Albert Lea Discussion Forum » Printable Version of Topic

Forum: Current Events
Topic: Fountain Industry Leaving
started by: Chamber Maid

Posted by Chamber Maid on Mar. 18 2017,4:10 pm

So sad to see Fountain Industries leaving

Found a newspaper article where Dan Dorman ( our Economic Development guy a few years ago says higher unemployment is no sign of concern) see below

Albert Lea sees bump in unemployment rate
Published 9:41am Thursday, July 28, 2011

According to new numbers released Tuesday by the Minnesota Department of Employment and Economic Development, Albert Lea’s unemployment rate increased from 7.1 percent in May to 8.1 percent in June.
But Dan Dorman, executive director with the Albert Lea Economic Development Agency, said he doesn’t see this as a sign for concern; in fact, it could be just the opposite.

WOW
Is the Dorman Doctrine is still being followed?

Say it ain't so

Posted by Self-Banished on Mar. 18 2017,7:24 pm

Where are they going?

Posted by Chamber Maid on Mar. 18 2017,7:33 pm

According to a press release on Wednesday, Fountain Industries LLC will move its manufacturing and offices to a new, 48,000-square foot manufacturing, office and warehouse facility in Shakopee.

< http://www.albertleatribune.com/2017...hakopee >

Posted by Self-Banished on Mar. 19 2017,6:53 am

Shalopee has been attracting a lot of businesses big and small over the last ten or so years. Amazon, Brewers Group, Cyber Power and a parade of others.

Shows what a city can do when they make themselves into an attractive destination.

Posted by Chamber Maid on Mar. 21 2017,6:30 pm

500 new jobs coming to Shakopee as ADC site gets new tenant

< http://www.startribune.com/500-job...0841521 >

Shakopee

I heard they built
A new Courthouse
A new jail
A new school
A new bike trail on a four lane
Reduced downtown parking
Put in many coffee shops
Bought an old bank building
Added new street lites
and are dredging the river.

Posted by Chamber Maid on May 04 2017,8:49 am

Fountain Industries 50 plus jobs lost last month!!!
Streaters 70 jobs lost last week!!!
Tribune lays off all carriers this week.

Huge wage increase for city manager in paper today!!!!!
< http://www.albertleatribune.com/2017...manager >

Who is fiddling while Rome burns?

Posted by was1 on May 04 2017,12:15 pm

does not seem like the greatest track record to deserve that.

Add to that the city garage redo and cost associated with that. All those lost jobs will not pay for the garage project, or other projects.

Was not too keen on some of the praises by council/mayor. considering the history.

Posted by ALAngst on May 04 2017,1:34 pm

Especially since this city manager was censured by the council for his behavior, only to have the very same Rasmussen remove it from his file a couple of months later.

Posted by dipsie1 on Jun. 12 2017,9:03 am

What's going in on Front Street?

Posted by Blackdog on Jun. 12 2017,9:21 am

More Storage Units.

Posted by hymiebravo on Jun. 14 2017,8:18 am

I wonder what the ratio of storage units to citizens will be after that.

Posted by hymiebravo on Jun. 14 2017,8:25 am

(Self-Banished @ Mar. 19 2017,6:53 am)

QUOTE

Shows you what you can do when you in the sprawl perimeter of Minneapolis/ St. Paul. . .

Just like Egan or Lakeville or anybody else in that zone.

Nothing more.

Posted by Self-Banished on Jun. 18 2017,5:53 am

(hymiebravo @ Jun. 14 2017,8:25 am)

QUOTE

(Self-Banished @ Mar. 19 2017,6:53 am)

QUOTE

Shows you what you can do when you in the sprawl perimeter of Minneapolis/ St. Paul. . .

Just like Egan or Lakeville or anybody else in that zone.

Nothing more.

Fair enough

Then let's take a look at Owatonna, Mankato and Rochester themselves as an example.

All have good logistics (Owatonna, one freeway,1 US hwy, 1 railway. Rochester, 1 freeway,2 US highways, 1 railway. Mankato, 2 US highways 1 railway)but far from the advantages of AL ( 2 freeways 2 US highways, 2 railways, one of them being a major player, Union Pacific) All three have encouraged growth and commerce far beyond what AL has.

It's amazing what piss-poor leadership won't do.

Posted by Expatriate on Jun. 18 2017,8:57 am

Actually Freeborn Mower electrical rates are better than Shakopee's, both on commercial and industrial, not sure where Fountain Industries falls maybe light industrial.

They were leasing here in Albert Lea, Fountain Industries was sold in 2012 and changed the name to Fountain Industries LLC some outfit called Management Leads. Financial backers of the new Fountain Industries, LLC, include Cherry Tree’s Adam Smith Fund of Minnetonka, MN and Bremer Bank of St. Paul. Financial terms were not disclosed.

Don't know what's going on, Maybe these folks expanded the business beyond the current buildings capacity.

There seems to many empty light industrial/warehouse type buildings in the shakopee area.

If you checkout the City of Shakopee's homepage (Business and Development) then checkout Albert lea's homepage (Economic Development)

< http://www.shakopeemn.gov/ >

< http://cityofalbertlea.org/ >

Albert lea's website is nice enough, but they're selling the beauty of our city, it links you to Albert Lea Economic Development Agency but Shakopee's is simple, easy to navigate, and the business development is right on their main-page and smokes ours.

i.e. Business Incentives & Finance Programs
Façade Improvement Program
Property Tax Abatement
Tax Increment Financing
Sewer Availability Charge Credits

if you want to catch a fly spread some honey/we beat Shakopee on utility rates and I'm guessing our taxes are lower ( both tax write offs ) but some how they took one of our manufactures.

Posted by Self-Banished on Jun. 18 2017,10:11 am

^^ better rates, but by how much? Newer facilities are built for energy efficiency, many time utilities give breaks for this. Maybe it was enough. But when you start to put together a package, make it attractive then throw in a larger labor pool that might be enough to tip the scales.

You point out that Fountain was bought out a few years back. Maybe it was bought on speculation to flip for profit. Relocating to a shining new building might be enough packaging to seal a deal.

Posted by Expatriate on Jun. 18 2017,10:31 am

The average industrial electricity rate in Albert Lea is 7.9¢/kWh.
The average industrial electricity rate in Shakopee is 8.57¢/kWh

< https://www.electricitylocal.com/ >

This half a cent doesn't look like much but when you transcend these numbers into MWh or Megawatt Hour loads you start talking money..

Large electric motors in manufacturing are a utility's cash cows..

The offset to the increased electrical cost might be in reduced transportation costs for Fountain Industries, they're selling their parts washers on Amazon among other distribution points.

< https://www.amazon.com/s...+washer >

QUOTE

larger labor pool that might be enough to tip the scales.

It's true the population of Shakopee almost doubles that of Albert Lea, so does the household income, meaning more wage competition.. Fountain Industries will have to increase their pay-scale to hold employees, increased labor costs.

It would be interesting to hear from one of the employees as to the reasoning behind this move.

Posted by Self-Banished on Jun. 18 2017,2:40 pm

^^ again, I agree that the rate difference looks tiny till you start running big phase three motors but again, newer facilities, less draw.

Wages in Shalopee? It's a fourth ring suburb, no big deal to draw labor from New Prague, Montgomery etc. Quite a few Brewers group people followed from St Peter when they moved.

Posted by Expatriate on Jun. 18 2017,3:32 pm

^^Here's some pictures and info on the building Fountain Industries is leasing in Shakopee. I'm not sure what you mean by efficiency. building efficiency, that's petty much shot to hell in a warehouse setting.

Can't get the link to work but copy and paste it'll take you there
The Opus Group Announces Completion and First Tenant for Speculative Industrial Development at Valley Park Business Center,

It's a brand new building from an outside firm, I'll bet they're paying more for this lease than what they paid in Albert Lea.

As you can see by the interior pictures the building is empty.
Fountain we be relocating their existing manufacturing equipment, welders, presses, etc, as well as dissembling and relocating their warehouse racks.

So utility costs will be higher in Shakopee.

It's fairly easy to find income statistics on Albert lea and Shakopee so I won't bother linking for you.
The median household income Shakopee is $79,174.
The median household income Albert Lea is $40,037.
labor costs are higher or will be.

On transportation costs, I'd think you could fill a 53' trailer full of these parts-washers and still not be over weight. You'd think it would make more economic sense to pay the freight to TC rather than relocate.

everything points to this move being an expensive mistake—except

Amazon put up a 20-acre, million-square-foot facility in Shakopee that's what's attracting these Companies.
Nolander should have been kissing Jeff Bezos behind, get them in here give them anything they want. hell build it for them. We wouldn't be losing our hospital we'd have been the industrial Might of Southern Minnesota within ten years.
Maybe we should fire Nolander and hire the guy who runs Shakopee's Economic Development.

Posted by Self-Banished on Jun. 18 2017,11:06 pm

^^ I know exactly where that building is, I deliver to three of its nearby neighbors. This is not Opus's first rodeo, they've been around for years, highly successful.

Maybe the powers that be just thought Albert Lea is a sh!thole with no future. There's nothing there really attractive, no great restaurants, not much in the way of culture, the downtown is basically an inconvenient drive through and for myself the fishing is mediocre. The only time I've made back there in the last 6 years was for a funeral.

Posted by Expatriate on Jun. 19 2017,7:05 am

Amazon is America's 9 biggest employer and they're still on a warehouse building spree, they have one in Shakopee MN one in Des Moines IA.— ?
We're on a PRIME location ( Prime is a two day delivery service for Amazon members ) the crossroads of two major Interstates with an under-utilized airport we just upgraded to the tune of 12 million dollars, maybe more depending on the cost of the new Terminal.

Has our economic development leadership even tried to put together a package to sell Albert Lea, he should be pestering Amazon 24/7..

We can no longer live in an economic atmosphere of protectionism/nepotism! The lose of our hospital proves we've been on the wrong path, we're not a lovely retirement community, we grow or we die..

Posted by Self-Banished on Jun. 19 2017,7:49 am

(Expatriate @ Jun. 19 2017,7:05 am)

QUOTE

Yes, once again the wonderful logistical benefits of Albert Lea come to light but with a bunch of short sighted podunks leading you folks and the chance of different leadership being elected being nil I'm afraid AL will become (if it already isn't) another dying prairie town.

Start voting in people with business talent instead of the liberal derfs.

By the way, nice mention with Des Moines, see any logistical similarities?

Posted by Liberal on Jun. 20 2017,12:00 am

Amazon does blow away the "2 interstates" theory of growth.

Posted by Self-Banished on Jun. 20 2017,4:40 am

Compared to trucks and rail, airfreight is expensive, super expensive. Plus with Amazon's proposed (done deal?) purchase of Whole Foods the volumes will become staggering

< https://www.reuters.com/article...N1990HH >

The only way Amazon could possibly serve rural areas would be satellite distribution points in smaller cities.

Expat's right though, Albert Lea should have a competent and capable agent wooing Amazon.

Posted by Expatriate on Jun. 20 2017,8:17 am

(seulloup @ Jun. 19 2017,5:18 pm)

QUOTE

(Expatriate @ Jun. 19 2017,7:05 am)

QUOTE

You're kidding right? At least I hope so. While having an AMZN warehouse would certainly be a good thing for the economy we are in NO WAY located anywhere logistically reasonable to make one work. You do understand that the crux of supplying that warehouse isn't the incoming ground freight, but the ability to move it in and out quickly via a rapidly growing fleet of 767s, which fully loaded require a little under 9000ft of runway to get in the air. Just about double what we have with the newly expanded 5000ft main runway at Albert Lea. Just to give you a good visualization of how long that is, assuming we aren't moving I-90, a 8900 foot runway would start at the corner of Richway Drive and the west entrance to the Fairgrounds. Willing to give up another golf course?

< http://www.mcall.com/busines...ry.html >

< http://www.mcall.com/busines...ry.html >

Nice post, I've held a Amazon Prime Membership for ages and track my orders, rarely if ever has there been air transport. Amazon transports via third party—UPS—USPS in combination or separately depending on weight, occasionally FedEx/DHL.

Lehigh Valley International Airport is Prime spot for Europe. During 60's 70's our Military used FT. Dix/McGuire Air Force Base as a oversea's replacement station for Europe, that base is about 90 miles to the Southeast. Amazon is using the best air route to Europe, they're not stocking US warehouses by air or delivering locally by air, Amazon is a worldwide company. They're moving freight to Europe and from Europe.

< http://www.mwpvl.com/html/amazon_com.html >

I believe our airport suitable for occasional emergency occurrences that happen from time to time when pushing a pony express delivery service..

< http://www.businessinsider.com/amazon-...-2017-4 >

Really don't believe we've missed the boat on Amazon, but we have to become aggressive, Prime numbers are growing, so will the number of Warehouses to keep up with 48 hour delivery time and to keep transportation costs down.

Really wish I could give you a statistical breakdown of where these prime members are located—logic would dictate a large number of these folks are in rural communities, these folks don't have local access to the large selection of goods sold by Amazon, so they turn into prime members...

Edit

QUOTE

Amazon does blow away the "2 interstates" theory of growth.

those interstates may be our salvation yet..

I could have cared less about the Mayberry atmosphere in Albert Lea, actually kind of liked it, but the loss of our hospital is unacceptable.

I'm sure Mayo has invested a sizeable chunk of change on comprehensive studies, both internal and external on the viability of re-positioning it's medical assets.

If, and it's big if, even a whiff in the air of Amazon considering Albert Lea as a warehouse location might be enough to give Mayo pause, postpone or even turnaround their plans to close our hospital.

@ Ryan Nolander, I don't have a clue who gives you your marching orders—but we're in dire-straits—it's a big request to be laid upon your shoulders, you may be our last hope.

Ryan, prepare a prospective , push Albert Lea to Amazon like you never pushed before, get together with every city/county official in the most expedient manner possible and prepare the best package possible and make it better.
pester Amazon night and day 24/7 get a basic consideration that could lead to a commitment.

You're not going to get rich working in a warehouse setting but these jobs seem to come with a benefits package..and surely there would be some high-end jobs.

< http://www.amazondelivers.jobs/about/our-opportunities/ >

Posted by Botto 82 on Jun. 20 2017,8:18 am

Albert Lea = :deadhorse:

Posted by Expatriate on Jun. 20 2017,8:28 am

Even a dead horse has value if marketed appropriately...

Posted by Self-Banished on Jun. 20 2017,9:37 am

Jesus! I'm agreeing more and more with Expat? I'm even a Prime member.

I feel all creepy inside.

Posted by locknload on Jun. 21 2017,8:08 am

Fountain left because the new owner ceo felt the union "hindered" his management abilities ,the guy was a major jerk ,they had the best insurance 90/10 no deductible which was through the union ,the lease was up in june so either change the name or move to dump the union.

Posted by Self-Banished on Jun. 21 2017,1:58 pm

^^ ah! Union, the picture gets a bit clearer.

Posted by locknload on Jun. 23 2017,1:55 pm

The only good thing about that union was the insurance....

Posted by hymiebravo on Jun. 24 2017,10:23 am

Maybe you need to talk to the development company that apparently facilitated the Fountain move.

In the past when development in Albert lea was discussed. Space was a concern.

For example. . . When the wind turbine parts manufacturers, were pretending like they would consider building in the area. Glenville was touted as a potential spot.

It is rather dicey when it comes to finding usable space in terms of building on I-35 in the direct vicinity of Albert lea, isn't it?

Where is the Amazon warehouse going?

And peaking of turbines. . . Is the Glenville project ever going to come to fruition?

Posted by Expatriate on Jun. 24 2017,11:52 am

QUOTE

Where is the Amazon warehouse going?

Amazon's, 69.2-acre site at 2601 Fourth Ave. E. in Shakopee, according to a certificate of real estate value made public, the site is on the southeast quadrant of Highway 101 and Shenandoah Drive in Shakopee. The deal works out to about $145,569 per acre.

I think they can build any place they want for that kind of money per acre.

When I'd brought up the Amazon thing in the hospital thread it was because I felt Freeborn County's poverty rate was driving down Albert Lea Mayo's Hospital revenues. Some research showed Mower County has a higher poverty rate so it should be more of a drain on Mayo Austin.

I'm happy with the Mayberry atmosphere but questioning how Mayo justifies closing one of the top 4 rated Hospitals in the State , and top 100 Nationally
just to build in Austin?

Something in Austin smells besides that Packing House!