Factory in Dexter may still be built

Published 12:00 am Wednesday, June 5, 2002

Mower County officials have their fingers crossed that a proposed economic development project will see fruition.

On Tuesday, the Mower County Board of Commissioners heard George Brophy and Ray Tucker report on progress in efforts to bring an Oshkosh Corporation plant to the Dexter area.

Brophy, president of Development Corporation of Austin, and Tucker, 2nd District county commissioner, each expressed optimism.

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"At this point, we are anxious and optimistic, but something like this needs the cooperation of many players," said Brophy.

"We wouldn't be bringing you up-to-date unless we thought the deal was moving closer to reality," said Tucker.

According to officials, negotiations reached a new peak of cooperation at a meeting Monday. For the last 19 months, the Oshkosh Corporation and Mower County, city of Dexter and DCA officials have been discussing the prospect for the Dodge Center-based industry locating a distribution center in Mower County.

"This would be excellent for the eastern half of Mower County," said Tucker, whose 2nd District includes the proposed site of the distribution center.

If the project proceeds, Oshkosh Corporation would build a new facility near the Mill Inn Motel at the Interstate 90 and Minnesota Highway 16 interchange near Dexter.

The 10-acre site lies within the Dexter city limits and therefore would qualify as a Tax Increment Financing District project.

The 150-by-300 foot building would house 30 to 40 jobs and be engaged in unspecified distribution capabilities with the potential to become a manufacturing plant.

Both Tucker and Brophy stressed the need for cooperation among the private sector and public officials.

Ironically, the proposed site is near another cooperative project: a giant garage and shop building constructed by Mower County and the Minnesota Department of Transportation.

Also, the city of Dexter's aggressive pursuit of economic development through TIF projects has spurred other development in the area.

Tucker said Oshkosh Corporation officials, who were not available for comment, were attracted to the site by the access to a state highway and the freeway.

In addition, Tucker said the money received by Mower County from Greater River Energy to locate a major generating plant and electricity distribution center in nearby Pleasant Valley Township also gave the county an edge.

"The Development Corporation of Austin will be the fiscal agent for the project," Tucker said. "Basically, Mower County will be asked to make a loan to the DCA and that money will come from the $2.5 million the county received from GRE for allowing them to locate their generating facility in Pleasant Valley Township. This won't cost the taxpayers a penny."

Brophy emphasized the deal is far from finalized at this time. Because it involves a commitment from the city of Dexter to build a new water tower as well as the TIF requirements, Brophy expressed cautious optimism. "We have a number of steps that need to take place," he said.

The main participant in the project will include the state of Minnesota, said Brophy and Tucker to county commissioners.

Len Miller, 4th District county commissioner and chairman of the board, observed, "Dexter is an ideal location for something like this, because of many things including the great access to transportation. This project will have huge tax benefits for the entire county. Just the fact that the company wants the TIF benefits to go to the county shows you how good this project is for everyone."

Tucker was alternately ecstatic about the news and reserved. "This involves a very complicated process to get through," he said

"A lot of cities and counties were trying to entice Oshkosh to locate there, but this is a real compliment to Mower County and the work that has been done to locate the plant here. The finance committee has worked long and hard on this project," said Miller.

"This is a case of using economic development -- the Great River Energy project's money for the county -- to initiate other economic development in the county," said Tucker.

And, Garry Ellingson, 5th District county commissioner, summed up the county board's

obvious feelings, when he said, "This is just great for everybody."

(Lee Bonorden can be contacted at 434-2232 or by e-mail at

lee.bonorden@austindailyherald.com)