Little Falls boat plant will stay put
LITTLE FALLS - Keeping about 170 jobs and Larson Boat Co. in Little Falls was behind the cooperation of five lenders.
Four central Minnesota lenders and the Minnesota Department of Employment and Economic Development approved a financing package to J&D Acquisitions in Hopkins to keep the Larson Boat Co.'s manufacturing facility open in Little Falls, the Initiative Foundation reported late Wednesday.
"Without hesitation I'm overwhelmed by the community support," Irwin Jacobs, J&D Acquisitions partner, said in a news release. "I'm optimistic about the fact that we'll be able to grow our businesses now, but in order to do that we need the employees' support by building the finest boats in the world. And I know they're fully capable of that."
The news comes one week after the announcement that Brunswick Corp. will close its Crestliner and Triton boat plants in Little Falls.
Lenders united to keep Larson Boat Co. and about 170 jobs in Little Falls - Randy Olson (back left), Initiative Foundation; Dan Lindsay, J&D Acquisitions; Kathy Gaalswyk, Initiative Foundation; Lee Miller, North Central Economic Development Association, Inc.; Irwin Jacobs, J&D Acquisitions; Al Kuebelbeck, Larson Boat Co.; Sandy Voigt (front left), Initiative Foundation; Cathy VanRisseghem, Little Falls mayor; Carol Anderson, Community Development of Morrison County.
The loans will secure about 170 full-time jobs in Little Falls, which pay an average of $15 per hour with benefits. According to Jacobs, Larson hopes to add another 150-175 more jobs during the next two years.
The Initiative Foundation, DEED's Minnesota Investment Fund and the Economic Development Authority of the city of Little Falls filled the final gaps in a complex $7.4 million package that included owner equity, as well as additional investments from Community Development of Morrison County and the North Central Economic Development Association Inc.
"This project is a perfect example of the resilient spirit of Minnesotans - people coming together to solve an urgent problem in the community," said Kathy Gaaslwyk, Initiative Foundation president. "It aligns well with our community and economic development mission and we are honored to be a partner in this important venture."
"We are very confident in the leadership of the company and, as a community, are very thankful that Mr. Jacobs would be willing to make this investment in Little Falls and Morrison County," said Carol Anderson, executive director, Community Development of Morrison County.
Lee Miller, economic development director, North Central Economic Development Association Inc. said: "The Larson brand has been a staple of the Little Falls community for almost 100 years and we are excited to be part of a package that will enable the company, and more importantly, the jobs, to remain there."
Cathy VanRisseghem, Little Falls mayor, thanks Jacobs and J&D Acquisitions for recognizing the "incredible potential in Little Falls." VanRisseghem also praised the hard work of the lenders behind the effort.
"I'm very pleased that this home-grown company will continue to grow even more right here in Little Falls," VanRisseghem said.
Larson Boats, founded in 1916 in Little Falls, started by manufacturing small wooden, recreational boats and has since grown into an internationally-known company. The Little Falls facility has pioneered a technique known as virtual engineered composite, which produces lighter and stronger fiberglass boats.
"We are very fortunate that Irwin is once again committing himself and resources to our community," said Greg Zylka, chairman, Economic Development Authority of the city of Little Falls. "We are grateful that all these entities could work together for the common good of the community during tough economic times."
In order to stay competitive, Larson will continue to increase production under the Larson, FinCraft and Seaswirl brands while searching for additional contracting opportunities with other manufacturers, expanding the dealer network and increasing international sales.
"I'm very optimistic about the future of Larson and all the brands we've got there," Jacobs said. "The management isn't new, it's staying the same but we're going back to the entrepreneurial way of doing things. Al (Kuebelbeck) will still be calling the shots and he'll report only to me. It'll be hands-on all the way."