The City of Albert Lea officially went public with its plan to attract a new Farmland Foods plant last night, and a look at the details reveals that the deal is an excellent chance for the city to make a huge economic impact at minimal expense.

Friday, October 05, 2001

The City of Albert Lea officially went public with its plan to attract a new Farmland Foods plant last night, and a look at the details reveals that the deal is an excellent chance for the city to make a huge economic impact at minimal expense.

If Farmland agrees to the deal and everything else goes as planned, the city would end up giving Farmland a new, industry-ready site for $1, and the city would take responsibility for owning and cleaning up the old Farmland site. The $5 million estimated cost of clean-up would come from tax-increment financing proceeds and, the city anticipates, state grants, making the project relatively inexpensive. The city’s tab would include $700,000 to buy extra land near its industrial-park property, plus the cost of finishing improvements on that site – part of an agreement that settled a lawsuit with developer Darv Habben. The cost of those improvements can be recouped through assessments.

The city’s return on this investment would be substantial: more than 700 jobs in the $10-$17 per hour range, a wage on par with other local industrial employers; at least $25 million in payroll into the local economy each year; $88 million in construction costs, a potential bonanza for local contractors; and thousands per year in city services purchased, helping keep water and sewer costs down for the rest of us. Throw in the added tax base, and Albert Lea comes out a big winner after a relatively small initial investment. This is how economic development works – make the development possible without giving up too much, then collect the rewards. The city is making it easy for Farmland to build here, but leaders are not selling out to do it.

Many have said the city is planning to offer Farmland too much. But now that the details are out, it’s clear the city isn’t offering Farmland much more than others might get – through spec buildings and the new business incubator, other businesses can have ready-made sites available to them. The city recently gave a housing developer a plot for $1, and this was seen as a good move. The Farmland development is on a larger scale than any other economic development project, but it also has many times the economic benefit.

If the company accepts the deal – and it’s hard to imagine they would not – it would usher in a new era for the city. The old Farmland site could become what the Habben land was going to be – a third industrial park, teeming with new business. it could be a much more attractive place than it was when Farmland used it. And the new, state-of-the-art plant would be a centerpiece for the local economy.