Article by: Chris Giesen
The City of Chatfield, MN was recently notified that their application to the DEED Minnesota Investment Fund was fully awarded in support of an expansion of a local manufacturer, EZ Fabricating. The award will grant $375,000 to Chatfield to then lend to EZ Fabricating with very favorable terms which will allow the business to add approximately 10,000 square feet of manufacturing space and create 17 new full time jobs at an average wage of $19.06. CEDA team member Chris Giesen who serves the City of Chatfield was able to successfully author this application which gives the business a 1% fixed interest rate on a 15 year loan, and if the job and wage goals are met, $255,000 of loan will be forgiven by the state.
“This was exciting news; we’re so happy to see EZ Fabricating continue to grow especially because they do a lot of work for other businesses in our CEDA communities” said Giesen. “We had to really hustle on this application because the business had a client that was willing to give them significant new business but only if EZ Fabricating could meet their production goals, which required adding on to their building, right now. The Company needed to start construction before winter or risk losing this new business.” He added “these applications can be very complex with a lot of moving parts, and can take a considerable amount of time to complete. However, we were able to work with the business owners to get the required application materials together, hold the necessary public hearings, make all the approvals, and submit a full application in about two and half weeks. DEED was also very helpful in answering questions, coordinating the process, and even sped up their normal review process for us so that we could keep the owner on track to start building.”
In addition to the state program the City of Chatfield also approved a $25,000 loan to EZ Fabricating with a 1% fixed rate for a 10 year term. This expansion is the second expansion CEDA assisted EZ Fabricating with, in 2013, Giesen assisted the business with a major expansion that resulted in several additional grant awards to assist the business as it built a new facility in Chatfield. In this previous expansion, the Company met its job and wage goals within two months of finishing their expansion instead of the two years they were allowed. For its help on the 2013 project, CEDA was nominated by partner F&M Community Bank and received a 2nd place “Strong Community” award from the Federal Home Loan Bank of Des Moines.