A revolving loan fund established by the county in 2015 is already paying big dividends for businesses and taxpayers.

 

The fund was established in 2015 to promote economic development by offering low interest loans to fund land and building acquisition and improvements, new building construction, building renovation and modernization and to purchase machinery equipment and fixtures.

 

The county allotted $250,000 through the EDA for the fund. 

 

At a workshop Tuesday, Sherburne County Assistant Administrator Dan Weber gave the board of commissioners an update on the how the program is working so far.

 

He said in 2016 and early 2017, the fund helped finance $5,026,800 in total project costs, retained 44 jobs and will create 28 new jobs over the next two years.

 

It helped fill two vacant buildings, adding $412,300 in taxable value and will generate $16,500 a year in property taxes.

 

In April, 2016, C & C Magnet used a $48,000, 10-year loan to help finance the purchase and remodeling of a building in Becker. 

 

The $280,500 project provided 68% more square footage than their previous leased facility and the updated office space and interior remodeling created $12,300 in additional taxable value. Weber said they will also be hiring five new workers.

 

Sand Dunes Auto Service built a new 4,320 sq ft building in Orrock Twp. on a previously vacant lot.

 

They used a $50,000, 20-year loan from the county’s revolving loan fund as supplemental funding on a $420,800 project that gave them 240% more space than their previous facility and moved the business from a home-based location to a business district.

 

The facility opened in December and added nearly $300,000 in taxable value.

 

“They’ve already hired two  additional employees and expect to hire five more within the next two years,” said Weber. “And they’re getting customers very day.”

 

Manufacturing Partners, Inc. (MPI) a supplier of CNC-machined firearm and military munitions components, used $100,000 in revolving loan fund money to finance the equipment part of a $4.3 million project. 

 

The company purchased a 32,400 sq ft facility on Co. Rd. 43 in Big Lake that gave them 284% more space than their previous facility.

 

The project helped retain 37 jobs and will create 16 more jobs over the next two years and it expected to add $100,000 in taxable value upon completion.

 

“There was potential for this client to move outside Sherburne County,” said Weber, “so this loan helped keep them within our borders.”

 

Weber said 79% of the fund has been released, with approximately $53,000 remaining. Staff is recommending an additional $200,000 be allocated to the fund.

 

That request will be presented to the board for consideration at the next board meeting.