The Fairmont Economic Development Authority (FEDA) would like the Fairmont City Council to grant it $300,000 in order to help Zierke Built Manufacturing expand.
Zierke Built Manufacturing plans to update its brochure printing specifications with new services. These require the use of a brake press and a laser cutter, which is what the requested funds will be used for. Zierke Built Manufacturing’s current model is based on custom building trailers and fuel tanks for generators.
FEDA is confident that its request will be granted. Zierke Built Manufacturing is already an asset to the city of Fairmont, hiring approximately 50 people, which puts it 20 people ahead of the 30 people hire limit to make it eligible for tax reimbursements. Expanding its operations with the new equipment will allow the business to hire an extra 20 people over three years. The new jobs will be full-time at $16 an hour.
The money for the expansion will come from the Minnesota Investment Fund, which grants capital to local governments who in turn loan the money to local businesses looking to expand. Zierke Built Manufacturing will pay the city back for the loan. A portion of that repayment will go to FEDA and another will go to the state.
Tax abatement cannot be used to fund the expansion because real estate is not a part of the proposed expansion.
