A longtime Coon Rapids business plans to expand with some financial help from the city.
The Coon Rapids Housing and Redevelopment Authority April 16 unanimously approved a $200,000 loan to Steinwall Properties LLC for improvements to an industrial building it is acquiring in Coon Rapids.
Steinwall Inc., a plastic injection molding manufacturer, has been located in a 100,000-square-foot plant at 1759 116th Ave. NW off Highway 10 since 1994 and has now purchased a 145,000-square-foot industrial building at 11225 Xeon St. NW in the Coon Rapids Industrial Park.
According to Matt Brown, city economic development coordinator, Steinwall has been operating a 70,000-square-foot warehouse in Brooklyn Park that it has outgrown.
The new building in Coon Rapids was formerly a distribution facility for Anheuser-Busch, which moved out six to seven years ago, Brown said in a interview.
“Steinwall closed on the building a week ago,” he said.
The $200,000 loan from the HRA will pay for racking, equipment, mechanical upgrades and minor building renovations, according to Brown.
Steinwall is expected to begin work on the building improvements within a month, Brown said.
Other Steinwall financing sources for the $8.6 million purchase and improvements costs include a bank loan, federal Small Business Administration loan and owner equity, he said.
“This building will allow for future growth and reduce transportation costs between facilities,” Brown said.
The city loan comes from an account the HRA, created in 2013 as a tool to facilitate development projects meeting city goals, according to Brown.
“This is a good fit for the loan program,” Brown said.
Under the agreement with Steinwall, the loan will carry a 5.5 percent interest rate over a 10-year term.
Some 20 jobs will be relocated and at least 10 new jobs will be created with a wage of $13 an hour plus benefits value of at least $3 an hour, Brown said.
According to its website, Steinwall was founded in Minneapolis in 1965 by Carl Steinwall and is a custom thermoplastic injection molder specializing in full-serving manufacturing for small to large parts.
Its Coon Rapids plant houses more than 50 plastic injection presses ranging in size from 30 to 1,750 tons as well a climate controlled white room environment, the website states.
Current owner Maureen Steinwall purchased the company from her father, Carl, in 1985.