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Perham sells two lots to IFS for $0

The city of Perham has sold two lots in its industrial park to Industrial Finishing Services, to accommodate future expansions at the company.

Industrial Finishing Services, or IFS, already has a large facility located in the industrial park. The company is currently undergoing one expansion, with another planned to begin shortly, according to a memo to the council from Chuck Johnson of the Perham Economic Development Authority. Yet another expansion could possibly be coming in the foreseeable future.

IFS specializes in industrial finishes and coatings. It serves customers throughout the world in the automotive, military, heavy truck and construction industries, and others.

The two new lots “would serve both a current and a future need” for IFS, the memo states. “As part of the current project, they might be used for parking, and they might be used to help with IFS’s stormwater holding solution, as required by the MPCA (Minnesota Pollution Control Agency). As to the future, these lots would set the stage for future IFS expansion.”

The two expansions already underway or nearly underway at the company are expected to result in about 100 new jobs in Perham – many more than were originally expected.

At first, IFS planned an expansion on the northeast corner of its facility, which had minor job implications, the memo states. Now, however, that expansion includes a painting line, which will create an estimated 48 new jobs. These are in addition to the 52 jobs created by the other expansion project on the south end of the facility.

“Additionally, if another expansion occurs beyond that, there will likely be a significant job component” to that, as well, according to the memo.

Because of a jobs-based discount structure approved by the city council in 2010, IFS will acquire the two new lots at no cost.

Information laid out in the memo shows that whenever more than 20 full-time jobs are created by a construction project on a particular lot, the lot sells for the maximum discount of $0 an acre (by comparison, the price for an acre that produces no new jobs is $7,500).

IFS will retain responsibility for payment of special assessments on the property. If after two years it appears construction will not be taking place, the Economic Development Authority will purchase the land back at the same price of $0 per acre.

The lots are defined as Lots 8 and 10 in the Industrial Park 3rd Addition, near IFS’s current facility.

Marie Johnson

Marie Johnson joined the Detroit Lakes Tribune in November 2017 after several years of writing and editing at the Perham Focus. She lives in rural Frazee with her husband, Dan, their young son and daughter, and their yellow Lab.

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