Funding will support economic development in Barnesville, Cottage Grove, Norwood Young America, and Ranier
5/1/2018 12:00:00 PM
ST. PAUL – Grants totaling more than $560,000 were approved by the Minnesota Department of Employment and Economic Development (DEED) for business expansion projects in four cities.
DEED awarded the funding from its Job Creation Fund for projects in Barnesville, Cottage Grove, Norwood Young America, and Ranier. The grants were approved during the first quarter of 2018. The grants are expected to create 49 new jobs.
"The Job Creation Fund plays an important role not only in job creation but also in enhancing a community's tax base by supporting these investments," said DEED Commissioner Shawntera Hardy. "This program continues to have a proven track record of spurring economic development statewide."
The Job Creation Fund, which was created by Gov. Mark Dayton in 2013, is a pay-for-performance program that provides funding 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 in the Twin Cities metro and create at least five full-time jobs and invest at least $250,000 in Greater Minnesota.
Since the Job Creation Fund was launched in January 2014, DEED has awarded nearly $37 million for 84 business expansion projects in Minnesota. Companies have committed to creating nearly 5,100 full-time jobs and investing more than $1 billion to expand.
The following is a breakdown of the latest funding round:
Stoneridge Software, Inc., Barnesville, $140,000
Stoneridge will invest $725,000 to expand their operations to 75,000 square feet of newly renovated office space in Barnesville, a city of 2,600 people in Clay County, about 25 miles southeast of the Fargo-Moorhead metropolitan area. The company plans to hire seven new employees within two years at wages averaging $42.14 an hour.
Modern Automotive Performance, Cottage Grove, $135,013
Modern Automotive Performance, an automotive products e-commerce retailer based in Cottage Grove, will invest $1.6 million and create 21 jobs in an expansion of its facilities. The company will build a 24,000-square-foot addition that will double its capacity to serve customers and the car community. The new jobs will pay wages averaging $15.67 an hour.
Vickerman Company, Norwood Young America, $110,000
Holiday décor manufacturer and distributor Vickerman Co. will invest $6.9 million and create 11 jobs in an expansion of its storage and distribution center in Norwood Young America. The company plans to add 118,000 square feet at the facility, part of a consolidation of space currently spread across four sites nationally. The new jobs will be created within two years and pay wages averaging $16.36 an hour.
Cantilever Bridge Distillery LLC, Ranier, $175,000
Cantilever Bridge Distillery LLC will invest $5.7 million to build a 14,000-square-foot spirits manufacturing facility in the northern Minnesota community of Ranier, a city of about 145 people, located 3 miles east of International Falls in Koochiching County. Plans call for distilling several types of liquor for regional and international sale. Cantilever anticipates hiring 10 people within three years at salaries averaging $26.96 an hour.
DEED is the state’s principal economic development agency, promoting business recruitment, expansion and retention, workforce development, international trade and community development. For more details about the agency and its services, visit the DEED website or follow us on Twitter.
Upon request, the information in this news release can be made available in alternative
formats for people with disabilities by contacting the DEED Communications Office at 651-259-7161.