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Economic development director reports pipeline of five expansion projects, expects 90 jobs and $13 million in construction
Summary
City economic development staff said outreach to roughly 50 businesses has produced a pipeline of five expansion projects — two advanced — that could yield about 90 jobs and $13 million in construction; staff warned some incentives trigger state timelines and described efforts to mitigate a coming highway closure’s impact.
James Lehman, the city’s economic development lead, told the Fergus Falls City Council on March 2 that his office has contacted about 50 businesses since October and is pursuing five expansion projects, two of which are fairly advanced.
"We have 5 expansion planning or projects in planning, 2 of which are fairly advanced," James said. He gave a conservative figure of "around 90 jobs, $13,000,000 in projected construction." He said the city has also held growth meetings with large employers and is working to keep companies in Fergus Falls rather than lose them to out‑of‑area site selectors.
Lehman told the council the city is stacking tools — local, state and federal programs — to support expansions, and that some incentives will set state timelines: "When you start bringing incentives into play ... it starts a clock," he said, noting TIF applications may put projects on a 60–90 day track.
Council members asked how they could support the work. Lehman said he has strategically leveraged local networks and partnerships with banks and state agencies to help companies access funding and said the city has already been in multiple meetings with Minnesota and federal partners.
The director also addressed preparations for an upcoming roughly seven‑month highway closure at Exit 54, saying staff are proposing local mitigation strategies — including shopping‑local campaigns and creating "clusters to change behavior" — to limit revenue losses from reduced traffic.
Why it matters: The update frames near‑term job and construction prospects for Fergus Falls and lays out how the city plans to use incentives and partnerships to retain and expand employers. Several projects will require formal TIF and incentive decisions in coming weeks or months.
Next steps: Lehman said the city expects two TIF applications within a week or two and will return to council as those formal applications and incentive requests arrive.
