Toppan Merrill announced plans to grow in Central Minnesota with a 70,000-square-foot expansion to its Sartell facility.
Sartell City Council approved a business subsidy Monday night to assist the company in its expansion at 300-11th Ave. E. The company sold its St. Cloud facility after struggling with building layout and size.
Options of building new or expanding its Grove City facilities were considered. Ultimately, the company decided an expansion of its Sartell facility would be the most cost-effective option.
All employees from the St. Cloud facility at 4110 Clearwater Road will relocate to the Sartell facility. The expansion is also expected to add 40 jobs over the next two years, said Joanna Lutgen, Toppan Merrill's vice president of marketing, in a phone call.
Toppan Merrill’s parent company, Toppan Leefung Pte. Ltd., is investing $6 million in the project.
The expansion will include 13,500 square feet of office space and 56,375 square feet of warehouse and production space added to the existing 100,000-square-foot building.
The expansion is expected to be completed in the spring.
“We are excited to announce this expansion of our Sartell facility as it represents our growth and expansion into new markets,” Jeff Riback, president of Toppan Merrill, said in a written statement. “It also underscores Toppan Merrill’s ongoing commitment to our workforce and this community; both have been and continue to be, outstanding partners in our growth.”
City Council members approved a $50,000 subsidy to help cover the costs of building permits and utility connection, including water treatment equipment. The estimated total cost of the permits is $150,000.
The initial term was set for $42,000 and was approved by the city council on May 28.
Douglas Boser, CEO of Inventure Properties and a key player in the agreement, said at a city council meeting Monday that an increased subsidy was a "do or die" situation.
"This has been a long journey and to come back to the well is not something we pride ourselves on," he said.
Sartell worked with the Minnesota Department of Employment and Economic Development and Inventure Properties to streamline land-use reviews and offer the "best possible" package of financial incentives, said Sartell Community Development Director Anita Archambeau in the release.