It's the Largest Construction Project in City’s History
11/21/2018 10:00:00 AM
A November groundbreaking for Graco – that will expand operations in Rogers, Minn. and add to their workforce – is the largest construction project in the city’s history. Look for a state-of the art training center for distributors and international customers by the end of 2019.
Graco manufactures fluid handling equipment for industrial and commercial applications. The company plans to create 84 jobs over four years and invest $73 million to expand its operations at the David A. Koch Center. The Center, named after the company's former president, CEO and chairman, is the worldwide headquarters for its Contractor Equipment Division.
The project will add 480,000-square-feet to the existing 316,000-square-foot manufacturing, office and product development facility. The new jobs are expected to pay wages that average $21.16 an hour.
Graco considered other US locations but ultimately chose to expand in Rogers. "The company's decision is a testament to the area's talented workforce and access to transportation infrastructure," said DEED Commissioner Shawntera Hardy.
“To say the City of Rogers is excited for the Graco expansion is an understatement. Council and staff have worked hard alongside Graco to help make the project a reality and it will represent the single largest construction project in our city’s history in both size and value,” said Rogers Mayor Rick Ihli, in a prepared release. “We are proud Graco has chosen to expand and invest in Rogers, and we look forward to the partnership with Graco for many years to come.”
The city of Rogers, Hennepin County, and DEED are assisting the company with the project. DEED is supporting the expansion with a $700,000 loan from the Minnesota Investment Fund and an $800,000 grant from the Job Creation Fund. The company will receive the funding after it meets investment and hiring commitments.
The Job Creation Fund, a pay-for-performance program, provides funding to businesses after they meet certain criteria, including minimum requirements for job creation and private investments. 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.
DEED has awarded over $42 million for 92 business expansion projects in Minnesota since the program began in 2014. Companies have committed to creating 5,800 full-time jobs and investing $1.2 billion.
The Minnesota Investment Fund awards loans that businesses can use for improving their operations and hiring additional workers. Last year, the program awarded $10.3 million in financial support to 16 businesses. Those loans resulted in more than 1,175 jobs and attracted $324 million in private funding.