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Valley Cartage to Move Headquarters from Hudson to Lake Elmo

Minnesota persuaded Valley Cartage to move their headquarters across the river with a $940,000 economic development package that includes a tax abatement, a sizable forgivable loan, job-training funds and energy credits.

Valley Cartage is planning to move its headquarters from St. Croix Business Park in Hudson to Lake Elmo, as the result of a $940,000 economic development package.

The growing trucking and shipping company will move it’s headquarters about 10 miles west on I-94 to a 26,000 square-foot building located in the Eagle Point Business Park in Lake Elmo.

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Valley Cartage President and CEO Todd Gilbert told Finance & Commerce that the company will continue to occupy its building at the St. Croix Business Park, but needed more room to grow.

“I’m third generation running this business. I’m fifth generation in the Hudson community. We’re not leaving Hudson,” Gilbert said. “We’re in a growth stretch. We’re diversifying our business, and we know there’s market share that we need to go after.”

Lake Elmo city staff worked with Gov. Mark Dayton, Minnesota DEED, Washington County, Greater MSP, Xcel and state representatives to lure Valley Cartage to Minnesota with an economic development package that consists of tax abatement, a sizable forgivable loan, job training funds and energy credits to bring new, good-paying jobs to the region, according to city documents.

Lake Elmo and Washington County have agreed to share in $40,000 tax abatement over a four-year period tied to job creation goals.

The package also includes $500,000 from the Minnesota Investment Fund and $400,000 from the state’s Job Skills Partnership as incentive to move.

According to city documents, the expected purchase price of the building is about $3.1 million.

The deal means about 50 new jobs in Minnesota—paying an average salary of $52,000—and creating a $30 million impact on the economy.

Chris March 25, 2013 at 10:18 PM
Sorry, Matt. Here is the document from Chase: https://www.chase.com/online/commercial-bank/document/Wisconsin.pdf For the Philadelphia Federal Reserve report, one only needs to click on those months since the start of the last biennial budget (July 2011) -- the first month that Walker's budget took effect. Those months include: 6 that were red (negative growth); 5 no growth; 6 lighter green (less that .5% growth); and 3 months with growth between .5-1%. Minnesota, by contrast, had 2 months of negative growth (red); 8 months of less than .5% growth; 6 months of between .5-1% growth; and 4 months of growth above 1%. The Walker document only highlights a few examples of how a few school districts have been able to to make cuts, but there are no savings. One saves money when one spends less than one takes in. There were no savings with Act 10. The state made cuts in the amount of money that the state paid to municipalities and school districts, and changed the laws such that those entities could pass those cuts (in wages and benefits) on to it's employees. But the state budget was not $1billion dollars less than the previous biennial budget; it was actually more (2% higher than previous budget) and borrowed more. I've seen the CEO ranking of WI, but I've also seen negative business ratings for WI: http://www.forbes.com/best-states-for-business/list/ -- 42nd http://www.bloomberg.com/quote/BEESWI:IND -- projection of negative growth over next 6 months
fb.com/WCwatchdog March 26, 2013 at 06:31 AM
Wow, that is honestly the most logically put together response I've ever had. No name calling. Decent sources. And a fair opinion on the credibility of my sources. I actually have to admit that you've not only impressed me, but changed my mind that Wisconsin isn't the next boom state (like ND) but it's improvement is debateable... I'm not fully convinced because I did see WI is brought down by it's low ranking in growth (bad economic indicator since Cali is #1 in that area lol) and labor supply? maybe that's because they have a low unemployment rate and they aren't really known for their technical jobs... they make Cheese, Beer, and Harley's lol. But good job Chris I hope you come up with more responses on other threads here. Thanks!
Celeste Koeberl March 26, 2013 at 10:45 PM
Key words are: "What is WI getting in return?" What is the evidence regarding whether these economic stimulus tools are delivering an adequate return on taxpayer dollars? How many jobs have been added in WI because of these new tax benefits? How is it determined that these jobs would not have been added without these new tax benefits? What is the cost per job added of the foregone tax revenues? A few sources for more information: As Companies Seek Tax Deals, Governments Pay High Price, 12/1/2012, New York Times at: http://www.nytimes.com/2012/12/02/us/how-local-taxpayers-bankroll-corporations.html?hp&_r=1& Wisconsin Legislative Fiscal Bureau, general fund taxes memo to state Sen. Mark Miller, June 9, 2011 Wisconsin Legislative Fiscal Bureau, budget paper #310 on two capital gains changes, May 31, 2011 Wisconsin Legislative Fiscal Bureau, budget paper #361 on production tax cuts, May 27, 2009 Milwaukee Journal Sentinel, "Business production tax break added to state budget," June 6, 2011
Greg March 27, 2013 at 04:33 PM
What wages were cut? NONE, you know nothing. The unions got greedy, the unions got slapped and the only people that are not happy are those that NEED a union to stay employed. Change takes time, but Wisconsin is in this for the long run.
Greg March 27, 2013 at 04:39 PM
I agree. "creating a $30 million impact on the economy" I'd like to see how they came up with that number. Is it because people have to drive 10 miles farther? I doubt that there will be much operational change due to a short move.

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