Madelia looks for future development, industrial growth

Motel

announcement

expected

within weeks

By GUY PRIEL

Journal Staff Writer

MADELIA -- The loss of a major employer in Madelia sparked action from business leaders, who are determined to help the community make a comeback without help from the state government.

"This is a process that began a couple of years ago, when we saw what Springfield was able to accomplish on their own with the community center," Economic Development Director Darin Haslip said.

Some businesses have experienced a level of internal growth, such as relocating to another site, but there has been no major influx of new business.

"There have been a few small start-up companies occupying the abandoned buildings downtown, but nothing major," Haslip said. "We decided we needed to target our growth area, which is along the four-lane highways at the east end of town."

The goal was to promote quality growth to help develop a strong work force and bring new residents to town.

"Like any community in rural areas of the state, we need to be able to target our niche," Haslip said. "We have done that and now need to start feeling our way through the process."

A group of business leaders and the Chamber of Commerce organized the Madelia Development Initiative Team. Its mission was to create an environment in which new businesses providing high quality jobs would locate in Madelia .

As part of the process, the group hired the Sebesta Blomberg Consultant firm of Roseville.

"We requested their services because they are a global company with contacts that can help us with businesses," Haslip said.

Madelia needs to develop industry around readily available agricultural commodities such and corn and soybeans. If that goal is met, additional housing is needed, Haslip said, relating to his previous previous at Winthrop.

Haslip was director of development in Winthrop when the ethanol plant was built. However, a lack of housing forced workers to live elsewhere.

When VanDenBergh Foods moved out of town a few years ago, Madelia lost a significant number of jobs.

"We learned the hard way here in Madelia when we lost the food business that was here," Haslip said. "That took a large number of our jobs to Chaska. We had no say in the matter, but we took the initiative and decided we wanted to control which client came into the building."

Madelia developers will be selective as to the type of industry that is brought in. They may even consider several because of the large size of the building.

"We need to create an industry that will have an attractive environment because this is a charming town and the people want to move forward," Haslip said. "The location will help us focus on technology and agriculture, but we also want decent-paying jobs."

The committee has developed a 14-goal worksheet that will help pre-screen businesses interested in relocating.

"We won't steal industries from other towns, and we won't help any industry that can't pay the wage we think is decent," Haslip said. "Our main goal is to get an industry that pays about $15 an hour. The state average is $15.43. We just want to be average."

The first initiative the group organized was to attract interest in development of a hotel in the east-end business district, dominated by the new home of Jose Motors, Texaco and Subway.

The hotel, which will either be an Americinn or a Country Inn and Suites, is expected to have approximately 45 rooms, meeting rooms, and a swimming pool. Investors are expected to make a determination on the chain within the next few weeks.

"We are also working on purchase of 140 acres for a housing development overlooking the golf course and the river," Haslip said. "I believe our added-value approach will help us get this development started, and there are some business prospects that are interested in coming here."

The housing development will have about 239 lots. Officials are also making plans for a future industrial park.

"We decided it was time to capitalize on our situation," he said. "Someone will help if you cry loud enough, but we don't want to be professional panhandlers. The private sector has to drive the economy, not the public sector."

The community recently completed a multi-million dollar medical clinic and hospital remodeling project, added a new surgeon to the medical staff, and constructed a new water slide at the swimming pool.