BY COUNCILOR GILBERT:
RESOLVED, that the proper city officials are hereby authorized to enter into an agreement, substantially in the form of that on file in the office of the city clerk as Public Document No. ___________, with Northstar Machine and Tool Company, Inc., d/b/a Northstar Aerospace, in an amount not to exceed $500,000, payable from Duluth Recovery Loan Program Fund 235-020-5458, contingent upon receipt of a Minnesota investment fund grant from the Minnesota department of employment and economic development.
STATEMENT OF PURPOSE: Northstar Machine and Tool Company, Inc., d/b/a Northstar Aerospace, started in business March 25, 1994, providing precision machined parts and assemblies to the aerospace industry. Since 1998, the company has grown more than 1400%, mostly due to the growth of its principle customer, Cirrus Design. In 2002, the company moved into a new 20,000 sq. ft. facility from its original 10,000 sq. ft. building. With continued demand for its products from new airplane manufacturers, the company finds it necessary to add an additional 20,000 sq. ft. in support of new contract business. In recent years the company has emerged as a leader of providing airplane seats to the general aviation and the very light jet industry.
In March of this year, Northstar Aerospace was awarded a contract from Eclipse Aviation, of Albuquerque, New Mexico, to provide all of the seats for their VLJ airplanes. In addition, the company is providing parts to Adam Aircraft of Denver, Colorado, another VLJ and center line thrust airplane manufacturer. As part of this project, in addition to facility expansion, the company needs to expand its production equipment used in the manufacturing of its products. The new investment in equipment totals $1,500,000.
This new investment will be provided 1/3 Republic Bank, Duluth, MN, 1/3 city of Duluth 1200 Fund, and 1/3 state of Minnesota investment fund. Current workforce level is at 68 FTE, and the MIF program requires the addition of 50 FTEs by January 2009. In fact, the company expects employment to rise to 200 FTE, by the end of 2008.