Posted: 10/9/07
LaX Fabricating not relocating here, looking at Spring Grove
By Charlie Warner
Argus Editor
The on again, off again relocation plans of LaX Fabricating of La Crescent took another turn last week when Houston County EDA Director Joyce Iverson told the county board that owners John and Jeff Mitchell are now looking at relocating their business in Spring Grove. According to Iverson, the Mitchells are looking at the former All-Phase Arena building that is situated on 13.9 acres of land on the east edge of Spring Grove.
Iverson explained the large facility that is already constructed, located on a major highway with plenty of parking would expedite LaX Manufacturingís expansion plans considerably.
LaX Fabricating has outgrown its current facility, located in the former Bonanza building on the pike between La Crescent and La Crosse, decided to relocate in La Crescent Township near the Highway 26 intersection, known as Millerís Corner earlier this year.
Work on cutting down the large bluff on the north side of Highway 16 to make room for LaX and the Croell Redi-Mix plant was underway. But due to numerous issues, including the removal of the bluff material, right-of-way setbacks, and traffic concerns with Mn/DOT, the business transaction between LaX Fabricating and Zenke, Inc. for the purchase of 10 acres of land on Highway 16 at Millerís Corner between Hokah and La Crescent fell through in September.
News that the Mitchell brothers were seriously considering two separate location sites in Caledonia surfaced during a September city council meeting. City Administrator Bob Nelson informed the council of the possible snafu between the Mitchells and Zemke, Inc. "If the deal falls through, they (the Mitchells) are looking at several locations here," Nelson said. "One of those potential sites is part of the JOBZ (Job Opportunity Building Zone) areas we have in the city. The other isnít."
The Spring Grove location, which is owned by Allan McCormick of La Crescent, is not currently part the JOBZ acres in Spring Grove. Iverson noted Spring Grove has other JOBZ acres and can switch the designation to the McCormick site through sub-zone modification.
LaX Fabricating was granted JOBZ status earlier this year, which exempts it from paying property tax. To receive JOBZ status, the company had to receive approval from La Crescent Township, the La Crescent-Hokah School District and Houston County, which it did earlier this year. By granting such approval, the three governing bodies gave up the property taxes generated from the 10-acre parcel of land for the length of the program, which would have expired Dec. 31, 2015.
Because the company would be relocating at a new site, it must go through the JOBZ granting procedures again. A public hearing to review the request on the city level will be held in Spring Grove on Oct. 22 at 6 p.m. The county will review the request at the Oct. 23 Houston County Board meeting during a public hearing scheduled for 10 a.m. All that is needed for the school district to be included is approving a resolution of support.
The JOBZ program was created in 2004 to help spur economic development in out-state Minnesota. Businesses located in JOBZ designated areas are able to take advantage of various tax credits, including property tax exemptions.
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. 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.
The addition of the new lines is one of the main reasons for the search for a new location. The facility in Spring Grove, which has nearly two acres of floor space, would give LaX Fabricating the area required for their expansion plans.
Caledonia Argus
314 West Lincoln St.
P.O. Box 227
Caledonia, MN 55921-0227
507/724-3475
E-Mail: editor.argus@ecm-inc.com