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I I Commissioner Dayton Approves Small Cities Economic Development Grants The following Economic Development Grants were I approved by DEED Commmissioner Mark Dayton in recent weeks. The objectives of the Economic Develop- ment Grant Program are to create jobs, leverage private investment and increase the local tax base. Recent I grants were approved for the Cities of Dent, Cottage Grove. Littlefork, Windom and the White Earth Indian Reservation. Summaries of these grants are as follows. I The City of Dent was awarded $38,500 to assist Dent Woodshavings, a new company formed to supply woodshavings for bedding in turkey barns. The company plans to meet the local needs of the expanding I turkey industry and offer a more cost effective product to those using Canadian supplied woodshavings. This project will create 5 jobs and will leverage $13.500 in private investment. In addition. it will allow residents in I the Dent area to earn extra income by cutting and hauling Aspen trees. The City of Cottage Grove was awarded $250.000 to assist Up North Plastics to relocate and expand. Up North I Plastics, Inc. is currently located in St. Paul and employs 35 persons including the 3 owners. The Company could not expand at its St. Paul site and had considered I relocated the entire operation to Michigan before choosing to acquire the vacant Whirlpool facility in Cottage Grove. The additional manufacturing space will enable the company to expand into new and diverse I applications of plastic film manufacturing. The company produces polyethylene sheeting for construction and agricultural applications such as construction film. vapor barriers, paint drop cloths and landscaping film. The I proposed expansion will create an additional 41 jobs within the next two years. This project will leverage $3.120.000 in private investment. The City of Little[ork was awarded $142.500 to assist I Littlefork Wood Product start-up. This new company will produce lumber for pallet-making companies and sell residual chips to Boise Cascade from readily available hardwood aspen. Due to the closing of Boise Cascade's I Insulite plant. many residents of the Littlefork area were put out of work. With the operation of this new company. many would again have gainful employment. Littlefork I Wood Products, Inc.. will employ II people at the sawmill site (in addition to the 4 owners) and will put at least 12 loggers back to work. This project will leverage $346.600 in private investment. I The City of Windom was awarded $250,000 to assist Caldwell Packing Co.. a subsidiary of Beef Specialties of Iowa (BSI), to expand. The company proposes to renovate its kill floor, construct new processing areas I and storage space. and install new machinery and equipment to increase the kill capacity from 425 to 650 head per day. BSI originally considered relocating the Windom plant to Spencer. Iowa, where a vacant facility I was available for sale. This option would have saved the company more than $150.000 operating costs each year, but would have cost the City of Windom at least 90 production jobs and further erode the agricultural I economy of the State and the feeder cattle market in Southwest Minnesota. The Windom plant is currently one of two kill facilities still operating in Minnesota. With the I upgrading of the Caldwell plant. there may be a possibility of eventually relocating the BSI facility from Hartley. Iowa. along with an additional 150 new jobs. This project will retain the 90 existing Caldwell jobs, create 10 new production positions and will leverage $1.350.000 in private investment. The White Earth Indian Reservation was awarded $46.645 to assist two companies. White Earth Garment Manufacturing. Inc., which was started in 1982,and manufactures shirts, T-shirts and other garments, will expand its market. And, Ojibway Forest Products. Inc., will diversify its product base and will upgrade its facilities. with the assistance. Honeywell is now working with both companies to provide technical and managerial assistance to improve both companies' operations and to help them take advantage of the 8(A) program. Honeywell is expected to continue its assistance for several years. With reservation unemployment running at greater than 10%. this expansion will be welcome news. This project will create 22 jobs and will leverage $231,916 in private investment. Small Business Notes Article on Insurance Crisis Available The second issue of the new publication. Small Business Notes. is available without charge from DEED's Small Business Assistance Office. It deals with proposed and possible remedies to the current crisis in availability and cost of commercial liability insurance. It includes a substantial summary of the second committee draft of the Product Liability Voluntary Claims and Uniform Standards Act now being discussed in the Congress. To receive this issue and to be placed on the mailing list for future issues contact Small Business Assistance Office. 900 American Center. 150 East Kellogg Boulevard, St.Paul. MN 55101; (612) 296-3811. Minnesota Fund. continued [rom page 3 -D.C.L.lnc. will borrow $1.3 million to expand its stainless steel design and manufacturing operation, creating 30 additional jobs. The company incorporated in 1955 as Dairy Craft. Inc., but changed its named in 1918 to reflect its diversified market into biotechnology, pharmaceutical, chemical and food industries. The expansion will give D.C.!. greater efficiency and plant capacity to accommodate this increased national market. D.C.!. currently employs 141 people. -The May Printing Company received approval for a $1 million loan to finance the acquisition of new equipment. adding another shift (22 jobs) to the company's current workforce of 185. The company was established by the May family in 1915 and began moving into national markets in 1919. Currently. 50 percent of May's sales are national. although almost all its supplies are purchased locally. -Midwest Timber.lnc. received final approval for a $145.000 state loan to purchase and fully reopen the J,C. Campbell Sawmill. creating 50 new jobs in Two Harbors. The sawmill was built in 1964 by J,c. Campbell. a pioneer pulpwood dealer and lumberman from Duluth. and is now held by the J,C. Campbell Trust. Although the sawmill has been Lake County's most stable employer over the past 20 years, only four employees have worked there since a fire destroyed its planing mill in January, 1985. For further information regarding the Minnesota Fund, contact the Department of Energy and Economic Development. Financial Management Division, 900 American Center, 150 E. Kellogg Blvd., SI. Paul. MN 55101 or call (612) 291-3547. .