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ltOUSIN
<br />
<br />and COMMUNITY
<br /> DEVELOPMENT
<br />
<br />BRIE
<br />
<br />FS
<br />
<br />I'olume I I, Number 7 June, 1985
<br />
<br />I
<br /> Economic Recovery Grants
<br />
<br />DEED Community Development
<br />
<br />land Small Cities Development
<br /> Grants Approved
<br />
<br /> DEED Commissioner Mark Dayton has awarded two
<br /> new state Economic Recovery Grants and six Fddcrai Small
<br /> Cities Development Program (SCDP) Set-Aside grants
<br />Isince March I. The Economic Recovery Grants approved
<br />with thc recommendation of the DEED Community Develop-
<br />mcat Division staff were for the Cities of Brooklyn Park and
<br />Hopkins, bringing the total number of grants awarded under
<br />lthe State Economic Recovery Grant Program since July of
<br />1984 to 30. The six federal SCDP grants were awarded to the
<br />Cities of Paynesville, Stephen, Cromwell, Minneota, Clear-
<br />
<br />iwater County and Floodwood, and are the first to be
<br />awarded under the new FY86 SCDP grant program.
<br /> · he City of Brooklyn Park was awarded $250,000 for the
<br /> relocation of approximately 800 feet of sewer line and
<br />Iconstruction of 800 feet of storm sewer line that will enable
<br />Network Systems to proceed with the construction of a
<br />$3,000,000 office and manufacturing facility. Located in
<br />Brooklyn Park, the Network Systems Corporation designs,
<br />Imanufactures, markets and services high performance data
<br />communications products. The City was previously in
<br />competition with Ireland and South Dakota for the company
<br /> and the 350jobs it provided. The grant will create 450 new
<br />I JaOn~ts, 357 or 79% being for Iow to moderate income persons,
<br /> will leverage $5,497,000 in plivate investment for a ratio
<br /> of 21.9 to 1.
<br /> The City of Hopkins was awarded $159,000 to assist lon
<br /> Electronics on the start-up of a manufacturing facility for
<br /> the production of printed circuitboards and other electronic
<br />Iequipment. The company's major contracts will be with U.S.
<br />government defense contractors; i.e., Honeywell, FMC, etc.,
<br />which will entail production of printed circuitboards for
<br />missile launching systems, aircraft guidance and control
<br />Isystems, and computerized military hardware. An additional
<br />competitive advantage for Ion is its status as a minority-
<br />owned business. Many companies, especially those with
<br />large defense contracts, have either governmental require-
<br />ments and/or corporate commitments to minority purchas-
<br />ing programs. The grant will create 50 new jobs, all for low to
<br />moderate income persons, and leverage $645,000 in private
<br /> linvestment, for a ratio of 4 to 1.
<br />
<br />GRANTS continued on page 3
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<br />Corporation Venture Capital
<br />Funds Available
<br /> As of June 1, the Minnesota Department of Energy and
<br />Economic Development (DEED) still has $42,500 for Com-
<br />munity Development Corporation (CDC) Venture Capital
<br />Grants. Venture Capital Grants are awarded for two different
<br />kinds of projects; Business Ventures and lnfra-structure
<br />Development. Business Venture projects involve partial or
<br />full ownership interests in a profit oriented business and
<br />lnfra-structure Development projects involve the develop-
<br />ment of facilities which are necessary for the development of
<br />business ventures. Projects funded under this program must
<br />show the greatest potential for achievement of the following
<br />goals: ~
<br />· Creation of employment opportunities;
<br />® Maximization of profits;
<br />· Short-term economic impact on the designated com-
<br /> munity;
<br />· Use of non-state funds to complement program funds.
<br />During February and March the Department approved four
<br />grant requests totaling $205,000.
<br />1. $60,000 to the Phillips CDC to assist Phillips Works,
<br />Inc., on the acquisition of lens grinding equipment and the
<br />start-up of a lens grinding operation. The grant was awarded
<br />at a low interest rate, and will create eight jobs for iow and
<br />moderate income persons.
<br />2. $50,000 to the West Bank CDC to assist H&H Foods of
<br />Minneapolis raise additional working capital and acquire
<br />new equipment. The funds will enable the company to
<br />complete its move to larger facilities and increase its
<br />production of several condiments for its ethnic recipes. The
<br />project will create 8.5 new jobs for low and moderate income
<br />persons.
<br />3. $25,000 to the Region Two Development Corporation to
<br />assist the Old World Woodcraft Company, located in
<br />Akeley. The grant will be used by the company to enlarge the
<br />facilities and purchase additional equipment in order to
<br />expand production, increase sales, enter new product lines
<br />and reduce costs. This grant will create 11 new jobs.
<br />4. $70,000 to the Arrowhead Economic Assistance Corpor-
<br />ation for the American Hockey Stick Company of Mountain
<br />
<br />CAPITAL VENTURE continued on page 3
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<br />I IIOUSING AND COMMUNITY DEVELOPMENT BRIEFS is a joint publication of the League of Minnesota Cities, the Department of
<br />
<br />1
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<br />Energy and Economic Development, the Minnesota Housing Finance Agency, and the Minnesota Chapter of the National Association of
<br />llousing and Redevelopment Officials. Prepared by the Department of Energy and Economic Development, 8th Floor, American Center
<br />Bldg., 150 E. Kellogg, St. Paul, MN 55101. Michael Auger, Editor (612) 296-2394. Letters, articles and suggestions from readers are welcome.
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