From staff reports

Farmland’s announcement came as a relief to former employees, and the news is likely to help efforts to get economic aid legislation passed in the state legislature, officials say – even though a new plant still hinges on an insurance settlement.

Wednesday, April 03, 2002

Farmland’s announcement came as a relief to former employees, and the news is likely to help efforts to get economic aid legislation passed in the state legislature, officials say – even though a new plant still hinges on an insurance settlement.

&uot;I think it’s great because we need the extra jobs in this county,&uot; said former employee Brian Vairma. &uot;It will stimulate the economy in the city and county in three ways: the construction of the new plant, the destruction of the old plant and the new jobs that the plant will bring. I was hopeful that after Judge Broberg ruled, that we would hear something quick.&uot;

Broberg, a Freeborn County District Court judge, ruled last week that insurance companies cannot block a city demolition order forcing the partly burned Farmland plant to be demolished.

The biggest question among workers, around 200 of whom remain out of work in Albert Lea, was when the plant will reopen.

&uot;I’ve been out of work and want to know how long it’s going to take,&uot; said Paul Brandt, a 31-year employee. &uot;How long can I be out of work?&uot;

The company said it hopes to break ground this spring, and expects the construction to take 16 months.

Other employees wondered whether the former workers will keep their seniority among an expected wave of new employees needed to run the 720-employee facility. The old plant employed around 500.

City and state leaders welcomed the news, and said the announcement can only help Farmland’s efforts to get an insurance settlement on the burned plant – and aid a push for special tax legislation that would pave the way for a new plant.

Rep. Dan Dorman, R-Albert Lea, said when he visited with Farmland Industries Executive Vice President George Richter last week, they discussed possible economic incentives from the state.

&uot;This announcement can only help in St. Paul,&uot; Dorman said.

Mayor Bob Haukoos, a former state representative who visited the Capitol Tuesday to check on the pending bills, agreed.

&uot;We’re hoping maybe this will speed things up,&uot; Haukoos said. &uot;It might help for both (the special legislation and the insurance negotiations). It can’t hurt.&uot;

Dorman and Sen. Grace Schwab, R-Albert Lea, have introduced a bill that would provide a sales-tax exemption for certain construction materials, and one that would allow a tax-increment financing district on the new site that would generate funds to demolish and clean up the old site.

Officials hailed the economic benefits the construction and operation of the new plant will have for the Freeborn County area.

&uot;I’m very excited and happy for the community,&uot; Dorman said. &uot;It will be nice to get that payroll back in the community. It will be a nice shot in the arm. It will be one of the biggest construction projects ever in the county.&uot;

Haukoos said he had been expecting the news for weeks, but still was happy to hear the announcement. &uot;Naturally it’s good news that they do plan on building here,&uot; he said.

&uot;We’re thrilled they’ve come to a decision,&uot; said Pam Bishop, Executive Vice President of Greater Jobs, Inc. &uot;Greater Jobs is glad Farmland Foods and everyone involved in the process has come to a decision. We’re excited to see the state-of-the-art facility they’ll be building. We look forward to a successful relationship.&uot;