Hundreds of jobs were expected
The largest mattress manufacturer in the United States has abandoned plans to construct a manufacturing plant in Lakeville originally estimated to cost $15.7 million and add hundreds of jobs.
Lakeville City Administrator Justin Miller said SSB Manufacturing Company, which manufactures Serta and Simmons mattresses, did not make the deadlines to reportedly obtain over $2 million in state funding grants to build its first plant in Minnesota and paused before completely canceling its development plans for Lakeville last spring.
The building would have been the company’s first project in Minnesota.
“We haven’t heard any reasons why other than they were just re-looking at their strategy nationwide and how they were going to deploy this new plant,” Miller said.
Proposed by the Georgia company in 2015, plans were to lease a 240,000-square-foot building from Scannell Properties, the developer of the Interstate South Logistics Park, in a deal that was to close by fall 2015.
Scannell Properties was to construct the facility on 23 acres in the Logistics Park, located in the southwest corner of County Road 70 and Dodd Boulevard, and the Lakeville City Council had approved establishing a tax-increment financing district to help fund the project.
Under that plan, a portion of property taxes created by the increased value of the development was to incrementally reimburse to Scannell Properties eligible project costs of the development for nine years.
Miller said SSB conducted preliminary site work at the property, but the TIF agreement expired when SSB did not obtain the necessary building permits.
He said he would be more disappointed by the decision if there was no other activity going on in the industrial park, but many projects are in the works.
Miller noted now under construction is the 286,000-square-foot multi-tenant warehouse/office building in the Launch Park First Addition, located east of Cedar Avenue and Eureka Township’s Airlake Airport and north of the Lakeville/Eureka border.
Menasha Packaging, an existing merchandise packaging manufacturer in Airlake Industrial Park, will lease 150,000 square feet of the space to expand its Lakeville operation.
Miller said the City Council is expected to this month approve construction of a 48,000-square-foot building for
Globus Transport to be located on Humboldt Road, east of Dodd Boulevard and south of 217th Street.
“It is clear that our Airlake Industrial Park continues to be attractive to new development and is adding to our tax base,” Miller said. “The site where Serta was planning to build is still being actively marketed and we are expecting high quality development there shortly.”