MN: DEED Approves $1.51 million in Job Creation Funding for Six Businesses
17 Dec, 2018
The Minnesota Department of Employment and Economic Development (DEED) approved grants totaling more than $1.51 million in funding for three business in Greater Minnesota and three in the Metro area.
The Minnesota Job Creation Fund awarded funding for Pinnacle Climate Technologies Inc., Alula, Windings Inc., Hydra-Flex Inc., New Plastics Plus Inc. and Bix Produce Company.
“Supporting business expansions like these is exactly what the Minnesota Job Creation Fund is designed to do,” said Governor Mark Dayton. “I congratulate these Minnesota businesses and their hard-working employees for their success. We are grateful for their contributions to our economy and for the 381 new jobs these expansions will create.”
“These investments grow our local economies and build a strong basis for future success,” said DEED Commissioner Shawntera Hardy. “With support of the Job Creation Fund, these businesses are investing over $48 million in the State of Minnesota.”
The Job Creation Fund was created by Gov. Mark Dayton in 2013. The fund is a pay-for-performance program that provides funding to businesses after they meet certain criteria, like minimum requirements for job creation and private investments. To be eligible in the Twin Cities metro businesses must create at least 10 full-time jobs and invest at least $500,000. To be eligible in Greater Minnesota, businesses must create at least five full-time jobs and invest at least $250,000.
Since the launch of the Job Creation Fund in January of 2014, Minnesota has awarded more than $42 million to 92 businesses and created over 5,800 jobs.
The following is a breakdown of the latest funding round:
Windings Inc., New Ulm, $175,000: Windings Inc. manufactures specialty electrical motors, generators and the sub-assemblies for these types of products. Windings plans to purchase a 60,000-square-foot facility in New Ulm. Then they will renovate and add an additional 10,000 square feet to the building. The total project will cost $7,900,000 and Windings expects to create 20 jobs within the next three years with an average wage of $21.60 per hour.
Pinnacle Climate Technologies Inc., Sauk Rapids, $162,500: Pinnacle manufactures and distributes industrial construction and residential heating and ventilation products. Pinnacle plans to relocate to a newly renovated 122,000-square-foot facility in Sauk Rapids. The total project cost is $1,200,000. The company expects to create 10 jobs within three years.
New Plastics Plus Inc., St. Michael, $255,000: New Plastics Plus is a certified ISO9001/2015 custom thermoform manufacture. For the project they will construct a new 91,000-square-foot facility in St. Michael. The total project costs is estimated to be around $7.2 million. The company expects to create 10 jobs within the next three years with an average wage of $18.83 per hour.
Hydra-Flex Inc., Savage, $400,000: Hydra-Flex is a company that specializes in chemical dispensing and cleaning nozzles for vehicle care, industrial and hydro-excavating markets. The company plans to move to Savage and lease an 80,000-square-foot building. The total project cost is $2,016,442. The company expects to create 70 jobs within 4 years at an average wage of $26.35 per hour.
Alula, St. Paul, $175,000: Alula is a home automation and security technology company that offers hardware and software for professional security alarm dealers. Alula will be moving to Midway area of St. Paul and renovate an existing facility. The total project cost is $1,795,788. The company expects to create 135 jobs within the next three years with an average wage of $33.82 per hour.
Bix Produce Company, Little Canada, $350,000: Bix Produce Company is a produce delivery company. The company is working to acquire a 207,000-square-foot facility in Little Canada as part of a planned expansion. The total project cost is planned up to $25,725,000. The company expects to create 129 jobs within a four-year period with the average wage being $15.69 per 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.