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Barrel O' Fun expansion is $15 million

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Perham, 56573
Perham Focus
(218) 346-5901 customer support
Perham Minnesota 222 2nd Avenue SE 56573

Perham's largest employer is on the verge of another expansion project, this time totalling nearly $15 million in new facilities and equipment.

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Pretzel and tortilla production will be increased under the expansion plan, which calls for a 76,000 square foot addition to the Barrel O' Fun complex.

Construction costs for the addition are estimated at $5.9 million. Equipment for the snack production represents an investment of nearly $9 million.

The project was discussed at the Perham City Council meeting April 13.

The project will be privately financed, but Barrel O' Fun officials have requested a $500,000 Department of Employment and Economic Development grant, from the Minnesota Investment Fund.

The loan would be granted to the city and its Economic Development Authority, which would then lend the $500,000. The loan would be repaid to the EDA, which would become part of the Revolving Loan Fund pool--to be used for other economic development projects.

The expansion site would be in a triangular-shaped space between the existing plant, an existing warehouse, and bordered by Highway 5.

A permit for construction costs representing about $6 million for Barrel O' Fun was approved by the city in March.

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