Mar 6, 2013 at 11:06 am
ST. CLOUD, Minn. (KNSI) - A major St. Cloud company, looking to expand their manufacturing center and add 136 new jobs, will receive a $100,000 loan from the city of St. Cloud.
New Flyer, a maker of heavy-duty transit buses, was unanimously approved for the loan by the St. Cloud Economic Development Authority Board today during their meeting.
The investment, which will come from the City Revolving Loan Fund, will be paid back to the city by New Flyer over the course of seven years.
Cathy Mehelich, St. Cloud's Economic Development Director, tells KNSI news the loan will support New Flyer's expansion efforts, which include investment in new machinery and equipment, expanding the facility by 12,000 square feet, and making way for the launch of a medium-duty bus line that New Flyer is bringing to market in partnership with a Scottish company.
Mehelich says the 136 positions to be added to the 530 member workforce will be hourly-wage positions beginning at $15.28. She says the strength of the company and its contribution to the local workforce have made it a worthy investment for the city.
"Other regions made aggressive bids for this particular project," Mehelich says. "That's why the city, county and state are participating at this level - because the job creation is substantial."
New Flyer is also asking for a forgivable $1 million no-interest loan from the Minnesota Investment Fund, along with a $250,000 no-interest loan from the Stearns County Revolving Loan Fund. Receipt of the EDA loan is contingent on approval by the other two agencies.
New Flyer was founded in 1930. In addition to St. Cloud, the company operates manufacturing centers in Crookston, MN and Winnipeg, Manitoba.