City, state pledge over $1 million in assistance to keep Crenlo in Rochester
The City of Rochester, Rochester Public Utilities, and the state of Minnesota have reached an agreement with Rochester-based manufacturing corporation Crenlo, providing over a million dollars in incentives to keep the company in town for at least the next five years.
According to the agenda packet for the City Council’s April 19 meeting, the manufacturer of cabs for off-highway vehicles (think tractors, garbage trucks, and cranes) had said it would move operations out of Rochester if it didn’t receive government assistance. In response, the state and the city both decided to assist with public subsidies.
The state’s Department of Employment and Economic Development (DEED) will provide a $450,000 forgivable loan, while the city and RAEDI plan to offer their own $300,000 forgivable loan. Rochester Public Utilities also plans to offer up to $500,000 in energy savings incentives, for a maximum total of $1.25 million in assistance.
“Now more than ever, diversification of the economy is so important to Rochester, and with Seneca and AMPI recent closings, we didn’t want to see the same fate for Crenlo in Rochester,” the packet reads.
In exchange, Crenlo says it will undergo a $4.25 million building renovation and will maintain at least 336 full-time jobs in Rochester for “a minimum” of five years, with the intention of creating twelve new positions in addition. In all, Crenlo currently employs over 400 people in Rochester.
A public hearing on the subject is set for April 19. The council will still have to vote on the topic for final approval.
Also on the agenda for Monday’s meeting: a hearing on potentially adding plans for a ‘warehouse district'-style development into the city’s comprehensive plan; a conversation on the city’s seasonal parking requirements; and the first reading of an ordinance potentially extending the smoke-free zones around city bus shelters from 15 to 25 feet.
Isaac Jahns is a Rochester native and a 2019 graduate of the Missouri School of Journalism. He reports on politics, business and music for Med City Beat.
