Senator Karla Bigham Congratulates Cottage Grove Small Business on Decision to Expand, Hire 21 New Employees
St. Paul, Minn. – Senator Karla Bigham (DFL-Cottage Grove) today congratulated Cottage Grove-based Modern Automotive Performance on its decision to expand and hire 21 new employees. The decision is a result of a public-private partnership with the Minnesota Department of Employment and Economic Development (DEED), which is providing the automotive products e-commerce retailer with approximately $135,000 in job creation incentives from Minnesota’s Job Creation Fund.
“I want to thank Modern Automotive Performance and the Minnesota Department of Employment and Economic Development for working together to create 21 jobs in Cottage Grove,” said Sen. Bigham. “More jobs that pay above $15/hour in our community is great news that we can all cheer. I invite business owners in the east metro to contact me with questions about job creation incentives. According to DEED, nearly $37 million in incentives have helped finance 84 business expansion projects across Minnesota over the past five years.”
According to a DEED news release announcing the expansion, Modern Automotive Performance will invest $1.6 million and create 21 jobs in an expansion of its facilities. The company will build a 24,000-square-foot addition that will double its capacity to serve customers and the car community. The new jobs will pay wages averaging $15.67 an hour.
“The Job Creation Fund plays an important role not only in job creation but also in enhancing a community’s tax base by supporting these investments,” said DEED Commissioner Shawntera Hardy. “This program continues to have a proven track record of spurring economic development statewide.”
The Job Creation Fund, which was created by Gov. Mark Dayton in 2013, is a pay-for-performance program that provides funding to businesses after they meet certain criteria, including minimum requirements for job creation and private investments. Under the program, businesses must create at least 10 full-time jobs and invest at least $500,000 to be eligible for financial assistance in the Twin Cities metro and create at least five full-time jobs and invest at least $250,000 in Greater Minnesota.
Since the Job Creation Fund was launched in January 2014, DEED has awarded nearly $37 million for 84 business expansion projects in Minnesota. Companies have committed to creating nearly 5,100 full-time jobs and investing more than $1 billion to expand.