DEED Job Creation Fund provided $325,000 to assist with the job creating business expansion
ST. PAUL, MN - Today, Lt. Governor Tina Smith, Werner Electric officials, and local leaders broke ground on a $4 million business expansion that will add 60,000 square feet to the company's Cottage Grove headquarters and at least 46 new jobs. Once completed, the new space will allow Werner to operate their own finance, purchasing, pricing, and human resource offices - which previously were handled by their out-of-state parent company.
"On behalf of the state, I thank Werner Electric for their continued commitment to growing in Minnesota," said Lt. Governor Tina Smith. "The Werner Electric expansion is a testament to the benefits of making strategic investments in economic development. To keep the momentum going, Governor Dayton and I have proposed continuing our investments in the Minnesota Job Creation Fund and Minnesota Investment Fund."
Minnesota's Job Creation Fund is a pay-for-performance program where incentives are awarded after businesses meet job creation and investment targets. Earlier this month, the Department of Employment and Economic Development (DEED) announced that in the first year, $16.7 million was awarded to 31 business expansion projects, creating 1,800 jobs and leveraging $344 million in private investment - a 20-to-1 return on investment.
The Minnesota Investment Fund has a similar track record of success. Last biennium alone, the program generated a 29-to-1 return on investment and created more than two thousand jobs. Even though a number of projects are still being finalized and not all of the funds have been spent yet, the MIF appropriation for this biennium already has generated $483.1 million in leveraged investments and 2,275 jobs.
To assist Werner Electric with their expansion, DEED approved a $325,000 grant from the Job Creation Fund. In working with the city of Cottage Grove, DEED and GREATER MSP, Werner Electric has put together a strategic development plan to support local and state initiatives to help drive further economic success.
"Werner Electric is a growing company with a reputation for serving its customers and employees," said DEED Deputy Commissioner Kevin McKinnon. "With roots reaching back to the 1920s in the Twin Cities, Werner is deeply invested in its workforce and the community. We thank them for making a commitment to expand here."
Werner Electric is a wholesale distributor of automation, datacomm, electrical, energy, lighting, and switchgear products and services. Founded in 1920 as Northland Electric and acquired in 2001 by Van Meter Inc. and Werner Electric of Wisconsin, the company continues to grow and be named one of the Top Places to Work in Minnesota.
