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Dayton EDA backs forgivable loan/grant support for States Manufacturing expansion
Summary
The EDA voted to support States Manufacturing's application for a $1.45M Minnesota Investment Fund forgivable loan and a $1.35M Job Creation Fund award to help a proposed $23.5M expansion expected to create about 350'400 jobs; the request will go to a special City Council meeting Oct. 29 for a public hearing.
Wyatt Shellbetter, identified himself as CEO of States Manufacturing, told the Dayton EDA the company plans a major expansion and is requesting the city serve as administrator for state funds: a $1,450,000 Minnesota Investment Fund (MIF) forgivable loan and a $1,350,000 Job Creation Fund (JCF) award.
Shellbetter said the expansion is not a relocation but an increase in capacity, describing plans for roughly 500,000 square feet at the Cubes facility and an estimated capital investment of about $23.5 million. He said full operations could bring 350'400 jobs to the area and that the company's average wage across roles is about $60 an hour when factoring sales and management positions.
EDA members asked logistical questions about administration, liability and timing. Staff explained the city acts as the program administrator for the state funds, and that the state's award is a pass-through (the city would administer the forgivable loan under program rules). Commissioners asked whether there was any fiscal risk to the city; staff said the program is a pass-through and the state provides the funds, and that administration fees and loan servicing are described in the program materials.
A motion to grant support and forward the application to City Council passed by voice vote. Staff said the item will go to City Council at a special meeting on Oct. 29 for a required public hearing.
The EDA also discussed a possible site tour of States Manufacturing's Champlin facility and noted an operational target for the new building of the end of Q1 next year if renovations proceed on schedule.
