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photo by Eric Johnson
Smyth Companies was a major accomplishment for The Development Corporation of Austin (DCA) in filling the first space at the Cook Farm industrial park.
DCA working to lure company, boost jobs
Austin may have answer on ‘Magnolia’ in weeks
Published Friday, April 10, 2009
An anonymous company showing interest in locating a facility in Austin could possibly make a decision by the end of April.
The company, dubbed “Magnolia,” could bring 300 jobs to Austin, and Mayor Tom Stiehm said he believes the city is one of two finalists for the new business.
“They aren’t the entry level, minimum wage jobs,” Stiehm said.
City administrator Jim Hurm said he believes Magnolia’s interest during this economy is a victory for Austin, whether they choose this city or not.
“Yes, it would be wonderful if the city would be chosen,” said city administrator Jim Hurm. “We have heard very good feedback. I hope so, maybe not.
“I think we can feel good as a community even if we are not the final community,” he said.
The Development Corporation of Austin (DCA) is working to lure the company, whose name has not been revealed because the DCA could offer it incentives.
An independent, non-profit which operates using funding from local businesses, Mower County and the City of Austin, the DCA has several other project in the works now.
John Garry, executive director of the DCA, took the helm in October 2007 from George Brophy, who had headed the entity for about 20 years. DCA has a 27-member board of directors that sets policy and maintains a network into the community. A six-member executive committee meets three times per month.
Garry said the DCA does more in the community than is perhaps realized.
“The goal is to support industrial growth,” he said. “It’s a broad definition of industrial — it doesn't’ have to be a large industry. Raw materials, adding value and selling it.”
Garry gives periodic reports to the Austin City Council, who has voiced praise for his work with the DCA.
“I think people are willing to sit back and see what John does,” Stiehm said. “He’s kind of a spokesman to promote the area.
“If you don’t have the DCA, it’s going to lessen our chances of getting business in here,” he said.
Garry says the DCA is about more than just bringing in big employers — it’s about identifying Austin’s strengths and enhancing the overall economy. The DCA also offers revolving loans.
“I think there are things we have improved recently many of our partners wanted to see,” he said. “It wasn’t necessarily about DCA, it was about economic development. Everyone wanted to see us on the main page.”
Garry said a major accomplishment was filling the first space in the Cook Farm industrial park with printing business Smyth Companies. The park had been vacant for several years, he said.
Another large project on the horizon is a business incubator, a possibility the DCA is exploring to generate wealth and job creation. Garry said the DCA is focusing on determining what kind of businesses they would like to see in the incubator, which they do not have a site for as of yet.
“Should we focus on a specific sector, is there a need?” he said. “We are still in a feasibility stage. I think no matter where it is, it would have a close relationship with Riverland Community College (RCC).”
The DCA recently obtained a $25,000 Southern Minnesota Initiative Foundation grant to develop two-year biotech degree at Riverland Community College. Garry also plans to attend a wind energy conference to promote Mower County.
Delving into emerging industries like biosciences is promising for the Austin area, Garry said. Several wind farms in the region, the Hormel Institute and planned bioscience corridor in southern Minnesota, and new training programs through RCC have the potential to make his area a magnet for those industries.
One tool to gauge that possibility utilizing the public is through a $20,000 Town Meeting Initiative Grant. The grant is aimed at engaging the community in economic development planning.
A group of business, environmental, government and community leaders has formed a committee to map out Austin’s assets. The public will be invited to give their input as well.
“In our case we are focusing on biobusiness,” Garry said, “and we have a great group of 29 volunteers who are planning out how to do this. I think it’s going to be pretty meaningful to the community.”
Garry explained that “biobusiness” really has many meanings, essentially, “anything agriculture-related” that would produce energy, like ethanol, biodiesel, biomass or wind.
“With the Hormel Institute here, it seemed like a logical area where we had tangible evidence this is a focus area where we do have assets,” he said.
Garry said he genuinely feels positive about the direction the DCA is taking in Austin.
“I love the job,” he said. “I think I like it more all the time. As I get to know the people here, the businesses here, as I better understand how to build a better foundation for economic development, we have so many of the pieces in place.”
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Comments
Posted by okiedokie (anonymous) on April 10, 2009 at 10:56 a.m. (Suggest removal)
Austin needs a company that pays well and has this many jobs available, hopelly the City and the Dca can convince them to come here but I am sure Hormel will put a stop to that if it has nothing to do with Hormel then they don't want you here. So therefore we probably wont get the new company to come here everybody bow down to hormel.
Posted by AwayfromAustin (anonymous) on April 10, 2009 at 11:07 a.m. (Suggest removal)
okiedokie-Austin would be just another small town without Hormel or another company of its size and stature. What exactly has Hormel done that is so bad? (aside from donating more and more money into the community and providing solid jobs)
Hormel pays well and provides many jobs to residents of Austin. However, they have standards and don't just hire anyone.
If it isn't Hormel, it would be another big company. Are you just against big corporations in general? You're probably one of those folks boycotting WalMart coming to town. haha makes me laugh.
Posted by leftys2221 (anonymous) on April 10, 2009 at 11:24 a.m. (Suggest removal)
Whats wrong with not wanting a horrible big business to come to town?
Posted by Seymour (anonymous) on April 10, 2009 at 12:32 p.m. (Suggest removal)
Wow, 300 jobs for Austin would be great, but I won't hold my breath.
Posted by aspearaustin (anonymous) on April 10, 2009 at 12:59 p.m. (Suggest removal)
Whats wrong with Hormel? How about how they always have a hand in what does want to come to this town. They have put a stop to many companies that have wanted to come to this town and create jobs for our community. Yes they do donate oh so much money to this town. With there name all over it! Oh and what would we ever do without Spam days in Spam town. Would it hurt to be known for something else? I hope this deal does come through. I think this community deserves more options then Hormel to work for.
Posted by AwayfromAustin (anonymous) on April 10, 2009 at 1:57 p.m. (Suggest removal)
lefty-"horrible" really? ha I guess you view opportunities and growth as horrible?
If you don't like Hormel or big companies in general, why wouldn't you consider moving to Lyle or Adams...nice, smaller towns without big companies?
aspearaustin- Let's try to be positive. When I tell people I grew up in the Spamtown USA, they love it. They laugh. It's a great conversation starter. When I was married in Austin, several friends went to the Spam Museum and again--loved it. Why don't you try to make a positive out of the Spam Factory, rather than being embarrassed about it?
Also, I need a specific example of a company that was turned away from Austin strictly because Hormel said no. I can't wait for you to give me an answer you can't back up.
Posted by notsuprised (anonymous) on April 10, 2009 at 3:04 p.m. (Suggest removal)
Look, I enjoy message boards, it’s addicting. But I think it’s too easy to through a bunch of BS out on here as well. Austin could really use a some new higher paying jobs. Drive through any industrial park in Albert Lea, Owatonna or Faribault, you will see all sorts of small-medium sized businesses, Austin is lacking in this area. I for one would love to see some new businesses thrive in Austin, there just isn’t any reason it couldn’t be a win win situation for everyone.
Posted by formeraustinian (anonymous) on April 10, 2009 at 3:37 p.m. (Suggest removal)
Hormel has never been directly responsible for a company not coming to Austin. The one problem, a very long time ago, was that Hormel paid too much money for any other company to compete against for the work force needed. Workers at Hormel back in the 60's and 70's were making what is starting wage for Hormel and QPP now PLUS the incentive production pay. No other company could start up in Austin and believe they would be able to retain workers. They couldn't compete with the wages. That's why Austin has never had any other big business. That has certainly changed now. Also, in Owatonna, the Develop. Corp. there has offered basically "tax-free" zones to bring the business in, not to mention free land. So the property taxes on Owatonna have been huge for the past 15 years for sure. Considerably higher than Austin's. And as to "aspearaustin" just what do you think Austin would be if Geo. A hadn't decided to start his business in Austin? It's good old SPAM that kept Austin out of the depression. Austin never realized the depression the way the rest of the Country did. You don't know what you're talking about. They have issues - yes - just like any other public corporation. But, believe me, it could be a lot worse!
Posted by Big (anonymous) on April 10, 2009 at 6:23 p.m. (Suggest removal)
300 jobs would be GREAT for everyone who lives in Austin... More demand for homes, more kids in the schools, more consumers to shop Main Street... I see very few negatives in diversifying and growing the Austin economy...
Posted by petakillsanimals (anonymous) on April 10, 2009 at 6:45 p.m. (Suggest removal)
I love Hormel and spam and Chief Wilson (cause of his nice hair)
Posted by djgirl (anonymous) on April 10, 2009 at 7:22 p.m. (Suggest removal)
We should be thankful for anyone willing to build here. Maybe the city could start fixing East Oakland so it doesn't look like the slums of Austin! Austin was once a very nice town, now it looks like the slums of Minnesota!
Posted by Norman (anonymous) on April 10, 2009 at 9:32 p.m. (Suggest removal)
Formeraustinian is right on the money. Many business chose not to locate in Austin because the unions wielded so much power. Remember when all the grocery stores, most of the restaurants and many other businesses were were union shops? Companies looking to establish or expand operations were understandably reluctant to choose Austin because of the strong union presence. Hormel didn't have trouble hiring workers in the 60's and 70's because its wages were so high. I am not trashing unions, but their presence did more to prevent new business in Austin than any other factor.
It is hard to understand the deep hatred and resentment some posters hold for Hormel Foods. As the economy is melting down around us, we should be grateful Austin has thus far been insulated from the crisis. We should apprediate the fact Hormel continues to provide very good wages and benefits for so many families. What else would Austin have to offer were it not for Hormel? I wonder if the residents of Hershey, PA are this bitter.
Posted by Littletoad (anonymous) on April 11, 2009 at 1:37 a.m. (Suggest removal)
Norman
When you have one good company paying good wages as they did back in the 50's-70's you don't neccessarily need other industry in town! Now it's different at the labor level! Look at the average pay multiple between union workers and the top executive between the 50's-70's era and now!!
I believe when IJ Holtan retired his top yr was around $350,000, for about a 14 times multiple. I'll let you figure out the current era multiple!(hint: it's probably around 140).
Please, are you implying that earlier era executives pay multiples were low because they were crummy compared to the modern day executives! We all know the rules being played on the "middle class" under the political environment of the last 30 yrs! Perhaps your arguement should apply to the top tier as well to the "poor union twits"! Hey, do me a favor, buy the 1940's movie "It's A Wonderful Life", and then tell me if Austin seems more like "Bedford Falls" or "Pottersville"!
PS. I can't wait till we start importing executives from India and China! We all know they'll work for much less....right!
Posted by Norman (anonymous) on April 11, 2009 at 9:37 a.m. (Suggest removal)
Toad-
I agree, Austin definitely needs to try to attract new business. I also agree executive compensation is shamefully excessive. My point is we should be appreciative of the fact we are home to a very successful Fortune 500 company.
Further, "union twits" is your term, not mine. Those employees worked very hard to earn their wages and still do. I merely wanted to point out Hormel has not bullied other business away from our community.
Posted by Littletoad (anonymous) on April 12, 2009 at 2:45 a.m. (Suggest removal)
Norman,
Thanks for the nice fairmined reply. I used the term twits because so many people are so dismissive of the union people making a decent wage, as if they're so undeserving!
Hormel is in my blood and I do buy their product on a regular basis! Anything less than that I would consider myself sacrilegious! (My dad, granddad and grandma, uncle, great uncles, greataunts, and many cousins all have worked at the Austin plant) Many times I listened to their interesting stories with great interest! Kinda almost like bedtime stories for me since I liked listening about a great successful company and the "sweat" behind the Hormel family fortune! By no means do I feel that fortune is undeserved....I know my relatives always had such pride to be the muscle that helped create it! They only were looking for a "fair wage" and a middle class life for their effort!
Some posters mentioned the fact that Hormel paid too much and other companies couldn't compete on the local level for that labor! That's not neccessarily true...Hormel did not have a unlimited supply of jobs available so they would not of captured 100% of the available labor supply within the community. Therefore, the remainder of the labor supply would be available for any other company.
Personally, I don't care if Austin grows that much! 25000 to 30,000 would be just fine. I just want "all" those that are there to have at least a "middle class" life! Hopefully the term "middle class" doesn't morph into the term "destitute class"!
Sorry for being long winded, and may we all be succesful!!!
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