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2005 AAEDC Annual Report
2005 AAEDC Annual Report
2005 AAEDC Annual Report
ANNUAL REPORT
Sincerely,
Jason Murray
Executive Director
The mission of the Lakes Area Economic Development Authority is to support the mission of the Economic
Development Commission by providing fair and equitable resources. The authority, fully implemented in 2004, was
established to formalize the funding for economic development and to bring the political subdivisions together for a
unifi ed economic development effort.
Through a joint strategic planning process between the AAEDC and the LAEDA, core initiatives and strategies were
defi ned to develop a shared vision of the future and to identify goals and objectives against which progress toward
achieving that vision can be measured.
In 2005, the AAEDC focused on the following core initiatives and strategic objectives:
1. COMMUNITY – To collaborate on community efforts that strengthen our economy by creating & retaining
jobs and expanding tax base with respect to our area’s natural resources.
• Industrial Parks
• Revolving Loan Funds
• Municipal Financing Sources
• Funding
• Partnerships
• Leadership
• Growth
Funding provided by the Lakes Area Economic Development Authority (LAEDA) whose membership is comprised of the City
of Alexandria, City of Garfield, Alexandria Township, and LaGrand Township; with supporting annual appropriations from the
Townships of Carlos, Hudson, Lake Mary, and Douglas County.
2005 A NNUAL R EPORT 1
“AAEDC was a viable resource as we pursued our
Douglas County. AAEDC’s knowledge and insight
pursuing qualification for JOBZ Zone were imper
At the close of FY2003,
Governor Pawlenty unveiled the Kim R. Mulholland-Callaghan, VP of Sales & Mark
state’s newest rural economic The Aagard Group, LLC
development plan, the Minnesota
Job Opportunity Building Zones
(JOBZ). As the governor’s marquee economic development initiative, the goal of JOB Zones is
to stimulate economic development activity in rural Minnesota by providing local and state tax
exemptions. The program stresses the importance of using JOBZ to offer assistance to value-
added manufacturing and industrial, or high wage service type businesses. Retail and housing
projects are not eligible.
The JOB Zones cover 10 geographic regions throughout Minnesota, with the exception of
the seven-county Minneapolis-St. Paul metropolitan area. The West Central Region Zone includes Douglas County, from which
six hundred ten (610) acres of land has been given this special designation. Participating entities include the Cities of Alexandria,
Brandon, Garfi eld, and Osakis; and the Townships of Carlos and LaGrand. Designated industrial sites in these areas offer growing
and expanding businesses the opportunity to substantially benefi t from tax exemptions for a maximum duration of a twelve (12) year
period, commencing January 1, 2004 and ending December 31, 2015.
The type of tax exemptions include: corporate franchise tax; income tax for operators and investors, including capital gains tax; sales
tax on goods and services used in the zone if the goods and services were purchased during the duration of the zone; property tax on
commercial and industrial improvements but not on land; wind energy production tax, and; employment tax credit for high paying
jobs.
Tax exemptions apply only to qualifi ed businesses. Businesses will become qualifi ed for JOBZ through the execution of a local
Business Subsidy Agreement (BSA). The BSA is an agreement between the local unit of government and the business. The agreement
sets the number of jobs created and the amount of wages and benefi ts paid by the company in order to qualify for JOBZ benefi ts. On
an annual basis the company must report to the local unit of government their progress in creating jobs and wages.
keting
1Jobs created fi gure confi rmed in BSA agreement totaling full-time and full-time equivalent projections within 1-5 years. Job numbers
reported in BSA agreements are usually minimums and actual numbers may be much higher.
Madajax Boom Truck Service has received approval from the West Cen-
tral Initiative Revolving Loan Fund for a business loan totaling $22,250
to assist in the purchase of a boom truck and equipment necessary in
operating a boom truck service company. The AAEDC assisted in secur-
ing the RLF fi nancing as well as working cooperatively with Bremer Bank
on securing additional fi nancing. The company is specializing in hauling
building materials for contractors and businesses and using the crane to
unload materials and heavy equipment to heights of 70 feet. Madajax
began operation on August 1, 2005.
West Central Tool & Grinding received assistance from the AAEDC in se-
curing a $20,000 loan from the West Central Initiative for the purchase of
a Walters Helitronic Power CNC Tool Grinder. The machine will enable
West Central Tool & Grinding to increase business operations and will
also increase their employment by 1 full-time position. The total cost
of purchasing the new machinery is $209,000 with additional fi nancing
through Neighborhood National Bank.
Lakes Area GraphiX and Sign WorX, a printing and graphics company,
has recently completed construction of a new facility in Kensington. The
new facility includes 6,500 square feet of offi ce space and production
area and will increase the area tax base while creating 9 full-time posi-
tions within the company. Added benefi ts of this construction are that it
will attract additional businesses to the area and increase the tax base of
Kensington. The AAEDC assisted the company in applying to the City of
Kensington for $65,000 in tax increment assistance.
Jobs created figure totals full-time and full-time equivalent projections within 1-5 years.
2
2 005
D OUG LA S C OUN T Y
M ANUFACTURERS
STRATEGIC OBJECTIVE #3: PARTNER IN “I do want to take this opportunity to thank you f
& WORKFORCE DEVELOPMENT community. Your constant leadership in the area
S UPPORT I NDUSTRIES
D IRECTORY enhancement is most impressive.”
• Business and Employer Council
• 1st Annual Greater Alexandria Job Fair
planning board - 40 Employers and Dr. Ric Dressen, District 206 Superintendent
over 1,200 Job Seekers in attendance.
• Daycare Discussion Group
• West Central SHRM – 2005 Wage &
Benefi ts Survey
Cowing Robards officials and family were honored as the 2005 Business & Industrial Appreciation Day (BAID) recipient.
(l to r back): Mark Nelson (Decorating Center), Mike Rooney (Owner), Donna Hoeper (Decorating Center), Dan Rooney (Owner),
Colleen Rooney (Administration)
(l to r front): Ed Rooney (CEO), Deb Rooney (Trophies), Toniya Nelson (Natural Expressions), Nita Wittmer (Framing), Diane Hanson
(Blind Factory), Duane Carlson (Personnel/Marketing)
RETAIL
Wal-mart $15.35 million 212,931 sf Commercial New
PROFESSIONAL/SERVICE
Century Center, Inc $175,000 Commercial Alteration
Midway Mall $250,000 Commercial Alteration
Tastefully Simple, Inc $225,000 600 sf Commercial Alteration
Broadway Professional Suites $84,088 4,590 sf Commercial Alteration
Nokomis Square Development $952,326 13,611 sf Commercial New & Alteration
Twin Plaza 1.17 million 16,234 sf Commercial New
Easton Place $80,393 4,159 sf Commercial Alteration
North Branch Business Plaza LLC $341,238 7,920 sf Commercial Alteration
White Oak Investments $1.03 million 24,633 sf Commercial Alteration
Hens & Merten Corp $1.07 million 6,602 sf Commercial Addition
Tires Plus/Jeseritz Automotive $289,656 5,387 sf Commercial New
Alexandria’s Animal Doctor $360,000 2,640 sf Commercial New
RingTK LLC $100,000 1,855 sf Commercial Alteration
WHOLESALE DISTRIBUTION
Henry’s Foods $120,000 Commercial Alteration
AMUSEMENTS
Arrowood $250,000 Commercial Alteration
Minnesota Lakes Maritime Museum $1.35 million Commercial Addition & Alteration
DINING
Pizza Ranch $280,546 Commercial Alteration
Weston Station $93,772 788 sf Commercial Addition
CONSTRUCTION
Lakes Area Paving & Striping, Inc $87,280 2,000 sf Commercial New
INDUSTRIAL
Bio Corporation $1.4 million 24,333 sf Commercial New
Crusin Eagle Properties LLC $200,000 30,000 sf Commercial New
Crusin Eagle Properties LLC $2.09 million 31,000 sf Commercial New
Aagard Group LLC $2.89 million 36,000 sf Commercial New
Donnelly Custom Molding Co $1.01 million 17,000 sf Commercial Addition
HEALTHCARE FACILITIES
Blue Eye Development LLC $3.4 million 16,625 sf Commercial New
INFRASTRUCTURE
City of Alexandria $1.35 million 24,925 sf Commercial New
Source: 2005 public record commercial building permit activity – City of Alexandria.