Posted: 4/17/07
Commissioners approve JOBZ status for LaX Fabricating
By Charlie Warner
Argus News Editor
After listening to a 45-minute presentation by County EDA Director Joyce Iverson, and John and Jeff Mitchell, owners of LaX Fabricating of La Crescent, the Houston County Board of Commissioners unanimously passed a request for Job Opportunity Building Zone (JOBZ) status.
LaX Fabricating, LLC has outgrown its current facility, located in the former Bonanza building on the pike between La Crescent and La Crosse, and has purchased a 10-acre tract of land on Highway 16 between Hokah and La Crescent. The building site is located on the north side of the highway near the Highway 26 intersection, known as Millerís Corner.
LaX Fabricating currently has 38 full time and part time employees, and hopes to increase their workforce by 10 to 15 persons within a year of constructing the 50,000 square-foot manufacturing facility. The company does structural and decorative steel fabricating - anything from steel columns and decks to railings and stairs. The company recently got into the machinery building business, specializing in conveyers, industrial washers, and other large pieces of equipment.
"Weíre sold on Southeast Minnesota and the excellent workforce in Houston County," John Mitchell told the commissioners. "Weíve looked at other communities in the region, but felt it best to expand our business right here."
The JOBZ status exempts LaX Fabricating from paying property taxes, which will enable the company to prosper at a more rapid rate, giving it the potential to employ more persons from the area. The company also had to receive JOBZ status from the La Crescent-Hokah School District, and La Crescent Township, two hurdles that were cleared last month. All three government bodies had to approve the status, and will be giving up property taxes from the 10-acre parcel of land during the life of the state program, which expires Dec. 31, 2015.
The state program was created to help spawn industrial growth in rural Minnesota in 2004. Houston County is part of one of the 10 JOBZ zones in the state. But neither the city of La Crescent, nor La Crescent Township received any JOBZ designated acres in the program. The city of Caledonia, on the other hand, received 180 acres in the program. So Caledonia agreed to give La Crescent Township 10 acres to make the project a reality.
Commissioner Larry Graf asked the Mitchells if they anticipated traffic problems with semis delivering raw materials into the facility and finished product out. John Mitchell replied one of the reasons the Miller Corner site was chosen was because that portion of Highway 16 had recently been improved, including additional turning lanes. Most of the semi traffic would be late morning or early afternoon, and not during the early morning or late afternoon rush hours.
John Mitchell added the company plans to continue two shifts, and due to the anticipated increase in business, will also be adding a weekend shift. The average wage is $13.41 per hour, plus health, vacation, and profit-sharing benefits.
The commissioners received a packet of information, which included floor plans of the facility and an artistís conception of the front of the structure.
"As you can see by the drawings, we are planning on constructing an attractive facility," Jack Mitchell pointed out. "The loading docks and storage areas will be located behind the building, out of sight from the highway."
When asked about sewer and water issues, John Mitchell explained the company would not require a great deal of water for its manufacturing process, with the majority of their water usage being for toilets. Concerning wastes generated, they contract with a disposal company to handle all the wastes and by-products.
The commissioners were somewhat taken aback when they learned the 10-acre tract had a $530,000 price tag.
"We looked at other locations, including West Salem, Wis., which would have been about half the cost for land acquisition," John Mitchell said. "But we would have had to compete with other manufacturing companies for the labor force. We also looked at sites in Onalaska, Holman, Coon Valley, and Winona. Every place we looked at, we just felt this was the best location. Two years ago I would have been blown away if someone would have said we were going to pay that much for 10 acres. But after taking a good hard look at what was out there, we felt this was the best site. We are really sold on this area and that location."
The commissioners were pleased with the proposed manufacturing expansion planned for the area and the potential for additional quality jobs.
The Millerís Corner site is currently being prepared for the new facility, which should be completed by sometime in 2008.
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