Light manufacturing firm to locate in New Ulm

By RON LARSEN

Journal Staff Writer

NEW ULM -- Economic Development Authority commissioners learned Tuesday that a light manufacturing firm will be "up and running" in New Ulm this summer.

The city's industrial development coordinator, Brian Tohal, said the unnamed firm, new to the area, would provide 36 jobs at the outset and could provide "up to 70 in the future."

He also is working with "an individual who is interested in bringing a biomass-burning facility" to New Ulm.

"He wants to locate in southern Minnesota and be on the Xcel Energy grid, and New Ulm qualifies on both counts," Tohal said.

He then briefed commissioners on legislation in the State Legislature that would create "tax-free zones of up to 5,000 acres" to encourage industrial development in Greater Minnesota.

"Legislators are looking at 10-county areas with each getting 500 acres. These zones would be tax-free for 12 years, and it would be limited to new manufacturing investment," Tohal said.

Establishment of these zones would be based on economic need, household income and other economic factors, Tohal explained, and counties would be picked by competitive application. Counties in a zone would not have to be contiguous, he added.

In other action, the authority adopted the 2003 annual plan for its Public Housing Program. Through March, 2003, the authority's public housing program is showing a $66,000 surplus.

The EDA's Commercial Property Rehabilitation Loan Program shows a balance of $76,622.41 in funds available for lending, Assistant City Manager Tom MacAulay reported.

With a cap of $25,000 on individual loans, there's enough money in the fund for three loans, MacAulay said. He said there's currently one pending loan to Jeanette Carson, doing business as Olde World Deli and Catering.