Gordini project gets $1.1M in state assistance

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May 9—NORTH MANKATO — Gordini USA, which is building a distribution center in upper North Mankato, has received $1.1 million in state financial assistance.

The company was approved for an $800,000 Job Creation Fund and $210,000 through the Minnesota Investment Fund, the Minnesota Department of Employment and Economic Development announced Tuesday.

The 20,000-square-foot distribution center in the Northport Industrial Park will cost $12.9 million with construction taking place this summer. The project expects to create 60 jobs within the first five years with an average wage of $19.82 per hour.

Based in Essex Junction, Vermont, the company was founded in 1956 with the goal of making better gloves. In 1970 it introduced the first down and leather glove, and in 1980 became one of the first brands to launch Gore-Tex gloves. In 2015, the brand began making 3D-designed gloves with patented ErgoKnit technology. And in 2018, it created a synthetic leather called Clutch that's said to be more sustainable and durable than animal leather.

The company is now the North American distributor of all of Carhartt's work gloves, socks and underwear.

The North Mankato City Council earlier agreed to a tax increment finance subsidy package for Gordini. TIF sets aside the additional property taxes generated by the construction of the facility to help cover eligible development expenses for nine years.

The North Mankato Port Authority has approved selling nearly 11 acres to Gordini at the corner of Lookout Drive (County Road 13) and Timm Road.

The tax increment financing will amount to $2.1 million, based on a property value that's expected to be $9.4 million in 2025 after construction of the building.

DEED announced $5.4 million in funding for eight businesses.

"The Minnesota Investment Fund and Job Creation Fund are crucial to the success of business expansion in Minnesota," Kevin McKinnon, temporary DEED commissioner, said in a statement.

The Job Creation Fund provides financial incentives to new and expanding businesses that meet certain job creation and capital investment targets. Eligible companies may receive up to $1 million for creating or retaining high-paying jobs and for constructing or renovating facilities or making other property improvements.

The Investment Fund provides financing to help add new workers and retain high-quality jobs with a focus on industrial, manufacturing and technology-related industries.