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Imperial Plastics Proposal: Jobs For Mankato

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MANKATO , MINN. -

Imperial Plastics is looking into building a plant in Mankato.

Tonight at the Mankato City Council Economic Development Authority meeting, Imperial Plastics will bring a proposal for a new facility in the Eastwood Energy Center area.  This new facility would create more than 50 new jobs to the economy initially, with the capacity for over 100 in the future.  Part of the facility's funding would come from tax–increment financing (TIF).

Paul Vogel, Director of Community Development says, "As they pay their property taxes, that generates the tax–increment financing so there's no front ending of the money from the city."  This means that the city won't lose money on the deal.  Vogel continued to say, "There's about 250,000 worth of infrastructure cost that are eligible for TIF and then approximately 470,000 worth of site corrections."

The site has a soil issue that makes a foundation impossible unless the soil is replaced.  This would be covered under infrastructure cost.  This is what is called a primary sector job, an industrial type of job.  Jonathan Zierdt, President and CEO of Greater Mankato Growth, says granting tax–increment financing is typical for these primary sector jobs.

"It's a very common tool used in primary or industrial economic development and it's a very normal role for cities to be involved in that infrastructure type support for new business primary economy development" Zierdt.

After tonight, the next step would be to get a planning commission review.  This would take place on January, 23.