minn., is expanding due to an increase in services to markets throughout the Midwest. The company announced plans to invest $9.5 million and will create 12 new full-time permanent jobs.
Since the 1920s, North Star Mutual has provided property and casualty insurance to protect families and small business owners from financial disaster. The company specializes in farm, home, auto and small business insurance.
To assist the expansion, the Minnesota Department of Employment and Economic Development (DEED) will award North Star Mutual $620,000 from the Minnesota Job Creation Fund if the company meets performance goals.
The fund was first proposed by Governor Mark Dayton last year and was among $24 million in business incentives that were approved in the 2013 legislative session. Officials said the funding was a necessary investment that will help the state compete for new jobs and businesses.
“North Star Mutual’s expansion is great news for Cottonwood. It is great news for Minnesota,” said Governor Dayton. “This is the best news for the 12 Minnesotans who will go to work in new, good-paying jobs because of this development. I thank North Star Mutual Insurance Company for this important expansion.”
“While North Star Mutual Insurance has served its growing client base in the Midwest, it has continued to invest in Minnesota for nearly 100 years,” added DEED Commissioner Katie Clark Sieben. “We were proud to assist the company in its expansion, and support a dozen new jobs at their headquarters in Cottonwood, Minnesota, which is significant job growth for this community.”
North Star Mutual partners with over 900 independent agencies in Minnesota, Nebraska, North Dakota, South Dakota, Iowa and Oklahoma.
The Minnesota Job Creation Fund is a new, pay-for-performance program that provides up to $1 million to businesses after they meet certain criteria, including minimum requirements for job creation and private investments. Under the program, businesses must create at least 10 full-time jobs and invest at least $500,000 to be eligible for financial assistance.
The program is available to businesses engaged in manufacturing, warehousing, distribution, technology and other eligible activities. Companies must work with the local government (city, county or township) where a project is located to apply to DEED to receive designation as a Job Creation Fund business.