Posted: 9/25/07
LaX Fabricating may be
moving to Caledonia
By Charlie Warner
Argus Editor
Additional industry, and the potential for 50-plus jobs might be coming to Caledeonia. A business transaction between LaX Fabricating, LLC of La Crescent and Zenke, Inc. for the purchase of 10 acres of land on Highway 16 at Millerís Corner between Hokah and La Crescent fell through last week.
John and Jeff Mitchell, owners of LaX Fabricating indicated there are two sites in Caledonia they are looking at as possible locations for constructing a 50,000 square-foot manufacturing facility.
LaX Fabricating has outgrown its current facility, located in the former Bonanza building on the pike between La Crescent and La Crosse, and had entered into an agreement to purchase a 10-acre tract of land 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 two parties did not consummate the deal by the Sept. 20 deadline.
Word of a possible change of plans for LaX Fabricating surfaced during a recent Caledonia 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."
LaX Fabricating received 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.
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 wanted to remain in Houston County and looked at locations within the city limits of La Crescent and La Crescent Township. Neither government entity had any JOBZ designated acres. Caledonia, however had 180 acres, and agreed to transfer 10 acres to La Crescent Township. Now that the La Crescent Township location has fallen through, the city would like to get the 10 acres back.
Nelson said he had discussed the issue with Economic Development Director Joyce Iverson about retrieving the 10 acres and applying it to the potential LaX site location in Caledonia that currently isnít part of the JOBZ acres. According to Iverson, it should be doable.
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 new 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.
Caledonia Argus
314 West Lincoln St.
P.O. Box 227
Caledonia, MN 55921-0227
507/724-3475
E-Mail: editor.argus@ecm-inc.com