New business to build in NYA industrial park

The Norwood Young America City Council on Monday approved the sale of a lot in the Tacoma West Industrial Park to Waconia Manufacturing, paving the way for the company to begin constructing a 67,000 square foot facility as soon as May. In related action, the council also approved a site plan for the new facility, as well as the creation of a new Economic Development TIF District to facilitate the new development.
Waconia Manufacturing is a manufacturer of bulk material handling and blending systems for the fertilizer industry, and has been in business since 1959. It currently operates out of Waconia and processes work orders from all over the country. The new facility, which will be located at 680 Tacoma Blvd. in NYA, will be the company’s second facility.
The 9.36 acre lot will be sold to the company at a price of $1.28 per square foot, a write-down from the fair market value of $2.75 per square foot.
Increment generated from the eight-year TIF District is expected to be used to make up the shortfall in the price at which the land was offered to the developer. The Norwood Young America EDA will also use tax increment generated from the redevelopment property to reimburse itself for the cost of the infrastructure improvements on the property, which will cancel a portion of the taxes levied by the city for debt service on its improvement bonds.
Because the write down in the sale price of the land is considered a business subsidy, the developer is required to meet certain job creation and wage goals.
The developer has pledged to create at least 15 jobs paying an average of $20 per hour or more, including benefits, within the first two years. If those goals are not met, the developer must repay a portion of the subsidy to the EDA.
Construction on the facility is expected to begin quickly. It is expected that closing on the sale will occur by May 10, with ground breaking tentatively set for May 13. The construction is expected to be complete by December, and the first increment is therefore scheduled to be collected in 2015.