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.


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.

Deb Schroeder-kivisto March 22, 2013 at 10:50 PM
wonderful for Minnesota and sorry that my friends in Wisconsin lose but ya might want to talk to your losy governor ours rocks
Susan March 22, 2013 at 11:18 PM
"I wish you had the option to deny the request for tax abatement and choose not to pick winners and losers in the private sector,..." I agree! Stillwater just did this also...$250,000 for a guarantee of nine jobs. I realize this is how it is done, but it shouldn't be on our government's "to do" list. Is there a benefit to the community? Of-course, but is shouldn't be at taxpayer expense. Business is business; if it is run properly, with the right product and economy, they should be able to make it on their own, without the government's help. Lower the corporate tax rate...that is the way to get businesses attracted to Minnesota again, and it is fair and evenly applied for EVERY corporation, not just the ones with the golden ticket.
Brenda Bredahl March 22, 2013 at 11:23 PM
Another company leaving Hudson announced today on MSP Biz Journal http://www.bizjournals.com/twincities/blog/in_private/2013/03/biotech-startup-returns-to-minnesota.html
Susan March 22, 2013 at 11:38 PM
This is why Minnesota still has a strong business community even though the taxes are high. The people. Get the corporate tax rate down and we will see more businesses start-up here and those that will move here for the talent. "So why did he return? “The over arching thing was recruitment of talent,” he said. For instance, he tried to recruit someone from pharma giant Beckman Coulter’s Chaska operation, but the candidate didn’t want to drive 50-plus miles a day to get to Hudson. And Norris, who lives in Excelsior, was tired of making the drive, too. Since Rapid Diagnostek returned, the company has recruited three people with decades of experience working at Beckman, which typically employs people with the skills his startup biotech startup needs."
Drew Lawrence March 22, 2013 at 11:45 PM
More corporate welfare! I'd rather keep a balanced budget and keep trending towards taxes being reduced here in WI. The more we reduce the burden on those trying to do business the more we will prosper. Now that we're coming out of the two year temper tantrum by those who lost at the ballot box and we're finally starting to see the results of the reforms enacted we are becoming more attractive to business every day. We still have a supreme court election to get through and a couple more frivolous lawsuits to deal with but soon stability will rain and we will prosper. I love the fact that those that created the atmosphere of upheaval and are most responsible for making business leery of moving here or expanding seem to be celebrating the fruits of their efforts and trying to blame the elected leaders bringing about the change that will lead to prosperity! Even as their favorite lawmakers do everything in their power to actually discourage and block good union jobs. That tax break won't last forever and the real price of doing business in MN will become self evident soon enough.
Deb Schroeder-kivisto March 23, 2013 at 12:32 AM
keep your governor we gladly will keep our Minnesota nice
Deb Schroeder-kivisto March 23, 2013 at 12:47 AM
think it is closer to avoiding your governor
fb.com/WCwatchdog March 23, 2013 at 05:00 AM
Now you're talking Sue!
fb.com/WCwatchdog March 23, 2013 at 05:02 AM
Deb what are you talking about?
fb.com/WCwatchdog March 23, 2013 at 05:09 AM
The hearing is April 9th to get final approval... but the only reason they are going to be able to afford the move is the fact they are going to get shelter from future tax increases (for a few years) and they are getting hundreds of thousands in corporate handouts to bribe them over... I have no doubt they will eventually pay that money back and then some with nearly double the tax rate compared to WI... but the fact remains it's Government attempting to micro manage the economy, gain constituants with tax dollars, and acting outside the core function of government as some kind of business investment firm. I hope the best for Valley Cartage.
fb.com/WCwatchdog March 23, 2013 at 05:40 AM
+1 the guy left not because of the taxes, he thought it was worth paying higher taxes in MN in order to get the talent he needs... not to mention the fact he is no longer eligible for the Corporate welfare (angle program) in MN as he planned (his other reason for moving out of WI) because he's raised more than $4 million. Again, government artificially promoting job growth by taking tax dollars to pick winners and losers... the high taxes taken from businesses who are actually providing goods and services the market demands going towards companies who get special favors to edge out their competition.... If a republican run government was doing this I highly doubt the response would be the same. It should upset us all this is what it takes to get companies to move here.
fb.com/WCwatchdog March 23, 2013 at 06:07 AM
You do realize they are building in MN because the Democrat sponsored "corporate welfare" and as with Brenda's story that company was leaving WI because they couldn't get their "corporate welfare" anymore and sought to get it here in MN. Do you have any evidence that Walker is making the wisconsin economy worse? Opening up the job market by making it a right to work state is working across the country from Indiana to Michigan and others (just off hand). Other states see this success and do the same. Voters saw this and elected him, Twice! You can find isolated blog stories on how Walker has "only created" 30,000 jobs a year and not the total of 250,000 jobs he promised. Along with stories on fat cat unions not getting to force dues out of the workers anymore. Here's 8 pages of facts on how Walker has improved wisconsin: http://walker.wi.gov/Documents/Act_10_Success_Recap.pdf
Edward March 23, 2013 at 03:05 PM
A couple things: 1. Indiana, Michigan et al. are benefitting from the auto industry bailout (and creating new jobs because of that, not any recent "right to work" legislation). Bailing out the auto industry preserved and created a couple hundred thousand jobs (and more, if you consider the ripple effect throughout those economies). 2. It wasn't just Dayton who gave "corporate welfare" to this company. City of Lake Elmo council is primarily Republicans (look at the mayor, for example, a Republican precinct chair, and the council members -- one is outright TEA party, others are Republicans). The city administrator is a known Republican as well. Those of you who are screaming about this being a liberal plot need to look at your own -- they were active players in this plan.
Edward March 23, 2013 at 06:55 PM
" The people. Get the corporate tax rate down and we will see more businesses start-up here and those that will move here for the talent." Why do the best and brightest choose to live here? Could it be because we invest in developing people and cultural amenities ? Do they come for opportunities for learning and culture (schools, major orchestras, Guthrie, Walker, Science Museum, etc)? There's more to quality of life than paying $50 less in taxes each year . . . just sayin' . . . . and the new economy is a brain-driven economy . . . connect the dots.
Celeste Koeberl March 23, 2013 at 07:18 PM
No need to speculate about job growth numbers in WI and neighboring states--go to "Interactive data: Job growth under Scott Walker" at http://host.madison.com/ct/data/interactive-data-job-growth-under-scott-walker/html_91c1d53c-86a3-11e2-8ee8-0019bb2963f4.html
yomammy March 23, 2013 at 07:20 PM
you mean "marble mouth"?
Celeste Koeberl March 23, 2013 at 07:37 PM
"Wisconsin lost more jobs than any other state in 2011 and '12", 3/21/2013, City Pages, at http://blogs.citypages.com/blotter/2013/03/wisconsin_lost_more_jobs_than_any_other_state_in_2011_and_12.php
Celeste Koeberl March 23, 2013 at 07:55 PM
It’s estimated Wisconsin spends at least $1.53 billion per year on incentive programs intended to stimulate jobs and growth--equalling $268 per capita or 10 cents per dollar in the state budget. Incentives include cash grants and loans, sales tax breaks, income tax credits and exemptions, free services, and property tax abatements. Just during the 2011 special and regular sessions, WI adopted several state tax changes—new credits, exemptions, and deductions intended to encourage businesses to locate, hire, expand, and invest in WI. These state tax changes were estimated by the nonpartisan Legislative Fiscal Bureau to amount to a reduction of $2.33 billion in general fund tax revenue over ten years: • Tax cuts on production earnings of manufacturers and agricultural businesses, estimated at $874 million over ten years; • Rollback of combined reporting for multi-state corporations, estimated at $366 million over ten years; • Tax deduction for hiring new full-time employees, estimated at $335 million over ten years; • Capital gains changes that eliminate state capital gain taxes on long-term investments in WI businesses, and that defer taxes on capital gains reaped anywhere if the proceeds are invested in a WI business, together estimated at $436 million over ten years. What is WI getting in return? See: As Companies Seek Tax Deals, Governments Pay High Price, 12/1/2012, New York Times
Captain Midnight March 24, 2013 at 04:22 AM
i'm sure that the "terrible" business climate of Minnesota has resulted in MN being the home to 19 Fortune 500 Companies while WI has nine. As Edward has already pointed out that low taxes alone are not the only reason that businesses move to a state or remain there. Survey after survey has CEOs not ranking taxes in even the top five criteria when making the choices of where to locate. The five states with the lowest tax rates are: Alaska, South Dakota, Tennessee, Louisiana, and Wyoming. See any long lines of companies moving to any of these states? There are0nly 11 Fortune 500 companies in theses states; with three of them having none., So if tax rates were the key to making location decisions, SD should be booming.
fb.com/WCwatchdog March 24, 2013 at 07:41 AM
You all have these apparent broad and general points that government bailouts helped an industry and thus the entire state and thus nothing about right to work contributed... Where's the proof? (and no the usual blog thread is not a credible source) As far as the Eagan City council and them being republicans... I'm not a republican... half the "republicans" in MN are democrats that take the R on the ballot in order to get elected. And captain, again, you have a lot to say and no proof. And then there is the fact you have changed the subject off WI and back to MN and the number of Fortune 500 companies... as if that's an accurate indication of a State's economy... I have yet to hear any economist use that.
fb.com/WCwatchdog March 24, 2013 at 09:57 AM
lol, a blog is not a source. He's actually gained 30,000/yr... far short of his 250,000 promise. Check out the 8 pages of info on Walker's economy that I posted yesterday here.
fb.com/WCwatchdog March 24, 2013 at 10:04 AM
What blog did you copy and paste that from? Key word in nearly EVERY sentence: "estimated" and "speculated" I understand you want very hard to believe that high taxes and redistribution of wealth (ie: socialism) works... but seriously you can't find any evidence to back anything you say... even with the media bias on your side lol.
Chris March 25, 2013 at 02:57 AM
When compared to neighboring states, Wisconsin's Coincident Index has lagged: http://www.philadelphiafed.org/research-and-data/regional-economy/indexes/coincident/maps/ There are a number of graphs in this report by Chase that would indicate that Wisconsin lags the rest of the US in GDP growth.
fb.com/WCwatchdog March 25, 2013 at 07:33 AM
What the heck is that site? Really I'm supposed to click on every month for every year since Walker took office and estimate if WI was Green more than Red? Where's an actual source, with actual data specifically prooving WI is doing worse because of Walker's right to work legislation and tax cuts? Seriously read this 8 page document all with government sourced data that explains the economic and education improvement because of Walker and his common sense solutions to solving waste and abuse: http://walker.wi.gov/Documents/Act_10_Success_Recap.pdf or: "When Gov. Walker took office, Wisconsin was ranked 41st in the U.S. Wisconsin’s ranking improved dramatically in his first year from 41st to 24th. Wisconsin was also the most improved state in the U.S. last year, and its 17 spot leap represents the biggest one-year improvement in the history of the rankings." http://inwisconsin.com/2012/05/02/chief-executive-2012/ http://chiefexecutive.net/best-worst-states-for-business-2012
Rich Petersen March 25, 2013 at 08:41 PM
This really just another example of a company taking advantage of the foolish practice of poaching jobs from one state to another without creating any significant new jobs, just like Wisconsin did with the ULine deal. Unfortunately this practice decreases tax revenues and essentially amounts to more corporate welfare. The net effect is either an increased burden on individual tax payers and/or reduced benefits of government services.
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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