Nineteen new jobs with pay ranging from $22.81 an hour all the way up to $45.67 could come to Lonsdale.
The jobs would come alongside a two-year expansion of Minnesota Millwork & Fixtures, given things go smoothly with the joint grant application submitted by the Lonsdale City Council after receiving approval at Thursday night’s meeting. The project includes $8.3 million of construction and equipment and more than 50,000 square feet of new space for the company.
Minnesota Millwork was formerly known as R&L Woodcraft, which began in 1977. In 2015, the company began implementation of a strategic plan toward expansion, according to a presentation provided to the Lonsdale City Council by Minnesota Millwork CEO Randy Rivers.
Rivers purchased the company in 2016 and changed its name in July 2017. At the time, the company had a single client, focused on shelving and other casework, and revenue sat around $3 million a year.
Since then, revenues have increased threefold and several new areas of focus were added, namely millwork. The company has built a reputation among its client, most recently having earned a national award from Outback Steakhouse for its work on upholstery and trim and other work in the restaurants.
However, the presentation revealed the business is “out of space.” So, through a three-phase project, the company plans to expand.
First, the paint line will be automated and a dust collector worth nearly $1 million is being added. The vacant building across the street is also being purchased and renovated.
Then, a 30,000-square-foot building is being constructed next to the current Minnesota Millwork building. Finally, in phase three, the current and the 30,000-square-foot building are being connected, adding another 10,000 square feet.
As part of the funding, Minnesota Millwork is seeking a grant from the state through the Minnesota Investment Fund, which would add about $450,000 for the project, and have some benefits to the city.
The grant application was approved by Lonsdale City Council, after Councilor Kevin Kodada noted the mutual benefit to the expansion and grant. While the city would waive the fees to connect the water and sewer lines, it would stand to be awarded $100,000 for its revolving loan fund from the grant as well.
“I don’t really see any negatives for the city, that’s for sure,” Kodada said. “… I don’t see anything negative about this.”
Kodada inquired about if Minnesota Millwork would be eligible for the revolving loan fund after a year or two, which City Administrator Joel Erickson confirmed. The fund is meant for the city of Lonsdale to support development of small businesses with low-interest loans.
“I think it’s good,” added Mayor Tim Rud. “You know, it’ll add employment. And it seems like pretty-good-wage jobs.”
Councilor Scott Pelava said the expansion has been discussed for years.
“I know that, over the years, he’s wanted to expand and he looked at other communities,” he said. “But in the end, he still wants to come back here. So that’s a plus.”
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