Posted: 11/7/03

$25 million, 100,000-square foot Polaris plant to be constructed in Wyoming

by T.W. Budig
ECM capitol reporter

Itís the biggest thing to happen to Wyoming since railroad pioneer James J. Hill ran tracks through the city, said Mayor Vernon Haag.

Polaris Industries announced Thursday (Nov. 6) plans to build a $25 million, 100,000-square foot engineering and design facility in the City of Wyoming.

The focus of the facility will be the design and engineering of Polaris all-terrain vehicles, Jetskis, and Victory motorcycles.

Expected to be completed in late 2005, the plant will employ 300. About 140 new jobs over time could open at the facility, according to Polaris President and CEO Tom Tiller.

Other jobs would be filled by transferring positions from facilities at Spirit Lake, Iowa, Osceola, Wis, and Roseau.

No facility will be closed, said Tiller. The company had simply outgrown its present facilities, he said.

Polaris, which had sales of $1.2 billion in 2002 and employs 3,800, went through a 16-month process in determining the location for its new facility, said Tiller.

Tax incentives

Although the company is likely to gain tax incentives by locating in a state JOBZ economic development zone ó Tiller would not reveal the possible financial benefits to the company ó he said economics was the not the sole driver in the companyís decision.

There were cheaper alternatives available in Southern states, he said.

ìThey essentially would have built the factory for free,î he said.

Tiller cited good communications, highways, and closeness to other Polaris facilities and the strong marketplace of the Twin Cities as deciding factors.

Still, the state will provide an interest-free expansion loan of $500,000 for 10 years, a $1 million grant to reroute a county road around the 620-acre building site, plus provide jobs skill training.

Gov. Pawlenty said the chance of Polaris gaining JOBZ incentives is looking very good.

If approved, the company could gain up to 12 years of local and state tax exemptions.

Polaris is the second company within the number of weeks to propose building a facility in Chisago County.

Andersen Windows is planning to locate a new facility in North Branch.

Will it really benefit distressed areas?

Although North Branch and Wyoming are outside of the seven-county metro area, some Greater Minnesota lawmakers question whether the program will really benefit distressed rural areas of the state.

Or whether the governor is ìhedging on the promise made to Rural Minnesota,î said Rep. Mary Ellen Otremba, DFL-Long Prairie.

Looking more broadly at the JOBZ concept, Jack Geller, of the Center for Rural Policy and Development, said the center closely examined similar rural economic programs in Michigan and Pennsylvania.

ìWe had a very difficult time determining the net benefit,î said Geller, who has a ìwait and seeî attitude towards JOBZ.

The program appears the administration ìsignatureî economic development strategy for Greater Minnesota, said Geller.

Itís vitally important the administration learn of its impact, he said.

Pawlenty explained people should not draw a conclusion about future JOBZ zones from the Polaris and Andersen Windows deals.

ìThese zones will not predominately be near the metropolitan area,î he said.

It must be remembered the jobs being retained would otherwise be leaving the state, said Pawlenty.

He offers no apology for using the ìpowerful toolî of the JOBZ program, he said.

Local governmental officials were keen on the location of Polarisís new facility.

Montzka proud

ìIím so proud that we were able to attract one of the nationís great companies to our county,î said Chisago County Commissioner Ben Montzka.

ìThe way you build quality communities is to have quality employers,î said Rep. Pete Nelson, R-Lindstrom.

ìAnd Polaris is just that,î he said.

Polaris was founded in 1954 in Roseau. After several snowless winters in the early 1980s, the company was financially reeling, according to a company history.

Ownership changes ensued.

Since 1981, Polaris has grown from a $12 million business to $1.5 billion company.

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