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UPS and many other companies have found success in Greater
Mankato
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The Greater Mankato marketplace experienced major economic
development advancements in 2005. Some of the highlights
where Greater Mankato Economic Development Corporation
played a role include:
- Greater Mankato was chosen by the nation’s
largest retailer as the location for an 880,000-sq.
ft. food distribution center that will create 500
to 700 full-time jobs and spur an array of new support
businesses. Wal-Mart initially began exploring the
community in early 2004. GMED responded by compiling
a comprehensive community/sites proposal, then bringing
all the partners to the table to make this significant
development a reality.
“The quality of the site, the cooperative
effort of local and state governments, and the labor
pool made the company choose Mankato over potential
sites in four states.”
Colby Tanner, Real Estate Manager-Distribution Centers
Wal-Mart
- Minnesota State University, Mankato was selected
as the Minnesota Center for Engineering and Manufacturing
Excellence
- The Two Rivers Angel Investment Network, LLC was
established
- Initiated a comprehensive, portable, regional business
accelerator program
- Designed and led inaugural InterCity Leadership
Visit with 88 community delegates
- Partnered with Minnesota State University-Mankato
to sponsor the region’s first BioScience Technologies
Symposium
- Launched Industry Exchange events to provide a
forum for CEOs and key managers to share best practices
CALPINE CORPORATION
After working with GMED for several years, Calpine Corporation
announced in April 2004 that it secured property and executed
a 20-year agreement to provide electricity to Xcel Energy
to help meet growing energy needs in the Upper Midwest.
The agreement was awarded to Calpine following a power
supply bidding process initiated by Xcel in late 2001.
Under the contract, Calpine will build, own, and operate
a new electric power plant in Mankato.
The new 365-megawatt Mankato Power Plant will include
a combined-cycle design with integrated peaking capability,
ensuring that it will be a cost-effective, flexible, and
reliable supply resource for Xcel Energy and its customers.
Construction is anticipated to begin in fall of 2004 with
a goal of completion by the end of 2006. The project is
expected to bring two years of construction jobs and 20
permanent professional jobs, as well as a valuable source
of new local tax revenue.
Calpine Corporation is a leading North American power
company dedicated to providing electric power to wholesale
and industrial customers from clean, efficient, natural
gas-fired and geothermal power facilities. The company
generates power at plants it owns or leases in 21 states
in the United States, three provinces in Canada, and the
United Kingdom. Construction will begin in 2004 on the
companys first project in Mexico.
E-TRAVEL
EXPERTS
Given that the online travel market expects to soar to
$29 billion by 2004, E-Travel
Experts made a great addition to Greater Mankato's
existing base of technology companies. GMED recruited
the Eden Prairie-based business to Mankato in 2000, where
they opened a new call center in the new Technology Plus
Center.
"GMED is a single point of contact
that made our expansion plans possible. When compared
to other communities we dealt with, GMED provided the
most robust services and clearly has excellent management,"
said Tom Doering, co-owner.
E-Travel Experts handles customer service for Northwest
Airlines' e-commerce site and provides airline ticket
fulfillment and related service for Orbitz.com, whose
website offers competitively priced fares from more than
450 airlines. They also provide Orbitz with a wide range
of services including quality assurance, accounting, and
fraud protection.
Recognizing that the travel industry requires a high level
of personal, one-on-one customer care, owners Tom and
Kelly Doering place a top priority on employee training
and ongoing learning. GMED connected E-Travel Experts
to a Minnesota Job Skills Partnership grant, whereby a
program was developed with local Rasmussen College for
staff members to complete several weeks of training on
quality, technical, and customer service issues before
they begin supporting customers.
E-Travel began operations in Mankato with seven employees.
Since that time, both revenues and employee numbers have
continued to soar. E-Travel currently employs around 150.
Owners Tom and Kelly Doering say that working with Greater
Mankato Economic Development Corporation helped them plug
into different resources in the community.
TRUSERV
CORPORATION
In September of 2001, TruServ Corporation announced plans
to close a more modern, larger distribution center in
Brookings, South Dakota, ending speculation that the Mankato
facility would close as part of the cooperative's strategic
plan to reduce the size of its distribution network.
The possibility of restructuring and/or eliminating facilities
existed since the 1997 merger of True Value and Servistar/Coast
to Coast, both national suppliers. From that time forward,
GMED worked closely with Mankato city officials to accommodate
expansion needs and retain the 110 jobs at the Mankato
distribution center.
Gerald Gainer, operating manager for the Mankato facility,
said the decision was made in part on the productivity
of employees in Mankato. "We have one of the best
warehouses in the distribution network," he said.
"We're usually at the top production-wise."
Mark Lofthus, director of marketing and business development
for the Minnesota Department of Employment and Economic
Development, said the TruServ decision shows Minnesota
is doing a better job of competing with neighboring states
for business development, and that businesses are looking
more at the quality of the workforce in Minnesota.
KATOLIGHT CORPORATION
By early 2000 it become clear that Katolight
Corporation had outgrown its Third Avenue plant and
office. Current production needs were being met by leasing
additional space. To ensure continued growth, the time
had come to expand. For Lyle Jacobson, Katolight's president
and CEO, there was no question the company would remain
in Greater Mankato. "Katolight has been in Mankato
since the company was established in 1952. We have strong
ties to the Mankato community and have been impressed
with the spirit of cooperation we have experienced from
our government officials," said Jacobson.
"Further, having an organization like GMED working
for us is a tremendous asset for the Mankato·North
Mankato area. Successful company recuitments, expansions,
and retention efforts make a significant impact on the
local economy."
Jacobson worked with GMED to determine the optimal site
for Katolight's future growth and progressive image. GMED
provided further assistance by facilitating the process
with the cities of Mankato and North Mankato, securing
a local architect and contractor, and evaluating finance
options.
The project culminated with a first class facility in
Mankato's Eastwood Industrial Centre, consisting of approximately
55,000 sq. ft. of production space and 25,000 sq. ft.
of office space. In May of 2002, Katolight celebrated
its 50th anniversary in its new facility.
Katolight is a manufacturer of diesel and gas powered
electrical generator sets and controls with a national
and international distribution network. Katolight employs
160 people in its Mankato operations.
UNITED
PARCEL SERVICE
In early 1998 United
Parcel Service (UPS) was outgrowing its building.
"It was simply time to modernize and upgrade our
facilities," then Manager Jerry Massie said. In a
continuing effort to improve efficiency and service, UPS
also planned to close its New Ulm facility and consolidate
its services with Mankato.
Following the assistance of GMED staff throughout the
planning process in identifying resources and selecting
a site, UPS decided to locate a new 17,000-sq. ft facility
on a five acre site in North Mankato's North Port Industrial
Park. The new building is designed to accommodate up to
36 package cars and process 6,500 packages a day, with
a staff of approximately 65 full- and part-time employees.
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