Sauk Rapids Business Expansion Aided By TIF Plan

(KNSI) – The Sauk Rapids City Council has approved a new tax increment financing district to aid an expansion at J-Berd Companies.

The businesses combine to make up one of the city’s largest employers. Community Development Director Todd Schultz details the plans.

“The first expansion that would happen later this year would be approximately a 10,000 square foot building that would be used specifically for truck storage and maintenance. It’ll have a wash bay in it as well. Then next year they would be doing a 30,000 square foot addition onto their existing building.”

J-Berd installs HVAC and fire suppression systems for commercial buildings. The expansion is expected to add up to 25 new jobs along with 4.21 million dollars in new taxable value. Sauk Rapids will kick in up to $471,551 in total over both phases due to the TIF agreement.

Schultz says tightening financial markets and the potential for a recession add risk to J-Berd’s plans. The city is helping ensure the expansion happens.

“In the current economic climate that we’re in, there’s a lot of uncertainty, specifically in the construction industry. So, this company needs these additions for them to remain competitive to continue to grow, but to do them in this kind of climate, I think, constitutes a certain level of risk on their part.”

The TIF district is expected to be in place through 2028.

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