Posted: 3/10/04
By MaryHelen Swanson
There is hope for new jobs in the city of North Branch now that the Andersen Windows Corp. and the city council have shaken hands, signed on the dotted line and concluded the drafting of a development agreement. The final action took place Feb. 19.
But it will take several years to fulfill the promise to provide employment opportunities for 135 people. The company will begin operations (phase I) sometime in July of 2005, with a smaller staff, but are to have no less than 55 permanent full-time jobs by July of 2006. The positions will include transfers from other locations (about 24) as well as new hires.
In phase II there must be 135 jobs by July 1, 2009.
According to the development agreement, the average minimum wage for phase I jobs must be equal to or greater than $14.72 (a figure determined by calculating the base wages and fringe benefits).
In addition, these jobs are expected to share in the companyís profits bringing phase I jobs to an average of $17.52 per hour. The profit sharing is not guaranteed, as noted in the agreement, and may fluctuate, so that hourly wage could be different.
Phase II jobs must pay an average hourly wage of $17.50 using the same general calculations as phase I.
If Andersen fails to meet either or both job or wage goals at the end of each phase, Andersen will be required to repay the city a portion of the city benefits being provided to Andersen.
The city has sold 18 acres at the north end of the industrial park to NB Group, LLC (the cityís economic development organization), for $1 and that group will lease the facility to Andersen Corp.
As this area has been designated a Job Opportunity Building Zone (JOBZ), a new state initiative to enhance industrial growth, Andersen is taking advantage of a 12-year hiatus from paying property taxes.
In addition, at the March 8 City Council meeting, the council adopted a resolution for application to the Minnesota Investment Fund program for a $500,000 grant. The money will be loaned to Andersen at zero percnet interest for 10 years.
The grant will be used to assist Andersen in purchasing equipment and in constructing the plant.
To qualify, 50 percent of defined number of jobs must go to persons in low- to moderate-income brackets or who fall into 80 percent of the county median income which is approximately $52,000 a year, for a family of four, according to county EDA-HRA director Chris Eng.
However, that percentage, noted City Administrator Joe Lynch Monday night, is not taken from the future 135 jobs but from the 31 new jobs for phase I (24 jobs are expected to come from the White Bear Lake facility close-down to equal 55 jobs).
At the special Feb. 19 meeting, Mayor Gloria Karsky said she was happy with the agreement and that it was a start to meeting one of the cityís goals to provide a good industrial base.
Maureen McDunn, director of corporate communications from Andersen Corp., told the Post Review Tuesday that the company is thrilled with the status right now and that the building is coming along beautifully.
She said they expect to be in the building in April and begin operations in June.
A job fair is being planned, she said, and she will notify the Post Review when and where that will take place.
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