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(; Il A N'I'S continuedJ?om pa£e I
<br />
<br />The City of Payne.~'ville has been awarded $250,000 to
<br />
<br /> assist Wet Jet International on the start-up of a manu-
<br /> lacturing facility for the production of Watermobiles. Wet
<br />IJet's watermobilc, called the Shark, is similar to a snow-
<br />~nobile, only to be used on the water. The company
<br />originally came from North Dakota and had considered
<br />Iseveral Minnesota and South Dakota communities for their
<br />operation. The grant will create 40 new jobs, all for Iow to
<br />moderate income persons, and will leverage $250,000 in
<br />private investment, for a ratio of i to I.
<br />
<br /> ]he of Stephen has been awarded $75,000 to assist
<br /> City
<br /> 'i'crog Manufacturing, inc. The funds will fill a financing gap
<br /> lefl through inadequate bank financing for the expansion of
<br />lits vegetable and potato harvester manufacturing parts
<br />operation. Established in 1972, and located in St.ephen since
<br />1977, 3'erog has nationwide markets for its vegetable and
<br />potato harvesting equipment. While the depressed agricul-
<br />Irural market dominates the economy of Stephen, Terog has
<br />served as an increasing source of employment for the area's
<br />labor force, lhe grant will create 10jobs, all to be for Iow to
<br />Imoderate income persons. In addition, the loan will leverage
<br />$135,000 in private investment, for a ratio of 1.86 to i.
<br /> The City of Cromwell has been awarded $32,000 to
<br /> provide a $30,000 loan to the Cromwell Home Center to
<br />iassist the business in expanding its wood products operation.
<br />Since its beginning in 1981, the business has proven itself to
<br />be quite successful--due to the dedication of the owner as
<br />Iwell as the quality workmanship shown in its products. The
<br />population of Cromwell is small, only 239, and it has few
<br />opportunities for employment or economic growth, its two
<br />
<br /> largest employers are the school system and the nursing
<br /> home. The largest manufacturing operation in the communi-
<br /> ty is Cromwell Home Center with 9 employees. With state
<br /> assistance at least four full time equivalent jobs will be
<br />iadded. Though the number of jobs is small, it will be
<br />equivalent in impact to over 3,700 new jobs at one time for
<br />the City of St. Paul. All of the fou,r new jobs will be for low to
<br />tnoderate income persons, and' i'he project will leverage
<br />$32,000 in private investment, for a ratio of ! to 1.
<br />
<br /> l'be City of Minneota has been awarded $87,000 to assist
<br /> Superior Truss, Inc., a manufacturer of wooden floor and
<br /> roof trusses for manufactured housing and conventional
<br /> buildings and houses. The project consists of the acquisition
<br /> of the company's current building by the City, construction
<br /> of a larger building and the acquisition of new machinery
<br /> and equipment. The owner of the company had previously
<br /> been approached by a South Dakota city with an offer to
<br /> relocate there. The economy in Minneota is primarily based
<br /> on agri-business, and due to recent downturns in the
<br /> agricultural market, at least 6 businesses have been lost
<br /> during the last three years. The grant will create and/or
<br /> retain 34 jobs, 32 of which will be for low to moderate
<br /> income persons. In addition, the grant will leverage $173,000
<br /> in private investment, for a ratio of 2 to I.
<br />
<br /> Clearwater County has been awarded $250,000 to assist
<br /> I)ynamic Resources, Inc., a newly formed corporation, on
<br /> the start-up of a facility which will process chicken manure
<br /> into livestock feed products. Dynamic Resources, Inc. is
<br /> owned by Norm Nelson, who also owns Nelson Quality Eggs
<br /> which is under a stipulation agreement with MPCA to
<br /> improve its methods of disposing of approximately 40 tons
<br />
<br /> of chicken manure each week. Current disposal methods of
<br /> land spreading in such large quantities is threatening the
<br /> surface and underground water supplies as well as blighting
<br /> the landscape. The project consists of the construction o{ a
<br /> pelletizing building, a drying buidling, and acquisition and
<br /> installation of equipment. Clearwater County is one of the
<br /> most economically depressed areas in the state and if this
<br /> project is successful, 18 of the 27 new jobs created by
<br /> Dynamic Resources, Inc., will be for LM! persons, and 80
<br /> jobs will be retained by Nelson Quality Eggs. The grant will
<br /> leverage $457,121 in private investments, for a ratio of i.86
<br /> to I.
<br /> The City of Floodwoodwas awarded $177,500 to be used
<br /> for the start-up of Mat, Inc., which was incorporated in
<br /> Minnesota in 1984. Mat, inc., is a second generation
<br /> company in Floodwood using the machinery and technology
<br /> developed by Van Dresser Industries. Van Dresser Industries
<br /> developed and patented the process and the equipment to
<br /> manufacture insulation material used for automobiles. Mat,
<br /> Inc, will purchase machinery and equipment from Van
<br /> Dresser to manufacture and market new products, consisting
<br /> of 45% peat, 45% wood fibers, and 10% polypropane for
<br /> different types of mat materials. This project will create 30
<br /> new jobs in 2 years and will leverage $275,000 of private
<br /> financing.
<br />
<br /> To date, 30 ERG grant awards totaling $5.3 million in
<br /> state funds have created or retained more than 2,000 private
<br /> jobs and leveraged !nearly $63 million of private financing.
<br /> Similarly, 6 Set-Aside grant awards totaling $871,500 in
<br /> federal funds have created or retained 145jobs and leverage
<br /> more than $1.3 million of private financing. See the map on
<br />.{ .. page 4, for the location of ali 30 ERG grants and the 6 FY86
<br /> SCDP grants.
<br />
<br /> Minnesota Star City
<br />"", Commissioner's Luncheon Set
<br /> -The Minnesota Department of Energy and Economic
<br /> Development's Commissioner's Luncheon is scheduled for
<br /> Wednesday, June 5 at the St. Paul Ramada Inn, 1870 Old
<br /> Hudson Road. The agenda is comprehensive and will enable
<br /> participants to review legislative changes impacting economic
<br /> development. All Star City participants were asked to attend
<br /> and especially Aurora/Hoyt Lakes/White Township and
<br /> Apple Valley who have just completed the Star City
<br /> program. A contribution of $6.00 per person is requested to
<br /> minimize the cost of the lunch.
<br /> The agenda includes a question and answer session with
<br /> Commissioner Mark Dayton; speeches by Deputy Commis-
<br /> sioners Kathleen Callahan and Ed Meyer; as well as speeches
<br /> by a number of noted developers and prominent business
<br /> executives.
<br /> For information contact Harry Rosefelt, Director, Develop-
<br /> ment Resources Division, DEED, (612) 296-5010.
<br />
<br />CAPITAL VENTURE continued from page I
<br />
<br />Iron to assist the company in upgrading its production
<br />facilities, acquiring equipment and providing working cap-
<br />ital. The company is a start-up operation producing hockey
<br />sticks and canoe paddles. The project will create 10 new jobs.
<br />
<br /> The $42,500 remaining for CDC venture capital grants
<br />must be allocated by June 30, 1985. If you have questions or
<br />would like further information, contact Patrick R. Connoy
<br />at (612) 297-1304.
<br />
<br />
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